irs problems: Richardson TX - What is a Collection Due Process Hearing with the IRS - 04/21/19 04:41 PM
he two main avenues of collection activities by the IRS is through 1) the NTFL (Notice of Federal Tax Lien), and 2) levies including bank levies and wage garnishments. Whenever the government files a Notice of Federal Tax Lien (NFTL) or issues a final notice of threat to levy, the taxpayer has 30 days to request a Collection Due Process (CDP) hearing with an appeals officer.
 
In order to do so, the Taxpayer will file IRS Form 12153, Request For a Collection Due Process or Equivalent Hearing. It is important to file Form 12153 properly or it will be rejected.
 
There … (0 comments)

irs problems: Richardson TX - What If You Can't Pay Your Income Taxes? - 04/19/19 10:49 AM
With most of my tax clients that come into our Richardson, TX, tax office, they get their tax returns filed timely, and are either able to pay their taxes timely, or we immediately get them set up a payment alternative early on and minimize the problem. However, I often do meet with taxpayers who come to us and who 1) did not file their returns timely, and due to a variety of circumstances, 2) did not pay the balance due. Often years go by, and eventually they get a point of a bank or wage levy, a seizure of an asset, … (0 comments)

irs problems: Richardson TX - IRS Offer-In-Compromise - Lump Sum Vs. Deferred Offer - 04/14/19 11:59 AM
As we discussed over the past few weeks, many of the taxpayers who come into our Richardson, TX, office want to know more about the IRS Offer-In-Compromise program. When you choose to make an Offer to the government, there are two main types of settlement options to choose from. These two options differ in how the offer is calculated and when the payments need to be made. The two options are -
The Lump Sum Offer, and The Deferred Offer  
Lump Sum Offer –
$186 Application Fee (Non-Refundable) plus 20% down when offer is made. If offer is rejected, taxpayer loses the … (0 comments)

irs problems: Richardson TX - Non Filers - Why You Should File Your Tax Returns - 04/11/19 05:32 PM
 
 
As the old saying goes, “There are only two certainties in life: death and taxes.” Have you ever wondered what would happen if you filed your tax return late or worse, did not file at all? Well, you are looking for trouble if you do not file your tax return.
 
There will be a penalty for not filing your return equaling 5% per month up to 25% of the tax due. Then, there is another penalty of .5% per month up to 25% of the tax due for failure to pay the tax. An example is if you owe $1000, it … (0 comments)

irs problems: Richardson TX: Offers-In-Compromise - Why Tax Compliance is Critical - 04/09/19 11:21 AM
When taxpayers who owe money to the IRS come into our office in Richardson, TX, one of the most common questions we get is to how to settle their debt for pennies on the dollar, as they hear in commercials. While under that they want to begin the process at the end, I usually have to explain to them that before we can even determine if they qualify for an Offer-In-Compromise, on of the things that we must do is to verify that they are in Tax Compliance, and if they are not, get them in it. You may be thinking … (0 comments)

irs problems: Richardson TX - RCP - The Secret Formula for an Offer-In-Compromise - 04/07/19 09:25 AM
 
We often meet with clients in our Richardson, Texas office, who want to file an Offer-In-Compromise, also known as an OIC, with the government to settle their IRS debt for less than the full amount owed. If you are interested in making an Offer-In-Compromise and qualify, how do you determine what amount to offer?
 
The IRS uses a formula to determine what is an acceptable offer. This formula is called Reasonable Collection Potential, or RCP, and it is a combination of the government’s formula for net equity in assets plus calculated future income.
 
Net Equity in Assets is based on what the government … (0 comments)

irs problems: Richardson TX - The Three Types of IRS Offers-In-Compromise - 03/31/19 10:03 AM
When clients come into our Richardson Tax office with IRS debt issues, most of the potential clients want to learn more about the Offer In Compromise process, or OIC for short. There are three different types of Offers in Compromise.
Doubt as to Collectability – This type of offer is the most common type of OIC made to the IRS. In this case, the Taxpayer agrees that they owe the IRS, but are simply not in a financial position, to fully pay off their debt. If the Taxpayer qualifies for an OIC based on their financial situation, they may be able … (0 comments)

irs problems: Richardson TX: The IRS Offer-In-Compromise Program. How Does it Work? - 03/27/19 01:45 PM
If you watch TV, it’s likely that you’ve seen the commercials where Taxpayers who owe the IRS large sums of money, state that they were able to settle their tax debt for pennies on the dollar. When clients with tax debt,come into my office in Richardson, Texas, probably the most common question I get is how can qualify for those same savings.
 
Is it possible? The answer is maybe, depending on your financial circumstances. The IRS Offer-In-Compromise Program, or OIC, allows taxpayers who qualify, to settle for the less than the full amount of their tax debt. In the upcoming weeks, I … (0 comments)

irs problems: Richardson TX - Auto Costs and Tax Deductions - What You Should Know - 03/24/19 09:33 AM
A lot of small business owners from the Richardson and Plano TX area that come into our office have questions on the use of their Auto for business on their tax return.  Questions include: What can I deduct? Lease or buy? What miles count? Here are some general rules you need to know to make sure you get every deduction allowed on your auto use!
 
