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After Bankruptcy Lawyer Fails To Discharge IRS Tax Debt, Peter Stephan Rescues Irvine Computer Executive

November 2, 2011 By

When it comes to personal bankruptcy, IRS tax debts can be discharged and removed from your financial record if the proper time requirements are met. If your bankruptcy lawyer fails to report the discharge claim to the IRS, then nothing will happen to the delinquent tax debt. If you fail to go through the proper channels and fill out the paperwork, the IRS will not recognize the bankruptcy and will continue its collection efforts. Such was the dilemma faced by an Irvine Computer Executive who already had lost her high-paying job and gone into home foreclosure on account of the economic downturn. Luckily, with years of experience and expertise helping American taxpayers in trouble, Peter Stephan and the Tax Resolution Institute was able to resolve the problem and wipe away a majority of the delinquent income tax debt.

A Proper Bankruptcy Should Not Lead To More Tax Trouble

A Proper Bankruptcy Should Not Lead To More Tax Trouble

Despite negative perception, the Internal Revenue Service in reality is not a vengeful pirate-like entity looking to ravage innocent taxpayers. What they are is the largest collection agency in the world, and their collection efforts will not stop until all the t’s are crossed and all the i’s are dotted. When the Irvine Computer Executive was forced to declare bankruptcy, her bankruptcy lawyer made some glaring mistakes in the filing process. Although the bankruptcy was accepted, he failed to report the dischargeable nature of the delinquent income tax debt to the Internal Revenue Service. As a result, rather than being wiped away, the $150,000 income tax debt remained on the Orange County woman’s record. You can imagine how disturbing it was when she began receiving notices from the IRS after believing her income tax debt had been wiped clean by the bankruptcy. With her former lawyer unwilling to take action or even return her phone calls, she was caught in a downward spiral that accentuated the horror of losing her job and seeing her family home go into foreclosure.

When the Irvine computer executive came to Peter Stephan and the Tax Resolution Institute with the problem, the first thing Peter did was a tax dischargeability  analysis of the woman’s past income tax debt. Although having knowledge that taxes are dischargeable in bankruptcy, many second-rate bankruptcy attorneys still believe that the IRS will demand to get paid no matter what.  In truth, under specific conditions, personal income taxes are dischargeable. The tax experts at the Tax Resolution Institute know the basic requirements and the nature of the individual tax liability that may be discharged in a Chapter 7 bankruptcy.

The Bankruptcy Code does not specify taxes that are dischargeable, but it does specify the taxes that are excepted from discharge. In simple language, unless secured, income taxes are not excepted from discharge. However, if the requirements are met in full, the process will not fail and the income taxes will be discharged.

Tax Dischargeability Analysis Provided A Solution

Tax Dischargeability Analysis Led To A Solution

After doing his analysis, Peter Stephan realized that $125,000 of the Orange County woman’s $150,000 income tax debt was dischargeable according to the accepted criteria. Since the bankruptcy had already been filed. Peter Stephan went through alternative channels by contacting the bankruptcy unit of the IRS directly. Recognizing the just nature of the claim  that met all of their requirements, the IRS discharged the delinquent taxes and wiped away all penalties.

In conjunction with this filing, Peter Stephan negotiated a very reasonable Installment Agreement for the Irvine Computer Executive that covered the rest of her delinquent tax bill. Incredibly grateful, she was so happy to finally have the chance to make a fresh start. If you have a delinquent income tax problem that needs to be addressed through tax resolution techniques or discharged through personal bankruptcy, please contact Peter Stephan. We can help you overcome this challenging hurdle of tax trouble and make a fresh start.
Filed Under: California Tax Relief, Delinquent Tax Debts, Income Tax Problems, Tax Relief, Tax Resolution Services Tagged With: , , , , , , , ,

Protect Yourself By Knowing The Difference Between A Federal Notice Of Intent To Levy And An IRS CP-504 Notice

October 7, 2011 By

Thousands of Americans who owe back taxes to the Internal revenue Service ignore letters and notices about their tax debt. They just want their troubles to go away, but the IRS will never go away. If you owe back income taxes to the IRS, you may receive a CP-504 Notice. This IRS notice begins with the same message every time: “Urgent! We intend to levy Certain Assets.” Although it appears like the IRS is about to take action against you, this actually is not the case.

