Stephen Wallick June 25, 2019 No Comments

Announcing Our New Partner, Michael Wallick, MBA

Please join us in welcoming Mike to the Stephen Wallick and Associates team!

Michael Wallick, MBA

Michael Wallick has joined Stephen Wallick and Associates as a partner.  Mike will be opening our new Philadelphia PA Office and will split his efforts between Nashville and Philadelphia.  Mike holds a degree in Management with an emphasis in Accounting and a Masters of Business Administration.  Mike also served in the United States Navy and is a Disabled American Veteran.

Mike began his career in public accounting and over the last decade as a consultant with various national and international companies with a host of accounting and tax-related issues.  Mike is also Certified in Sarbanes Oxley with extensive experience in risk management and compliance in addition to Six-Sigma process improvement methodologies.  He has also conducted Quarterly and Annual reviews to assure that public companies were in compliance with SEC reporting guidelines

A sampling of clients that Mike has worked with include PharmaNet, Penske, Generally Electric, Urban Outfitters,  GSK (Global Pharmaceutical Company ), Flint Group, Cenlar and Lehigh Cement Company to name a few.

Mike is also the founding and managing partner of Phoenix Transitional Living.  PTL currently serves the community with a focus on providing safe, clean and sober living arrangements to anyone in Recovery.  Mike started PTL with the intent of helping Veterans that struggled from addiction as a result of injuries or psychological trauma related to the effects of war and military service and has evolved into helping anyone suffering from Addiction.  As of today, this has grown incredibly into 6 homes through the Philadelphia metropolitan area.

Mike is currently completing his Enrolled Agent licensure and holds other professional certifications.

Mike is married to Sarah and together they are raising their 4 children.

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Stephen Wallick August 29, 2018 No Comments

End IRS Problems Now

I’m sure you have heard of IRS programs where you pay less than you owe.

How much less?

Well, if you qualify, A LOT LESS!

The IRS looks at these old tax liabilities and knows they will not collect most of them. So, they have set up this great program called Offer In Compromise. This program allows taxpayers to pay what they can afford regardless of the amount the IRS says they owe.

The Offer Program requires the total amount owed to be included in the settlement. Therefore, once you qualify and have an accepted Offer, you are completely paid up and your tax problems are finally over. And, even payroll taxes can be settled this way.

When I say Settle Up, I mean completely, 100%!

Once the IRS has accepted the amount you offer and you pay the reduced amount, then the IRS releases all Federal Tax Liens.

Your IRS nightmare is over and you get your life back.

Your IRS problem will not go away by itself. You only have three choices to end your IRS Nightmare.

You can do one of the following:

1. Pay the IRS 100% of What They Think You Owe Today.

2. Set up a Monthly Payment Which Never Goes Away Due to the Additional Penalties and Interest That Continue to Add Up.

3. Reduce the Total amount Owed to an Affordable Number and Get on with Your Life!

If you are looking for a solution to your tax problems to get your life back, contact your Middle Tennessee tax resolution experts. We specializes in ending the nightmare of your IRS problems.

Stephen Wallick August 15, 2018 No Comments

Can the IRS Take Your Pension, Retirement, or Social Security Check?

Imagine having the IRS attack your pension, retirement or Social Security check..

The IRS leaves no stone unturned in the never-ending quest to collect taxes, penalties and interest. Sure, people think the IRS can’t or won’t levy retirement funds.

They hope that when they get old, the IRS will forget about them and how much they owe the IRS. Don’t believe it, the IRS never forgets. They just keep adding penalties to what you owe each day until they find you, or your money, or your income source. Then it’s Pay Day for the IRS. Taxpayers with IRS problems never can build up retirement funds or assets! You’ll always be looking over your shoulder for the IRS.

This usually means you have to work until you die. You’ll have no opportunity to save up for the days when you can’t or don’t want to work anymore. Most of the time is seems like there is no end in sight. You get up every day with this incredibly large problem on your back. You wonder, “Is today the day when the IRS shows up at work or at home? Or, will they decide to levy my bank account or paycheck?”

It’s a heavy load to bear day-in and day-out. Most people around you don’t know what you’re going through. You just keep going, but you know in your heart that doing nothing about your IRS Problems are not going to make them go away.

Don’t spend your life looking over your shoulder. Contact your Middle Tennessee tax resolution experts and let’s find a solution together so you don’t have to worry about your pension, retirement or Social Security check being taken away from you.

Stephen Wallick August 8, 2018 No Comments

Purchasing a Home and Car When You Have Tax Issues

What about buying a car or home?