First, you need to understand that the IRS allows you to choose between two options when it comes to your auto.
You can deduct the business miles driven at the IRS rate for that year OR … (2 comments)

irs problems: Richardson TX - What If I'm Audited and Don't have a mileage log? - 03/20/19 08:06 AM
Did you know that most exams of personal returns with a Schedule C (Self-Employment) include requests for information on Car and Truck Expenses?   While the IRS recommends contemporaneous mileage logs, it does not require them. Mileage logs may be accepted in an audit if completed on a weekly or monthly basis, or even if completed prior to audit if the records are considered to be adequate.
 
What are adequate records? First, a mileage log must be in writing. If it is not written, it is not deductible. Don’t go into an audit with a story or theory. A Perfect Mileage Log will … (0 comments)

irs problems: Richardson TX - IRS Audits and the Quickbooks File. - 03/16/19 10:16 AM
Quickbooks and accounting software similar to Quickbooks, such as Xero, are now commonly used by small business owners to track their accounting records. For a fairly small price, it enables businesses to have financial reports, to assist them in running their business, and provides a database where they can store their financial records for many years.
 
The IRS is very interested in the value of the information contained in the file, wants to get access to it, and yes, they will get access to it, as part of an audit.  The IRS has the authority to access to these electronic files … (0 comments)

irs problems: Richardson TX - Who says you can't sell your home with a Tax Lien? - 03/13/19 06:00 AM
I have clients come into my Richardson, TX tax office wanting to sell their homes but believing that they are unable to due to an IRS lien filed against it.
 
The good news is that not only can you sell your home, but the IRS will be happy to allow you to sell your home, as long as it does not negatively impact them. The IRS will not permit the home owner to walk away with money that could have been received by the government.
 
Let’s walk through a few scenario’s to illustrate what would happen in a sale on a … (2 comments)

irs problems: Richardson TX - IRS Penalties Removal for First Time Offenders - 03/03/19 09:12 AM
Did you know that you could have IRS Penalties Removed as a First Time Offender?  There are times when Taxpayers come into our Richardson TX tax office who have penalties assessed by the IRS that we are able to have abated or removed.  Th e dollar amount might be large or small but the key to having penalties removed are the circumstances related to each Taxpayer.  Today, we’re going to focus on Penalty Abatement for First Time Offenders.
 
What Types of Penalties Can Be Abated?
The types of Penalties that can be removed include –
Failure to File Penalties Failure to Pay … (0 comments)

irs problems: Richardson, TX: Understanding IRS Installment Agreements - 02/21/19 02:09 PM
I represent taxpayers in Richardson, TX as well as our cities within Texas.  When I meet with clients, the best solution for many of them is to set up an Installment Agreement.  An Installment agreement is a repayment plan with the IRS over time. However, all Installment Agreements are not alike. There are three different types of Installment Agreements that I’ve outlined below. My goal is that after reading about each of them, you will have a better understanding of which one is the right one for you.
Streamlined Agreement -  To qualify, must have Individual Tax Debt under $50,000 and the … (0 comments)

irs problems: Using Currently Not Collectible Status for Tax Debt in Richardson TX - 02/13/19 04:40 PM
What is Currently Not Status?
Currently Not Collectible Status (CNC) with the IRS means that the IRS has determined that according to their guidelines, the taxpayer does not have the ability to make monthly payments. The taxpayer’s income is used up by or exceeded by allowable expenses and does not have any net equity available to pay the amount owed.
 
What actions will the government take if the Taxpayer is CNC?
If the government codes the taxpayer’s account as Uncollectible, they still owe the tax and the government may still file a Notice of Federal Tax Lien (FTL) on current or future assets, … (0 comments)

irs problems: Richardson TX-Why Tax Transcripts are Critical When Resolving IRS Debt - 02/08/19 07:03 AM
Why Are Tax Transcripts Important When Resolving IRS Debt?
When Taxpayers come to me in my tax practice in Richardson, TX seeking relief from tax debt, the most critical place for me to start to understand their problem and how to address it is by Pulling their Tax Transcripts. While the taxpayer has a lot of important information that can help me to understand their issues by interviewing them and looking at their documents, but by pulling transcripts, I can immediately get a very clear look at the big picture of what the issues are and develop a plan on how to … (0 comments)

irs problems: The IRS 10 Year Statute of Limitations and Tax Debt in Richardson, TX - 02/02/19 03:02 PM
There is a limit on how long the IRS has to Collect Tax Debt?
It may surprise you, but the IRS has 10 years from the date of assessment to collect a tax debt from taxpayers including my clients in Richardson and Plano, TX. In most cases, after 10 years, the debt becomes uncollectible by the IRS. There are certain exceptions that may delay or toll the 10 year time limit. We’ll cover those below, but in general, without any actions by the taxpayer which stock the clock, once the 10 years are up, the IRS has to stop its collection efforts … (1 comments)

irs problems: Navigating The IRS Collection Process in Richardson, TX - 01/06/19 10:29 AM
 
 
 
 
Navigating the IRS Collection Process in Richardson, TX
As of the end of 2016, there were over 14 million taxpayers in some stage of the collection process an many of those taxpayers were in Dallas, TX.  If you don't solve your tax problems timely, you can expect levies, liens, a negative impact on your credit, and stress in your daily life and relationships that is unneccessary. 
You can end up with your bank accounts levies, or a lien on your home.  We have experience in helping Richardson, TX and DFW Taxpayers navigate the system and resolve their tax collection problems.  
 
How do you Solve … (4 comments)