Category Archives: Revenue Officer

Tax Problems with the IRS in the Connecticut Area

By   December 16, 2014

Living in Connecticut is Expensive. Tax Problems can make it impossible.

 

Connecticut is an expensive place to live. Sometimes, in order to get by, Connecticut taxpayers might put off paying their tax bill. It will take some time, but eventually the notices will start coming.  You will get several notices telling you that you owe the IRS some money. Then, you get a cp504 – Notice of Intent to Levy, and the tone of the letters change. All of a sudden the IRS isn’t asking you to pay your tax bill.  Now, the IRS is telling you that it is going to seize your state refund and “other property.” Finally, the IRS is going to come at you with a “Final Notice of Intent to Levy” – cp1058 and/or a Notice of Federal Tax Lien Filing.  (NOTE: The IRS has started using a much more benign-looking letter called the “LT11.” Make sure you read every letter you get from the IRS to make sure that it does not mention a Collection Due Process hearing.) At that point, you have 30 days to act – or your bank account, wages, and other property and income is at risk of being seized by the Internal Revenue Service. But Connecticut is an expensive place to live, and even though you owe them money – the IRS cannot collect more money from you than you can afford to pay. The bottom line is that most people at the IRS do not get what it is like to live in Connecticut. You need Tax Help in Connecticut. And I can provide that help.

There are things that can be done to keep the IRS in check while you sort out your finances and figure out exactly what you can pay. Too many taxpayers rush into Installment Agreements that they truly cannot afford. The important thing to keep in mind is that agreeing to an Installment Agreement with the IRS will not protect you from future collection action if the Installment Agreement ends up in default. A Tax Attorney can help you arrange your finances so that your reasonable living expenses are documented and acceptable to the IRS. But if you are not proactive, if you – or someone you hire – doesn’t call the IRS, then the Tax Machine will go into motion, levy notices will be sent to banks and employers – and you might end up struggling trying to figure out how to put food on the table and keep a roof over your family’s head.

That’s why you want to get into an arrangement that will actually work for you. The first time.

IRS Help in Connecticut

If you live in Connecticut, and have problems with the IRS, you might be wondering whether or not you should speak with a Tax Attorney, a CPA, an Enrolled Agent, or go another route. Any of these professionals can deal with your case at the administrative level. I know several CPAs and Enrolled Agents who I would trust to resolve most tax issues. But, sometimes, even when a client’s position is reasonable, the IRS will refuse to budge. The IRS will “abuse” it’s discretion. When that happens, only a Tax Attorney (or a United States Tax Court Practitioner) can take your case all the way to Tax Court.

Whether your plan is to go it alone, or seek advice from a Tax Professional, I would be happy to discuss your options with you, free of charge. Click the “Talk2Tom” button below to send me a message, or schedule a phone call with me. Even with prospective clients, communications are always confidential and protected by attorney-client privilege.

 

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Getting Rid of a Tax Lien

By   December 4, 2014

Looking to get rid of a Tax lien through a lien release or lien withdrawal?  Call 860-4THE-LAW to be connected directly to a real, live, Tax Attorney. Click “Call Now” below to call, send me a message, or schedule a phone consultation.

 

If you owe money to the federal government, the IRS will often place a tax lien on your personal and real property. That lien is piece of paper filed by the Internal Revenue Service with your local  and/or state government. The purpose of an IRS lien is to give the government priority in your stuff.  A tax lien should not be confused with a tax levy. A lien protects the government’s interest in your property, but a levy (garnishment) involves the government taking your property. If the IRS issues a levy, they will either empty your bank accounts, garnish your wages, or sell your house or other property to collect from you.

How an IRS Tax Lien Hurts

An IRS tax lien can hurt you by making it difficult for you to obtain credit, this will make it tougher to buy a home, a car, take out a personal loan, or get a job. Tax liens make it harder to live. Get some Tax Help in Connecticut! Give me a call today.

There are only a few ways to get rid of a tax lien

You may be able to get a lien released or withdrawn by:

  • Paying your tax bill in full,
  • Getting the IRS to accept an Offer in Compromise
  • Entering into an Installment Agreement (in some cases)
  • Filing for bankruptcy (in some cases)
  • Paying a portion of the tax due and suing for a refund in district court (some cases)
  • Waiting for the collection statute (CSED) to expire (10 years)
  • or, Filing an appeal with the IRS if the lien was filed by mistake or is impacting your ability to earn a living (in some cases)

If you are trying to deal with a tax lien – or if you are worried that one will be filed against you, I urge you to contact me today to discuss. I am a Connecticut Tax Lawyer, but I take on the IRS for clients throughout the United States.

The best time to fight a lien is before it is filed. But when that is no longer an option, the best thing to do is to seek professional advice to resolve the problem. When a lien is filed – that’s usually a sign that levies are on their way. A lien filing provides you with the opportunity to request a hearing with IRS Appeals to protest the lien.  Contact me today to make sure that your due process rights are protected. Need Tax Help, and live in Connecticut? Just give me a call. You will speak directly to me, and the first consultation is free.

It’s time to put your IRS problems behind you. I am here to help make that happen.

What is a 4180 Interview? The Trust Fund Recovery Penalty

By   July 21, 2014

Business owners incorporate or form LLCs to limit personal liability. But don’t think that gets them off the hook for unpaid company taxes. If the company fails to pay over “trust” (payroll/excise) taxes, the IRS will try to collect it somewhere else. When 941, 940, or 720 taxes are unpaid by a company, the IRS will eventually look to key employees or owners to collect. A Revenue Officer will assess what is called a Trust Fund Recovery Penalty (TFRP) IRC § 6672(a) against any officers/owners/employees the IRS determines is a “responsible person.”

You might be surprised to find out that it isn’t only the business owner who can be found to be a “responsible person.” Right off the bat, anyone with check-writing authority is at risk of being deemed a “responsible person.” The IRS Revenue Officer (RO) requests an in-person interview with individuals who may fit the bill for a responsible person. This is called a 4180 Interview.

Have you been asked to sit down with a Revenue Officer because of your company’s unpaid payroll or excise taxes? Contact Tom Tax Lawyer

For example: A Real Estate management company has 1) several investors, an 2) office manager who pays major bills for the company, a 3) bookkeeper who arranges for the filing and payment of taxes, and a 4) secretary who opens the mail and pays smaller invoices. The manager, bookkeeper and secretary all have signing authority. The IRS will consider all three of them as potential responsible persons. Depending on the facts of the case, the RO may or may not pursue the investors.

The basic idea is that if you have the authority to decide who to pay first, and you decide to pay other creditors or vendors before paying the IRS, then you should be held responsible for it. If the IRS decides that multiple parties are responsible, then it can try to collect the entire amount of the Trust Fund Penalty in full from each responsible person. Because of this Joint-and-several liability, the IRS has every incentive to find as many “responsible persons” as possible. See what the IRS Manual has to say about Trust Fund Recovery Penalties here.

If the IRS requests a 4180 interview with you, you should retain your own lawyer to guide you through the process and advocate for you during the 4180 interview. Many times when a company gets into hot water with the IRS, the officers and high-level employees will seek joint representation. While this has the advantage of saving them money – it may cause a conflict.