I received a call today from an enrolled agent for my help with a client who was having problems not only with the IRS, but credit cards as well.  As usual, my enrolled agent friend got it right – bankruptcy was likely on the horizon for us to take care of both problems simultaneously.

Two basic rules on owing the IRS and credit cards:

The credit cards are usually firing blanks but make you believe they have a cannon. 

The IRS, on the other hand, has a cannon. 

Like many things in...

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Tax problems do come to an end – the IRS has 10 years to collect a tax debt.  

But be careful:  The time the IRS has to collect can be unknowingly extended by you. 

The decisions you make in attempting to resolve your tax problem can impact when it ends.  As your collection statute gets closer to expiring, carefully think through the benefits of taking any of the following actions that will extend it: 

(1)     Offer in compromise.  The filing of an offer in...

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A great question from a reader about discharging taxes when \ successive bankruptcies are filed:

Mr. Levy – I hope you can help me.  I owe back taxes and filed a Chapter 13 to repay the IRS.  The Chapter 13 was dismissed because I could not keep up with the payments.  Now I would like to file a Chapter 7 to eliminate what I did not pay.  My attorney mentioned something about a stopwatch while I was in the Chapter 13.   What is this all about?

You are correct in recognizing...

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Being successful in an offer in compromise can depend on how much you know about IRS settlement guidelines.  An offer in compromise is a negotiation – you may have points to make with the IRS that only you can raise. 

Here are five pointers to lower the value of your offer in compromise: 

(1)      Make sure you claim property the IRS cannot take from you as “exempt” on your IRS financial statement (Form 433A).  Exempt assets that the IRS cannot...

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IRS trust fund recovery penalty investigations are a sure source of unease.  Trust fund investigations can place personal liability on you for not paying your employees’ withholding taxes to the IRS.

Adding to the dilemma is an IRS request during the trust fund investigation for a personal financial statement (Form 433A) detailing your assets, income and living expenses.

If the IRS makes a request for a personal financial statement during a trust fund investigation, two...

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