Mock-Up of CP-504 Notice From The IRS

Mock-Up of CP-504 Notice From The IRS

Yes, IRS actions against you are coming, but not right away and you still have time to act. Although you do need to take proactive steps, a CP-504 Notice is very different from a Notice Of Intent To Levy. Once you receive a Notice Of Intent To Levy from the IRS, you must take immediate action as opposed to a CP-504 Notice because the clock is ticking and definitive action will soon take place.

Unless you have a tax resolution professional on your side like the Tax Resolution Institute, the Internal Revenue Service will not turn off the glare once you are in their spotlight. If you have back income taxes to settle, contact us and learn the options that make sense for you and will lead to true tax resolution and tax relief. To levy your assets, the IRS must first issue a Notice Of Intent To Levy. The Internal Revenue Service will take addiction collection actions like issuing a Federal Tax Lien, a Wage Garnishment or an Asset Seizure.

Final Notice Means Action Must Be Taken

Final Notice Means Action Must Be Taken

If you have received a CP-504 Notice from the Internal Revenue Service, it is because you have not responded to several previous notices for payment of your delinquent tax bill. The notice may be issued even if you have received “hardship” status. Such “Currently Not Collectible” status needs to be verified with the IRS. Even if you have already worked out an installment plan, you still may receive such a notice. As the largest bureaucracy in the country, the right hand of the IRS does not always know what the left has been doing. The other problem is that a separate CP-504 notice may be issued for each tax period in which you owe back taxes.

What is essential to understand is that if you do not respond promptly to the CP-504 notice, the formal Notice of Intent to Levy will soon arrive in your mailbox. Before this potential disaster happens, please contact the Tax Resolution Institute. We have the experience and the expertise that you need to find real tax relief and peace of mind.

 

Filed Under: Income Tax Problems, IRS Tax Levy, Tax Relief, Tax Resolution Services Tagged With: , , , , , , ,

Important Questions To Ask When Choosing A Tax Resolution Company

August 22, 2011 By
Tax Help from The Tax Resolution Institute

Essential Tax Help from TRI

When you owe delinquent taxes, the trouble seems overwhelming. The IRS compounds interest on a daily basis. The challenge is how to find a tax resolution company that will solve your problem. Here is a list of key questions. The Tax Resolution Institute will be the prime example.

Question 1: Do they offer a free consultation?

Reputable companies examine your particulars before asking for money. How can they help you if they don’t know what the problem is? The Tax Resolution Institute offers a free consultation.

Question 2: Are they respected within the industry? Are they a resource for other tax professionals, CPAs and tax attorneys?

Tax resolution professionals learn from the best. Peter Stephan, founder of the Tax Resolution Institute, wrote The Ultimate Guide To Tax Resolution; a textbook used to train tax professionals.

Question 3: Do they promise an Offer in Compromise right away? Do they immediately promise pennies on the dollar resolutions?

An Offer in Compromise works in some cases, but it should never be promised. Acceptance rates are low so each situation must be analyzed. The Tax Resolution Institute deals in viable solutions, not false promises.

Question 4: Does the company immediately ask for your credit card and social security number?

If they demand your credit card and SS# right away, you could be setting yourself up to be ripped off. A client agreement and IRS Form 2848 don’t require your personal information until you choose to become a client.

Question 5: Does the company have a permanent place of business? Is the company backed by professional agencies?

 Reputable tax relief companies have an address, staff and a website. They have verification seals on their website from known agencies.

Question 6: Do they offer a refund if they fail to solve your tax problem? Do they put their money where their mouth is?

Tax Resolution scam artists are all about the money and false promises. The Tax Resolution Institute finds a workable solution to your tax problem or they refund your fee.

Question 7: Does the company have online scam warnings about them by past clients? 

If a tax resolution company has scam warnings online from past clients, this is a red flag. The Tax Resolution Institute has not had a single complaint by a past client.

Question 8: Is the company a fly-by-night operation or have they been established for at least a decade?

There are many overnight companies designed to rip you off. The Tax Resolution Institute has a long history of successful tax resolution outcomes.

Question 9: Who will manage your case and return your calls? Will your case be handed off to an administrative assistant? 

If you cannot get your calls returned by a tax professional, something is wrong. At the Tax Resolution Institute, only Tax Attorneys and CPAs manage your case.

Question 10: Does the company use jargon to avoid transparency? Do they speak at and above you or with you?

If they are using jargon to confuse you, you should find a firm that is transparent. On the Tax Resolution Institute website, a film editor client described the services of Peter Stephan: “Peter provided guidance and support, and was available when I needed to talk.”

