With the stuttering state of the economy, for many people every cent saved counts.  As tax season comes along, those who are unable or unwilling to file their own taxes would engage the services of professional tax preparers.  But for a substantial group of others, they would choose instead to use the services of volunteer or free tax preparers.  This service is known as Volunteer Income Tax Assistance (VITA), and has been set up by the IRS for precisely the purpose of providing free voluntary help to taxpayers in submitting their tax returns.

However, not everyone may utilize these free services.  Only those whose annual wages are below $49,000 qualify for VITA.  Besides VITA, another IRS program helping taxpayers, in particular the elderly is Tax Counseling for the Elderly (TCE).  TCE collaborates with the AARP in providing this free service to the elderly at over 7,000 of its locations across the United States.

While it is still only the start of the tax season, the IRS is expecting many more people to file their returns early this year with the intention of getting back their refunds earlier as well.  Even this little bit helps considering the state of the economy.  The IRS operates on a first-come-first-served basis as far as issuing refunds go.

Taxpayers have started filing their tax returns electronically since last Friday when the IRS opened its doors to receive returns.  Likewise, the VITA and TCE centers will be opening in the coming weeks, expecting to receive a huge influx of taxpaying Americans requiring help with their tax returns.  Both these programs also accept electronic filing.

But should you approach either the VITA or TCE for assistance, be sure you have full documentation in order for them to help you.  For example, to apply for the making work pay tax benefit, you need to have your W2 statement to show that you have worked.  Merely having unemployment earnings statements does not qualify you for the Earned Income tax credits.

Other key important documents you should have with you when filing your taxes with the VITA or TCE would be your original Social Security cards and that of your dependents (if any), your driver’s license and your bank particulars, especially if you would like to use a direct deposit.  It increasingly appears that this year, the VITA and TCE will be kept extremely busy.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

Tax Filing Assistance, Anyone? is a post from: IRS Tax Problem Solver Blog - IRS Help

One of the benefits granted under the American Recovery and Reinvestment Act 2009 (ARRA) is a tax deductible amount from costs incurred for energy efficient home improvements.  In the past, the government did give a similar incentive but it was removed in 2008 only to be reenacted in 2009, but bigger and better.  This is good news to taxpayers.

Under the new legislation, homeowners who make renovations or improvements to their homes in the form of energy efficient lighting, heating, better insulation, energy-saving air conditioners or furnaces etc, are entitled to a tax credit of up to 30% of the costs of their improvements, up to a maximum of $1,500 (the previous ceiling was $500).  Therefore, if a taxpayer makes $5,000 worth of renovations to save energy in the home, he will be eligible to the maximum $1,500 credit.

But in order to qualify for the tax benefit, the amount spent is not the sole criteria.  Installing an equipment or product having the Energy Department’s Energy Star logo is not sufficient.  An added condition is that the manufacturer or maker of the energy saving materials or products must certify that it is up to the standard of energy efficiency set by the government.  With this official certification, you would be eligible for the tax credit.  Hence, taxpayers are advised to retain a copy of the manufacturer’s certification for tax purposes.  This certification was not a requirement under the old legislation.

This tax credit is open to every taxpayer irrespective of how much you earn.  But your home improvements must have been made no earlier than 2009 to be eligible for the 2010 tax year.

There is good news in that even though you have claimed under the old legislation (say for $500), you would still be eligible to claim up to the full amount of $1,500 under the new law.  The previous amount already claimed is not taken into consideration when calculating your new tax credit.

Another piece of good news has to do with a particular category of energy improvement.  Homeowners who have taken steps to utilize alternative energy would be eligible for the 30% tax credit but without the maximum limit of $1,500.  Therefore, it pays even more to install solar or geothermal heaters, wind turbines, solar call panels, geothermal heat pumps, magnetic generators and the like.  For this category of energy efficient improvements, the cost of installation and site preparation are also included in the calculation of the tax credit, besides the cost of the equipment itself.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

Lower Energy Consumption, Lower Taxes is a post from: IRS Tax Problem Solver Blog - IRS Help

The IRS Goes Video

Ever since the enactment of the American Recovery and Reinvestment Act 2009 (ARRA), the IRS has been going on overdrive to explain the nature and implications of the various tax incentives under the Act to the American taxpaying public.  In another act of reaching out to the people, the IRS has started its own YouTube channel.

