Stephen Wallick August 22, 2018 No Comments

A Way Out of IRS Problems

Are there ways out of IRS problems?

Yes, there are ways to end IRS Problems, but you must decide to end them, no one else can decide for you. When you decide that enough is enough and you want to have the things that everyone else has and you’re really ready to do something about your IRS Problems, there are options available to you!

Our firm specializes in ending the misery of IRS Problems

There are many possible ways to end these problems, but they all require you to take the first step. No one can help you until you decide to help yourself. We are very successful in ending IRS Problems, but the taxpayer must be ready to follow our advice. We can walk you through the IRS maze. We do all the talking to the IRS. We also handle all meetings and correspondence with the IRS..

Our clients NEVER meet with the IRS!

Solutions to IRS Problems often include filing old tax returns to get you in current compliance with the IRS. IRS will not negotiate with anyone unless they are current with all required filings. This means all income tax returns and payroll tax returns, if you have employees. The IRS assumes that if you will not at least get your required tax returns filed, then why waste the time trying to negotiate with you.

It’s a rather simple request and we have easy ways to complete old tax returns. We realize that many taxpayers have lost old records or just can’t find them! We can help you file old tax returns without any records, but you have to take the first step. Once we have filed all your old tax returns, then the IRS will at least listen.

If you are looking for a solution to your tax problems, take that first step and contact your Middle Tennessee tax resolution experts. We specializes in ending the misery 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 August 1, 2018 No Comments

Understanding the Damage That Wage Levies Can Cause

As bad as the bank levy is, the wage levy (Garnishment) is much worse.

The bank levy is a one shot deal. Meaning that the IRS must issue a new Bank Levy every time they want to clean out your bank account. This repeated effort on their part isn’t necessary with the Wage Levy or Garnishee. It’s designed to bring you to your knees.

Once a Wage Levy is issued, IRS requires the employer to immediately start withholding everything you earn above a pitifully small amount they leave you to try and survive on. At this point, you are trying to pay both current and old tax liabilities at the same time. Wage Levies often result in you receiving only a few hundred dollars per pay period. It is impossible to pay your bills and eat on the pittance they leave you out of your earnings.

IRS knows that Wage Levies cause all types of harm to you and your family, yet they mail out thousands every day.

Having IRS problems gets old

There can be no real rest and relaxation until your IRS problem is completely solved. It’s hard to keep a good job or get your credit report cleaned up when the IRS continues to issue Federal Tax Liens and Levies.

Without a bank account it’s difficult to cash your checks or even pay your monthly utility bills. Even if you’re lucky enough to have a bank account, you have to always worry about the IRS wiping out all of the money in the account without notice.

Some taxpayers with IRS Problems have just a few assets they want to hang onto. Then the IRS pulls out all of the stops. They simply seize your assets and sell them at auction!

Getting the IRS serious enough to seize your assets is not that difficult. Taxpayers with IRS Problems can end up losing everything to the IRS. For example:

  • Autos, Boats, & Motorcycles
  • Real Estate
  • Retirement Funds
  • Insurance Policies
  • Antiques, Collectibles, & Jewelry

All of these items may be very personal or sentimental in value to the taxpayer. IRS could care less. If the taxpayer will not agree to whatever the IRS wants, then they risk having their assets seized. Do not underestimate an IRS employee’s ability to follow through on the threat of seizure. Every IRS office in the country has a public list of recently seized assets and details about the upcoming IRS auction to sell those seized assets.

It is important to pay the taxes you owe to the IRS as non-payment can negatively impact your life. Do you have questions about bank levies or garnishments? Consult an experienced Enrolled Agent for assistance in dealing with these issues and avoid them in the future.

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 18, 2018 No Comments

Beware of IRS Penalties

How does the IRS expect you to pay off your taxes if they keep adding penalties?

I don’t know what the IRS thinks, but I do know that they ruin people’s lives every day with these ridiculous penalties.

IRS penalties are supposed to deter people from messing up their tax obligations. Instead, they bury you so far that it seems impossible to dig your way out.

What Do They Expect You to Do With Federal Tax Liens on Your Credit Report?

How can you possibly get a loan to pay them off, when your banker won’t even talk to you?

Federal tax liens prevent you from being able to borrow any money for a car or home. You can’t even borrow money to pay the IRS!

Taxpayers with IRS Problems often have to shop at Buy Here, Pay Here car lots because these car dealers don’t care if you have a Federal Tax Lien. This is because they charge so much for the cars and usually have very high interest rates. Cars are expensive enough without having to pay 18% to 21% interest on a used car loan, but with a Federal Tax Lien, you don’t have a choice.

The banks have become tough on opening new bank accounts. Anyone with a Federal Tax Lien is usually prevented from even having a checking or savings account. This makes it hard to cash paychecks and hard to pay their monthly bills.

Lacking a bank account often means troubled taxpayers have to pay more and use money orders or certified checks just to pay their rent or utility bills.

The IRS can ruin people’s lives and the time to act is nowConsult an experienced Enrolled Agent for assistance with working out a plan to avoid/work on resolving the IRS penalties you’re dealt with.

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 27, 2018 No Comments

10 Things to do if you Owe Back Taxes to the IRS

The IRS Restructuring and Reform Bill of 1998 was a landmark law which put respect for the individual taxpayer back into the system. It forces the IRS to communicate with the public and grant taxpayers “due process” rights. When the IRS comes around to collect, sooner or later you are going to have to face the music. Playing games with the tax collector can have negative impact because the system is designed to make your life miserable.