A tax problem is challenging. Ask the right questions and handle it properly. On his website, Peter Stephan of the Tax Resolution Institute explains: “If you believe your tax situation is dire, we are here for you. We’ll find a real solution and ensure your future.”

Filed Under: California Tax Relief, Delinquent Tax Debts, Income Tax Problems, Tax Relief, Tax Resolution Services Tagged With: , , , , , , ,

Your Tax Crisis Is Fair Game: Huge Increase in the Number of IRS Tax Liens Filed In 2009

March 24, 2010 By

Over the past couple of years, as the economic crisis has continued and even deepened in certain places, countless American citizens have found themselves caught between a rock and a hard place when it comes to paying their taxes. When you do not have the cash to cover your tax bill, most likely it will go unpaid. As a direct result, rather than show understanding to people caught in such a bind, the IRS is cracking down by filing tax liens and increasing the pressure to pay. If you find yourself in trouble with the IRS with a personal income tax lien of over $20,000 against you or a payroll tax lien of over $50,000 against your business, please contact the Tax Resolution Institute before the bad turns to worse.

Since the Internal revenue Service automatically slaps tax liens on taxpayers with more than $5,000 in “currently not collectible” debt, regardless of their circumstances, there has been a huge increase in the number of IRS Tax Liens issued. In 2009, the IRS issued over 966,000 tax liens as compared to 168,000 issued in 1999 when the IRS temporarily took it easy on taxpayers due to a Congressional mandate. Such mercy has not been shown during the current recession. In fact, the opposite is true.

Chart of the Increase in IRS Tax Liens

Chart of the Increase in IRS Tax Liens

The problem, however, is that publicly filed tax liens can destroy credit and potentially shipwreck careers and businesses. How are you supposed to pay your tax debt when everyone knows a tax lien has been filed publicly against you? In addition, since the IRS tax lien becomes attached to all of your personal property, you cannot not use effectively what resources you have to settle the tax debt. The point to freezing assets is to put the government ahead of other creditors in case an asset is sold or the taxpayer goes bankrupt. Often, such a safety device turns out to be part of the problem and not part of the solution, creating even more financial problems.

As the IRS employment of tax liens has climbed, the amount its collection efforts bring in, adjusted for inflation, has declined by 7.4% to $27.2 billion. The IRS declares that such a decline is in part due to the weak economy. In truth, it very well may represent a tendency of draconian collection techniques to backfire. As National Taxpayer Advocate Nina E. Olson asks, “Why is the IRS destroying the credit of so many taxpayers if doing so isn’t furthering revenue collection?”

What is even worse is that once a taxpayer pays their tax bill, the tax lien stays in his credit file for seven years. Moreover, the IRS is reluctant to use a power Congress gave it to withdraw a tax lien so it does not damage a taxpayer’s financial record. Can we look to Congress to rescue these decent Americans caught in such a tough tax bind? Unfortunately, as history teaches us, Congress only picks on the IRS when the government coffers are overflowing.  Since the American government is going through a tough economic downturn and our Chinese debt continues to rise, Congress most likely will ignore extreme tax collection actions taken by the IRS.

As a direct result, if you or your business are in trouble with over $20,000 in income tax debt or over $50,000 in payroll tax debt respectively, it is time to contact a tax professional. Peter Stephan and the Tax Resolution Institute specialize in relieving serious tax problems by employing the most effective tax resolution techniques. If the IRS has filed a tax lien against you and the dogs are closing in, please do not hesitate to contact us.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Payroll Tax Problems, Tax Lien Problems, Tax Relief Tagged With: , , , , , , , , , ,

The Potential Price of Failing to Pay Payroll Taxes: Orange County Hair Salon Owners Imprisoned

March 9, 2010 By

Why do Peter Stephan and the Tax Resolution Institute take the issue of unpaid payroll taxes so seriously? The consequences of not paying your payroll taxes and willfully withholding payment to the IRS can be severe. In the criminal case of a husband & wife hair salon owners in Orange County, the criminal withholding of payroll taxes led to stiff prison sentences. Such an outcome does not have to happen to you and your business if your payroll tax problems have just begun. We understand that meeting payroll taxes can be a challenge in a difficult economy. But if such a challenge arises, it must be addressed.

Paying Payroll Taxes

Paying Payroll Taxes

Laguna Niguel residents John D. Pham and Anna A. Nguyen were more than your average married couple. Since 1985, the couple operated numerous hair salons under the Fantastic Sams franchise name in cities across Orange County. By failing to pay their payroll taxes and defrauding the Franchise Tax Board of California and the Internal Revenue Service, the couple received stiff prison sentences.

