Has the IRS filed a Federal Tax Lien against your house in someone else’s name?

Our office often receives calls from Taxpayers claiming that the IRS has filed a Federal Tax Lien, IRS Form 668(Y), against their house, but the lien is in someone else’s name.  Unfortunately this is very common as the IRS cannot always get it right.  That said, it is important that you make sure the Lien does not impact your house or your property rights; we can help.

Contact our office today to discuss how we can help remove the lien against your property.

 


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

Your IRS Questions Answered Here…

Question:  I do not have the funds to pay what I owe for my 2018 income tax return.  I also was late in filing the return. Not only is the IRS demanding the tax I owe, but they have slapped on these huge amounts for penalties and interest.  I had extenuating circumstances that caused all of this. This isn’t fair…what can I do?

 

Answer:  We can request the removal (abatement) of penalties 2 ways:  1) “First Time” Penalty Abatement and 2) a Reasonable Cause Argument. The IRS writes off billions of dollars in penalties each and every year, but you must know how to do it correctly. A First Time Penalty Abatement  (FTP) can be requested if you have a “clean” compliance record, meaning you have not incurred a Failure to File or Failure to Pay penalty for the 3 years preceding the year you are requesting relief for.  FTP is generally granted in most cases, regardless of what the underlying reason is, if you are eligible.

If you do not qualify under FTP, there are 9 main “Reasonable Cause” arguments to get your penalties removed.  They are: 1) Death, Serious Illness, 2) Fire, Casualty or Natural Disaster  3) Unable to Obtain Records (common issue with couples going through a divorce)  4)  Mistake was made by the taxpayer or tax preparer, 5)  Erroneous Advice or Reliance on a tax preparer  6)  Written/Oral Advice from the IRS  7)  Ignorance of Tax Laws  8)  Reasonable Cause/Ordinary Business Care and Prudence  9)  Undue Economic Hardship.

Your Tax Resolution Specialist will guide through what documentation is needed to submit a formal legal request in writing.  For instance, let’s say you were going through a divorce and you ex-spouse withheld records from you needed to file a complete and accurate income tax return and you filed your return late because of this.  You could request abatement of these penalties using one of the above reasonable cause arguments, specifically #3 above.

Did You Know?

Exotic dancer Chesty Love decided that she needed breast implants to get bigger tips. The IRS said no to the deduction she claimed for the size 56FF implants, but the tax court disagreed, deeming the implants as depreciable assets, a type of stage prop.

A Thousand Talents But Staying Out of Trouble Is Not One of Them

Xiao-Jiang Li, a former Emory University professor, pleaded guilty to filing a false tax return. Li did not declare income he made as a participant in the Thousand Talents Program, which recruits professors and researchers to work for China.

Li was sentenced to one year of probation and ordered to pay restitution in the amount of $35,089 to the IRS. In addition, he was ordered to file legitimate tax returns for the years 2012 – 2018 within the first two months of his probation, and fully cooperate with the IRS in order to make an accurate determination of all taxes, penalties and interest that he owes.

“The defendant thought he could live two separate lives, one here at Emory University and one in China as a Thousand Talents Program participant,” said U.S. Attorney Byung J. Pak.

Starting in 2012 and continuing until 2018, while still working at Emory University conducting large animal research to investigate Huntington’s disease, Li also worked at two Chinese universities doing similar research. During that period Li earned at least $500,000 in foreign income that he never reported on his federal tax returns.

IRS tax attorneys near you with a free consultation

At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is.

View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys.

Nationwide, and international, representation for clients

While we are based out of Chadds Ford, Pennsylvania, we have helped taxpayers in every State find relief of their tax problems.

Not only represent in the United States, but also clients out of the country.

We have the most experience in IRS tax collection issues

A list of IRS collection issues we help with:

Helping you with your IRS tax law services

A list of IRS tax law services we help with:

Available to you anywhere in the US

While we are based out of Chadds Ford, Pennsylvania, we have helped taxpayers in every State find relief of their tax problems.

Contact us today for a free tax consultation.

Who are your lawyers?

Our lawyers are 100 percent focused on tax law. It’s all we do.

