With the tax deadline firmly in the rearview, most people are enjoying pool time and picnics, free of the tax worries of springtime. (Though perhaps not free of all the inflation and stock market pressures we’re all currently facing. Hang in there.) But that’s not true of everyone. For some unlucky few out there, things are starting to heat up with their tax situation…  This is the time of year when my office phone starts ringing with cries for help, whether it’s to deal with looming tax debt or how to respond to IRS audit letters. Sometimes people are scared into action, attempting to w ..read more

The culmination of the tax season festival has come and gone. Ideally, you got your tax return filed by the deadline. But maybe you didn’t. Either way – what happens now? First, the simpler scenarios – your taxes were done and filed by the deadline (April 18th): Everything is done and filed and you are due a refund. Lucky you! Your work here is done. Your return will be processed (eventually) and you will be sent your refund per normal IRS procedures (eventually). If you e-filed and got direct deposit, that’ll help move the process along. Everything is done and filed, but you owe taxes. Bumme ..read more

Sometimes taxpayers with IRS or State tax problems decide to face the IRS or State on their own. Sometimes they hire a professional like an attorney or EA, even a CPA, but not someone who specializes in tax resolution. The best thing to do when faced with tax problems is to hire a CPA that is an expert in tax resolution, so you can get the best result possible. Even if you owe $10,000 or less, have all your income tax returns filed and are able to pay the amount due over 36 months with a guaranteed monthly Installment Agreement (payment plan), it is good to pay a small fee ..read more

You find yourself owing back taxes to the IRS, facing stiff penalties and you are wondering how are you going to get out from under this financial burden? First things first. Consult a professional to understand your options. Call Strategic Tax Resolution at 888.339.4914 to set up a free consultation. Here are 7 secrets the IRS would rather you not know about, but we’ll be happy to share with you as we walk through the tax resolution process. #1 – Don’t Pay IRS Penalties There are over 140 different penalties in the IRS arsenal. And, the IRS can even charge interest and penalties on the o ..read more

These last couple weeks of 2021 are already a little unusual. Current events are swirling around virus policy, the big Biden “Build Back Better” Act seems to have hit a Joe-Manchin-sized brick wall, sports leagues are in an uproar around rising case numbers, and more. And this, of course, on top of the normal holiday haze that families and businesses are in the midst of. So, instead of my normal fare today, I am sending you this “help me remember” prayer I found a few years ago that I like to send out to my clients around the holidays. But if there is anything we can do for you in the days be ..read more

You already owe a tax debt to the IRS or State. Then they add interest and penalties on top of that? Talk about adding insult to injury. It is important to understand how interest and penalties are applied by the IRS to know how it impacts your tax debt. Interest Interest is added to the tax debt as long as it remains unpaid. Rates can fluctuate from 3%-9%. Interest is calculated every day the tax debt goes unpaid, whether you are in a payment agreement or not. Penalties When it comes to penalties, there are two main types – Failure to File and Failure to Pay. Failure to File Penalt ..read more

It is everyone’s favorite place to go. Whether your state calls it the MVA, the DMV or something else entirely, it is still a necessary inconvenience at best. Now imagine you have waited in line all afternoon to take care of your license and you find out you can’t because there is a hold on the renewal of your license on account of you owing the state back taxes. States have the power to place a hold on renewal of your driver’s license, vehicle registration, even your professional license until you become “tax compliant” – submit any and all unfiled returns and be in a payment agreement f ..read more

One of the possible resolutions to your case is what is called an Installment Agreement. And it is what you think it is – the result of properly presenting your financial condition and negotiating an acceptable monthly payment [the important words in that sentence being ‘properly’ and ‘negotiating’]. It is to your benefit to have experienced, professional representation to present your case and negotiate the best possible outcome for you. Below is a list of the more common installment agreement options available to taxpayers: Guaranteed Installment Agreements: owes $10000 or less (exclud ..read more

What’s a lien? What’s a levy? What’s the difference? Both a tax lien and a tax levy are collection tools used by the IRS and State to pressure taxpayers into payment or making payment arrangements. But there is an important distinction between a tax lien and a tax levy. A tax lien is the government’s legal claim against your property when you fail to pay taxes owed. A tax lien is used as security for the tax bill, alerting creditors the government has a legal right to your property. And it includes all your property, including real estate, personal property and financial as ..read more

Imagine collecting your paycheck Friday at quitting time, or checking your direct deposit, and seeing the amount is half of what it should be, maybe less. If you owe back taxes, the likely reason over half your paycheck is gone is you just got hit with a wage garnishment from the IRS. An IRS wage garnishment is immediate and continuous once it has been implemented. Wage garnishment is arguably the most damaging and aggressive of the IRS collection tactics. The IRS can often seize up to 75% of your pay, leaving you with barely enough to cover day-to-day expenses. Aside from your paycheck ..read more