On October 1, 2009, Pham was sentenced to over three years in prison after pleading guilty to willfully failing to account for and pay income and Social Security taxes withheld from the wages his employees. Although Pham and his wife had incorporated 10 companies from 1996 to 2004, all of which failed to pay payroll taxes, the main charge involved the employees of the Fantastic Sams franchises.

Hair Cutting Franchises in Orange County

Hair Cutting Franchises in Orange County

Anna A. Nguyen, Pham’s estranged wife, was sentenced to five months in prison after pleading guilty to conspiring with Pham to defraud the United States by preventing the Internal Revenue Service from collecting taxes owed. Lasting almost a decade, the couple’s conspiracy added up to a loss of over $770,000 of payroll taxes that were never paid to the government.

In addition, the couple avoided paying their income taxes as well, and Nguyen pleaded guilty to owing more than $80,000 in federal income tax liabilities.  They diverted assets from the corporations they controlled for their own personal benefit. As a result, they will have to pay joint restitution in the future of over $620,000 to the IRS.

It is clear that the couple were part of an ongoing criminal conspiracy. If you are having payroll tax problems with your business, it does not mean that you are part of such a conspiracy. Instead, you simply could be experiencing the challenges of a tough economy. As a direct result, Peter Stephan and the Tax Resolution Institute are here to make sure the consequences do not threaten your financial security and the future of your company. Rather than wait for a miracle to happen, take a positive action today to find a resolution and avoid such drastic consequences.

Filed Under: Tax Relief Tagged With: , , , , , , , ,

Man Sells Business to Bank and Settles IRS Tax Liens after Bulldozing His Own Home…

March 2, 2010 By

Terry Hoskins bulldozed his home in Moscow, Ohio, after his bank began foreclosure proceedings. IRS tax liens on business properties owned by Hoskins were responsible. Hoskins had never missed a mortgage payment. The decision by the bank to foreclose on his home in response to the IRS tax liens enraged the homeowner. “When I see I owe $160,000 on a home valued at $350,000, and someone decides they want to take it — no, I wasn’t going to stand for that, so I took it down,” he told a local news station.

T-Shirts Made By Supporters of Tax Protester Terry Hoskins

T-Shirts Made By Supporters of Tax Protester Terry Hoskins

With the amount owed to the IRS, Terry Hoskins could have avoided such craziness if he had consulted with a tax professional like Peter Stephan in the beginning. Business owners in a tax crisis often become stuck and do nothing. By taking action and working out a settlement with the IRS, business owners can avoid the horror that Terry Hoskins experienced.

The struggle between the Internal Revenue Service and Terry Hoskins was resolved when the RiverHills Bank purchased his Amelia carpet business for the opening bid of $666,666.67 at a sheriff’s auction. The deal had the bank clear all debts, including money owed to the IRS. Daughter Miranda Hoskins commented: “We’ve reached an agreement that both parties are happy with at this point.” Hoskins said that he hopes to rebuild the house that he tore down with the bulldozer. “I’ve actually hung my keys up for the dozer,” Hoskins said.

When asked about the Terry Hoskins case, tax professional Peter Stephan of the Tax Resolution Institute pointed out that such extreme emotional reactions never need reach such a point of volatility. It is like shaking up a coke bottle and being surprised when the carbonated soda shoots out when it’s opened. By not dealing directly with IRS tax problems, a taxpayer shakes up the financial security of their future. As Peter Stephan clearly explained, “If Terry Hoskins had called the Tax Resolution Institute when his tax crisis first arose, he never would have had needed the bulldozer in the first place.” If you need tax resolution services, feel free to call the Tax Resolution Institute at 877-829-8370 or fill out our  tax resolution form.

Filed Under: Tax Relief Tagged With: , , , , , , ,

Taking It Down: Man Facing IRS Tax Liens Bulldozes His Own Home…

March 2, 2010 By

Documenting his actions on video, Terry Hoskins bulldozed his home in Moscow, Ohio, after his local bank began foreclosure proceedings. IRS tax liens on business properties owned by Hoskins were filed on his home. Hoskins had never missed a mortgage payment. In fact, he was never even late on a payment on his home. The decision by the bank to foreclose on his house in response to the IRS tax liens enraged him. “When I see I owe $160,000 on a home valued at $350,000, and someone decides they want to take it — no, I wasn’t going to stand for that, so I took it down,” he told a local news station.

