Taxpayers who are contacted by a private collection agency on behalf of the IRS might have questions about the program. These taxpayers can visit IRS.gov to find answers to questions they might have.  In fact, to better help these taxpayers, the IRS recently updated the private debt collection pages on IRS.gov. These updates added more information for taxpayers whose case is being handled by a collection agency.  The web pages include info such as:  The...

By the time we get to April 2020, it’s going to be far too late to save anyone’s 2019 income taxes. At that point, we’ll just be recording history. And at my firm, that’s not what we like to do—we want to help you write the history that you want. That starts this month if it hasn’t already. How much time have you spent thinking about your 2019 income taxes?  Do you know what tax-saving decisions you are going to make between now and December 31? If you don’t today is the day to act. It’s really...

Brian Becker and his wife, Lynn Becker, residents of New York had an outstanding balance owed to the IRS in excess of $224,000 for previous years of individual tax returns. The IRS revenue officer assigned to their case sent a Notice of Levy for their wages to both the Becker’s employers. After two months, the officer discovered that the IRS did not receive the expected wage garnishments and contacted both employers, who stated they both received a Release of Levy. The revenue officer stated...

Question: We have a nanny who watches our kids every day. She doesn’t live with us, so is she a household employee or an independent contractor?  Answer: This is a good question. Obviously, if you hire a babysitter once a month, they’re an independent contractor who is responsible for paying their own taxes. But that’s not the situation we are talking about. And if you have someone that you regularly employ and pay more than $1,900 a year (or you pay all employees...

Question: Why should I use a tax resolution specialist? Can’t I deal with the IRS myself and save money?  Answer: You could opt to represent yourself before the IRS. There is the offer-in-compromise program. Some people do go that route. But representing yourself before the IRS is like going to court without a lawyer. I wouldn’t recommend that. Or, you can hire someone that knows all the ins and outs and navigates the IRS maze on a daily basis. You can hire someone who can protect you...

October is one of the busiest times of the year for my family. Aside from it being my birthday month, my twin boys are turning 14, and my wife and I and I will celebrate our wedding anniversary. As you can imagine, this makes October a fun and exciting (and slightly crazy) month at my house. The right around the corner is Halloween, which the boys still really enjoy, and hockey is getting into full swing. As their practice schedule kicks into high gear, all the excitement and celebration makes autumn...

QUESTION: If I owe a lot of back taxes to the IRS, how do I know whether the offer in compromise or installment agreement is right for me? Who determines which option is best?  ANSWER: Thanks for your great questions and congratulations on beginning the process of tackling your tax debt head-on. Ultimately, you’ll have the final say on which option is best for you, assuming you meet the criteria for qualification. But you’ll need the help of a qualified tax resolution professional to...

Question: I own a small business, and in order to keep afloat, I did not send the IRS my employee’s withholding taxes for a few years. How much trouble will I be in?  Answer: Owing 941 payroll taxes is very different from owing personal income taxes. Not only can the IRS padlock the doors to your business, but they can come after you personally, levy your bank accounts, confiscate your receivables, and seize your property. Scarier still is that this could turn into a criminal matter....

Question: I haven’t filed a tax return for multiple years now. I realize this is a problem, but what can I do to fix it? Will I face massive fines? Could I end up in prison?  Answer: There are a few ways it could play out. If you were due a refund on your taxes, you’re in a much better situation than if you had a tax burden for all those unfiled years. You’ll need to file immediately to see any of your refund. You cannot get a refund on a return that is over...

I come from a hard-working, entrepreneurial family. My father owned a fuel oil business when I was growing up. At that time, many homes in our area were heated with oil. My father was the home-heating-oil delivery man. He would bring oil to people’s houses, maintain their heaters and make sure every one of his customers always had heat. Mom took care of the business side of the company. During the day, Dad also worked as a teamster (I learned all about unions, too). He would come home and handle...