Payroll Tax Problems Unpaid Payroll Taxes Tax Help IRS Tax Problems Back Taxes Settle Back Tax Debt Reduce IRS Debt Release IRS Lien Stop IRS Levy
You are here: Home / Tax Relief Blog

From CNN: President Obama & House Speaker Boehner Square Off In Payroll Tax Fight With Zero Progress

December 21, 2011 By

By Tom Cohen and Alan Silverleib at CNN, the National Payroll Tax Cut that was supposed to be extended to businesses and the American people with a temporary compromise by Congress for an additional two months made zero progress before shutting down for the holiday break. As the Senators and Representatives take off for a season of good cheer, American business owners still do not know whether they will continue to have a break in payroll tax cuts to help them out next year.

John McCain explained the conflict being caused by the Tea Party radicals the best: The lingering dispute is hurting us, veteran Republican Sen. John McCain of Arizona told CNN, adding that the reality of the issue is that the payroll tax cut must be extended to help out Americans still struggling in the economic recovery.

Payroll Tax Cut Helps Everyone

Payroll Tax Cut Helps Employers And Employees

Let’s face the truth! The Tax Resolution Institute recognizes that the first priority of the Federal government, even as an election year rapidly approaches around the bend, is not to take care of and make sure the American business owner is secure and comfortable as the economy continues to be a roller-coaster ride. If you company has serious tax issues and you are confronting a payroll tax debt, contact the Tax Resolution Institute today for help.

Here is the article, cut down to size, as it basically appeared on CNN.com…

Washington (CNN) – The congressional impasse over extending the payroll tax cut became a showdown Tuesday between President Barack Obama and House Speaker John Boehner. After the Republican-controlled House passed a measure calling for more negotiations, Boehner made public a letter to Obama that urged him to order the Senate back from its holiday break to take part in further talks.

Boehner: ‘I need the president to help’

 

Leaders in the Democratic-controlled Senate reject that idea, and Obama agreed with them, telling reporters in a previously unscheduled appearance that the House must approve a two-month extension passed by an 89-10 vote in the Senate. ”The bipartisan compromise that was reached on Saturday is the only viable way to prevent a tax hike on January 1,” Obama said. “It’s the only one.”

The House motion, passed Tuesday with no Democratic support on a 229-193 vote, expressed the chamber’s disagreement with the Senate plan and called for the dispute to be immediately taken up by a House-Senate conference committee — something already ruled out by Senate Majority Leader Harry Reid, D-Nevada. However, Boehner and the Republican leadership prevented a direct vote on the Senate’s two-month extension, signaling they may lack enough GOP support to defeat it in the face of unrelenting pressure from the White House, Democrats and some Senate Republicans.

Obama calls House to vote on extension

 

Instead, the House approved a separate resolution supporting a yearlong extension of both the payroll tax cut and emergency federal unemployment benefits. House Republicans are also pushing for a new, two-year “doc fix,” or delay in significant scheduled pay cuts to Medicare physicians. All three measures are set to expire December 31.

Meanwhile, House members headed out of town for their holiday break after legislative business ended Tuesday. The Senate measure approved Saturday called for a two-month extension of the payroll tax cut, unemployment benefits and the “doc fix” spending. It was a fallback plan designed to give both sides more time to negotiate.

Now that short-term compromise has slammed into a conservative roadblock in the House, where rank-and-file Republicans are fuming over the two-month time period of the plan, among other things. The lingering dispute is hurting his party, veteran Republican Sen. John McCain of Arizona told CNN, adding that the reality of the issue is that the payroll tax cut must be extended to help out Americans still struggling in the economic recovery. ”It is harming the Republican Party,” McCain said. “It is harming the view, if it’s possible any more, of the American people about Congress.”