Take a moment to meet our two owners:

Gregory M. McCauley

Tax Attorney Greg McCauley has a boutique law firm in Chadds Ford, PA, a suburb of Philadelphia Pennsylvania. He has been practicing for almost 30 years. He is a member of the Pennsylvania, New Jersey, and New York bars. Because he is also admitted to practice in the United States Tax Court, he can represent taxpayers from any state. The firm concentrates its practice in civil and criminal tax cases. As an attorney, Greg can represent taxpayers from every state before the IRS. He will negotiate directly with the IRS so you do not have to.

Gregory M. McCauley Jr.

Mr. McCauley received his Juris Doctor from Villanova University School of Law. After his first year of law school, Mr. McCauley was a summer clerk for Resident Judge Witham in the Delaware Superior Court. Mr. McCauley then served as a summer associate at Cooch and Taylor, P.A. While in law school, Mr. McCauley served as a Student Attorney at the Villanova University School of Law Clinic for Law and Entrepreneurship, where he provided counsel and advised an internet startup company and a 501(c)(3) nonprofit. Additionally, he also assisted a public corporation in drafting securities and corporate governance documents.

Mr. McCauley prides himself in being an honest lawyer and is committed to upholding the highest ethical standards of the legal profession. He is widely known amongst friends and colleagues for his persistence, courage of conviction, and integrity.  Mr. McCauley cares deeply for each and every client and strives to provide exceptional representation.

We’re here to help you!

We are going to get your life back on track.

We are going to fight for the best possible resolution.

We are going to help you beat your tax problem.


View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon.

Calculating Your IRS Penalties

Every year, millions of Americans file their taxes on time.  They either pay the government the amount owed or wait patiently to receive their refund. But what happens when you don’t pay what is owed to the Internal Revenue Service (IRS)?  What types of penalties will you be looking at when everything is said and done?

Well, that depends on how much money or property you have defaulted on, as far as your taxes are concerned.  Most believe their penalty will be monetary. However, there is the possibility you may have to forfeit property.  If it comes to it, you may have to go before a federal judge with the possibility of jail time.  These penalties are based on how much money is owed to the government.  The amount owed will continue to accrue the longer you put off paying.

We will not be able to cover all 150 types of civil penalties written in the United States Internal Revenue Code.  We will cover the some of the most well-known ones.

What Are Some of the Most Common Penalties?

Failure to Pay – This occurs when you have either not paid the taxes you owe for the year or have not filed for an extension.

Failure to File – This occurs when you have not gotten your taxes in the mail before the designated date of April 15 or have not filed for an extension.

Underpayment of Estimated Taxes – This occurs when you do not pay enough in quarterly taxes or have not had enough withheld from your paycheck.

Bounced Check or Credit Card Declined – This occurs when you do not have enough money in your account or you have given a bad credit card number.

Calculating Your Penalties and How It Is Done

Failure to Pay Penalty – Internal Revenue Code §6651(a)(2)

  1. If your taxes are not postmarked on or before April 15 – 0.5%
  2. If you continue to not pay the full amount owed, you will continue to accrue a 25% interest rate until the full amount is paid
  3. Even if you make your payment for the prior month, in the middle of the following month, you are still going to have to pay all the way through the current month.

Failure to File  Internal Revenue Code §6651(a)(1)

  1. It is mandatory to pay 5% of the taxes to be reported
  2. You will be charged 30% each month if you are also being penalized for failure to pay.
  3. Your charge will be applied for a full month if your taxes are received after April 15, but still in the month of April.
  4. 100% of the tax required must be noted on your taxes that you did not pay on time.  Here are the specific dollar amounts:
    • $435 for returns due or after 1/1/2020
    • $210 for returns due between 1/1/2018 & 12/31/2019
    • $205 for returns due between 1/1/2016 & 12/31/2018
    • $135 for returns due between 1/12009 & 12/31/2015
    • $100 for returns due before 2009

Underpayment of Estimated Taxes – Internal Revenue Code §6654

  1. It is typical for estimated payments to be made to the IRS every quarter.  If you receive a raise throughout the year, it is up to you to account that into your quarterly taxes. You may have to use Form 2210. This number will be calculated separately from each individual payment previously received. The interest rate is dependent on how many days/months your underestimation payment is received.

Bounced Check or Credit Card Declined – Internal Revenue Code §6657

  1. Payment over $1,250, you will owe 2% of the amount owed
  2. Payments less than $1,250 is $25

Is it Possible to Remove My Penalties?