In a Tax Protest, Terry Hoskins Bulldozing His Own Home

In a Tax Protest, Terry Hoskins Bulldozes His Own Home

The bank moved to foreclose on the home, even though Hoskins claimed he had received a $170,000 offer on the property from an interested buyer. “As far as what the bank is going to get, I plan on giving them back what was on this hill exactly [as] it was,” he said. “I brought it out of the ground and I plan on putting it back in the ground.” There is no question that the reaction of Terry Hoskins to possibly losing his home and his property was extreme to say the least.

With the amount owed to the IRS, Terry Hoskins could have avoided such insanity if he had consulted with a tax professional like Peter Stephan. Business owners in a tax crisis often become stuck and do nothing. By taking action and having a skilled professional like the Tax Experts at the Tax Resolution Institute work out a settlement with the IRS when the crisis first arises, business owners can avoid the horror that Terry Hoskins experienced. And the story only gets worse…

Hoskins is now facing outstanding tax liens on his carpet business, and he is considering the option of continuing his demolition derby and taking out his business before the authorities can seize it. The IRS filed the tax liens against the business and his commercial property after his brother sued him as a former business partner. He leveled the home with a bulldozer, and Hoskins is threatening to do the same with the business before it goes up for auction next month.

When asked about the Terry Hoskins case, tax professional Peter Stephan of the Tax Resolution Institute pointed out that such extreme emotional reactions never need reach such a point of volatility. It is like shaking up a coke bottle and being surprised when the carbonated soda shoots out when it’s opened. By avoiding IRS tax problems, a taxpayer shakes up the financial security of their future. As Peter Stephan clearly explained, “If Terry Hoskins had called the Tax Resolution Institute when his tax crisis first arose, he never would have had needed the bulldozer in the first place.”

Filed Under: Tax Relief Tagged With: , , , , , , ,

The California Tax Evasion of Sinbad

December 20, 2009 By 63 Comments

When you think of the name Sinbad, the first thing that might pop in your head back in the day was the classic adventure film, The Seven Voyages of Sinbad. Today, the first thing that should pop in your head, particularly if you live in California and are experiencing the supply side pain of the state’s extreme budget crisis, is the Number One Celebrity State Tax Evasion of Sinbad. Indeed, no celebrity owes more taxes to the state of California than the well-known comedian. With a delinquent tax bill of $2,522,424.10 according to a public report made by the California Franchise Tax Board, Sinbad easily makes the top ten of the biggest tax debtors in California.

With huge tax problems, is Sinbad the Comedian calling his manager?

With huge tax problems, is Sinbad the Comedian calling his manager?

Listed as Sinbad Adkins from Oak Park, Illinois, the comedian, seen most recently starring in the Christmas comedy, Jingle All the Way, could have avoided a mountain of penalties, interest and bad publicity if he had consulted with Peter Stephan and the Tax Experts at the Tax Resolution Institute. In a past case detailed in the Success Stories section of the Tax Resolution Institute website, Peter Stephan helped an entrepreneur settle a past tax bill of over one million dollars with California for an incredibly reasonable $15,000. With a noted expertise at and extensive experience of negotiating both Offers in Compromise and Installment Agreements with the California Franchise Tax Board, Peter Stephan could have delivered easy and straight forward tax resolution and remedied Sinbad’s tax crisis.

The California Franchise Tax Board filed the tax lien against Sinbad Adkins on September 17, 20001, and the celebrity comedian has been under a dark cloud of scandal ever since. His representatives and advisors refuse to comment on the story, but clearly they are not helping Sinbad find a solution to his huge tax problem. If they were helping him, they would have brought Peter Stephan into the mix long before the tax lien was ever filed and the state tax debt made part of the public record.

If you have California state tax problems, whether in the context of personal income taxes or your company payroll taxes, please do not sit on your hands and stall until the situation gets out of control. By contacting the Tax Resolution Institute and laying your case on the table, you can find freedom from your tax problems, ensuring your future reputation and financial security. For Sinbad, the foolishness of joining O. J. Simpson on the list of the worst celebrity tax debtors in California has permanently tarnished his name and placed his personal finances under the microscope.

Is there any reason to allow your back tax debt to result in such a serious disruption in your life? The obvious answer is “NO!” so please avoid any more unnecessary damage and take the right action today. By contacting the Tax Resolution Institute, you are taking the first step on the road to freedom from your tax burden. After all, as Sinbad learned the hard way, a bad tax problem will never just magically go away.

Filed Under: Tax Relief Tagged With: , , ,