Do You Owe Money to the IRS? Possible Tax Resolution Strategies to Set Your Mind at Ease

The IRS can be extremely frightening, even for honest taxpayers. The IRS is unique from other government agencies because they have unbridled power to attack your wages, freeze your bank account and even confiscate your property. The thought of those possibilities alone are enough to send a chill up the spine of any taxpayer.

If you receive a letter from the IRS saying that you owe additional taxes, it is important not to panic. It may be a frightening situation, but there are things you can do to settle your tax debt and get back on the good side of the IRS.

Taxpayers do have options when resolving tax disputes and paying additional taxes due, and simply knowing what those options are can set your mind at ease.

As an expert Tax Resolution Firm, we encourage all readers facing a tax problem, whether it’s the feds or the state,  to contact us for a free consultation.

Here are three strategies you can use to resolve your tax debt and get on with the rest of your life. Not all of these options will be right for everyone, but it is important to be an informed taxpayer.

Review the Amount Owed And Your Tax Return In Question

If the IRS says you owe money, you should not simply assume they are right. The tax agency does make mistakes (a lot), as do tax preparers and ordinary taxpayers.

Whether you filed your taxes on your own or hired someone else to do it for you, it is important to examine your return and compare what you find with what the IRS is claiming. It pays to seek professional help for this tax review, even if you originally filed your own taxes. A professional with IRS experience may be able to uncover errors and inconsistencies you would have missed on your own, and that could end up saving you money.

There is no guarantee this review will eliminate the extra taxes the IRS says you owe, but it never hurts to be sure. There have been many cases in which taxpayers who thought they owed money to the IRS ended up owing nothing – or even being due a refund from the IRS.

Set Up a Payment Plan

Getting a notice of additional tax due from the IRS is frightening, especially if you cannot afford to pay what the agency says you owe. Keep in mind, however, that you do not necessarily have to pay the bill all at once.

The IRS is often willing to set up payment plans with taxpayers, and those payment plans could make paying what you owe easier and less stressful. Once again, it is a good idea to seek professional help and guidance here – the IRS can drive a hard bargain, and you do not want to end up with a payment plan you cannot afford and wind up defaulting on it.

If you fall behind on the payment plan you agreed to, you could be subject to additional enforcement action, including the tax agency garnering your paycheck or seizing funds from your bank accounts. Getting the help of a tax resolution professional up front can help you avoid these serious consequences.

Explore an Offer in Compromise Settlement

If you are truly unable to pay the money the IRS claims you owe, you may be able to work out a (much) smaller lump sum payment. The IRS may not advertise this program, but they are often willing to work with taxpayers by accepting lesser amounts, especially if those taxpayers have little in the way of equity in assets and a limited income. Sometimes these settlements can be for a fraction of what’s owed, if you qualify.  We offer a free no obligation consultation to find out if you qualify.

If you plan to explore this last option, it is critical that you work with a tax resolution expert. An offer in compromise can be extremely complicated, with legalese and language that can be difficult to understand. You do not want to make a misstep here, and you want to ensure that you are only paying the lowest amount, allowed by law, in settlement of your tax bill.

Few things are as frightening as getting a letter from the IRS. That official-looking letterhead is bad enough, but what the letter says is even worse. If you receive such a letter, you need to take positive steps right away. Ignoring the situation will make it worse and it won’t go away, and the sooner you start exploring your tax resolution options the better off you will be.

If you want the help of an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain all of your options to permanently resolve your tax problem.

Success Story: 13-Year Tax Debt of $56,129.00 Settled for $500.00!

Do you owe the IRS for several years?

We recently settled a $56,129 tax debt for a client who owed the IRS for 13 separate year periods – 2007 through 2019. Our firm negotiated a full settlement on the $56k tax debt for just $500. That’s right, this client settled their tax debts for less than 1% of their total 13-year liability.

It is pretty common for someone to come to our office owing taxes for numerous tax years.  If you owe the IRS for several different years, call our office to see whether you qualify for an IRS Offer in Compromise!

IRS Tax Tip: Renting Your Vacation Home

According to a new tip from IRS.gov, if you rent your vacation home for less than fifteen days, you may not have to report it at all. This means, generally, that if you rent your home for 2 weeks per year or less, your rental income is tax free and you won’t need to show it on your return.

The IRS also reports that if you itemize deductions on Schedule A, you may be able to claim qualified mortgage interest, property taxes you pay, and eligible casualty losses.

Alternatively, renting your vacation property for fifteen days or more per year, the rental income you receive is always taxable and must be reported on your return using Schedule E. Claiming your expenses also becomes more complicated with many factors requiring consideration such as the number of days your rent versus the number you use the property yourself. The comparison of days rented versus days used by the owner effects which expenses they can claim, what they can deduct, and how they can be reported.

IRS Publication 527 reviews rental income and expenses, how to report them on your return, depreciation, casualty losses on rental property, and passive activity and at-risk rules.

Did you know that McCauley Law Offices, P.C. can help you with your tax planning needs? Contact us today to regarding all of your tax needs. When the IRS comes knocking, let our knowledgeable attorneys and staff answer.