Driving a new car or an almost new car these days requires most people to borrow or lease the car. That’s because they cost so darn much.

Well, without the ability to walk into your local Auto Dealer and cut a deal on a new or almost new car, you’re stuck with that old unreliable clunker, just because you have a tax problem. It doesn’t seem fair, but it’s hard to get an auto loan or lease when you have an IRS problem.

Home loans are even harder to get.

Heck, they are hard to get when your credit is good if you don’t put a pile of money down on the home. Not having a home to write off causes you to pay even more taxes than your friends or neighbors because you have no tax deductions.

People that do have homes and then get into IRS problems, risk the chance of losing their home to the IRS.

Yes, I mean selling the home and giving the money to the IRS for payment of back taxes or letting the IRS seize and sell it at auction.

Having a home before you get into IRS problems may be even worse than not having a home at all. For example, if you own a home and then find yourself owing the IRS $25,000 for some income or payroll taxes, you could be making house payments on your home that IRS effectively owns. Once they file a Federal Tax Lien on your home, you can’t sell it without paying off the IRS.

This means that you continue making the monthly payments, continue to take care of the home, and the IRS just sits there and waits. You pay all the bills on your home and they get all the equity. What a Deal!

Tax issues can effect all aspects of your life and that includes the purchase of a new home or car. We are Middle Tennessee’s tax resolution experts, contact us today if you have any questions about purchasing a new home or car while having tax issues.

Stephen Wallick July 25, 2018 No Comments

Understanding Bank Levies

Taxpayers with IRS problems are always looking over their shoulder for the IRS. Once you owe the IRS money, they become very aggressive in their collection attempts.

One of the most common collection methods the IRS uses is the levy

They will use either a Bank Levy or a Wage Levy. If you’re lucky enough to still have a bank account, the Bank Levy allows the IRS to present your bank with a piece of paper that requires the bank to immediately withdraw all the money you owe the IRS.

Many times these Bank Levies are wrong, but the IRS doesn’t care and it’s up to you to correct the problem. Meanwhile, the checks you’ve written are bouncing all over town. The worst thing about the IRS Bank Levy is that it may capture your children’s, parent’s, girlfriend’s or spouse’s bank account, if your name happens to be on the account. Even if it’s just on there for convenience.

The IRS doesn’t care, they just want to get paid and they don’t care who pays your taxes.

The IRS will make your bank turn over the money in checking and savings accounts that have your name on them.

Further, if you deposit more money after they have cleaned the account out, IRS may issue another Bank Levy to satisfy any remaining amounts they claim you owe.

It’s like hitting the lottery for the IRS.

Once they find your money, they can continue grabbing it by issuing more bank levies.

If you are facing Bank Levies, please contact us today to negotiate a better solution with the IRS.

Stephen Wallick July 11, 2018 No Comments

Payroll Taxes and the IRS

Many small businesses get in cash flow problems for all kinds of reasons. How they handle these problems, especially when payroll taxes are involved, usually determines if they stay in business or not.

The IRS takes an extremely strong position on payroll tax violations.

If the IRS detects pyramiding, they would rather close the business and sell off all the assets instead of trying to work out a deal with the business. Pyramiding is when a business owes past payroll taxes and continues to create new unpaid liabilities.

The worst thing about payroll taxes is that the IRS has the ability to collect business payroll taxes from anyone they believe was responsible for not paying the taxes. For example, the business owner or any check signer on the business bank account might be singled out for collection activity.

IRS will try everything to get these payroll taxes.

Usually a visit to your home or work is in order to start the collection procedures. Then all of the weapons in their arsenal can be used (Liens, Levies, or Seizure) until the taxpayer has agreed to some type of repayment.

Once the IRS determines that the business may not be able to pay the payroll taxes, they will turn their sights on the individuals they think are responsible.

. . . Look Out!

It is important to pay the payroll taxes you owe to the IRS as non-payment can negatively impact your life. Consult an experienced Enrolled Agent for assistance with working out a plan to resolve your payroll tax issues.

Stephen Wallick July 4, 2018 No Comments

The Ultimate Guide to Understand Levies and Garnishments

Often, taxpayers fall behind on their taxes owed to the IRS. Once your debt reaches a certain point, the IRS may file a tax levy against you. A levy or garnishment is a collection measure used by the IRS to collect back taxes owed. Through these collection methods, your assets may be seized, your bank account may be frozen and the IRS may garnish your wages to recoup the outstanding taxes due.

