https://activerain.com/blogs/sernataxsolutions en-us https://activerain.com/blogsview/5538642/the--10-year--tax-expiration-deadline As a general rule, the IRS only has 10 years to collect your tax debt, at which point, the debt expires and is no longer collectible. (As with all IRS issues, there are some exceptions to the rule.)The 10-years starts ticking down on the date that the tax is assessed.  Once the 10-year time period has run out, the debt basically just goes away. However, there are some things that taxpayers do that can extend that date. 1) Bankruptsy - any time that the tax payer is in bankruptsy and the tax cannot be collected upon, the expiration date gets extended for the amount of time in bankruptsy, plus 6 months. 2) Collection Due Process hearing - if you challenge an assessment and go into a CDP hearing, the expiration date gets pushed back for as long as that process takes. 3) Filing for an Offer in Compromise or an Installment agreement - any time that the IRS has to stop collection activity to see if your offer or payment plan is approved, it will push the 10 year date backThese are all critical components in evaluating what plan of attack we may take in dealing with your tax debt.  Need help evaluating your tax debt and coming up with a game plan?  Feel free to reach out and lets chat. Sabrina Santos-SernaSerna Tax Solutions, LLCwww.SernaTax.comSabrina@SernaTax.com(559) 512-1012Madera and Fresno, CADisclaimer: Nothing in this article is to be considered tax advice. You should always consult with your personal tax and finance team to determine how these issues may or may not apply to you, and what your personal best plan of attack is. Sabrina Serna, Helping clients resolve IRS issues and past debt (Serna Tax Solutions, LLC) Mon, 21 Sep 2020 15:10:01 -0700 https://activerain.com/blogsview/5538642/the--10-year--tax-expiration-deadline https://activerain.com/blogsview/5538640/why-did-the-irs-make-up-my-tax-return- What happens with the IRS sends you a tax bill for a year that you did not file a tax return?This is what happens when the IRS has documentation that indicates that you made money (it could be a W2, 1099, or any other document issued to your social security number), but you did not file a return claiming that income.  The IRS can then create was is called a "Substitute for Return" (or SFR) in which they create a tax return for you based on the information they have, and then send you the bill that they calculated.There are many issues that come along with an SFR, and one of them is that the IRS does not go out of its way to find you deductions.  For example, say someone issued you a 1099-MISC saying they paid you $5,000 to help them build their back patio.  During that job, you incurred $2,000 in lumber costs, and $500 in other building supplies.  On a return you create, you will indicated those expenses and be taxed on the net profit of $2,500.  Well, the IRS does not have documentation (nor are they going to come as for it) about your $2,500 in expenses, so they are just going to tax you on your $5,000 total. This is one of the many reasons that it is beneficial for YOU to control the filing of your tax returns, rather than waiting for the IRS to do it for you. Need help managing a tax assessment?  Feel free to reach out and we can discuss your issue, or set up a consultation so that we can establish the best plan of attack. Sabrina Santos-SernaSerna Tax Solutions, LLCwww.SernaTax.comSabrina@SernaTax.com(559) 512-1012Madera and Fresno, CADisclaimer: Nothing in this article is to be considered tax advice. You should always consult with your personal tax and finance team to determine how these issues may or may not apply to you, and what your personal best plan of attack is. Sabrina Serna, Helping clients resolve IRS issues and past debt (Serna Tax Solutions, LLC) Thu, 17 Sep 2020 14:49:00 -0700 https://activerain.com/blogsview/5538640/why-did-the-irs-make-up-my-tax-return- https://activerain.com/blogsview/5538634/what-is-the-first-step-in-negotiating-with-the-irs--compliance- The first thing everyone asks about their IRS debt is "can we negotiate it down"?  While the answer may be "yes", the IRS will not even consider your offer or your payment plan agreement if you are not in "tax compliance".What does this mean in IRS language?In order to be in "compliance" with the IRS, it means that you are current on at least the last 6 years of tax returns and that you have paid or are actively paying in all of your actively accruing taxes.If you are a W2 employee, that means that you are having taxes withheld from your check.If you are self employed, that means that you are making your quarterly SE payments.If you are a business with employees, it means that you are current with your payroll tax payments and quarterly filings. If you are not in "compliance", the IRS will no even discuss options with you.Need help determining your best option moving forward, or getting yourself into compliance?  I am happy to talk with you.  