levy: How long does it take to prepare an Offer-in-Compromise? - 11/20/19 04:12 AM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS. The IRS Offer-in-Compromise is an agreement to clear a tax debt for less than its face value. Paying less is a great goal but your effort will be waisted if you don’t do all the steps.
Making the offer is a time-consuming task that requires a considerable amount of reporting to the IRS to show that a write-down of the debt is in the interest of the government. This hard work could easily be for naught since the IRS rejects about 60% of the offers received.
First of all, you have to … (1 comments)

levy: The IRS can have your Passport Revoked - 11/16/19 03:02 PM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS. One of those issues is debts owed to the IRS for past taxes. The IRS has a lot of tools in their toolkit to include seizure of cash accounts and levies on wages. One of the newest tools is to revoke the passports of people with “significant” tax debt.
How much is significant? Currently it’s $52,000. The State Department is required to deny applications for new or renewing passports. If you already have a passport, the State Department may revoke it or place limits on your travel.
The IRS wants to … (2 comments)

levy: Discharging Taxes through Bankruptcy - 10/26/19 02:28 PM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. One option to consider when trying to figure out a plan to get the IRS out of your life is to file bankruptcy. Bankruptcy is a complicated subject that requires an attorney who specializes in that area of the law. This is not a DIY project and this post is only meant to inform you about the general rules regarding which taxes might be dischargeable.
Some taxes, interest, and penalties might be dischargeable if all the following apply:
         The tax return was due (including extensions) more … (1 comments)

levy: How does the IRS Wage Garnishment Process Work? - 10/23/19 02:07 PM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. The IRS can and will garnish the wages of a taxpayer who does not cooperate with them in working out a plan to pay past due taxes. You can think of this as the low point in your negotiations and any plan that increases the take-home pay is a positive.
Once a taxpayer has ignored the final notice, the IRS will send a Form 668 to the employer notify them of the levy. The employer is required to provide to the employee a Statement of Dependents and … (0 comments)

levy: Uncollectible? Now might be a Great Time to make an Offer - 10/05/19 01:18 PM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. Getting the best deal possible with the IRS is all about strategy. The key data input into your strategy is the Reasonable Collection Potential formula that goes by the acronym of RCP.
The RCP in many cases may come out as zero or some small number. This means that it is unlikely that the IRS will be able to collect on that debt and as a result it’s a waste of time to continue pounding on the taxpayer for no return. They will therefore change the status … (1 comments)

levy: IRS Cryptocurrency Letters - 09/22/19 08:12 AM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. The IRS has released several thousands of notices to taxpayers regarding cryptocurrency transactions. What the heck is this all about?
I know, we all thought that cryptocurrencies where all about secrecy. We used to think the same thing in the past about Swiss Banks, but that turned out to not be the case. In the cryptocurrency case, the IRS has issued John Doe Summons to organizations such as Coinbase that has apparently resulted in the release of names on accounts and perhaps some specific transaction information. Additionally, … (0 comments)

levy: Cancellation of Debt Exceptions - 09/17/19 08:06 AM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. Cancellation of Debt produces taxable income unless that income is can be recharacterized or is one of the exceptions. See the previous post explaining the reporting process for Cancelled Debt https://activerain.com/blogsview/5413175/cancellation-of-debt---can-you-avoid-the-taxes-
Canceled debt that’s not included in income because we recharacterized it as something else include:
Debt that’s canceled as a gift, bequest, devise, or inheritance Certain cancellations of student loans Interest that was included with the principal that was written off A qualified purchase price reduction given by a seller The Canceled Debt exclusions include:
Debt … (1 comments)

levy: The IRS Offer-in-Compromise Process - 08/10/19 12:35 PM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. The IRS Offer-in-Compromise is an agreement to clear a tax debt for less than its face value. This is the idea behind “pennies on the dollar” payoff that you see on TV ads by national firms offering to clear tax debts.
 
There are a lot of myths regarding the Offer-in-Compromise programs. Many tax debtors believe that all it takes is some gib negotiator to wow the IRS personnel on why they should take a deal for less than what is owed. Many CPA’s believe that filing an Offer … (1 comments)

levy: Tax Compliance – The first step in getting right with the IRS - 08/02/19 12:40 PM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. For taxpayers who have an IRS problem, the first step to getting righteous with them is called “Tax Compliance”. This term refers to getting all past due tax returns filed and making all the payments on the current year taxes. Why is this step so important to the IRS?
 
Filing a tax return is the normal method for the IRS to officially assess an amount due on a taxpayer. The IRS will not negotiate an arrangement with a taxpayer based on guesses as to the amount of taxes … (1 comments)

levy: The IRS Collection Process - 07/26/19 12:39 PM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. The IRS Collection Process can be intimidating, but it is relatively simple. Typically, it goes like this:
 IRS sends a notice of tax due.  IRS sends a second, more threating, notice.  IRS sends a final, really threatening, notice.  IRS files a Notice of Federal Tax Lien (NFTL) in the county of residence.  IRS sends a Notice of Intent to Levy that will become effective 30 days hence.  IRS issues the Levy against bank accounts, IRA accounts, and future wages.  How can you avoid them proceeding through all … (0 comments)

levy: The IRS Uncollectible Status as a Strategy - 07/18/19 11:47 AM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. Many times, taxpayers are simply not able to pay their tax debt. The IRS recognizes in these cases that it is simply a waste of their time and resources to pursue this debt. The Uncollectible Status tells the collections system to not bother with any more contacts or levies for a period, maybe 18 or more months. Getting the government off your back so that you can get your house in order is a very reasonable strategy to consider.
How do you get to Uncollectible Status? You are … (0 comments)

levy: What about the Offer-in-Compromise? - 07/10/19 07:33 PM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. The most misunderstood option in dealing with the IRS is the Offer-in-Compromise. TV ads regularly promote the idea that some large national firm can clear your debts at “pennies on the dollar” through their superior negotiating techniques. The truth is that whether the IRS will except an Offer-in-Compromise is based purely upon a formula and not some reasoned argument by an expert in negotiations.
 
What is the formula used by the IRS? It’s called the “Reasonable Collection Potential” or RCP for short. There are two basic parts. The … (1 comments)

levy: What about IRS Levies? - 07/06/19 08:17 AM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. A Federal Tax Levy is the actual seizure of a taxpayer’s assets because of past-due taxes. Usually, it involves a bank account or wages.
 
There are two types of Levy. A Regular Levy is one that seizes what the taxpayer owns at that moment such as cash in a bank account. The other variation is the Continuing Levy which stays in place to continue to grab wages as they are earned.
 
One of the big myths is the idea that the IRS cannot Levy an IRA, 401(k) or other … (0 comments)

 
Jim Payne, CPA, CPA firm practicing in the area of IRS Collections (Backoffice Squared) Rainmaker large

Jim Payne, CPA

CPA firm practicing in the area of IRS Collections

Gainesville, FL

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