Boehner called for Obama to order the Senate to return from its holiday recess and appoint negotiators. The House already has come back from its holiday break to respond to the Senate’s two-month proposal. In a letter to Obama made public by Boehner’s office, the speaker said, “I ask you to call on the Senate to return to appoint negotiators so that we can provide the American people the economic certainty they need.”

White House spokesman Jay Carney told reporters Tuesday that the House needs to pass the Senate two-month extension so that a full one-year extension can be worked out. ”In order for it to get done, it has to pass the House,” Carney said, adding that Obama “cannot order the extension of the payroll tax cut. Congress has to take action.”

Obama then made his surprise appearance in the White House briefing room and called for Boehner to allow an up-or-down vote on the Senate proposal. ”House Republicans refuse to allow a vote,” Obama said, noting that Senate leaders from both parties had agreed to the short-term extension in order to guarantee that taxes don’t increase for working Americans while negotiations continue early next year on the one-year extension that House Republicans say they support. ”What they’re really holding out for is to wring concessions from Democrats on issues that have nothing to do with the payroll tax cut,” Obama said of House Republicans.

Vote on payroll tax bill delayed

The mistrust between the parties was palpable. When asked if Democrats were to blame for the impasse by refusing to name conference committee negotiators, Pelosi said the issue was the refusal by House Republicans to go along with the bipartisan support for the Senate plan. ”Whatever they say is irrelevant,” Pelosi declared about Republican claims of wanting a one-year payroll tax cut extension. “What they do is what’s important, and what they’re doing is not giving a payroll tax cut to 160 million Americans.”

A failure to act could have major economic and political fallout. The payroll tax break alone is worth roughly $1,000 a year for an average family and affects about 160 million Americans.

How The Payroll Tax Cut Affects America

State By State Across The Country — How The Payroll Tax Cut Affects America

Meanwhile, five mostly moderate Republican senators have called for the House to support the Senate’s two-month extension. Sen. Scott Brown of Massachusetts issued a statement after Tuesday’s House vote that said House Republicans “would rather continue playing politics than find solutions.” ”Their actions will hurt American families and be detrimental to our fragile economy,” said Brown. “We are Americans first; now is not the time for drawing lines in the sand.”

The Tax Resolution Institute completely agrees with the last point. Now is not the time to draw lines in the sand and play partisan politices. Now is the time to help ensure the future of the economic recovery by helping American businesses by continuing with the payroll tax cut. If you are in payroll tax trouble, not taking action right away is like putting a lock on your front doors and shutting down your business for good. Payroll tax problems are extreme, but the Tax Resolution Institute knows how to keep your doors open and save you business.

Contact Peter Stephan and the Tax Resolution Institute for a free consultation  and the professional help you need to avert a crisis and turn 2012 into a year of profitable progress for you and your business.

 

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

Could An ETF Investment Cause Problems With The IRS? The Wall Street Journal Advises You To Ask Questions

December 15, 2011 By

As the economy tightens and investors look for new opportunities, the exchange-traded fund has become more and more popular.  As an investment fund traded on stock exchanges that contains viable assets such as stocks, commodities, or bonds, ETFs, when used appropriately, are really an extension of the index mutual fund. What is enticing is that they offer investors a myriad of opportunities otherwise not available with traditional mutual funds.

Wikipedia explains how an exchange-traded fund functions and why it often makes sense for an investor.  By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. The structures of the funds, however, are sometimes not examined fully, and they can be taxed quite differently from your everyday mutual funds. As result, the Tax Resolution Institute has noticed that there are specific taxation potholes with ETFs that need to be addressed before taking the leap. Luckily, the Wall Street Journal came to the rescue.

The Traditional Experts of American Finance

Wall Street Buddha: The Traditional Experts of American Finance

Laura Saunders and Jason Zweig of the Wall Street Journal outline some key questions to ask regarding such investments in What to Ask Before Buying. Keeping one step ahead of such investment imbroglios can save you some serious tax problems when it comes time to filing your tax returns later this year. Here are a few pertinent questions to ask in the beginning so you avoid an IRS tax crisis in the end:

1) When it comes to this kind of investment, are there tax potholes that I don’t know about? 