The videos on the channel are short, pithy messages aimed at bringing clarity to the still-oft misunderstood facets of the ARRA such as the first time homebuyers’ tax credit, the sales and excise tax deduction for new car buyers and the making work pay tax incentive.  There is a video that even includes instructions on how to use the withholding tax calculator that helps you calculate the amount of withholding tax you should pay.  All the videos refer the viewers back to the IRS website, http://www.irs.gov.

In total there are about 70 to 75 IRS videos and they are in English, Spanish and American sign language.  These videos first made their appearance in August last year and to-date have been viewed some 230,000 times, no mean feat for government videos.  Terry Lemons, the IRS senior spokesman, quipped that very soon, the IRS videos would rival the most hip dance music videos in YouTube.

Viewers come across the IRS videos through various means that include links from third party websites, besides the result of the IRS’ own outreach efforts.

Nic Cage Vows to Pay Up Tax Dues

Actor Nicolas Cage, 46, says he fully intends to pay back all the taxes he owes the IRS.  The actor has been issued with multiple liens on his various properties including a $6.3 million lien for taxes he owed between 2002 and 2004.  In 2008, another lien was filed against him for a further $6.8 million for unpaid taxes in 2008.  In total, Cage owes the IRS about $14 million in taxes.

According to the Oscar winning actor, bad business management was the primary cause of his financial problems, a situation largely brought about by his previous financial manager, Samuel Levin.  Cage is suing Levin for $20 million claiming that the latter misappropriated his funds in risky and speculative property investments.  Court papers also state Cage’s allegation that Levin failed to pay the actor’s income taxes.

Levin, on the other hand, is counter-suing, alleging that it was Cage’s massive spending habits that brought about his own financial woes.

Nevertheless, in an interview with People’s Magazine, Cage has given his assurance that he will fully pay up the entire $14 million tax bill owed to the government and declared that he is current in his taxes for 2009.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

Latest Tax News is a post from: IRS Tax Problem Solver Blog - IRS Help

Foreign Banks to Comply with IRS Law

A new law for foreign banks compels them to divulge information about the deposits by their US account holders.  Its objective is to nab US tax evaders who stash their money in accounts with foreign banks especially in the light of the confession of Swiss bank UBS of assisting its American customers in dodging taxes.  The bank had to pay hefty fines and release details of several thousands of its US account holders to the IRS last year.

The law provides for a withholding tax of 30% of their income from US customers if the foreign banks fail to comply.  It is expected to be passed by the US Congress in the coming months and would go into effect December 31, 2012.

However, the IRS who is tasked with enforcing the law said that it would not expect foreign banks to give information on the identities of individual account holders.  That would be too impractical in view of the millions of existing and future accounts.  Hence the IRS would be taking a more general approach by looking at the banks’ macro processes.  This ought to come as a relief to foreign banks who have been asking for a softer stance in this matter by the US government, complaining of the difficulty of compliance.

The law encompasses all other financial institutions like hedge funds and private equity funds.  In addition, a US tax official also mentioned that there would likely be greater leniency for existing accounts compared with new accounts.

Municipal Bonds Regulated by IRS and SEC

The IRS is collaborating with the Securities and Exchange Commission (SEC) in enforcing greater regulations on the municipal bond market.  The respective heads of the IRS and SEC signed a Memorandum of Understanding (MOU) on behalf of their agencies on this matter.  The cooperation between the agencies is aimed at improving the compliance to the rules on municipal securities, especially tax-exempt bonds.  Under the MOU, the agencies also agreed to share information on practices and risks in the municipal bond market.

State and local governments through their municipal councils often issue bonds to the general public in efforts to raise funds for essential works like road maintenance, schools and hospitals.  The market is worth an estimated $2.8 trillion.  Many retail investors participate in this market because municipal bonds are seen as safe investment risks that give reliable returns.

