Financial News, Tips & More!
Alter Ego and the Business Person Who Owes Taxes
Many taxpayers or business people incorporate or set up an LLC to provide limited liability for their personal assets from their business activities. When a taxpayer owes back taxes, he or she will often pay their personal expenses out of their corporation or LLC because the TP...
Penalty Abatement and Obamacare –Do You Pay the Penalty if You do Not have Health Insurance?
Obamacare will not be repealed outright. The public will not politically stand for it. President Trump may end the insurance requirement through Executive Order which will, however, render the law toothless and unenforceable. The IRS has announced that it will no longer require...
Private Debt Collections Are Back By The IRS
The Internal Revenue Service announced that it is beginning in the spring with private collection of federal tax debts. The new program enables designated contractors to collect on the government’s behalf, outstanding tax receivables. These designated contractors will work on...
S Corporations & the NonFiler
A very common situation for a non-filer is an S corporation that has not filed in a number of years. To activate the corporation and put it in good standing can involve substantial fees. First, a taxpayer will have to pay substantial franchise tax fees and penalties for failing...
Trust Fund Recover Penalty
A trust fund recovery penalty is assessed against a person who is responsible for failing to pay payroll taxes. The trust fund recovery penalty is the portion of the employee’s check that is withheld for income taxes and social security. The IRS takes a shot gun approach to...
How To Settle Your Taxes
When it comes to tax collection, the IRS isn't the only government agency that you need to worry about. The Department of Justice can be involved in getting court judgments on tax payers and collecting back taxes. Generally, the tax situation has to be pretty serious for the...
Can IRS Penalties Be Abated Because of Addiction?
When a taxpayer files a tax return late or has an unpaid liability, the IRS will assess substantial penalties along with interest on the penalties. If there is “reasonable cause”, penalties and related interest clearly can be abated or removed for physical disability. However,...
Owe back taxes to the IRS? Say GOODBYE to your Passport!
Passed in Congress and signed into law on December 4, 2015 was the Fixing America’s Surface Transportion Act. The language in this law prevents you from traveling outside of the USA if you owe money to the Internal Revenue Service in excess of 50 thousand dollars. The law is a...
IRS House Seizure and Sale: It’s More likely than you think
Losing your house to the IRS may be your worst fear. The law does allow the IRS to seize and sell a home to pay a back tax debt. It is a difficult process for IRS, but IRS Revenue Officers are increasingly threatening to do just this. More often than not, the threat by an IRS...
When the IRS levies your Social Security
The IRS regrettably may levy social security benefits under two provisions of the Internal Revenue Code, IRC 6331(h) or 6331(a). IRC 6331(h) is an automated levy that is limited to 15% of the social security payments. Section 6331(a) is a less frequently used manual levy by IRS...