And the Wall Street Journal’s answer is that there are many such quirks in the world of exchange-traded products. For example, there are several ETFs that focus on precious metals like SPDR Gold Trust and iShares Silver Trust. As you can see, they are designed as Trusts.  An investors in such a trust can be caught off-guard when they find out their long-term gains are being taxed at 28% rather than 15%. That’s  not fair! Why is the IRS doing that to me? Well, to put it simply, the metals are deemed “collectibles” by the IRS and subject to higher taxation rates. Sorry.

2) By investing in these complicated funds, will I really have to make multistate tax filings? 

If you own a publicly traded partnership, you may have to file a tax return in more than one state. If income is generated in other states that is above a certain level, you will have to pay taxes in that state as well. For example, if you invest in one of those surprise oil fields in Southern California and they hit a gusher,  you’ll have to pay California state taxes even if you live in Chicago, Illinois. In addition, even if the payout on that one particular investment is below a certain threshold, the total payout from your investments across the board may put you over the limit. Although you are not being taxed on those external investments, they can effect whether you are taxed on

Read The Full Menu And The Fine Print Before Making Your Decision

Read The Full Menu And The Fine Print Before Making Your Decision

3) Will I be surprised by the ‘cost basis’ of my investment when I sell it when I am doing my taxes next year?

When you sell such an investment that is taxable and needs to be fully examined, the overall gain or loss of the income source is measured from the purchase price, known as the “cost basis.

Tracking cost basis is difficult to say the least, especially when there are adjustments from different sources. An Exchange-traded fund can include multiple investment sources. When it comes to such investments, your tax professional better be clear about the return of capital and exactly how the dividends were reinvested. If mistakes are made, the innocent taxpayer can end up, either looking like a criminal or a fool. The Tax Resolution Institute have seen clients that have both overpaid such taxes to the extreme without knowing it or underpaid to the point where the IRS came after them for the delinquent tax debt.

What the Tax Resolution Institute advises you to do is to read the fine print and check out the entire menu before making a major investment. Yes, exchange-traded funds have manageable costs and are flexible. In fact, if handled properly, they can even be tax efficient. For example, mutual funds are required to pay out all dividends and capital gains annually. If your mutual fund portfolio has lost value, there remains a tax liability on the capital gains that are less than a shadow. ETFs typically do not have this problem, but, as we discussed, they have other questions that need to be addressed before buying. But make sure you have covered the bases before you write the check.

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

A Surprise Early Christmas Gift From The Tax Resolution Institute — No New IRS Levies Until January 2, 2012

December 12, 2011 By
IRS Christmas Gift - No Tax Levies Or Liens Until 2012

IRS Christmas Gift No New Tax Levies 'Til 2012

Since the holiday season is a time when everyone should be able to celebrate with family without the fear of an IRS Tax Levy, here is a gift of essential tax relief information and a surprise reveal that the Internal Revenue Service has a heart. Everyone is still hurting from the tough economy over the past few years, and the IRS is giving American citizens with tax problems a bit of a breather. Mind you, the policy for the IRS has always been never to file a new Tax Levy during the oficial holiday season from December 22 to January 2.

It is something of an unwritten rule that no new IRS Tax Levies are filed or acted upon during this period. This year, the Tax Resolution Institute has heard rumblings through the grapevine that no IRS tax levies are going to be filed for the rest of December 2011. Although they are the largest collection agency in the world, the IRS understands that the American taxpayer needs a little extra relief this time around. Yes, the IRS respects the family spirit of the Christmas season every year so this year they are giving you a little something extra in your stocking, Please use the bonus and make a New Year’s Resolution to take action on your delinquent income tax debt. Contact a tax professional for honest and effective tax relief.

