IRS

I Received an IRS Notice of Intent to Levy: What Should I Do Next?

12/21/11

Letter 1058 Precedes an IRS Levy The IRS seizes or levies property from taxpayers who owe back taxes. It is through the levy process that the IRS garnishes wages, seizes a car or attaches other items of property. Many taxpayers are frightened by notice of an IRS lien, however, tax liens only serve to put the world [...]

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What are the Tax Consequences of Not Filing for Bankruptcy?

11/18/11

Debts discharged in bankruptcy do not trigger tax liability Most everyone knows that filing for bankruptcy eliminates credit card debt, medical bills and other unsecured loans. However, a significant benefit of filing, that is rarely discussed, are the tax benefits that result when the bankruptcy discharge is issued. The IRS treats canceled debt as income [...]

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What is an Offer in Compromise? Can It Help Me Avoid Bankruptcy?

08/08/11

What is an Offer in Compromise? Tax settlement firms love to advertise the offer in compromise, a method for resolving IRS back taxes that theoretically involves payment of a small portion of the outstanding tax bill owed and forgiveness of the rest. Firms like Tax Masters love to imply that the IRS will simply forgive [...]

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IRS Tax Liens: What Every Taxpayer Needs to Know

07/25/11

An IRS lien is a federal tax lien (FTL) that the IRS places against your property, similar to a mortgage on your home or a lien on your car. The difference is that the lien is placed against everything you (the taxpayer) own, right down to the cash in your wallet, clothing, and furniture in [...]

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