Here’s the ultimate guide to understand levies and garnishments:

Levies refer to legal assessment against an employee’s wages which are initiated by the Federal or State Revenue Departments for payment of taxes. The Internal Revenue Code (IRC) authorizes levies to collect delinquent tax. Any property or right to property that belongs to the taxpayers or on which there is a Federal tax lien can be levied unless the IRC exempts the property from levy.

Usually, the IRS will levy only after the following three requirements are met:

  1. The IRS assessed the tax and sent you a Notice and Demand for Payment, a tax bill
  2. You neglected or refused to pay the tax
  3. The IRS sent you a levy notice Final Notice of Intent to Levy and Notice of Your Right to A Hearing at least 30 days before the levy. This notice may be given by the IRS to you in person, or at your home or usual place or business or to your last known address by a certified or registered mail, return receipt requested.

If you don’t pay your taxes or make arrangements to settle your debt and the IRS determines that a levy is the next appropriate action, it may levy any property or right to property you own or have an interest in. The IRS could levy your property which is held by someone else, such as your dividends, bank accounts, retirement accounts, wages, licenses, accounts receivables, the cash loan value of your life insurance, rental income, or commissions. Or the IRS could seize and sell property you own such as your house, boat or car.

Garnishments refer to legal assessment against an employee’s wages that are initiated by companies or individuals that have processed legal papers through a court. Federal law prohibits employers from firing a worker to avoid processing a garnishment payment. Garnishments can be taken for any type of debts such as unpaid court costs, child support payments, defaulted student loans, unpaid taxes and monetary fines.

The Consumer Credit Protection Act stipulates the amount of income which can be garnished from an individual’s wage. The garnishment amount is the lower of the following:

  • Any amount greater than 30 times the weekly minimum wage, which is $217.50
  • 25% of weekly disposable income if the individual’s disposable income is greater than $290

Individuals earning disposable income under $217.50 per week do not receive any wage garnishment. Those who receive a disposable income ranging from $217.50 to $290 per week can have any amount above $217.50 garnished. A maximum of 25% can be garnished on individuals having disposable earnings above $290. Disposable income or earnings refers to the amount left after the legal required deductions such as social security deductions and federal, state and local taxes are made.

The garnishment limits set by the Consumer Credit Protection Act do not apply to child support, student loans, bankruptcy orders, unpaid tax debt, or voluntary wage allocations. While the IRS can garnish up to 15% of an individual’s wage, the Department of Education can garnish up to 10%. If an individual has no other dependents to support, 60% of wages can be garnished for child support payments.

The lower garnishment limit applies since the Federal and State garnishment limits may differ. If an individual faces financial hardship due to wage garnishment, they may be eligible to file a claim to reduce the garnishment amount.

If you are facing levies or garnished wages, please contact us today to negotiate a better solution with the IRS.

Stephen Wallick June 13, 2018 No Comments

What Happens When Your Business Gets Audited by the IRS?

With the beginning of the tax season, millions of Americans are getting their financial houses in order trying to maximize their deductions and capitalize on any new tax breaks recently passed onto the law. The annual ritual comes with a warning that many people take lightly: Do whatever you can to ensure that you don’t get audited.

Typically, the Internal Revenue Service (IRS) audits less than 1% of the tax returns annually, so the probability of drawing federal scrutiny is incredibly low. Though most of the audits consist of IRS employees asking a few questions for clarifications, a fraction of these include going after people (both the tax payers and tax preparers) who intend to defraud the government.

What happens when your business gets audited by the IRS

The IRS reserves the right to audit any taxpayer, even if they don’t see any discrepancies in your business. According to the IRS, taxpayers may fall under the audit scrutiny due to random selection, computer screenings, or just by being tied to other entities such as partnerships or other business collectives.

So here’s how an audit works:

  • The agency will notify you via mail

The IRS never initiates contact by phone or email and certainly not by text message or on social media platforms (as constantly stressed by them whenever an IRS Scam makes its way around). The IRS will use postmarked letters via snail mail. Once the correspondence has been received and contact has been established, this is where things typically get more intimate.

  • An in-person interview may be arranged

An agent will set up a meeting either at a local IRS office or at your home if necessary. According to the IRS website, “If we conduct your audit by mail, our letter will request additional information about certain items shown on the tax return such as expenses, income and itemized deductions. You can request a face-to-face audit if you have too many books or records to mail.”

  • What will you need to bring?

The IRS will tell you what to bring to the audit. The request documents may vary according to your situation. Basically you will need to support the income and losses you claim including the medical/dental records, deductions, credits, insurance reports and more.