However, recent adverse developments have underscored the importance of stricter regulations over this market.  Jefferson County, Ala., almost fell into bankruptcy when JPMorgan Chase & Co. canceled interest-rate swap contracts with the county worth around $700 million, causing its debts to skyrocket to $3.9 billion.  If Jefferson had gone under, it would have been the nation’s largest municipal bankruptcy in history.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

IRS News is a post from: IRS Tax Problem Solver Blog - IRS Help

The IRS has decided to relax the requirements on Americans who hold assets in foreign accounts, albeit slightly.  For years, those who have accounts in foreign banks and other financial institutions worth more than $10,000 were required to fill in the Foreign Bank Account Report (FBAR) but a new push by Congress to get the IRS to stem tax evasion has seen the government agency come down hard on such taxpayers.  Willful failure to submit or misrepresentation in the FBAR form entails a $100,000 fine or half the value of the account per year.  Non-willful compliance with this regulation results in a $10,000 annual fine.  Both these situations take no account of the amount of the infringements.

The IRS initiative clearly worked because last year, about 550,000 American taxpayers filled up the FBAR, a number that reflected a substantial increase of about 60% from the year before.

Last year’s IRS campaign aimed at thousands of Americans with foreign bank accounts kicked up a lot of fuss from many quarters.  A diplomatic row almost erupted between the US and Swiss governments over the IRS demands that UBS bank of Switzerland reveal details of their US account holders suspected by the IRS of tax evasion.  In the end, the Swiss bank relented and revealed the identities of thousands of their American depositors.

In a move that further emancipated the situation, last summer some IRS officials went on to expand the limits of the FBAR requirement to include foreigners doing business in America and US investors who had interests in non-traditional deposit taking institutions like hedge funds and private equity funds.  In a contrary but welcomed move last week, the officials from the US Treasury issued guidelines that absolved these investors from having to meet the requirement of filling up the FBAR forms, at least for this year.

However, other foreign account holders having foreign financial interests must still comply with the regulation.  These include those with ownership or control in a foreign bank or brokerage account, those with offshore annuities or offshore insurance policies that accrue cash value (owned directly or through a trust), those who invest in foreign mutual funds and those who own or control foreign companies with offshore accounts

Even the filing process is not very straightforward.  The FBAR filing deadline is June 30 not April 15, the normal tax filing deadline.  No extensions for the deadline will be entertained.  FBAR forms may be dropped off at any IRS office or mailed to a special address in Detroit.  Most people would like to have the deadlines the same as for normal tax filings, but the decision to alter this rests with the US Congress, not the IRS.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world.  If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

IRS Goes Easy on Foreign Account Holders is a post from: IRS Tax Problem Solver Blog - IRS Help

Looking back at the horrific events of that fateful Thursday morning February 18, Americans are divided over what to think of Joseph Stack, the angry man who flew his single engine Piper Cherokee airplane into the side of the 7 storey IRS building in Austin, Texas killing one man other than himself and injuring scores of others.  Some see him as a hero, others as a washed up coward and anything in between.

Stack’s daughter, Samantha Bell said on ABC’s ‘Good Morning, America’ while she viewed her father’s actions as ‘inappropriate’, she nevertheless thought of him as a hero because ‘now maybe people will listen’.  A survey of several Facebook groups Wednesday found many who looked at Stack with scorn or sympathy, some calling him a terrorist while others, a hero.  But what if Joseph Stack was a middle-Eastern man with a mustache and beard dressed in a robe and skullcap and prays to Allah five times a day and not a white Caucasian American citizen?  And what if his name was So-and-so Ben So-and-so?

Would more Americans consider him a terrorist then?

Are people now listening to the message of Al Qaeda because of what they did on September 11, 2001?  Are people now listening to the message of Timothy McVeigh the Oklahoma City bomber because of what he did on April 19, 1995?  Do Americans consider these people heroes?  Do heroes destroy the lives of innocent people while on a personal vendetta?

To some people, what Joseph Stack did was considered different from other acts of terrorism because he was a white Caucasian American and because his suicide note contained points they agreed with.  Even the media has largely avoided branding Stack a terrorist.  But Joseph Stack was a man who committed an act of terror.  And a terrorist is a person who commits acts of terror.  Just because Stack may not have been committing acts of terror as a lifestyle does not make him less a terrorist at the time of the act.

The fact is that Joseph Stack had an issue with the American government, in particular the IRS.  Likewise, the Al Qaeda terrorists did as well.  The dictionary’s definition of terrorism has always been the same regardless of what the issues are and who committed the act.  We should call a spade a spade.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world.  If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

Related Blogs

IRS Crasher Hero or Zero? is a post from: IRS Tax Problem Solver Blog - IRS Help

Hotel Sues Bogus IRS Officer

The Ignatio hotel in Novato has filed a breach of contract lawsuit against Sherry Lynn Vertoch, 64, for failing to pay $55,175.25 in various hotel charges comprising of room fees, pet charges and miscellaneous expenses over a two year stay.  The lawsuit was filed at the Marin Superior Court last Friday.  Vertoch faces a jail term of up to 3 years when sentencing is carried out April 20.  She pleaded guilty to the charge.

