https://activerain.com/blogs/damienslaw en-us https://activerain.com/blogsview/5398504/how-we-settle-tax-debt-with-the-irs--from-a-mississippi-tax-attorney As a tax attorney in Ridgeland, Mississippi, we work with Mississippi residents to resolve both civil and criminal tax debt cases. I’m just going to give you an overview of what a typical collections case might look like and the process I use to resolve a tax debt case with the IRS. Our first step is to figure out what the IRS already knows about you.  We want to know what the IRS knows; we’re going to investigate your tax transcripts.  We will check past W2s, 1099s, notices from the IRS, statute of limitations issues, bankruptcy options, and several other timelines, the whole gamut.   What we can find in this initial investigation is going to drive the rest of your case, so it is essential to get as much info on the front end as we possibly can. Step 2 is to make sure you are in compliance. You’re just spinning your wheels trying to resolve a case until the taxpayer is “current and compliant.” What this phrase means is, are you withholding enough tax throughout the years so that you are not adding to the balance.  The IRS isn’t going to play ball if six months from now you’ve created a new debt.  So that means we have to make sure all the necessary returns have been filed, the current period taxes are being paid or appropriately withheld, and we’re not going to waste our effort resolving the prior tax issues. Step 3 is getting the TP into compliance, if we’re already withholding and filing correctly then we can move on to resolving the debt, but if that’s not the case then we’re going to work on your past returns, adjust your withholdings, whatever we need to do to get you “current and compliant”. Our next step is to determine what is your cash flow, what assets and debts do you have, and these figures will lead us to decide which avenue we have to settle your case. Can you pay the bill in full?  If not, then there are a few different options, maybe it’s a payment plan, perhaps it’s a partial payment plan where you pay monthly until the statute of limitations expires.  Or you may be placed in hardship status were you pay nothing each month until things improve or the statute of limitations expires.  Maybe your situation calls for an offer in compromise, and we can settle your debt for a reduced offer. And of course, we’re going to look at the penalties and determine if abatement is an option for you. If you want any more information, you can always go to the website at damienslaw.com or give me a call at 601-957-9672 Joseph Damiens, Tax Law Firm (Damiens Law Firm, PLLC) Wed, 07 Aug 2019 13:22:21 -0700 https://activerain.com/blogsview/5398504/how-we-settle-tax-debt-with-the-irs--from-a-mississippi-tax-attorney https://activerain.com/blogsview/5398495/can-i-sell-a-property-in-mississippi-with-an-irs-tax-lien- Since I am a Mississippi tax attorney and my firm deals in civil and criminal taxpayer representation before the IRS and Mississippi Department of Revenue, a state or federal tax lien is something we deal with routinely. In fact, the majority of our clients do not find us until an IRS tax lien has been filed. Unfortunately, this means a large number of our clients are trying to sell the property to resolve their tax issues. Many also find the process may not be as simple as they first believe. But, the reality is, the IRS and/or Mississippi Department of Revenue will be more than happy to allow the house or property to be sold. The catch, the IRS or DOR wants to walk away with the money from the sale to apply against your tax debt, which was secured by the tax lien. So, assume the taxpayer owes the IRS $75,000, the home is worth $300,000, and the IRS has filed a tax lien against the house. For example, you sell your home, and you currently owe the bank $75,000. This would allow the IRS or MS DOR to get paid in full. The house would sell, the first $75,000 would go to the bank, the next $75,000 would go to the IRS to resolve the tax debt, and any remaining funds would be paid over to you. What if there is no equity? Then the IRS will still allow the sale, assuming this is a legitimate sale, but the IRS will require documentation of the sale (appraisal, contract, closing statement, etc.), assuming all this is prepared and submitted properly, then the IRS should release their tax lien and allow the buyer to receive a clear title. If there is nothing to collect over the mortgage amount, then despite the IRS tax lien, the IRS should allow the sale. If the IRS will be partially paid on the tax debt, then it is critical to work out the transaction ahead of time with the IRS technical Advisory Group, also known as the IRS “lien unit” before closing. If you know you, or your client, are planning to sell a property with an IRS tax lien, you should get a tax attorney involved as