Here are ten things to do if you owe back taxes to the IRS:

1. Do not ignore any IRS notices

Always respond to the IRS notices. Most people get into trouble because they ignore the computer-generated IRS notices. Some IRS notices are sent by certified mail. If you think you can ignore IRS notices by not going to the post office to pick them up, you are mistaken.

2. Never meet an IRS agent alone

Since IRS collection interviews are no picnic, you should have representation to wind up with much better results

3. Spend an hour with a tax expert before going to the IRS

Spending time with a tax expert will help you with preparation for your collection interview. A tax expert will tell you how to conduct yourself and make you aware of when the IRS revenue officer is attempting to take advantage of you. Always remember that the IRS revenue officer’s job is to collect money for the government.

4. The IRS must explain your rights during an IRS interview

As per the IRS publication entitled “The IRS Collection Process” revised in 2015, you have a right to be represented and that you have a right to be treated in a professional and courteous manner. If you don’t like the way you are being treated, you can stop the interview and ask to speak with a supervisor.

5. The IRS in not infallible

Recently the IRS was audited by the General Accounting Officer and it seems that their own house needs some cleaning. Usually, the IRS cannot keep track of how much you owe, especially if you have been making regular payments. The IRS makes mistakes so don’t take their word for everything. 

6. You may be an innocent spouse

If you are widowed, separated or divorced and have tax problems due to actions of your former spouse then you are entitled to innocent spouse relief. This relief could result in the entire tax bill being written off against you.

7. You have due process

The IRS can no longer just take your business, seize your bank account, automobile, or garnish your wages without giving you any written notice and an opportunity to challenge what it claims. When you challenge the IRS, all the collection activity must come to a screeching halt. You can even take them to the court and they cannot collect from you until the judge issues a decision.

8. You don’t go to jail if you can’t pay

Though you can go to jail for trying to trick the IRS or cheating on your taxes, you cannot go to jail for owing taxes to the IRS and the inability to pay.

9. Recognize the power of the IRS

IRS agents operate under very few rules and have more power than anyone in the federal government. They can make your life pleasant or miserable. Most success in dealing with them comes from your communication in a prompt manner.

10. You have options when you owe to the IRS

There are several options for people who owe taxes to the IRS. If you owe and can pay in full, you should pay the taxes despite the pain. But if you can’t pay in full then your options include hardship suspension, installment payment arrangement, bankruptcy, and offer-in-compromise.

It is important to pay the 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 as per your budget and needs while ensuring proper procedures are followed.  

Stephen Wallick June 20, 2018 No Comments

10 Frequent Tax Preparation Mistakes Small Businesses Should Avoid

If you are a small business owner, it’s important to understand the small business tax preparation mistakes to avoid which could otherwise trigger overpaying taxes, errors that might cause an IRS audit, and financial penalties.

Here are 10 frequent tax preparation mistakes that you should avoid as owner of small businesses:

  1. Structuring Your Business Incorrectly

    How a business is structured can have a huge impact on how they are taxed. If you structure your business as a C-Corp, you are taxed twice. If you go for a sole proprietorship but don’t know how to account for certain items such as self-employment taxes, it can create problems later on. In general, an S-Corp or an LLC may be the best alternative.

  2. Improperly Classifying an Employee as an Independent Contractor

    While it may be tempting to misclassify an employee as an independent contractor due to cost savings, it would not be good for your business. There are strict rules for proper classification of an employee and steep penalties for failure to apply the law correctly. Additionally, if you misclassify your independent contractors as employees, you may end up paying higher taxes.

  3. Not Making Yourself an Employee of the Business Entity 

    Even if you are the owner of your business you should still make yourself an employee of the business entity with a reasonable salary. Failing to do so may result in additional social security taxes which are often collected in the form of the self-employment tax. When in doubt, consult a CPA or Enrolled Agent about this.

  4. Mixing Personal & Business Funds

    Many small business owners fall into the trap of not following the business formality of maintaining separate financial accounts for their businesses. Mixing business and personal finances can be quite chaotic during tax filing. Also, if your business is ever audited then it can get you into a lot of trouble with the IRS.

  5. Not Keeping A Mileage Log for Business Vehicles

    Not all small business owners keep a mileage log for their business. As per the Globe and Mail, if you use your personal vehicle for the business travels then the fuel that you use could be claimed for deductions during tax filing. Ensure to support these with necessary documents.

  6. Not Having a Tax Organizer

    It is important for every small business owner to have a tax organizer as it will provide you a glimpse of all the questions which the IRS asks your business such as about entertainment, travel and other important expenses. Keeping track of these things will save you time and will be a great help if you are ever audited.

  7. Having Disorganized Financial Records

    A disorganized financial record is one of the most costly business tax mistakes made by small businesses. If you properly document your business expenses, it can help reduce your taxable income. Further, all your financial transactions should be recorded properly. Ensure that your financial documents such as financial statements and balance sheets are accurate and readily available anytime.

  8. Not Keeping Your Accountant Informed

    This is one of the biggest tax mistakes most small business owners can make. If you don’t keep your accountant informed about what’s happening in your business, they won’t be able to provide you effective advice. Often when it’s time to file your taxes, it’s too late for them to help you make huge savings.

  9. Contributing Too Much to Your Qualified Retirement Plan or IRA

    If you contribute more to your retirement plan than the law allows, you could be penalized with a 6% excess contribution penalty that will apply every year until you correct the excess.

  10. Over-reporting Income

    If you over-report your income, it will lead you to pay more taxes than required. For instance, if you sell goods on which you collect the sales tax then your reportable income should not include the sales tax. You should always subtract the sales tax before reporting the income from the sales.

For an in depth review of your three past tax returns to see where you could save even more money, please contact me.