Contact McCauley Law Offices, P.C. to see how we can assist you with removing or assisting with penalties you are currently deal with.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

how to find a great tax attorney

How to Find a Great Tax Attorney

Choosing the right tax attorney is important for many reasons: performance, costs, and availability are just a few. You want to ensure that you are working with a professional that can handle negotiations and proper deals with the IRS with regards to your tax debts and future. It is imperative that they get it right the first time.

Are they recommended by others who have experienced similar problems with the IRS?

Check the reviews of the tax attorney that you are going to work with. Are others saying that they accomplished their goals in a timely manner? Were they satisfied with the work that the tax attorney did for them or were they left strapped with higher payments to the IRS and high interest fees.

Are they recommended by the courts and peer professionals?

Do other attorneys speak highly of their work? If you are already working with an attorney for estate planning, or other services, do they speak highly of the tax attorney that you intend to work with?

Do they have great Google, Yelp And Yahoo! reviews?

Google Maps, Yellow Pages (yelp.com) and Yahoo are all sources that you can trust for gathering review data on a potential tax attorney. You can find out about the process and types of services that the tax attorney offers as well.

What convenience does the office offer?

Is their office far away from you or are they are tax attorney near you that offers you an easy, convenient office space to meet at?

Are they a part of professional organizations and networks of certified tax attorney specialists?

A good tax will be in community with other fantastic tax attorneys through networks and other organizations that represent their profession. This helps them to maintain high levels of professional competence and development.

Where did they receive their education?

Knowing where they received their education and law degree may help you make your decision. Their previous experience may also show that they have extended experience in the field.

Do they offer a free consultation?

Are they willing to meet with you to discuss your situation and their process for assistance prior to your agreeing to work with them?

McCauley Law Offices, P.C. can work to provide you with peace of mind and lessen the burden of your tax debts. We negotiate for our clients in all types of IRS tax debt situations. Whether you have a lax lien against property, the IRS is garnishing wages from you, or you need assistance with ensuring that you get a fair installment plan in place to pay your unpaid taxes, we can represent you. It is never too late to reach out and allow us to deal with the IRS on your behalf. We keep your rights and financial needs at the top of our priority list when working with the IRS on your case. You do not have to go through this alone.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

Tax levy

What is an IRS seizure and how to avoid it

The IRS can seize your property if you’re in debt to them. A quote from the IRS website:

“If the IRS seizes your house or other property, the IRS will sell your interest in the property and apply the proceeds (after the costs of the sale) to your tax debt.”

When your property is seized, it’s taken to a local auction to be sold to the public. This money will be used to pay off your debt.

How to get your personal property back from an IRS seize

If a seize is placed on you, contact the IRS immediately to have it reversed.

Further information from the IRS website:

“Contact the IRS immediately to resolve your tax liability and request a seizure release. The IRS can also release the seizure if it determines that the seizure is causing an immediate economic hardship.”

If you can prove that the seized property will cause “immediate economic hardship” to you and/or your family, you may be able to get out of a seize.

Personal property the IRS cannot seize

The IRS has the right to seize a wide variety of assets, but they cannot take everything. Here’s a brief list of things they cannot take from you:

  • Assests or sources of income that you and/or family need to survive on a daily basis (like a home or car)
  • Items that would prohibit a way to earn an income
  • Items necessary for work or school such as clothing or tools

Contact us if a levy has been placed on you to learn how to get out of it.

How to avoid an IRS seizure

1. Pay on time

Avoid a seize or levy by paying the full amount of taxes when they’re due.

2. Ask for an extension

If you need more time to pay it your taxes, ask for an extension. Usually, the IRS will grant a 120-day period of grace to gather payment with no penalties.

RELATED: What happens if you owe the IRS money and don’t pay

3. Coordinate an Installment Agreement

Set up an Installment Agreement to have it paid for in increments every month with interest added.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

selling or refinancing when there is a tax lien

Selling or Refinancing when there is an IRS lien

The dreaded tax lien is essentially an official statement telling you that the government has claim to your property until you pay your unpaid tax debts that you owe the Internal Revenue Service. Tax liens dramatically impact your refinancing and buying options more so than any other kind of debt. The odds of your getting refinancing or selling the property when there is a tax lien involved are slim. The IRS would tell you that until you satisfy the lien you will be unable to sell or refinance the property. The filing of a Notice of Federal Tax Lien is the formal notice that the government provides making a legal claim to the property as security or payment for a tax debt. It puts the other creditors on notice that the federal government has a claim on the property.

