Regular Post
Written by Scott Allen

Why should I consider discharging taxes in bankruptcy?

Discharging Tax in Bankruptcy Chandler AZ

1)      Filing a bankruptcy will immediately stop all levy and seizure action.  Levies against wages and bank accounts are released.

2)      The IRS has no decision power on bankruptcy matters.  If you can file a bankruptcy and the taxes are qualified for discharge, the bankruptcy option will work every time.

3)      Bankruptcy takes care of not only the tax due but also interest and penalties.

4)      Offers are becoming increasingly difficult to get IRS acceptance.

5)      Discharging tax in bankruptcy Chandler AZ can solve both your tax and not tax debt.  If you have significant credit card debt, a judgment against you or large medical bills, filing a bankruptcy can resolve all of your debt issues.

6)      An offer in compromise will only take care of your IRS debt.  If you owe state taxes, the option of filing bankruptcy to discharge federal and state taxes is a major advantage over filing an offer in compromise.

Scott Allen E. A.

Tax Debt Advisors, Inc

taxdebtadvisors.com

 

IRS Problems, Tax Bankruptcy, Unfiled Tax Returns
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Regular Post
Written by Scott Allen

Are You Losing Your IRS Refunds Every Year?

Losing IRS Refunds

Are you getting tired of having refunds every year applied towards your unpaid taxes?  The solution is rather simple.  If you are an employee, change your withholdings so that you are having less withheld.  I always tell clients in this situation that the best you can do is own $1 on future tax returns.  When you have refunds you are in essence making an interest free loan on the money to the government.

Secondly, if you are married and filing jointly, you can protect your refund by filing an Injured Spouse Allocation—form 8379.  This will allow you to calculate how much of the refund was generated by you and you can have it paid to you rather than have it applied to a debt that is not yours.  Too many taxpayers are filing married filing separate to protect the injured spouse’s refund.  This is a very expensive way to protect a refund.  Many deductions and credits are lost by filing married filing separately and the taxpayer would get more of a refund filing a joint return with the Injured Spouse Allocation.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.taxdebtadvisors.com

 

IRS Appeals, IRS Problems, Tax Debt, Unfiled Tax Returns
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Regular Post
Written by Scott Allen

Arizona State tax debt

Arizona State Tax Debt

Debts owe to the State of Arizona are handled by the Arizona Department of Revenue.  Settlements and are handled very much the same way as they are with the IRS.  There are some important differences.  I advise clients to first file and settle with the IRS and then file and settle with the Arizona Dept. of Revenue (AZDOR) in most cases.  If you are filing old returns from prior years, Arizona will often wait until the IRS accepts the federal return before accepting a return filed with them for the same year.  Also, the State of Arizona is much more aggressive on collecting taxes on smaller amounts owed than the IRS is on larger amounts owed.

It is best to make your decisions on settlement once you know what you will owe to both the IRS and AZDOR and your ability to make payments on your combined tax debt.  There are some situations when settling up with the State before settling with the IRS makes more sense.  A consultation with a professional representative will help avoid painting yourself in a corner on one tax debt and leave you vulnerable to serious financial troubles in dealing with the other.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.stopIRSaction.com

 

IRS Problems, IRS Tax Payment Plan, Unfiled Tax Returns
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Regular Post
Written by Scott Allen

Phoenix IRS Offer in Compromise vs. filing tax court petition

Phoenix IRS Offer in Compromise

If you have the opportunity to file a tax court petition or a Phoenix IRS offer in compromise—always file the tax court petition.  An offer will take a long time to process and it is doubtful that you will know the amount of the offer that will ultimately be acceptable to the IRS.  The filing period for a tax court petition is only 90 days.  You will not know the results of an offer before the deadline on the tax court petition will lapse.  If you are working with a competent representative you should know what you will be expected to pay on your tax court petition.  Also, you should never or almost never expect to go to tax court.  Your advisor should get your case assigned locally to the Appeals Office at the IRS.  This is one area that you should most definitely consult with a representative to know your options under both situations before getting started.