soon as possible. As with most things, the IRS can be slow-moving and take several weeks to get worked out. So it is imperative to get started early. Since our fees can be paid out of the closing proceeds, there likely isn’t any upfront cost to hire a tax attorney. These are issues we deal with routinely, if you have any questions about IRS tax liens or any other IRS debt related issue, please feel free us at 601-957-9672 or find us online at www.DamiensLaw.com. Joseph Damiens, Esq., LL.M. Damiens Law Firm, PLLC Joseph Damiens, Tax Law Firm (Damiens Law Firm, PLLC) Wed, 07 Aug 2019 12:58:07 -0700 https://activerain.com/blogsview/5398495/can-i-sell-a-property-in-mississippi-with-an-irs-tax-lien- https://activerain.com/blogsview/5398480/how-to-get-rid-of-a-irs-or-mississippi-tax-lien If you find yourself on the receiving end of an IRS tax lien, you’ll soon find the IRS takes a very firm stance, which can cause issues for the taxpayers. In general, the IRS will not remove an IRS tax lien without prompt action for the taxpayer, and in the meantime, the taxpayer's credit score and other economic factors will feel the brunt of the lien. An IRS tax lien can be removed under certain circumstances, but most will revolve around whether the IRS has a likelihood of collection tax revenue. The IRS has done its research, and the IRS knows that a tax lien is one of the best options for the IRS to collect a tax debt.  If you find yourself in this situation, then you should consider consulting a Mississippi tax attorney. One way in which to deal with an IRS tax lien is to explore whether you can obtain a lien subordination, discharge assets from the tax lien, and/or having the tax lien withdrawn. Each of these options will have to be evaluated against the taxpayers unique situation, but in most cases, the property can still be sold with an IRS tax lien attached to the property. But you have to know the IRS will be involved in the process. If you have any questions about IRS issues, IRS Debt or IRS tax liens feel free to contact us at 601-957-9672 or find us online at www.DamiensLaw.com Joseph Damiens, Esq., LL.M. (tax) Damiens Law Firm, PLLC 996 Northpark Drive, Suite ARidgeland, MS 39157 Joseph Damiens, Tax Law Firm (Damiens Law Firm, PLLC) Wed, 07 Aug 2019 12:23:38 -0700 https://activerain.com/blogsview/5398480/how-to-get-rid-of-a-irs-or-mississippi-tax-lien https://activerain.com/blogsview/5398474/offer-in-compromise-in-mississippi--what-makes-an-offer-in-compromise As a Mississippi tax attorney, we routinely work with clients throughout Mississippi to resolve their IRS federal tax debt and their Mississippi Department of Revenue state tax debt through the offer-in-compromise program. Of course, the first questions is always, how much do I have to offer? Unfortunately, the reality is, it depends. Before determining an offer amount, we must calculate was is called the taxpayer’s Reasonable Collection Potential, or “RCP.” It is this RCP number that will dictate the taxpayers resulting Offer-in-Compromise settlement amount. So what is the Reasonable Collection Potential? Well, for our clients in Jackson, Mississippi, and throughout Mississippi, we start with the client’s financial situation to calculate their household RCP. The IRS and MS DOR calculate these number differently, but in both cases, it generally determined by combining the taxpayer’s assets and future income, less debt, and reasonable living expenses. For a successful Offer-in-Compromise with the IRS or DOR, the taxpayer and tax attorney need to pay particular attention to the reasonable living expenses and the manner in which those are reported and documented to the IRS and/or MS Department of Revenue. Historically the IRS only accepts approximately 20% of the offer-in-compromises that are filed, but the historical acceptance rate increases dramatically when a tax professional or tax attorney is involved, which the national average hovers around a 90% acceptance rate. By understanding the requirements and rules, we can evaluate your Offer-in-Compromise against the IRS or State RCP formulas and also ensure that the proper documentation is submitted and communicated. Knowing the process and how the IRS will apply RCP can have tremendous results. Be sure to sit down with a Jackson, Mississippi tax attorney who specializes in IRS representation and in particular has experience in presenting Offers-in-Compromise to the IRS or Mississippi Department of Revenue. If you have any questions regarding an Offer-in-Compromise in Jackson, Mississippi, or any other area throughout the State of Mississippi, then please do not hesitate to contact me at 601-957-9672 or find us online at www.DamiensLaw.com. Joseph Damiens, Tax Law Firm (Damiens Law Firm, PLLC) Wed, 07 Aug 2019 12:16:47 -0700 https://activerain.com/blogsview/5398474/offer-in-compromise-in-mississippi--what-makes-an-offer-in-compromise