If you owe a back tax bill and have been receiving notices and warnings from the IRS, you have the freedom to plan your course of future action. The goal of tax resolution is to protect the future security and financial freedom of you and your family over the next two and a half weeks. Even with the knowledge of this holiday breather, a majority of delinquent taxpayers,will remain stuck in a state of procrastination and do nothing. It is kind of the Internal Revenue Service to give you this breather, but they will be right back at it in 2012 as the largest and most effective collection agency in the world. If the IRS is a gift horse, please don’t look it in the mouth and get bit. Instead, take the action and feed the horse what you owe and restore your financial integrity.

Once you have received a Notice of Intent to Levy from the IRS, you have 21 days to act before all financial accounts levied are frozen. You will not receive that notice before 2012, but if you are behind in your income taxes, watch out come this January. If you have already received an IRS tax levy, this gift of a holiday lull by the IRS is the perfect time to take constructive action. An IRS Levy has to be addressed by a tax professional before a dire situation sets in where your future financial freedom is lost. Still, at the Tax Resolution Institute, we are happy and grateful that the IRS has extended that unwritten period of holiday relief because we know you need a breather.

The IRS Gift Horse Cannot Be Ignored

This IRS Gift Horse Cannot Be Ignored

No New IRS Tax Levies will be filed for the rest of 2011. The goal of the Tax Resolution Institute is to help effectively resolve your delinquent tax problems and restore your financial freedom. So please do not look a gift horse in the mouth this time around! Take advantage of the generosity of the Internal Revenue Service by contacting TRI and saving your ability to take care of your family and be truly self-supporting in a tough economy. The IRS has opened the door to future freedom; the Tax Resolution Institute can help you through and find the tax relief you desperately need and desire. That is our Holiday wish for you!

Filed Under: Delinquent Tax Debts, IRS Tax Levy, Tax Relief, Tax Resolution Services Tagged With: , , , , , , ,

Small To Mid-Sized Companies With Delinquent Payroll Tax Debts Need A Tax Professional In Their Corner

December 6, 2011 By

The Tax Resolution Institute has seen payroll tax problems close a business overnight and lead to criminal sanctions against the owners, including prison time. Due to the economic downturn, the IRS has been increasingly aggressive in their collection attempts for past due payroll taxes. For example, if you are a struggling business owner in Orange County with delinquent payroll taxes, you need to know right away how to protect your company and livelihood. Why stick your head in the sand and let the IRS levy your funds and take control of your cash flow and your incoming finances Peter Stephan and the Tax Resolution Institute can help you resolve payroll tax penalties with the best in tax resolution services and avoid any long-term devastation to your company and your reputation.

Payroll Tax Borrowing Is Criminal Theft From The IRS

Payroll Tax Borrowing Is Criminal Theft From The IRS

In these difficult days in a questionable California economy, TRI has seen a couple of past clients in Orange County and Irvine go under. Luckily, they went under on their own terms and not in the clutches of the IRS. We warn every business client that delinquent payroll taxes can be the downfall of an otherwise successful company. Payroll tax problems can cause long-term damage that your business may never recover from while staining your professional reputation. None of your clients who owe you incoming invoices wants to be contacted the IRS and told to pay the money to them directly. But this is what will happen if you are not careful and smart.

It makes sense that in tough times a small business may find themselves in a cash crunch with a lack of financial resources. It is no surprise that you might be tempted to borrow from the money they collect from employment taxes to pay operating expenses. Not stealing the money, just borrowing it for a short period until things improve and invoices are paid and that big deal happens. This is a huge mistake because what many businesses don’t know is that the IRS views non-payment of payroll taxes as a criminal act of theft. The Internal Revenue Service does not care about your cash flow crisis. The payroll taxes you hold are called a trust fund because the federal government trusts you to make your payments. If you don’t, the penalties and consequences are quick and severe.