If you have a tax lien on your property or assets then you should reach out to our team of tax attorneys and tax specialists at McCauley Law Offices, P.C. You can still sell a property with a tax lien, or request refinancing when you have a tax lien on a property, however you must go about the process a bit differently and be strategic in your efforts. We can assist you with each step.

How do you satisfy a tax lien against your property or assets?

There are a few different options to satisfy the tax line. If you have equity in the property, the tax line is paid by using the equity out of the sales proceeds at the time of closing. This can be in part or in whole depending on the equity. If the home is selling for less than the lien amount, we can request on your behalf that the IRS discharge the line to allow for the completion of the sale. You or the lender can also request that the federal tax line be made secondary to the lender’s lien, to allow for refinancing or restructuring of a mortgage. During times of economic downturns and uncertainty, the IRS works to speed these types of request for discharge or mortgage restructuring. Traditionally, your lender, if you still owe on a mortgage of the property, has the priority lien on the property and that priority trumps any priority that the federal tax lien may have.

So, how does federal tax lien priority work?

It would be a very rare situation to find that your lender’s lien does not have priority over the property. Federal law says that mortgages and other secured asset loans have priority lien after fees and property taxes. They hold the most important lien, if you will, and if you do not pay them then they will foreclose on the property for non-payment. If the IRS filed a federal tax lien on the property or asset, then their request to the property would be secondary to your initial mortgage or asset loan.

Refinancing is Difficult

Refinancing a property that has a federal tax lien on it is very difficult. No standard lender is going to take a risk and offer a refinancing agreement without the mortgage being a purchase money mortgage with the types of protections that are in place. The lender would not lend unless the lien was withdrawn, discharged, subordinated, or paid off at closing.

Ways of Having the IRS Lower the Priority on a Tax Lien

We’d be happy to assist you with requesting the the IRS lower the priority on a tax lien. The IRs has a priority to work with financially distressed property owners to avoid having a federal tax lien block refinancing or the sale of a property. We can request that the IRS make a tax lien secondary to the lien from a lender that is restructuring or refinancing the loan for you. We can request that they discharge the claim altogether if the home is being sold for less than the amount of the mortgage lien in certain situations. The process of requesting a discharge or subordination of a tax lien takes about 30 days after the request is submitted.

Subordination of a tax lien makes the governments lien secondary to another lien on the property, such as your lenders. You can apply for a subordination of a federal tax lien, and without one you will be unlikely to borrow funds or refinance in the future. This is the true way to lower the priority on a tax lien.

Discharge of a lien is available you are giving up ownership of the property, selling it, at a amount less than the mortgage lien if the mortgage lien is senior to the tax lien. Sometimes the IRS will also provide a certificate of discharge of the lien if you have sufficient equity in other assets, thus paying the IRS tax debts owed.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

The Long and Short of It – This Attorney is Going to Jail

New Jersey attorney Douglas M. Long pleaded guilty to evading more than $250,000 in federal taxes on income generated from his law firm. Long, managing partner of Long & Marmero LLP, had primary control over the firm’s finances and supervised the firm’s bookkeeper. He used the company’s bank accounts to pay for school tuition payments for his children, utilities and service fees for his homes, student loan payments for himself and his wife and other personal expenses.

Long had the firm’s bookkeeper classify those payments as law firm business expenses to avoid his tax obligations. In addition, he declared that his personal tax returns for tax years 2012 through 2015 were true and accurate when they were not.

During that time Long concealed over $800,000 in personal income and evaded payment of over $250,000 in taxes owed to the IRS, including $368,000 in income and $120,000 in taxes for tax year 2014.

This was not Long’s first encounter with the law. In 2016 he was reprimanded by the state’s Office of Attorney Ethics for not supervising a bookkeeper who used almost $200,000 in client deposits that should have been held in trust, for firm expenses including overdraft fees and paying back personal loans.

Long’s current tax evasion charge carries a maximum sentence of five years in prison and a potential fine of $250,000, or twice the gross gain or loss from the offense. In addition to the guilty plea, Long agreed to pay restitution to the IRS.