Scott Allen E. A.

Tax Debt Advisors, Inc for Phoenix IRS Offer in Compromise

www.IRShelpblog.com

 

IRS Levy, IRS Problems, Unfiled Tax Returns
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Regular Post
Written by Scott Allen

IRS Trust Fund Recovery Penalty

IRS Trust Fund Recovery Penalty

Internal Revenue Code Section 6672 (a) covers the IRS Trust Fund Recovery Penalty.  This is often referred to as the 100% penalty which indicates how serious the IRS is to punish taxpayers who fail to turn over trust funds.  Trust funds are withholdings that the employer holds back from employee pay checks.  They would include Federal withholdings, Social Security and Medicare taxes.  The term trust means that the employer is holding these funds from a position of trust and is responsible to collect and turn them over to the IRS on a regular basis.

The person or persons responsible for paying these taxes would include but are not limited to the Chief Executive Officer, and any other person authorized to pay the funds and have check signing authority.  The IRS can assess this penalty against anyone who they consider financially responsible.

Many businesses that get in financial trouble and no longer can borrow from legitimate sources such as banks, issuing stock or bonds “borrow” from the IRS by not paying funds held in trust.  The intent is to catch up when business gets better.  With 100% penalties, it would be better to visit the local loan shark—you would get better rates.

If the IRS has determines that you are responsible for paying back trust funds, get professional help immediately.  The IRS will often try to justify going after many individuals without knowing for sure who is really responsible.  This shot gun approach can be devastating financially and the longer you go without contesting the position of the IRS on your responsibility, lowers your chances of being relieved of this tax debt.  Trust funds and the related IRS trust fund recovery penalty cannot be discharged in a bankruptcy.

Scott Allen E. A.

Tax Debt Advisors, Inc.

www.taxdebtadvisors.com

 

IRS Appeals, IRS Problems, Tax Debt, Unfiled Tax Returns
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Regular Post
Written by Scott Allen

Is there IRS amnesty Arizona for non-filers?

IRS Amnesty Arizona

IRS amnesty Arizona for non-filers simply means that if you agree to file your back tax returns, the IRS agrees to not pursue jail time for not filing.  IRS Amnesty Arizona does not mean that once you file the returns, you are entitled to some special treatment if you owe on those back tax returns.

Some states have experimented with amnesty programs, that allow for short periods of time, to file back tax returns and if you pay all the taxes owed when you file the return, the state will forgive all the interest and penalties.  The confusion comes when taxpayers assume incorrectly that these amnesty programs are the policy of the IRS as well.  Unfortunately, it is not.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.arizonaIRSproblems.com

 

IRS Problems, Tax Attorney Arizona, Unfiled Tax Returns
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Regular Post
Written by Scott Allen

STOP IRS ACTION – Substitute For Return

Stop IRS Action with SFR Protest

If you don’t file your tax returns, eventually the IRS will, based upon information about your gross income reported on a 1099, W-2’s, stock sales, sale of home and reported interest and dividends.  These returns are referred to as SFR’s for substitute for return by the IRS.  These returns are almost always incorrect and usually grossly overstate the true amount of taxes owed.

Many clients come to us with large SFR balances due that turn into refunds.  Remember that a refund that is older than three years is permanently lost and cannot be apply towards a balance due.  SFR balances cannot be discharged in a chapter 7 bankruptcy.  Only a return filed by a taxpayer can be included in a tax motivated bankruptcy.  There is a waiting period for this to happen.  The return must be filed for two years and it be three years from the due date and no IRS adjustments in the last 240 days.

If you have filed previously a joint return, the IRS will file an SFR using the married filing separate status which eliminate lots of tax advantages and has a higher tax bracket than married filing jointly.  The IRS gives not credit on SFR’s for dependents, mortgage interest, property taxes, charitable donations, auto license fees and deductible medical expenses to name just a few.