Collecting Payroll Tax Debts Is The Top IRS Priority

Collecting Payroll Tax Debts Is Now A Top IRS Priority

With highly effective collection methods, the IRS is ruthless and the biggest risk that business owners with payroll tax problems can take is incurring their focus. They will levy your customers and clients, and they will use every tool in the book to collect that delinquent payroll tax debt. In addition to having your cash flow cut off, you will also risk permanently losing valued customers because your payroll tax problems can damage your reputation. After being contacted by the IRS, your clients may no longer want to do business with you. Can your company afford in these times to lose any ongoing source of revenue. Even worse, if they can’t be paid, the IRS will close your doors, shut you down and start criminal proceedings against the responsible party, the signer on the payroll tax bank statements.

Do you want to find the doors to your company padlocked overnight while you face such charges and a possible prison sentence. And the Federal Government needs money. They need to fund deficit-reduction strategies as well as close the growing tax gap. As a direct result, the IRS is making the collection of delinquent payroll taxes their top priority. The IRS Revenue Officers are taking a closer look at employment tax returns and other possible reveals of a delinquent payroll tax problem.

If you have a payroll tax debt, the time to take action is today. You do not have the luxury to wait. Contact the Tax Resolution Institute and we will give you a free consultation that lays out possible methods of paying off the tax and avoiding the penalties. To protect the future of your business, you need a respected tax professional like Peter Stephan in your corner!

 

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

Bankruptcy And Tax Debt In California: What Debt Is Dischargeable? Can I Discharge IRS Tax Debt?

November 21, 2011 By
Tax Resolution and Bankruptcy

Tax Resolution and Bankruptcy

There are many misconceptions about bankruptcy. People fail to understand and realize that there are specific rules about what types of debt can be discharged under Chapter 7 bankruptcy. Luckily, in an effort to help our potential clients and bring clarity to a confused mess, the Tax Resolution Institute offers this illumination. Since we are based in Southern California, we have seen the problems you are experiencing first-hand and we know how to help. We are the best at tax dischargability analysis.

In general, most kinds of consumer debt can be eliminated under a Chapter 7 bankruptcy filing. If you qualify and the court rules the debt is dischargeable, you can eliminate consumer debt such as:

1) Credit Card Debt

2) Medical Bills

3) Secured Loans like a Car Loan

4) Tax Debt if…

Can I discharge all of my tax debts?

Can I discharge all of my tax debts?

But when it comes to delinquent IRS tax debt, there are very specific rules that need to be followed. Income tax debt can often be eliminated under Chapter 7 if you have filed your tax returns and sufficient time has passed since the tax debt was assessed. If you owe a substantial amount of federal or state tax debt, you may not need to file for bankruptcy.

By examining your records and providing a free consultation, the Tax Resolution Institute can come up with the solution that works the best for you. Whether it is an Offer in Compromise or an Installment Agreement, Currently Not Collectible Status or Bankruptcy, the Tax Resolution Institute will help solve your IRS delinquent tax problem and find a way to help you back on the road of prosperity and success. If you live in California and you are in serious tax trouble and considering bankruptcy, do not hesitate. Call the Tax Resolution Institute today for help and the best in tax resolution services at 877.829-8370.

 

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

After Newport Beach Tax Return Is Filed In The Filing Cabinet, TRI Abates $188,000 In IRS Penalties And Interest

November 14, 2011 By

The Tax Resolution Institute has experienced so many examples of high income clients with serious IRS income tax problems where the client truly is not at fault. Yes, they did not pay their taxes, but not because they were evading them or did not have the money to cover their tax bill. Instead, they were victims of stupidity and foolishness by people who work for them. A perfect example is when a Newport Beach Entrepreneur finished his taxes, wrote the check, then gave the papers with check attached to his assistant with the express request to file the return. Did the assistant file the taxes on time with the Internal Revenue Service? Nope. Foolishly, he filed them in the office filing cabinet, and no taxes were ever paid.