    • If audit is initiated via mail, they will provide the address for you to mail the paperwork. You will also be asked to fill out a questionnaire. Some of the common forms are Schedule C query and the Travel, Meals & Entertainment query.
    • If your meeting is face to face, you will be instructed on what documents to bring. Before getting there, they will want you to organize your paperwork by year to speed up the process.

After getting all of your paperwork, the IRS will make a determination. However, don’t think that this will happen in a timely fashion. Generally, the IRS retains a three-year statute of limitations, and in cases involving the “substantial errors”, they can go back additional years (usually not exceeding six).

What happens when the audit is completed?

After the completion of an audit, you will be notified of the IRS’s determination. The three scenarios include:

   1. Substantiation

When the IRS determines verification of your tax information, you will be asked to sign the examination report and your filing will be processed as normal.

   2. Changes

The IRS will recommend adjustments/corrections to be made to your filing and you have to agree with them and make these changes. 

   3. Appeal

You have the right to talk to an IRS manager, file an appeal with the independent Office of Appeals by mailing a protest letter, or request the IRS’s Appeals Mediation Program, when you disagree with the agency’s findings.

Though the federal audit process is pretty straightforward, the process may slightly differ on the state level. For more details, please go through your state’s tax appeals division which is usually found within its Department of Revenue.

You can learn more about tax audits, IRS issue resolution and back taxes here. If you want to talk to an Enrolled Agent with the IRS, please call me today at 615-326-TAX9  

Stephen Wallick March 21, 2018 No Comments

It just got more expensive to owe the IRS money.

April 15th is approaching, and the IRS just announced that the interest rates it charges on past-due taxes will be increasing. Nobody likes to owe the IRS money, but it’s not an uncommon situation — even if you don’t realize it until you fill out your tax return. For these reasons, now is a good time to quickly review what interest and penalties could mean for you if you owe the IRS money.

IRS interest rates are going up

The IRS, which determines its interest rates quarterly, just announced a rate hike for the second quarter of 2018, beginning on April 1. The rate for underpayments and overpayments for individuals will be 5% annually compounded daily.  Rates for corporations are also going up.  If you owe the IRS $10,000, you can now expect to pay about $1.37 per day in interest charges while your debt is outstanding.

This is in addition to penalties you might owe

Keep in mind that the interest charged by the IRS is in addition to any penalties you are assessed for paying or filing late.

The penalty for paying your taxes late is 0.5% of the past-due balance per month or partial month, up to a maximum penalty of 25%.

On the other hand, the failure-to-file penalty is much worse — 10 times worse, to be specific. For each month or partial month you file your tax return after the deadline, you’ll be assessed a 5% penalty, up to the same 25% maximum.

An extension won’t help you avoid interest

As the April 17, 2018, tax deadline is approaching, it’s also important to mention that filing a tax extension does not excuse you from paying your entire tax liability by April 17th. . An extension simply gives you an additional six months to file your return — it does nothing to extend your payment deadline.

So, while a tax extension buys you more time to file your return, keep in mind that interest is charged retroactively to the April 17 tax deadline if it turns out that you owe the IRS money.

If you owe the IRS and have not filed back taxes, Give us a call.  We are Middle Tennessee’s Tax Resolution Experts.

615-326-TAX9

Stephen Wallick March 8, 2018 No Comments

How federal tax liens affect your ability to get a mortgage

There are many different types of debt that can show up on your credit report. Perhaps the worst debt to show up when you are applying for a mortgage is a federal tax lien.

When the IRS has put a lien on your home, it means that they have the first rights to the proceeds of your home; the mortgage lender does not. This puts your mortgage lender in 2nd place when it comes to having the debt paid off. This is not the situation that any lender wants to be in, which makes them very unlikely to provide a mortgage to anyone with a federal tax lien whether for a purchase or refinance.

Good news, the IRS has made efforts to help taxpayers with changes to their lien process.  The announcement in relation to mortgage financing is that the IRS is willing to withdraw tax liens for taxpayers who owe $25,000 or less in tax liability, if a Direct Deposit Installment Agreement (DDIA) is set up.  This means you can start one now, convert your existing installment agreement into a direct debit one, or if you are already in one then just call up and make a request to withdraw the tax lien.  Of course it’s not instant in all situations as the IRS wants to make sure that payments will be honored so there is an initial probationary period.

In practicality, this means someone who has an IRS tax lien can improve their creditworthiness to a mortgage lender by opting to go into the DDIA and eventually having the IRS withdraw their tax lien.  It doesn’t guarantee that someone who couldn’t get approved before will now be approved, but it is a huge step in the right direction.

If you have any questions or need help removing a lien, please feel free to give me a call, 615-326-TAX9.