installment agreement: 17. Payroll Tax Debt - Am I Really Responsible For Company Debt? (4/12/23) - 04/27/23 07:19 AM
Many businesses are conducted though entities that are legally “separate” from their owners - i.e. LLC’s, corporations, etc. Generally business debts do not create legal liability for the business owner - absent an explicit personal guaranty by the owner. However for payroll tax debts - obligations can arise for not only the business owner but also individuals who have no ownership stake in the business.
Wait, what??
Let me explain. Stepping back we are discussing tax obligations that arise in connection with business employees - “wage earners”. There are two types of payroll taxes: 1) employee portion, and 2) employer portion. The employee … (0 comments)

installment agreement: 16. Property Liens - Who Gets Paid First? - 01/24/23 12:08 PM
You’ve run up a tax debt - either through filing a tax return with a balance due or if the IRS computes a balance due - through the Substitute For Return procedure. As mentioned in a previous discussion once this happens the IRS is automatically granted a lien on all of your property.
OK but what if you have other debts that may be secured by property - for example a home with an outstanding loan, a car with related unpaid debt, etc. Does the IRS automatically “jump ahead” of others with claims on your assets? They do not - the IRS … (2 comments)

installment agreement: 15. Statute Of Limitations - Run Out The Clock? - 01/24/23 12:04 PM
OK, OK I know I owe the IRS money for my taxes - can they come after me forever? The short answer is no - the IRS generally has ten years to attempt to collect the debt.
Many laws contain a “statute of limitations” (SOL) - a period of time set out for action. For example in Massachusetts the law relating to contracts typically requires a claim to be brought within six years of when a contract was broken. The concept is that laws should be designed to facilitate resolution within a “reasonable” amount of time.
Under the tax law there is a … (0 comments)

installment agreement: 14. IRS Substitute For Return - What To Know - 01/24/23 11:59 AM
OK I know I should have filed a tax return - but life got in the way…. Now the IRS has told me they prepared a “substitute for return” - what does this mean!
The US tax system is referred to as a “voluntary” tax system - I know, hold the jokes. This means each person is tasked with determining if they have a tax return filing obligation, and - if so - they “voluntarily” prepare and file an annual tax return.
But the IRS does not maintain a list of all people in the country and monitor whether or not a tax … (0 comments)

installment agreement: 13. Tax Collections in Massachusetts - What Should I Know - 01/24/23 11:53 AM
So I owe taxes to the IRS and to Massachusetts. I provided a bunch of information to the IRS and they agreed to lower my tax debt through their Offer In Compromise program. I know that the IRS and MA share tax information. Does this mean MA will just settle my debt for less than I owe? Nope - these are two completely separate government operations. Settling a debt with one has no impact on a debt with the other group.
That being said many states do have debt settlement programs similar to those offered by the IRS. The most common of … (1 comments)

installment agreement: 12. IRS Collection Notices - What Do They Mean? - 01/24/23 11:41 AM
I filed my tax return - it showed that I owed money - I didn’t send in payment. Now the dreaded envelope arrives - it’s from the IRS. I finally open it…. Help what does it mean, what does this notice number mean?
The IRS is notorious for sending out cryptic mail. In this post I’ll attempt to provide a bit of clarity to help decipher the various types of notices.
Let’s start with the basics - the IRS uses antiquated technology. Notices generated by the IRS appear to be from the ’70’s - because that’s probably when the notices were designed. The … (0 comments)

installment agreement: 11. Innocent Spouse - Do I Qualify? - 01/24/23 10:34 AM
Help - the IRS is after me! I’m an employee - my taxes are taken out of my pay - my wife is self-employed - the government says we owe money due to some issue with her business - we field a joint tax return - am I on the hook? In most situations yes - however the IRS has a program it refers to as Innocent Spouse. This program may provide you with relief.
In our last post we discussed the basics of tax returns and tax liability for married couples. Every individual (with sufficient taxable income) has a tax filing … (0 comments)

installment agreement: 10. Marriage And Taxes - Whose Debt Is This? - 01/24/23 10:25 AM
Marriage and taxes are inexorably intertwined. Let’s begin with the basics of tax returns and tax liability. Most individuals (those with sufficient taxable income) have a tax filing obligation.
This is an individual obligation - even for married taxpayers. The default filing status for a married individual is Married Filing Separately. Married taxpayers are allowed to elect to file with their spouse - as Married Filing Jointly. Married taxpayers are not required to participate in the filing of a joint tax return.
For this discussion I’m assuming that the taxpayers do not live in a “community property” state.
For taxpayers not electing to be … (0 comments)

installment agreement: 09. Currently Not Collectible - How To Stop IRS Collections - 01/24/23 09:58 AM
You’ve filed your tax return - you have a balance due - the IRS has sent you all kinds of notices - now you’ve been told your account is in “collections” and that the IRS will attempt to seize your assets and garnish your wages.  You don’t have any assets to speak of and your income is spent each month - you can’t pay!  Maybe in a year or two you’ll be back on your feet financially but for now you have nothing left at the end of each month.  What can you do?
One option for taxpayers in this situation is … (0 comments)