Tax Evader in Mega Trouble

Pawel Bartoszek, the owner of Mega State, a construction company in New York, was charged with filing false business and personal tax returns from 2015 to 2017.

During that time Bartoszek cashed more than six million dollars in checks paid to Mega State at check cashing businesses, instead of depositing the funds in the business bank account. He used the cash to pay the majority of his employees off the books, and on personal expenses. Bartoszek did not inform his accountant about the cashed checks, and did not declare any of the money on his business or personal tax returns.

He faces up to 18 years in prison and restitution to the IRS.

Contact McCauley Law Offices, P.C. today for your free consultation. Let us fight to get the IRS off of your back.

Levy Released on $1.9 Million Tax Debt with IRS

When you owe the IRS a lot, they have no problem assigning their most skilled agents to your case.  In this particular instance a taxpayer came to our firm owing almost $2 million. The IRS had become aggressive in their collection actions and instituted a wage garnishment against the taxpayer by sending their employer an IRS Form 668-W.

What is a Wage Garnishment?

A wage garnishment is the IRS attempt to collect on the outstanding tax debts.  If, or more likely when, the IRS decides to pursue collection against a taxpayer, they typically go after the low hanging fruit first.  Normally the IRS will either institute a wage garnishment or a bank levy.  If you are a W2 employee, a wage garnishment seems to be their preferred method of collections.  If you haven’t voluntarily disclosed to the IRS where you work, they can normally find out themselves, either through a review of the Wage and Income transcripts which contain copies of your prior Form W-2’s filed with the IRS, or through other online research (LinkedIn, Facebook, etc.).  The IRS simply needs mail your employer an IRS Form 668-W to institute this action.  Upon receipt of the wage garnishment, your employer will begin forwarding your hard earned compensation to the IRS.

How to Release a Wage Garnishment?

Once the IRS begins collection against you through a wage garnishment it can be very difficult to release.  The IRS now has the high ground and leverage against you.  Our firm has encountered numerous instances where the IRS has then forced the taxpayer into a “bad deal” or one that they could not afford.  If you owe the IRS back tax debts and are being subjected to a wage garnishment its important to seek help and counsel from a qualified professional as quickly as possible; our firm can help you just like the above taxpayer who owes the IRS almost $2,000,000.

Your IRS Questions Answered Here…

Question: I received a Notice of Federal Tax Lien from the IRS for unpaid taxes and I’m scared and don’t know what to do. How do I get this situation resolved? 

Answer: A Notice of Federal Tax Lien (NFTL) is public record and is generally filed with the County Recorder where you reside.  It’s a formal notice to all your creditors that the IRS has a secured interest in your real and personal property that you own and acquire in the future. A federal tax lien is usually the “kiss of death” however, there are 4 ways to resolve a federal tax lien – You can request a Lien Subordination, a Lien Discharge, a Lien Release, or a Withdrawal of a federal tax lien, if you qualify.

A federal tax lien will make it very difficult, if not impossible, for you to purchase or sell a home, vehicle and other property on credit.  It may also prevent you from accessing the equity in real property you may have built up over the years.  However, the IRS has several different options that deal with resolving a NFTL if you qualify.   One of these is to apply for a Withdrawal of the lien.  Winning a Withdrawal of a NFTL is as if it never happened in the first place! The IRS will consider this if the Lien was filed prematurely or was not in accordance with IRS procedures, which happens a lot!  The good news is that you generally won’t have to meet or even speak with the IRS while we’re retained.  It’s important to consult with a tax professional to see what Lien relief programs you may be eligible for before the IRS starts seizing your property. We can help protect what you already own and preserve your rights!!

We at McCauley Law Offices, P.C. are experts in IRS tax problem resolution and help taxpayers with their TAX JAMS every day.  There is a solution to EVERY problem. Generally, you’ll never have to meet or speak with the IRS once you bring us into the picture. Contact us today!

Pennsylvania Nurse owes $93,523 to IRS & Settles for $2,500

Dealing with back tax liabilities can be tough, especially when you’re a nurse busy caring for others.  This taxpayer came to our firm after the IRS had issued a wage garnishment against her income.  After forcing the IRS to release the garnishment, we knew that it was in our clients best interest to pursue an Offer in Compromise.  Our firm was able to reach a settlement with the IRS on her $93,523 tax debt, with our client paying only $2,500.

Contact McCauley Law Offices, P.C. today about your Tax Jam and get the IRS off your back!

Small Business Owner – Owe Payroll Taxes? Here’s What To Do.

Unpaid payroll taxes are a serious matter to the IRS and are some of the worst kind of back taxes you can owe. If you’re a small business owner with a payroll tax problem, read on to learn what you can do to avoid the IRS crippling your business or worse, shutting your business down completely.

Already in payroll tax trouble? Contact us to schedule a free, no-obligation consultation and let’s get your payroll tax issue resolved.

Why Small Business Owners Get Into Payroll Tax Trouble In The First Place

It’s hard being a small business owner today, trying to pay your employees their paychecks every week, and pay the IRS all those payroll taxes!

