Why IRS Doesn’t Negotiate Payroll Tax Debt – EVER

IRS, Payroll Taxes, Tax Collection Issues

Business owners with payroll tax debt often ask me why the IRS won’t lift its levy or lien. After all, these clients argue, I just need a bit of free cash to invest back into my business, to make the money to pay what I owe. If the IRS cripples my business with liens or levies, then I can’t make the money to repay them. So, why doesn’t the IRS act more like my business partner, let me continue to operate, and make the money to pay them back Read more »

The IRS and its Notice of Federal Tax Lien

Tax Collection Issues

When a taxpayer doesn’t pay income taxes, the IRS automatically gets a lien against the taxpayer’s property. That means that legally, the taxpayer can’t sell anything without using the proceeds to pay the IRS. The IRS almost never enforces this “silent lien,” however. It’s silent because no one else knows about it. Read more »

Can You Negotiate Away An IRS Tax Lien? 

Tax Collection Issues, Taxes

A tax lien is a relatively passive way for the IRS or California’s Franchise Tax Board to get paid the back taxes you owe. Why passive?  Because it can take a long time for the IRS or FTB to get paid.  Suppose there’s a lot of equity in your house and owe you the IRS: when the IRS files a notice of tax lien against your house, nothing changes immediately.  Read more »

Getting Rid of Tax Debt with Bankruptcy Can Take Time – Lots of It

Bankruptcy Procedure, Pre-Bankruptcy Planning, Tax Collection Issues, Taxes

Clients often arrive in my office, panicking, with big problems such as unpaid student loans, huge tax or business debts, and creditors filing liens. They want their problems to go away immediately – rightly so because the stress is terrible.  But, for many clients, the only effective strategy is one that will take time.  Often lots of it. Read more »