If you know that the IRS has filed SFR’s against you but you haven’t been contacted by them, consider yourself lucky and get your returns filed as soon as possible.  It can take several months for the SFR unit to adjust your assessed taxes down to its correct balance and the IRS will take collection action on the higher balance until this occurs. Consider calling Scott Allen EA to handle this process for you. He will have to sign Power of Attorney so we can represent you from start to finish. He will make today a great day for you!

Scott Allen E. A.

Tax Debt Advisors, Inc

www.taxdebtadvisors.com

 

IRS Problems, Unfiled Tax Returns
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Regular Post
Written by Scott Allen

TAX DEBT ADVISORS

Since 1977: Tax Debt Advisors

What should you expect in your first meeting with an IRS Relief company?

First, you should not expect to pay for your initial consultation.

Second, make sure that the person you are talking to will be the one that will represent you before the IRS should you decide to retain their services.  If you are talking with a sales person who will send your information and money to a central office outside of the state, you are working with the wrong firm.

Third, telephone interviews with companies outside of your local may sound good but you will have a very hard time getting someone to call you back except to ask you for more money.

Fourth, see if they have testimonials that are real.  The only ones that cannot be disputed are letters from the IRS to clients and their Power of Attorney representative.  You can see in black and white what was accomplished for the client.  Most if not all testimonials on Web sites were written by the company (There are plenty of Tax Debt Advisors Reviews on this website for you to view)

Fifth, after explaining your problem, you should have a good idea of the steps that your representative will take to correct your problem.

Six, only pay the cost of the next step.  If you need investigative work, pay for just the Power of Attorney work.  If you need tax returns, pay for them one at a time as they are completed.  By this time, you will know if your representative knows what they are doing and has a track record of following through.

Finally, get all of the settlement options in front of you at one time and understand the pros and cons of each one.  There is something good about each option and something not so good.  However, one option is much better than all the others.  Once your settlement agreement has been decided on and agreed to by the IRS, know what you need to do to keep that settlement valid.

Scott Allen E. A.

Tax Debt Advisors  3155 E Southern Ave #101 Mesa AZ 85204

www.taxdebtadvisors.com

Tax Debt Advisors Reviews

 

IRS help by city, IRS Problems, Unfiled Tax Returns
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Regular Post
Written by Scott Allen

IRS SETTLEMENTS

IRS SETTLEMENTS BY SCOTT ALLEN EA

I often hear clients say, “if you can just get me out of this mess with the IRS, I will never get back in trouble again.”  The truth is that 100% of our clients will be given a settlement with the IRS that in most cases exceeds their expectations.  Many say, “If I knew it was going to be that easy, I would have done this years ago.”

Getting the IRS settlement is not the hard part.  The hard part is breaking the habit that caused the problem in the first place.  In most cases that requires adjusting one’s life style to adjust to a new expense in one’s life–income taxes–Federal, State and payroll.  This amount varies, especially between individuals who are employees vs. self-employed.  But let’s use a round number of 30%.  If one is making $100,000, adding $30,000 in additional expenses means cutting out something else that they were used to spending money on.

The IRS estimates that about 70% of the individuals put on an installment arrangement default within one year.  Experience has shown us that when clients see the reality of paying taxes, it is too easy not to pay in the “voluntary” estimated taxes, or to adjust their withholdings when “emergencies” arise.  Then when it comes time to file and full pay by April 15, to keep their settlement valid–they default when funds are not available to stay current on their tax liability.

Successful resolution with the IRS is not just getting the settlement; it means that one must break habits pertaining to spending, living within a budget and making the tax payments as important as other monthly expenses.  One must avoid seeing the IRS as a credit card, in the sense that you pay other expenses by not paying the IRS.  Unfortunately the easiest expense not to pay is the IRS.  However, it is also the hardest one to catch on as well.

Scott Allen E.A.

Tax Debt Advisors, Inc.

 

IRS Problems, Unfiled Tax Returns
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