The Newport Beach Entrepreneur Needed To Stay One Step Ahead!

Tax Crisis of a Newport Beach Entrepreneur

When you are a successful entrepreneur, you always have to everything to stay one step ahead of the game. In today’s challenging Orange County economy, the Newport Beach Entrepreneur had a lot of projects on the table and a lot to do every day to keep the proverbial balls in the air. The tougher the economic climate, the harder the juggling. As a result, when he asked his personal assistant to do something as simple as file his personal income taxes with the IRS, he expected the task to be done. You cannot imagine how surprised he was when he received a notice from the IRS months later. Since he thought the taxes had been filed, he ignored the first notices, even responding that it was a mistake. Finally, when he asked the assistant if the taxes had been filed, he said that they certainly had a showed him the packet in the filing cabinet. Naturally, he was handed his walking papers.

When the Newport Beach Entrepreneur realized that his IRS income tax crisis was out of control, he asked a close business associate for help. The business associate recommended that he go to the Tax Resolution Institute because of their proven history of expertise. Taking a free consultation with Peter Stephan, the Newport Beach Entrepreneur became aware of how extreme his income tax problem had become. Since the interest on delinquent tax debts compound daily and the penalties continue to increase, the Orange County man now owed an additional $188,000 to the IRS. If he was forced to pay the full amount, the future of hus business and the security of his family would be placed in crisis.

Contact TRI today for help!

Contact TRI today for help with the IRS!

Luckily, Peter Stephan and the Tax Resolution Institute had a viable solution to the Newport Beach Entrepreneur’s serious income tax problem. Although it made sense to apply for a Penalty Abatement, the traditional channels would not work because the mistake made by the assistant could not be proved. Nevertheless, by taking a chance and hiring TRI, the Orange County man made the right move. Peter Stephan was able to find a hole in the tax code that allowed for a Penalty Abatement to be filed successfully with the Internal Revenue Service. Illustrating the nature of the problem to the IRS Revenue Officer, Peter Stephan had all the penalties and interest abated in exchange for full payment of the original tax bill.

If you have a serious IRS income tax problem and you need help, contact the Tax Resolution Institute today. If we can help you, we will find a viable option and solution. Whether it is a Penalty Abatement or Offer In Compromise or Installment Agreement, Peter Stephan provides the best in tax resolution services!

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

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: , , , , , , , ,

How Could This Happen To Me? Peter Stephan On Why The Wealthy Have Serious Tax Problems Today (Part 2)

October 31, 2011 By

Peter Stephan of the Tax Resolution Institute gave an in-depth interview at the beginning of October about the wealthy and their sudden increase in income tax difficulties. In Part 2 of this interview, Mr. Stephan shows how initial financial difficulties spiral out of control. Once the money crunch hits the home, wealthy families tend to make bad choices. After all, if they have a couple of kids in private schools or in college, what comes first: the education of the kids or their IRS income taxes? From the wealthy couple’s perspective, obviously the kids come first, but not according to the Internal Revenue Service.

How Did This Happen To Me?

How Did This Happen To Me?

Peter Stephan points out that such protective perspectives quickly become a recipe for financial disaster. Mr. Stephan repeatedly has seen wealthy couples in Orange County and the San Fernando Valley who were bringing in an average of $35,000 a month in income during the good old days. Suddenly that becomes $3,500 a month, and the family is suddenly no longer sustainable as a unit.

Buried in credit card debt with a second mortgage and with all the value taken out of their equity line, such families are no longer affluent. They find themselves in serious financial trouble, and they find the IRS notices in their mailboxes. When the C-504 notice evolves into a Notice of Intent To Levy from the Internal Revenue Service, action has to be taken before there is no turning back. It’s no use asking how this could possibly happen to you. As Mr. Stephan points out from his years of expertise and experience, tax problems can happen and do happen to everyone across the financial board.