A lot of times when money is short, you pay the employees first.  It’s a natural thing to do—you need to take care of your employees, even if you have to skip paying yourself!  Besides, if you don’t pay them, they’ll quit and you will have to hire new people all the time.

It can seem easy to “just pay the 941 taxes next pay period” and give yourself a little cash flow cushion, but skipping paying your employees payroll tax deposits is never a good idea.

What happens too often is 1 pay period turns into 2, and 3, and 4, and eventually you’re so deep in payroll tax debt that the only thing you want to do is completely ignore your problem.

Except the IRS doesn’t care about  your financial problems. They just want you to pay your payroll taxes!

The IRS doesn’t care if you can’t pay your employees.  They don’t care if they put your employees out on the street. They don’t care if you can’t collect your receivables.  They don’t care if one of your largest and best customers just went “belly-up”. All they care about is you have money that belongs to them and they will do whatever they have to, even put you out of business, to collect it. They don’t care who you are, or even what business you are in.

Penalties are The Kiss Of Death When It Comes To Back Payroll Taxes

Penalties for failing to file and pay your payroll taxes are the “kiss of death” for any small business owner. They tack on penalties totaling 33% in just the first 16 days! And it doesn’t stop there.  The IRS adds interest on top of the penalties too. It is not uncommon that a payroll tax liability doubles in short order. And if you don’t pay them or work something out, they will shut you down!  It’s much less work for the Revenue Officer, as most are lazy, to simply close you down than work out an arrangement with you.

They IRS Will Collect Or They Will Shut You Down

It’s as simple as that.  The IRS is the most brutal collection agency on the planet.  They have more authority than the President of the United States! And they have all the ways and means to do whatever it takes to collect what’s owed to them.  You didn’t wake up in the morning, go to work, and say to yourself, I’m not paying my payroll taxes because you didn’t want to. The money simply wasn’t there.  It’s not your fault.  One week you’re short of cash.  It was a slow week, a customer’s check bounced, or any number of legitimate reasons that just prevent you from paying the IRS.  You’re a good person.  You figure you will make it up the next week.  But then next week comes and goes, and you realize you still don’t have enough money to make that payroll tax deposit.  And then the entire situation starts “snow-balling” into an avalanche.

Should You Call The IRS To Get Your Payroll Issue Fixed?

If you were to call the IRS, and were able to get through after waiting on “hold” for an hour or two, and try to explain your situation—you might as well have a conversation with the wall—because they don’t care.  The IRS representative that you’re talking to probably makes less than $20 an hour, and is poorly trained.  Do you think they ever had to make a payroll in their life? Do you think they know what it’s like running a small business? Do you really think they will have any sympathy for you?

Not only is the answer “NO” but they can also dictate the fate of your case. What they will try to get, while you’re on the phone, is all your personal and financial information.  They want to know where you bank; they’ll want to know all about your customers who owe you money, they’ll want to know about the value of all your assets, like your home, cars, motorcycles, etc. Why? Because now they have all the information they need to levy your bank accounts, take your receivables and seize your property.

Now that you know you shouldn’t be talking to the IRS because they are not going to help you, you might be wondering what you should do?  Where should you turn for help?  They smartest thing you can do to protect your business and family is to have someone represent you—someone who deals with the IRS for a living. You need to get help—but not just from anyone—you need help from someone who is an experienced competent professional, and deals with the IRS every day, helping small business owners keep their businesses and  settle IRS payroll tax problems.

If you were charged with a serious misdemeanor or felony, would you go to court without a lawyer? You don’t want to represent yourself before the IRS either. You need professional, expert representation.

Reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.  Our expert tax resolution professionals know how to navigate the IRS maze.

Once you decide to retain us, we step into your shoes and protect you from the IRS’s abusive tactics. We take over all communications from the IRS on your behalf. You don’t have to speak with the IRS anymore. We do.  Not only that—they are not allowed to talk to you once you’ve signed our Power of Attorney!  Once they realize you have someone on your side protecting you, who knows their tricks as well as they do, they have to step back and follow the law.  Not only can we protect you from the IRS harassing you, calling you, and showing up at your front door, we can get those penalties reduced and in some cases completely removed!

USA Network’s Todd & Julie Chrisley Each Facing 30 Years in Jail for Fraud!

Stars of the popular reality TV show Chrisley Knows Best, Todd and Julie Chrisley were found guilty of financial fraud and tax evasion, with each facing up to 30 years in prison.

Chrisley Knows Best is USA Network’s most watched current original series and depicts a family with traditional values who happen to be enormously rich. According to court documents, most of their wealth is based on fraud.

In one example, the Chrisley’s obtained a loan worth millions of dollars by using a bank statement saying they had four million dollars in a Merrill Lynch account, when no such account existed. Julie Chrisley was accused of repeatedly using glue and tape to falsify documents.

The couple used the money from the loans to buy luxury cars, designer clothes, real estate and travel. At the same time, they filed for bankruptcy and walked away from more than 20 million dollars in debt.

NBC Universal had just announced that the show was renewed for a 10th season, and a new series, Love Limo, a dating show hosted by Todd Chrisley, would begin next year. Production on both is now on hold.