installment agreement: 08. Reasonable Collection Potential (RCP) - Detailed Rules - 01/12/23 02:26 PM
In our last post we discussed the concept of Reasonable Collection Potential - RCP. In this post we’ll get into some details relating to the rules around specific RCP amounts.
As a refresher RCP is the key metric in evaluating potential options when dealing with your tax debt. It’s intended to provide the IRS with an amount which they believe is available to settle the debt. It’s an approximation of what they could collect through “forced” collection methods - liens and levies.
The first component of RCP relates to your assets. This includes all assets - your home, car, RV, money in your … (0 comments)

installment agreement: 07. Reasonable Collection Potential - How Is This Used By The IRS? - 01/12/23 02:22 PM
Reasonable Collection Potential - RCP - is the key concept in dealing with the variety of tax debt solutions offered by the IRS. RCP is used by the IRS in evaluating your suitability for participating in various programs including:
Installment Agreements - where your tax debt is paid off over time
Offer In Compromise - where the IRS allows for less than full payment in satisfaction of your tax debt
Currently Not Collectible - where the IRS determines that you cannot currently make any payments and agrees to hold off on collection efforts for a period of time RCP represents the … (0 comments)

installment agreement: 06. Offer In Compromise - Can I Really Pay The IRS Less Than I Owe? - 01/12/23 02:14 PM
Absolutely! Well not always….
Before we begin let’s review a few things. When a tax return is filed that the IRS “assesses” the tax (make a record of the return filing). If the return reflects a tax due (total tax liability exceeds tax withholding and estimated tax payments) the IRS expects payment of the amount due. If no payment is made the IRS begins collection efforts. The IRS has a period of 10 years from the assessment date to collect the debt (the Statute of Limitations or SOL).
An Offer In Compromise (OIC) is, as the name implies, an offer by the taxpayer … (0 comments)

installment agreement: 05. Installment Agreements - What Are They And How Do They Work? - 01/12/23 02:05 PM
In previous posts we’ve discussed the IRS Collection process - including items such as “Reasonable Collection Potential” (RCP) and the “Statute of Limitations” (SOL). These terms are relevant to this discussion so you should review the Collections post before continuing on with this post.
The most common tax debt settlement solution used by taxpayers is referred to as an Installment Agreement (IA). This type of arrangement allows for payment of a tax debt over time. Note that for the period of time that any tax obligation remains outstanding interest continues to accrue on the unpaid balance. This payment arrangement provides two benefits … (0 comments)

installment agreement: 04. IRS Levies - Should I Be Concerned? - 01/12/23 12:14 PM
Absolutely - this means the IRS is about to take your stuff.
Let’s back up a bit. A levy is the seizure of your property. This property can be real or personal - your home, land, a vehicle, money in your bank account, etc. This sounds like a dramatic step for the IRS to take - and it is. However a tax collection case to getting to this stage generally involves a lack of action being taken by you (those notices that the IRS keeps sending that end up in the trash), or you’ve been contacted the IRS, they have requested information … (1 comments)

installment agreement: 03. The IRS Filed a Lien - How Do I Get Rid of It? - 01/12/23 12:09 PM
Consider this common scenario - you owe the IRS for back taxes - you think you’ve come up with a plan to put the debt behind you - you can sell your home, pay off your mortgage, pay off the IRS, and have a few dollars left over.
You list your home for sale and, lo and behold, you discover that a potential buyer has disappeared.  Apparently the IRS has put a lien on the house.  What happened and what do I do next??
If you’ve read our previous posts you know that the IRS automatically obtains a lien against all your property … (1 comments)

installment agreement: 02. IRS Tax Liens - What Are They? - 01/12/23 12:05 PM
I just received a letter from the IRS - they say they filed a lien against my house - does that mean they are planning to take it - help!
The short answer is no - filing the lien does not mean they intend to take your house. In this post we’ll describe how the IRS uses liens in connection with collecting back taxes.
Before we talk about liens lets back up a bit. In the US we have what is referred to as a “voluntary” tax system - the IRS relies on taxpayers to file tax returns and make payments.
After filing a … (0 comments)

installment agreement: 01. The IRS Is Looking For Me - An Overview Of IRS Collections - 01/12/23 11:59 AM
The IRS wants your money! We all know this but what happens when taxpayers either don’t file tax returns or don’t make payments with filed returns?
You diligently gather all your tax information and prepare a tax return. Unfortunately the returns show a balance due and you don’t have the money to make a payment. So you do nothing… Now the next year rolls around - this time you don’t even prepare a tax return - you’re worried that filing a return this year will highlight the fact that no return was filed last year. And the cycle repeats…
Then the IRS contacts … (0 comments)

installment agreement: Our Process For Resolving Your Tax Debts - 01/12/23 11:12 AM
You have tax debt and need help. We’re here to walk you through the tax collections process and develop a personalized plan to address your tax situation.
Let’s review our debt resolution process.
To begin with we can assist at any stage of the process:
Are you about to file your tax returns but don’t have enough money to send in payment - we can help
Are you receiving notices from the IRS about your tax debt - we can help
Did the IRS notify you that they intend to file a Notice of Tax Lien - we can help
Were you just … (5 comments)

Bradford Simmons, CPA providing tax debt resolution services (Ocean Consulting Services LLC)

Bradford Simmons

CPA providing tax debt resolution services

Plymouth, MA

More about me…

Ocean Consulting Services LLC

Address: 35 Nonantum Rd, Plymouth, Massachusetts, 02360

Mobile: (508) 789-7498




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