Regular Post

Written by Scott Allen

21 July 2011

Are taxes discharged in bankruptcy taxable as forgiveness of debt? From Tax Debt Advisors, Inc.

Discharge IRS taxes in bankruptcy

No tax debt discharged in bankruptcy is considered cancellation of debt and will not be considered income to be reported on your tax return. However, creditors who elect to cancel their debt can cause it to be taxable by filing IRS Form 1099-C. Usually the full amount cancelled is taxable income unless you can prove that you were insolvent when the debt was cancelled.

If you decide to file a bankruptcy, I will prepare current documentation that will allow you to avoid paying taxes on forgiveness of debt, IF YOU ARE INSOLVENT.

Almost every client who files a bankruptcy is insolvent but to wait until the following year will make the process of proving insolvency more difficult.

Scott Allen, E.A. – Tax Debt Advisors, Inc

www.TaxDebtAdvisors.com

IRS Problems, IRS Tax Audits, Tax Bankruptcy

Mesa AZ IRS Tax Attorney

Regular Post

Written by Scott Allen

20 July 2011

Can I appeal what the IRS says I owe? From Tax Debt Advisors, Inc.

Appeal what the IRS says I owe

Yes, but there are procedures that need to be followed exactly and timely to get appropriate relief. There are two kinds of appeals.

The first is a Collection Due Process (CDP) appeal which is filed on IRS Form 12153. This appeal is used when you have received an IRS Notice of Federal Tax Lien, a Final Notice of Intent of Levy or a Levy on your state refund.

The second is a Collection Appeals Program (CAP) which is filed on IRS Form 9423. This is appeal is used when the IRS rejects your proposed installment agreement, termination of your installment agreement, when the IRS levies or seizes your property and when the IRS files a Notice of Federal Tax Lien.

Call me today if you are facing any of these threatening IRS actions to schedule a free consultation on how I can help you appeal your case.

Scott Allen, E.A. – Tax Debt Advisors, Inc

Phone: 480-926-9300

www.TaxDebtAdvisors.com

Income Tax Preparation, IRS Appeals, IRS Problems, Tax Preparation

Mesa AZ IRS Tax Attorney, Mesa AZ Tax Preparation

Regular Post

Written by Scott Allen

13 July 2010

STOP IRS ACTION

Stop IRS Action help in Mesa AZ

This phase can mean many things for different IRS problems. If your wages are being levied, you want the IRS to stop taking your money from you wages. If your bank account is being levied, you want that to stop or the money to be returned. If you have a tax lien filed by the IRS you want your credit to be restored by having the lien removed. If you have assets that under threat of being seized, you want to be able to sleep tonight knowing that the IRS has stopped seizure action.

The list could go on and on and a blog on this subject can only give you some general guidelines to follow. If you want a specific course of action, schedule a free one hour consultation to find out exactly what needs to be done to Stop IRS Action. This is more involved than it appears. For instance if you own more than $25,000 to the IRS, there is much more work needed to get a monthly installment arrangement than if you owe less than $25,000. And if you owe more than $100,000, the IRS will expect a few more hoops to jump through before giving you an agreement.

Here are some actions that will be necessary to Stop IRS action in Mesa AZ regardless of your problem:

First, make sure that all tax returns have been filed. The IRS will require you to be in compliance before action can be stopped. If the IRS filed a tax return for you, have a professional review it to see if filing a correct return would bring the balance owed down. This first step is to first reduce the liability before trying to reach a settlement with the IRS.

Second, compliance also means that you are currently having the right amount taken out of your pay check if you are an employee or you are current on payment of your estimated taxes if you are self employed.

Third, make sure you have a representative who understands how to posture your finances before providing financial information to the IRS. This may mean getting medical insurance or an automobile before negotiations begin. Afterwards, the amount of money left over after your settlement might now allow for these type of purchases to be made once you are locked in with the IRS.

Fourth, know all of your options to settle with the IRS. That means understanding the pros and cons of each option. Make sure you evaluate all the options at the same time. If you are married, whether your spouse is responsible for the tax debt or not, be a part of the decision process. What ever affects you affects your spouse indirectly. Especially if it pertains to money and finances.

Finally, get some professional help to stop IRS action in Mesa AZ. The IRS personnel are not bad people. But they are trained bill collectors and are not there to make you knowledgeable of your options that can make your settlement easier for you.

Scott Allen E. A.

Tax Debt Advisors, Inc. – Since 1977

www.stopIRSaction.com

BACK TAX RETURNS, IRS Problems

Mesa AZ IRS Tax Attorney, Scott Allen EA for IRS Tax Relief

Regular Post

Written by Scott Allen

23 June 2010

WHAT CAUSED MY IRS PAYMENT PLAN TO DEFAULT?

IRS Payment Plan Default

When you default on an installment arrangement there is no explanation. The most common reasons are:

You didn’t send in your payment or your payment was late. If you call immediately upon receiving the notice, you can usually be reinstated as soon as your payments are current. Don’t depend on the IRS vouchers as a reminder to make your payment. Vouchers can come to you after the due date or not at all. Have a note on your calendar to make your payment whether or not the voucher shows up. If you send in a payment without a voucher, include your social security number, the tax year to apply the payment (2020-1040) and have your phone number on the check.
You filed your return late or did not pay your taxes in full when you filed your return. One of the conditions of having a payment plan with the IRS is that you don’t get behind on filing or paying in the future. Again, the IRS will likely reinstate the agreement if you can bring your payments current and you contact them immediately after receiving the notice of default. To prevent this from happening in the future make sure your estimated taxes are paid timely if you are self employed or that your withholdings are sufficient if you are an employee.

If you default and you have to renegotiate your payment plan with the IRS it is unlikely you will get the same payment amount. If your financial situation has worsened, your payment amount will be reduced. Likewise, if your financial situation has improved, your payment amount will go up. Rather than just go back into another installment arrangement, I advise our clients to reevaluate to see if there is another settlement option that would be better now that their situation has changed.

There are legitimate situations where I advise clients to strategically default on purpose so that a better settlement can be reached with the IRS. This should only be done with the help of a professional representative who can guide you through the renegotiation process. Our company has over 45 years of tax preparation and IRS negotiation experience.

Scott Allen E. A.

Tax Debt Advisors, Inc.

IRS Problems, IRS Tax Payment Plan

Mesa AZ IRS Tax Attorney