When Finances Collapse, You Ignore Your Tax Bill

When Finances Collapse, You Ignore Your Tax Bill

Peter Stephan understands how hard it is for a successful business owner with serious financial obligations whose business suddenly drops off a cliff and is not coming back to health any time soon. Often there is a trickle down effect because they had family working in the business. Not only can they not sustain themselves, but also the crisis is like a contagious disease that the whole extended family catches. This type of financial disaster is what Peter Stephan refers to as the “Snowball Compound Effect.” What becomes essential is to recognize that the problem is not going to resolve itself and proactive steps must be taken.

When such new clients enter the office for a consultation, Peter Stephan is straightforward and honest with them. Mr. Stephan knows that other people tend to put on a happy face and promise pennies on the dollars. In contrast, Peter Stephan and the Tax Resolution Institute deal with real solutions that will solve a tax problem. Whether it is a bankruptcy where the delinquent income taxes can be discharged along with the credit card debt if the proper amount of time has passed or even Currently Not Collectible status, what is essential is to give the family the time to regroup and put their lives back on track.

Let Us Help You Make A Fresh Start!

Let Us Help You Make A Fresh Start!

Yes, the once wealthy couple might have to move into a smaller rental or send the kids to public school, but this is not the end of the world. What is the end of the world is to ignore an income tax tax problem and a financial crisis until there are no viable options left to take. In a majority of cases, less drastic measures are needed, and an Offer In Compromise or an Installment Agreement can work as a positive resolution.

The goal of Peter Stephan and the Tax Resolution Institute is to provide their clients with the best tax resolutions that work and solve the delinquent tax problem at hand. It is true that serious tax problems happen to wealthy people in this tough economy. If you take action and contact the Peter Stephan and the Tax Resolution Institute, viable tax resolution answers can be found as well.

 

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

How Could This Happen To Me? Peter Stephan On Why The Wealthy Have Serious Tax Problems Today (Part 1)

October 25, 2011 By

Peter Stephan of the Tax Resolution Institute gave an in-depth interview at the beginning of October about the wealthy and their sudden increase in income tax difficulties. In Part 1, Mr. Stephan describes how he is seeing so many wealthy families and individuals come to him with serious delinquent income tax problems with the Internal Revenue Service and their local state taxing agencies. In Part II, Peter Stephan explains how those tax problems continue to spiral out of control and offers potential solutions.

How Could This Happen To Me?

How Could This Happen To Me?

In well-to-do communities throughout Southern California, particularly in Orange County and the San Fernando Valley, Mr. Stephan has found a bevy of new clients in desperate need of help and wondering to themselves: “How could this possibly happen to me?” Peter Stephan explains how people with a history of a good income always believe that the next big job is just around the corner. For years, they have made tons of money, spending it almost as fast as it came in. They expanded their businesses, bought expensive homes, sent their children to private schools, and enjoyed the expensive toys of the affluent.

Independent Contractors and entrepreneurs who run their own businesses, particularly real estate brokers and high-end sales people, were slammed by the downturn in the economy. Suddenly their income was cut in half or more, and it does not appear to be coming back any time soon. The truth is that the recession and the contraction in the overall American economy hit everyone hard. When your family is used to having two big paychecks coming in every month, it is hard enough when one of those income sources is reduced.

Where Has All The Money Gone?

Where Has All The Money Gone?

Peter Stephan described how he has seen a multitude of couples where both parties were decimated when the economy in California went sour. The husband lost his job at the same time that the wife’s business went south, resulting in a sudden lack of cash for the first time in many years. How does a well-off couple maintain their lifestyle without the cash flow? Mr. Stephan calls such an attempt to not face reality a “Snowball Compound Effect” that just gets bigger and bigger.

First, the couple starts borrowing on their credit cards to pay their bills and support their family, leading to more and more debt. Second, as the recession hit the real estate market, their home value drops at the same time that their mortgage increases due to the variable rates. As the bills keep piling up and they can’t borrow any more money from friends and family, paying their taxes get lower and lower on the list of priorities.