Vertoch has been staying at the Ignatio hotel for short spells over the past few years and had always settled her bills in cash.  But two years ago, she checked in and stayed at the hotel until recently without paying anything.  Every time the hotel pressed for payment, Vertoch claimed she was an IRS agent on an extended investigation in the area.  She allegedly told the hotel that she would forward their invoices to her employer, the IRS for payment to be made but in fact, she never worked for them.

Vertoch stayed in room 121 between Jan 21, 2008 and Jan 26, 2010.  The room rate was $79 per night.

Even if the hotel wins the judgment against Vertoch, it may not receive the payment it is owed.  However lawyers representing the hotel stated that the hotel wants to stake their claim on Vortech’s present and future assets.  The hotel would be able to seize whatever assets Vertoch has at present in order to receive restitution and if she does come into any money within the next 10 years, the hotel would be able to claim on that as well due to the judgment against her.

A case management conference has been scheduled for July 15 before Judge James Ritchie.

Good News for Maine Taxpayers from IRS

4,900 Maine taxpayers are owed more than $4.2 million in tax refunds by the IRS and they have until April 15 to claim their dues.  This debt dates back to 2006 when they did not file an income tax return.  To receive the refund, they have to file a tax return before the April deadline.

Some of these taxpayers did not file their return because their income was not high enough to warrant submitting a return while still having their salaries deducted for taxes or making quarterly estimated payments.  In such cases, the law stipulates that you have a 3 year period in order to submit your tax return and make your claim, otherwise the money will be sent to the US Treasury.

However, your 2006 refund may not be in the form of a check.  If you have not paid your subsequent years’ taxes, your refund will be used to offset your tax debts.  In addition, your refund may also be applied to unpaid child support payments or other federal debts like student loans.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world.  If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

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Interesting IRS News is a post from: IRS Tax Problem Solver Blog - IRS Help

Guess who thinks the tax code is complex and does not prepare his own tax returns?  Doug Shulman, the IRS Commissioner!  In a recent interview, Shulman confessed that he engages a professional tax preparer to fill out his tax forms, adding that he has been using one for 10 years.

Shulman’s practice is typical of a whopping majority of American taxpayers, approximately 80% of which do not prepare their own taxes when it comes time to submit their tax forms.  This percentage comprises of 60% who engage tax preparers to do the work for them and another 20% who use specialized software instead.

This month, the IRS announced that it is set to enforce certain measures to foster greater competence and integrity in companies and individuals who provide tax preparation services.  New regulations are being prepared that would entail tax preparers needing to be registered with the IRS, pass competency examinations and be regularly tested thereafter in order to be certified to prepare tax returns.

This new measure has come in the wake of shocking discoveries by the authorities on the lax and unprofessional work by many tax preparers.  In separate investigations conducted by the Government Accountability Office and the US Treasury inspector general for Tax Administration (TIGTA), the conduct of a majority of tax preparers have been found seriously wanting.

For instance, when the Government Accountability Office investigated 19 tax preparers, they found that only 2 could produce correct tax liability and refund amounts in their tax returns.  The results of investigations by the TIGTA produced no better results.  Its auditors, posing as taxpayers seeking tax preparation services, discovered that 11 out of 16 tax preparers made errors in simple tax returns.  Both the Government Accountability Office and TIGTA’s investigations did not involve complex tax issues; rather all of them needed only straightforward and common calculations of things like mortgage deductions, self-employment taxes and education credits.

Worst of all, some tax preparers were willing to cheat on the tax returns they prepared, often without batting an eyelid.  Some willingly made more deductions than they should and one even made a deduction for a charitable contribution despite being clearly told that no such contribution was made.

Perhaps Shulman’s claim that the tax code is too complex might not be too far from the truth.

