What to do When the IRS Modifies or Terminates Your Installment Agreement?

Did you receive a letter saying that the IRS terminated your installment agreement or did you default on your installment agreement?  If so, here is what you need to know:

1.    An installment agreement remains in effect for the time specified in the agreement.

2.   The IRS can terminate the agreement if you provided inaccurate information prior to the time the agreement was entered into or if collection of the tax is in jeopardy. 

3.   The IRS can also terminate the installment agreement if your financial condition has significantly changed. 

4.  The IRS can modify the installment agreement if you request that it be changed due to your financial condition changing significantly or if the IRS makes this determination on its own.

5.    The IRS generally has to give you notice of it’s intend to modify or terminate your installment agreement at least 30 days prior to taking action. 

6.    The IRS’s notice has to explain why it is modifying or terminating your installment agreement. 

7.    You have the right to appeal the IRS’s decision.

If the IRS has proposed to modify or terminate your installment agreement, you have to act quickly to protect your rights.  We want to talk to you.  You can find us at www.irstaxtrouble.com or call us at 713-909-4906.

Top 7 Facts About the IRS’s Offer in Compromise Program

Do you have an unpaid tax debt?  If so, you have probably heard the radio or TV commercials about settling your tax debt for less than the amount owed.  These advertisements are referring to the IRS’s offer in compromise.  Here are a few things you should know about this program if you are thinking about submitting an offer in compromise:

1.    An offer in compromise is a legal agreement.  It can result in your unpaid tax liability being paid off for less than you owe in tax. 

2.    The offer in compromise can be used to settle just about every kind of tax debt, including income taxes, employment taxes, trust fund and other penalties, etc.

3.    There are three types of offers that can be made.  Most offers are made based on doubt as to collectibility, which means that you do not have sufficient assets or income to pay the taxes. 

4.    You have to make a partial payment with your offer, which can be paid over a maximum of a 2 year period. 

5.    Your tax debt will continue to accrue penalties and interest while your offer is pending.

6.    You cannot qualify for an offer if you have a pending bankruptcy matter.

7.    Do not expect to receive tax refunds for the current tax year while your offer is being considered by the IRS, as the IRS will keep them.  

For qualified taxpayers, the IRS’s offer in compromise program can be a great way to get a “fresh start.”  Call today to see if you qualify.  You can find out more about us at www.irstaxtrouble.com or by calling us at 713-909-4906.

How the TaxMasters failed to provide the expected services to the taxpayers?

Houston is a great city.  It is a city that works.  It has been home to a number of interesting characters.  In the tax world, it is known for being the home to businesses like Enron and TaxMasters--the now defunct tax resolution company--that met their demise due to their tax problems. 

Before its demise, TaxMasters was one of the largest tax resolution firms around.  It reported over $40 million in revenue in 2010.  Its offices occupied over 120,000 square feet and paid out nearly $20 million in wages to its employees. 

TaxMaster’s public filings indicate that its competitors included several other large and now defunct tax resolution companies, such as JK Harris, and smaller law and accounting firms. 

So how did it die?  That is a complicated question.  The short version is that it provided promises that it did not keep, it took client funds and failed to perform the services, and it did not refund monies to client that it should have.  Poor management and hiring employees who have no tax experience were at the core of the problem.  TaxMaster’s demise was widely publicized and it left a lasting impression about how the tax resolution firms operate in Houston. 

There are a number of firms that have sprung up to take TaxMasters place.  Some even hired the very same employees and continued on with the very same practices as TaxMasters.  These firms advertise heavily on TV and radio as TaxMasters did.  They hire inexperienced staff to do the work and charge high fees for doing the work. 

We address some of these issues on our blog at www.irstaxtrouble.com.  Please visit our blog or call us at 713-909-4906 to learn more.

How to know that the attorney is professional and able to handle your case?

There are a lot of tax attorneys who help with IRS tax troubles.  There are a lot that have been doing this work for a number of years.  It can be difficult to decide which tax attorney you should hire to help with your case. 

Our advice is always to try to seek out the tax attorneys who are engaged, who are curious, who are interested in learning and exploring the tax law, and who you feel comfortable with.  The one thing you do not want is to hire the tax attorney who is not engaged.  You do not want to hire a tax attorney who has stopped reading and learning.  Tax laws change.  Opportunities change.  What is acceptable and what will be accepted changes.  

How do you find a tax attorney that is engaged?  There was a time that you could judge a tax attorney by their website.  If they had a blog, you could rest assured that they were keeping abreast of the tax laws.  This was a good indicator the tax attorney would be able to effectively handle your tax problem.  Those days are gone.  Many tax law firms and others use third parties to write their blog posts and to provide content for their websites.

But the tax attorneys website is still one of the best ways to find an engaged tax attorney.  How can you tell this from their website?  The short answer is that their website content will probably not be as polished.  The writing will have a personality.  It may even express an opinion occasionally.  It will present information that is specific, rather than general.  It will have the hallmarks of being written by a tax attorney rather than a journalist.  This type of content is easy to spot when you are specifically reading the content and looking for it. 

The tax attorney’s website is also a great way to get to know the attorney and what type of cases he or she handles.  This can also give you some comfort that the tax attorney can handle your matter.

Needless to say, we are tax attorneys.  We are engaged.  We focus on tax laws.  It is our passion.  It is what we do.  We hope you can tell this from our writing and think you will find the same for the content on our website.  Please visit our website at www.irstaxtrouble.com or call us at 713.909.4906.