If someone wants to file an Offer in Compromise to settle their tax debt, the IRS will not make a business decision. In the real world, if you owe someone $100,000 and offer them $80,000, the creditor will probably accept the deal. However, the IRS will never leave money on the table.
IRS Myth 7: Once You File A Joint Tax Return, You Cannot Get Out Of It
When a married couple file separate returns, they can later amend and file a joint return. When they initially file a joint return, they cannot then file separate returns. However, under certain circumstances, one party may be able to separate the liability.
IRS Myth 8: If Your Business Owes Money, You Are Not Personally Responsible.
Many small businesses are unable to pay their payroll taxes for various reasons. Often, they do not have enough money to pay all of their bills. If they do not pay their rent, they will get evicted. If they do not pay their utilities, they will be shut off. If they do not pay their vendors or suppliers, they will not be able to do business. If they do not pay their employees, they will quit. The easiest creditor not to pay is the IRS because they do not have their hand out at the end of the week. Of course, the IRS believes they should be first in line, so if they do not get paid, they come back with a vengeance, levying bank accounts, credit card processors, and accounts receivables.
IRS Myth 9: If You Owe The IRS Too Much Money, You Will Go To Jail
At my first meeting with a prospective new client, their biggest fear is people is going to jail for not filing tax returns or not paying outstanding debt. As a general rule, all the IRS wants from most people are all of the tax returns and an agreement to resolve the balance owed.
IRS Myth 12: Once You Owe The IRS Money, It Never Goes Away
Every year, my clients save millions of dollars because the time for the IRS to collect has expired. The Statute of Limitations for when you owe the IRS money is 10 years from the day the tax was assessed. Some of these people have been declared uncollectible by the IRS or have been making small payments and have not been able to fully pay over the years. Others are just plain lucky that they have slipped under the radar.
IRS Myth: The IRS Is Impossible To Deal With
The IRS has rules that they must follow. There is the Internal Revenue Code. That is the law and whether they like it or not, they must follow it. They also have the Internal Revenue Manual which they follow 100% of the time as long as they like what it says. When they do not like what it says, they follow it 0% of the time. The Manual contains their rules and guidelines, but it is this not the law, meaning taxpayers are not bound by it. It is my job as a Tax Attorney to hold their feet to the fire and make sure that they comply with the law and follow their own procedures.
IRS Offer in Compromise
I’m tax attorney Steve Klitzner, and my practice is limited only to representing individuals and businesses with IRS problems. And I’m very happy today to be talking about something that … Read more
IRS Payments
I’m tax attorney Steve Klitzner. My practice is dedicated solely to representing individuals and businesses with IRS problems. Sometimes people have a different sort of problem with the IRS. They … Read more
IRS Private Debt Collectors Fail
You may remember my article last year, “IRS Tries Private Debt Collectors … Again“, where I predicted three times would not be a charm. Yes, the idea has failed not once, not twice, but thrice.
The IRS Returns to Florida
They’re baaaack. After 4 1/2 months of no activity, the IRS will be back in Florida on February 1. None of the Revenue Officers (who are the collectors) or the Revenue Agents (who are the auditors) physically left the state, but they have been quiet.
IRS Tax Audit Myths & Misconceptions
If you’ve never been through an IRS tax audit, you probably have some common misconceptions about what actually triggers an audit. Ask ten people what they think would cause an IRS audit and you would probably get ten different answers. Therefore, we thought we would take a few minutes to clear up a few common myths and misconceptions about what does and does not trigger an IRS audit.
Myth #1 – If you e-file, it will increase the likelihood that you’ll be audited.
The process in which the IRS determines which returns should be audited has nothing to do with the way you chose to file your return. E-filing could actually reduce the chances that your return will be audited due to the fact that electronically filed returns are usually more accurate; therefore, if you e-file, your tax return is less likely to trigger an IRS audit.
IRS Tax Changes in 2023
Importance of Staying Up-to-Date Things like taxes and reporting must be ever-changing to keep up with the demands of an evolving financial market. Between things like inflation, recession, and emergency … Read more
IRS Tax Law
Hi. I’m tax attorney Steve Klitzner, and all I do in my practice, as an attorney, is representing individuals and business with IRS problems. Sometimes it’s because the IRS is … Read more
IRS To Use Private Debt Collection Agencies
It did not work the first time in 1996. It did not work the second time in 2006. Both times the IRS lost money. Three times a charm?
Lawmakers Can Now Decide to Pass Online Sales Tax Laws
The United States Supreme Court refused to hear a case brought by Amazon and Overstock.com challenging a 2008 New York law requiring online retailers to collect sales tax on purchases by New York State residents. The online retailers had argued that given the number of local jurisdictions with different sales tax rates, the law was overly complicated, unduly burdensome, and restricted the growth of online commerce. The law was upheld by New York’s highest court before the challenge was brought to the Supreme Court.
The Scope of the Decision
New York’s ruling went beyond a 1992 U.S. Supreme Court ruling requiring online retailers to collect sales tax in states where they have a physical presence. Under that rule, a retailer needed to have a physical store or office in a state to be required to collect sales tax. New York’s law included marketing efforts directed at a state and used affiliate marketing as a basis for establishing the company’s presence in a state.
Should you hire a Local Tax Attorney or a National Company?
When it comes to resolving an IRS problem, many taxpayers consider hiring a nationalcompany to represent them. While it may seem like a convenient and efficient option,using a local attorney … Read more
Miami Tax Attorney Steve Klitzner Explains Offer in Compromise (OIC)
I’m tax attorney Steve Klitzner. I represent individuals and businesses that have IRS problems. One of my favorite questions I hear from friends, family, clients, prospective clients is, “We see … Read more
Most Common Payroll Tax Problems and How to Avoid Them
It’s no secret that filing your taxes can be complicated and daunting, but anyone who has ever filed taxes for a business knows that there is even more room for … Read more
Most Common Question
Hi. I’m tax attorney Steve Klitzner. My practice is limited solely to representing individuals and businesses with IRS problems. Here’s a common question that people ask. Probably the most asked … Read more
Most Common Tax Penalties & How To Avoid Them
Filing your taxes correctly and on time is one of the most important things you can do every year to protect your financial situation. This is because, on top of … Read more