IRS Tax Liens–how they work

What is an IRS Tax Lien and what is the IRS seeking to do when it files a lien? The IRS files federal tax liens in the County Courthouses where it believes the taxpayer may own real estate or other property.  Essentially, the taxpayer cannot sell real estate in that County unless the current tax debt is paid either prior … Read More

IRS Levies–why you should be worried about your bank accounts!

I written elsewhere why you shouldn’t be overly worried about losing your house or cars to the IRS for back taxes.   On the other hand, you SHOULD be very worried about the IRS freezing your bank accounts and seizing payments from contracts owed to you. What are your Legal Rights to Protect you From an IRS Levy? If you’ve ignored … Read More

2 Ways to Sell Real Estate Affected by IRS Tax Liens

Just because you have an IRS tax lien against your real estate, there are ways to ultimately sell it despite the liens. The Easy Way:  Pay Off the Lien in Full Yes, this is easy only if you have sufficient funds in your sale offer.  But you can obtain the IRS lien payoff from the IRS Lien Department, and the … Read More

How Phantom Cash Flow Can Undermine Your Offer in Compromise

So, what is “phantom cash flow”?    And how does it affect an IRS Offer in Compromise?  Well, I’m not talking about making money under the table.  I am referring to the dreaded IRS “reasonable expense standards”.  Basically, these are the Census Bureau median amounts for variety expense categories, including Housing and Utilities; Food, Clothing and Miscellaneous; Vehicle Ownership Cost … Read More

Drowning in Debt? Bankruptcy May Be Your Best Option

A lot of folks contact my office to discuss their IRS tax problems, and then once we talk, I find out that they have other financial problems as well Simply put, not every person is a good candidate for a bankruptcy case.  If you have a lot of home equity for example, then you might not be a good candidate. … Read More

3 Reasons to be Honest When Doing an IRS Offer in Compromise

An IRS Offer in Compromise can be a long and tricky process.  It can take up to two years for the IRS to consider your Offer, once it has been submitted.  Here are 3 reasons to be open and straight-forward. You are Filing the IRS Offer in Compromise forms under oath Yes, the IRS requires that you submit a long … Read More

IRS Asset Seizures–should you be worried?

Yes, the IRS does seize assets such as houses and vehicles for non-payment of income taxes.  But nationwide, the IRS seizes fewer than 500 homes per year. What makes you a candidate for your home being seized?  Your level of cooperation with the IRS.  If you are responding to IRS Notices, then there will be a pathway to resolving your … Read More

IRS Offer in Compromise: The Basics

The most heavily marketed IRS collections program involves the Offer in Compromise.   Generally, this is based upon “Doubt as to Collectibility”.   So, let’s say however that you do have a viable offer and after doing all the calculations, the Offer amount is $10,000. How does the Offer in Compromise proceed and what are the steps?  Form 433-A and Form … Read More

IRS Tax Bankruptcy–will you protect your assets?

The majority of bankruptcy filers can use the laws to protect their assets from the Court and from the IRS and other creditors.   But before we talk about protecting assets, let’s review the laws about eliminating IRS income tax debt through a bankruptcy filing.    Here are the requirements (1) the taxes have to be at least 3 full years … Read More

Paying the IRS through a Chapter 13 Bankruptcy Plan

I’ve written elsewhere on my site about IRS Installment Agreements, which are payment plans to repay the IRS over a period of time (usually 72 months if it is a streamlined agreement).  But unfortunately, the IRS continues to impose penalty and interest during the course of the Installment Agreement. What are the alternatives and how is one to reduce the … Read More