Feel free to reach out and we can discuss your personal situation, or set up a consultation to determine a plan of attack to begin handling your tax debt. Be well, Sabrina Santos-SernaSerna Tax Solutions, LLCwww.SernaTax.comSabrina@SernaTax.com(559) 512-1012Madera and Fresno, CADisclaimer: Nothing in this article is to be considered tax advice. You should always consult with your personal tax and finance team to determine how these issues may or may not apply to you, and what your personal best plan of attack is. Sabrina Serna, Helping clients resolve IRS issues and past debt (Serna Tax Solutions, LLC) Mon, 14 Sep 2020 14:27:32 -0700 https://activerain.com/blogsview/5538634/what-is-the-first-step-in-negotiating-with-the-irs--compliance- https://activerain.com/blogsview/5530690/what-do-the-president-s--payroll-tax-cuts--mean-for-me- Earlier this month, President Trump announced what people are calling “Payroll Tax Cuts” as a memorandum, and there are a lot of questions. Here are some of the highlights:~It is a memorandum that says “Hey Mnuchin, here is what I want you to do, now figure out how to do it”. What that means is that there is a WHOLE lot that we don’t know, and won’t know until we get some final guidance as this thing is supposed to take affect on Sept 1. Remember the PPP mess where we were still getting guidance (and are still getting guidance) months after it rolled out? Yeah… that’s what we are expecting again with this.~It proposes a DEFERRAL of the employee portion of the Social Security Tax withholding. Why is this significant? Because the President has suggested that Mnuchin and his team look at the possibility of forgiving this portion, but if that doesn’t turn out viable, then it is simply a deferral and either the employee or the employer will have to pay it back at a later date.~If we have to pay it back, what will that look like? We aren’t sure. A few possible scenarios are that either the employee will owe it back at some time in 2021 when they file their 2020 tax return, or perhaps the employers will have to withhold extra next year and pay it back over time. There are literally a million other scenarios that could play out, but this ambiguity is what has tax professionals nervous.~Do I have to participate? We don’t know yet. We are hoping that the deferral will be voluntary and not forced, but again, we do not know and much of that will depend on the other rules that are implemented along with this.~Does this impact my SE taxes? Again, we don’t know. Stay tuned.~Here is what we do know: No matter which way this plays out, if you are an employer, get your employment attorneys and HR involved right away. Get waivers and training in place, and be sure your employees know the possibility of the payback at a later date. If you are an employee, talk to your tax professional and find out what this means for you both short and long term, and what you need to be prepared to pay back in the event this is not forgiven.As always, I will be keeping you appraised as we learn more when this thing rolls out on Sept 1. This post is not intended to be tax or legal advice, but simply to get you thinking. Always lean on your business and professional resources team for advice on how this impacts you.Feel free to reach out if I can be of assistance: Sabrina@SernaTax.com Sabrina Serna, Helping clients resolve IRS issues and past debt (Serna Tax Solutions, LLC) Tue, 25 Aug 2020 16:27:46 -0700 https://activerain.com/blogsview/5530690/what-do-the-president-s--payroll-tax-cuts--mean-for-me- https://activerain.com/blogsview/5498308/irs-liens-on-houses---how-do-you-avoid-them-or-get-them-off--fresno-ca Yes, the IRS can and will put a lien on your house.  No, they don't even have to tell you.  It happens automatically when you owe them money.  Here is what you need to know about house liens, how they happen, how to avoid them, and how to get a lien on your house removed if you need to sell it. The IRS will put a lien on your assets (usually affect the house the most, but ti does apply to all assets) when you owe them more than $10,000.  This lien happens automatically 10 days after they send you the "Demand for Payment" notice.  They do not have to notify you or anyone else of the lien.  It happens automatically. This is often known as the "silent lien". Unless dealt with, the lien automatically lasts for 10 years (there are things that can extend this) and is auto released after that amount of time. If nothing is done after the lien is issued, then the "Notice of Lien" is sent out from the IRS.  This is the one that notifies you, the county, and all of the lien notice head hunters that your home now has a lien on it.  Often, the first time someone is aware that their home has an IRS lien against it is when they start receiving all of the letters from the businesses who purchase lien lists from the county and then send out letters to help you deal with it.  The good news is that just because you have a lien on the house, doesn't mean that you cant sell it.  Here are some of the ways to get around it:-Discharge - you can petition the IRS to discharge your home asset from their lien list when something is going to happen that will allow the IRS to get paid.  For example, say you want to refinance the house in order to pay off debts.  