The Weight of the Growing Debt can be Overwhelming!

The Weight of the Debt is Overwhelming!

If the family has their own business, they often stop paying payroll taxes as well, “borrowing” money from the Trust Fund. The IRS considers playing with payroll taxes and borrowing from the trust fund to be nothing less than theft from the Federal government. There is a reason why the trust fund recovery penalty is called the 100% Penalty. As the piling debt speeds up and bad decisions increase, Mr. Stephan described how you almost hear the Sonic Boom as the crisis gets wildly out of control.

In Part 2 of this article, Peter Stephan will show how and why the financial problems spiral out of control for a wealthy family in tough economic times, leading to a serious delinquent IRS income tax crisis. But there also is an answer. Mr. Stephan demonstrates how the Tax Resolution Institute can provide workable solutions that can provide real tax relief and lead to a new start before the crisis reaches the point of no return.

 

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

Question Of A Taxpayer In Trouble: If I Declare Bankruptcy Will My IRS Income Tax Debt Forever Go Away?

October 17, 2011 By

The answer to this common question is yes, but with specific conditions and reservations. The Tax Lawyers at the Tax Resolution Institute have the experience and the expertise to know when and how to use a bankruptcy to clear a delinquent IRS tax debt. Declaring and filing for bankruptcy can clear some types of IRS income tax debt.  There is an important reservation that must be understood. It will not clear, however, a federal tax lien that has attached to your assets.

Time Limits and IRS Tax Debts

Time Limits: Bankruptcy and IRS Tax Debts

If no IRS tax lien has been filed, income tax debt can be discharged and cleared from your record if some very specific requirements are met in either a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy proceeding.  If these requirements are met, not only can bankruptcy clear IRS income tax debt, it can get rid of state and local income tax debt as well. In other words, if done properly, your slate can be cleaned; you can start over without the burden of looming tax debt.

Timing is an important issue in clearing an income tax debt with the Internal Revenue Service. There are some other basic steps that must be followed. To discharge income tax debt, the following rules apply must be adhered to:

1) Your tax returns must have been due three years or more before the petition was filed. If they have not properly aged, this is a real problem;

2) Your tax returns have to have been filed more than two years before the petition;

3) The tax you owe must have been assessed against you by the government for at least 240 days before the case is filed;

4) Your tax returns must have been truthful and not fraudulent. They must be carefully checked over by a tax resolution specialist before the bankruptcy is filed; and,

5) You must not have been intentionally attempting to evade or defeat the tax when you failed to pay it.

Wipe Away IRS Tax Debt

Wipe Away IRS Tax Debt

In addition, there are some technical rules that can complicate a discharge of tax. If your case falls under such technicalities, your tax lawyer at the Tax Resolution Institute will warn you in advance. In the majority of cases, the delinquent income tax will be discharged if the above requirements are met. What is essential is to work with a Tax Attorney at the Tax Resolution Institute who knows how the laws work and knows when to use them effectively so they work for you. The goal is to wipe away your IRS income tax debt without creating additional problems.

If you have had a federal tax filed against you by the IRS, the income tax debt covered by the IRS tax lien becomes attached to any assets you own at the time it is filed.  As a result, since the lien is attached to the assets, the bankruptcy will not release the lien. What is worse is that it attaches to anything new you acquire so long as the lien is in effect.  This applies as long as you owe the income tax to the Internal Revenue Service.  Until the collection time limit expires or the tax debt is cleared, the federal tax lien will remain in place, and no other action can be taken. To learn more about whether a bankruptcy can help solve your delinquent tax problem, contact the tax experts at The Tax Resolution Institute. We can help solve your tax problem today.

 

 

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Lien Problems, Tax Relief, Tax Resolution Services Tagged With: , , , , , ,
« Older Posts
Newer Posts »