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Showing posts from October, 2011

Understanding Tax Liens, Penalties and Interest For Back Tax Debt Owed to the IRS and/or State Taxing Authorities | Where the Rubber Meets the Road

"Why was a tax lien filed?" or "Can you abate the penalties?" are the two most common concerns I hear from potential clients.  While others (sales people) have no problem telling you that they will remove the tax lien and get rid of the penalties I will attempt to explain to you where the rubber meets the road.

If you owe the IRS more than $25,000 there is going to be a tax lien filed, period.  You can appeal the initial notice of federal tax lien but that doesn't prevent it from being filed.  It can be withdrawn if you are successful in appeals.   If you owe more than the threshold amount of $25K good luck with that.    

The IRS takes the position if you did the crime you must do the time.  That time is in the form of both the filing of a tax lien as well as penalties and interest.  While abating penalties is much more likely than releasing a tax lien if you owe more than $25,000, it certainly is not a given.   You must demonstrate reasonable cause existed in…

What I have Learned From My Clients Regarding the Scam Known As Tax Masters

They seen the flashy TV commercials of Patrick Cox's side profile telling taxpayers with back tax debt "We Solve Tax Problems".  They had been hoping that the claims of tax help were true. They took a leap of faith and decided to hire Tax Masters so long that they could feel help was there and they could start to sleep better at nights.  They would soon be awakened when their bank accounts were levied and no one from Tax Masters were calling them back.  Then they did their homework and found sites like mine.  They contacted me and found out the truth how there are many scams in the tax debt representation industry, with Tax Masters being the biggest of them all.

How companies can continue to operate like this is beyond imperceptibly.  Here is a synopsis of one man's experience of using Tax Masters.

Paying Tax Masters $4000 to prepare and negotiate an Offer in Compromise.  After several months went by and not Offer was submitted the taxpayer gets hit with a IRS bank …

More Payroll Tax Debt for Businesses | Payroll Tax Law Changes Affecting Businesses Due To Health Reform Legislation

TAX CHANGES AFFECTING BUSINESSESFor owners of small businesses and their workers, there are some key provisions in which to pay attention. The major ones include: tax credits; excise taxes; and penalties. But whether a business will be affected by them depends on a variety of factors, such as the number of its employees and the amount of their wages.

I.     Tax credits to certain small employers that provide insurance. The new law provides small employers with a tax credit (i.e., a dollar-for-dollar reduction in tax) for "nonelective contributions" (an employer contribution other than an employer contribution under a salary reduction arrangement) to purchase health insurance for their employees. The credit can offset an employer's regular tax or its alternative minimum tax (AMT) liability.

Small business employers eligible for the credit. To qualify, a business must offer health insurance to its employees as part of their compensation and contribute at least ha…