The IRS can be petitioned to allow you to refinance if they will get paid in the refi, or if by refinancing, you will have a lower monthly house payment and therefore have more money each month to pay into your monthly IRS installment agreement (debt payment agreement). -Subordination - this is when the IRS will subordinate to another creditor in order to allow you to sell the home, and get paid from the proceeds. -Withdrawal - this is significantly more difficult to get them to agree to, but you can sometimes petition the IRS to withdraw their lien on the house in order for you to sell it if you agree to certain installment agreement terms in order to pay off your past IRS debt. As a side note, often times, people with a lien on their home will have a difficult time dealing with bankers and their home mortgage, because the IRS sends out a new notice every time the lien amount is increased.  Say, for example, you we the IRS $10k each year for 5 years.  You owe the IRS a total of $50k.  Well, the way that the IRS notifies you is that the first year, they send a lien notice for $10k, the second year for $20k, the 3rd year for $30k... etc.  By the end of it, if someone doesn't know what they are looking at, they might add all 5 of those letters up and interpret that you actually owe $150k!  Sometimes the easiest way around that is then to go back to the IRS and get a payoff statement to prove to the banker the correct number. Have an issue with a home lien, or need help getting one modified so that you can sell the house?  Give me a call or shoot me an email and lets discuss some options:Sabrina Serna, Serna Tax Solutions, LLCwww.sernatax.com Sabrina@SernaTax.com Sabrina Serna, Helping clients resolve IRS issues and past debt (Serna Tax Solutions, LLC) Mon, 18 May 2020 12:01:50 -0700 https://activerain.com/blogsview/5498308/irs-liens-on-houses---how-do-you-avoid-them-or-get-them-off--fresno-ca https://activerain.com/blogsview/5498297/when-irs-debts-cost-you-your-passport---fresno--ca You read that correctly!  The IRS has the authority to deny or revoke your passport!  When, how, and why do they do this?  It all has to do with past debts and you ignoring their attempts to get a hold of you.  The good news is, you can avoid this situation.  Here is what you need to know:In 2015, the FAST Act was passed (the Fixing America's Surface Transportation Act) and within it, in order to help enforce collections, the IRS was given permission to cancel, deny or revoke a person's passport if they owed more than $50,000 in past due taxes.  This happens when you have an IRS debt that exceeds $50k, and you have been ignoring their attempts to get a hold of you. When the IRS believes that you owe them money, before their revoke your passport or take other collection actions, they start by sending you a series of letters.  The letters start out pretty nice, basically stating "hey, we think you owe us some money.  Please either pay us, or send us back a letter telling us why you don't think that you owe us".  If they don't hear back from you, the letters get progressively more and more nasty, until you get some final notices.  That is when the passport denial or revocation starts to kick in. Unfortunately, once the IRS decides to revoke or deny your passport, the only way to get it back is to file in tax court.  You cannot appeal it at the IRS level (which is the easier way to deal with IRS issues).  That is why you definitely want to avoid getting to this point! The other item to note, is that there is a way that someone can be declared "Currently Not Collectible" (the IRS calls this being in CNC status).  This is a method that some people use to get the IRS or other debtors off of their back.  That doesn't work in the case of Passport denial/revocation.  Even in CNC status, the IRS can still remove your passport. So how do we avoid this?  We open our mail and get ahead of IRS issues! If you are actively working with the IRS, or you are in an agreed upon payment plan (even if that payment agreement is at a reduced rate), then they generally won't be coming after your passport!  Need help dealing with a past due or increasing IRS debt?  Give me a call or an email and lets chat. Sabrina Serna, Serna Tax Solutions, LLCSabrina@sernatax.com www.sernatax.com Sabrina Serna, Helping clients resolve IRS issues and past debt (Serna Tax Solutions, LLC) Thu, 14 May 2020 10:53:04 -0700 https://activerain.com/blogsview/5498297/when-irs-debts-cost-you-your-passport---fresno--ca https://activerain.com/blogsview/5498270/can-withholding-your-tax-return-help-hide-you-from-the-irs--fresno--ca I hear this one a few times every year: "I owe the IRS a lot of money this year.  If I don't file my taxes, they won't know that I owe them, and I won't have to pay it."In a world where you are the only one who reports to the IRS, that strategy might be a great one!  However, that is not the world we live in.You know all of those forms you receive every year that your accountant asks you for?  W2s, 1099s from every bank and contract gig, etc?  What most people do not realize is that one copy of that goes to you to use on your tax return, the other copy goes to the IRS.  So as much as you may want to "hide", the truth is, they already know that you exist. The greater problem with that logic is that the most expensive part of having the IRS decide you owe them taxes from a few years back is the penalties and interest that get tacked on and charged all the way back from the date they believe you SHOULD have paid them. Unfortunetaly, hundreds of thousands of Americans get into that trap every year. If you have back tax returns you haven't filed, or if you've received an "IRS Love Letter" that you want help dealing with, give me a call.  