In any case, as a first step towards implementing the new control measures, the IRS is going to send letters to 10,000 tax preparers who are known to be errant in their tax submissions.  What will follow will be visits by undercover IRS agents posing as taxpayers ready to blow the whistle on tax preparation cheats.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world.  If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

Related Blogs

Guess Who thinks the Tax Code is ‘Complex’ is a post from: IRS Tax Problem Solver Blog - IRS Help

Americans in the state of Georgia can expect delays in receiving their tax refunds, especially for those who filed their tax returns via paper filings.  Those who filed their returns electronically, however, are unlikely to be affected.  Why the discrepancy?

It all stems from the economic slowdown in the country and the consequent budget cuts to state governments.  In the face of 13 consecutive months of declining tax revenues, the Georgian government has had to embark on stringent cost cutting measures, reducing its expenditure by about $8.4 million this year.  Among the measures taken to achieve this are compulsory no pay leave by civil servants.  Tax processors in the state government are not spared.  Together with all Georgian state civil servants, tax processors have to each take 3 additional days’ compulsory leave without salary by June 30th this year, which happens to be the end of the fiscal year for the state government.  Besides these measures, the state government has also had to lay off a number of staff workers.

This precipitated a lack of manpower in the state tax department that resulted in a huge backlog of tax refund cases, thus the delays for Georgians, some of whom have waited months.  More acutely affected are the taxpayers who made their tax filings through paper submissions as they are more difficult to evaluate and process.

On the other hand, the delay in issuing refunds results in additional costs to the Georgian government as they have to pay interest to every taxpayer who is issued his or her refund later than 90 days after the April 15 deadline for filing taxes.  A similar thing happened last year and the Georgian government had to fork out just over $2 million in interest payments to over 270,000 of its citizens who received their refunds late.

State revenue commissioner Bart Graham said that approximately 55% of Georgians filed their tax returns electronically last year and the remaining 45% did so through paper submissions.

To increase the percentage of taxpayers who make their tax returns electronically, the IRS has issued a regulation requiring all tax preparation firms submitting more than 10 returns per year to do so entirely through electronic means.  Due to that, the Georgian state government hopes that things would be better this year and the numbers of delayed tax refunds to substantially reduce.

However, you should not get your hopes up because Georgian Governor Sonny Purdue will be leaving office at the end of this year.  How this will affect the financial situation in Georgia will be anybody’s guess.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

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Georgians Tax Refund Delays is a post from: IRS Tax Problem Solver Blog - IRS Help

Do you know what CSED stands for?  Collection Statute Expiration Date.  And CSED means the time period by which the IRS must collect the taxes you owe.  Beyond this time limit, your tax debt is cancelled.  But before you jump for joy, you need to know that the CSED time limit is 10 years.  And furthermore, it can be extended.  Your CSED period can be extended due to several factors listed below.  If you are not sure if your CSED expired, you should consult a tax attorney who can help you sieve through your personal records of tax payments and other tax related matters.  Here are several situations where your CSED may be extended.

Essentially your CSED may be extended if you have made any applications for a reduction or cancellation of your tax debt.  For instance, if you have tried to declare bankruptcy, your CSED is extended by the time the bankruptcy proceedings go on.  If you have applied for any number of Offers in Compromise, that time cannot be figured into your ten years, either. An Offer in Compromise typically takes 1 year to be completed so your CSED is also extended by that length of time.  So quit trying to play cat and mouse with the IRS; they will begin to come at you with tougher and tougher sanctions as your CSED date draws closer. With bulldog tenacity, they will stop at nothing to collect the money that is theirs long before the deadline hits.

But this does not mean an Offer in Compromise is futile.  In fact, it has saved thousands of Americans millions of dollars in the past and it can save you, as well. But first, you need to show that your tax debt is beyond your capacity to repay.  If you succeed in doing so, then your CSED becomes immaterial.  If your Offer in Compromise comes through, the IRS will likely cut a deal with you so you can get away with paying significantly less. Secondly, if you can show that there was an error in the computation of your tax bill, you can have it reduced or even cancelled altogether.  One final option is to offer a lump sum payment that is less than what you owe. If the lump sum is not less than 80% of the total tax bill, it is not uncommon for the IRS to accept your proposal and waive the rest of your debt.

So you should consult a tax attorney who can advise you on which course of action is the most suitable for you.  If you succeed in reducing or eliminating your tax debt, you won't need to worry if your CSED expired or not.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

Related Blogs

When Will My CSED Expire? is a post from: IRS Tax Problem Solver Blog - IRS Help