There are ways we can try to reduce penalties and interest, as well as some tricks we may be able to employ to see if we can reduce the amount you have to pay back, as well as get you into a payment plan you can actually afford. Moral of the story: You can't hide!  Dealing with the issue on your terms (rather than theirs) will almost ALWAYS get you a better outcome than waiting until they come for you.Sabrina Serna, Serna Tax Solutions, LLwww.sernatax.comSabrina@SernaTax.com Sabrina Serna, Helping clients resolve IRS issues and past debt (Serna Tax Solutions, LLC) Mon, 11 May 2020 10:05:17 -0700 https://activerain.com/blogsview/5498270/can-withholding-your-tax-return-help-hide-you-from-the-irs--fresno--ca https://activerain.com/blogsview/5489937/the-irs-collection-process---what-you-need-to-know-in-fresno--ca With over 14 MILLION collections cases currently active at the IRS, and that number expected to grow exponentially after the COVID-19 fallout, do not feel like you are alone if you are the recipient of one of the IRS "love letters".  My job  at Serna Tax Solutions, LLC is to help clients navigate their way around IRS collections, and get the best result possible in their current situation.  Whether that is a payment plan to get them off your back, an Offer In Compromise where we say "hey, I can't afford that bill, but here is what I can offer", or getting a lien lifted from a home so that it can be sold, there are many ways we can potentially deal with your IRS issue.  That said, your options start to diminish the longer you wait to respond to those "love letters".  Here is how the collection process works, and some things you need to know about each step:Step 1: The tax is assessedSome way or another, the IRS has determined that you owe them money.  That can be the result of an audit, that can be the result of you not filing your tax return and them making one up for you, it can be because you didn't pay your taxes when you were supposed to, or any other myriad of reasons.  The first step is that they will determine that you owe them money in one way or another.Step 2: Billing notice is sentNow that they have determined that you owe them money, they are going to send you a bill.  The first letter is a pretty nice one.  It basically says "hey, we think you owe us some money.  Either send us the money, or send us a note explaining why you don't owe it."  Pretty nice, huh?  What happens now, is that most people ignore that letter.  Either they don't open it at all, or they think "if I just don't respond it will go away.  They will forget about little ol' me." WRONG.  We move to step 3. Step 3: A lien arisesThe IRS now puts a lien over all of the tax payers assets.  This lien is what we call the "silent lien".  It exists, but they don't go about broadcasting it. You will however find out if you try to sell your house, or any other financed asset, because the bank will come back and say "you can't sell this.  The IRS has a lien on it.".  The notice will come out in a later step...Step 4: Final Notice is issued, and an Intent to LevyThis is when the letters get not so nice anymore.  Now, they say "Hey, this is your last shot.  You owe us this money, or else we are going to start taking stuff.".  At this point, you still have options available to work this out with the IRS.  Yet, again, most people choose to ignore this... and we continue down the process.Step 5: Notice of  Federal Tax Lien is issuedThis is when they officially send the notices out that they are putting liens on your property.  You likely will know that this process has started, because you will start receiving spam from every "Let us help you" chain in your area.  This is when your lien hits the lien lists which can be purchased, and are on record at the county.  The lien is officially public. Once again... you still have options at this point to resolve the issue!  And yet... once again, people choose to ignore this, and the process continues.Step 6:  Property seizure beginsThis is the point where most people start calling for help.  The IRS is officially garnishing wages, emptying bank accounts, and finding other creative ways to get their money. Step 7: Step 6 continues until the issue is resolvedWhat does "resolved" mean?  Either they have taken enough property to pay off your debt, OR you have engaged a professional to help come to an agreement with the IRS and they no longer have to seize property, because you are cooperating and paying them on agreed upon terms. The moral of the story is: OPEN YOUR MAIL!  STOP WAITING! IT WILL NOT GO AWAY ON ITS OWN. If you need help with a tax issue, give me a call or email.  I work with clients to help them sleep better at night knowing that we can work with the IRS, and take control of the situation again.  Sabrina@SernaTax.com*Disclaimer: This post does not contain any tax, financial, or legal advice. These are simply concepts you should consider and discuss with your tax adviser. Without knowing your specific situation, and having an engagement letter in place, I cannot provide specific tax advice over an Internet post or video. To discuss your specific tax situation, feel free to send me an email to make an appointment for consultation. Sabrina Serna, Helping clients resolve IRS issues and past debt (Serna Tax Solutions, LLC) Mon, 20 Apr 2020 10:48:46 -0700 https://activerain.com/blogsview/5489937/the-irs-collection-process---what-you-need-to-know-in-fresno--ca