Failproof Your Resolutions
Make Your New Year’s Resolution Failproof – Solve Your Debt or Tax Problem.
Are you one of the millions of people who make New Year’s Resolutions? According to a survey conducted in October 2023, Forbes reported the number 2 top resolution was improved finances for 38% of the people surveyed. (Number 1 was improved fitness.)
Are you also one of the millions who wind up breaking those resolutions? If so, I’m not surprised. After all, most people who set New Year’s Resolutions never have a plan for how they will actually accomplish their goals.
I’ll talk about that more in a minute, but first, let’s talk about five resolutions that come up EVERY single year: Read more
Big Mistake - Haven’t Heard From The IRS And Not Filed Your Returns?
I hear from taxpayers who have not filed tax returns for years who don’t think they have anything to worry about because they haven’t heard from the IRS. THINK AGAIN - CLEARLY!
In March 2023, the Department of Justice announced that Jerry Christopher Wade pled guilty to tax evasion. In February 2020, the IRS announced it was stepping up efforts against people who had not filed one or more tax returns.
What did Wade do? From 2011 through 2019, he owned and operated a landscaping company in Hot Springs Village, Arkansas. Despite earning income each year, Wade did not timely file federal income tax returns for 2011 through 2019. Wade knew he was required to file his tax returns. Wade received checks from customers (income) totaling $2,537,771.86 from 2011 through 2019. Wade did not deposit all of these checks into his bank accounts. When he cashed the checks, he got cash back from the bank, totaling $878,983.48. Wade told agents he did not keep business records, including records documenting income or expenses. Wade further admitted he did not issue his workers or himself IRS Forms W-2 or 1099. He also did not keep payroll records for the wages paid to himself or his workers. Read more
Big Trouble - Tax Liens and Levies
Owe the IRS? Most people don't know that after the IRS sends you a letter to pay and you don't pay them, it automatically has a lien on all of your property regardless of whether it is real estate (for example your home) or personal property (for example your car). Not only that, but it also has a lien on your right to property, such as money left by a relative in their will to you. (26 U.S.C. §6321) This is what is sometimes called the "silent lien" that the IRS has on unpaid taxes.
Then, there is the Federal Tax Lien that most people think about. This is where the IRS files a Notice of Federal Tax Lien and sends you notice of the filing. Two things happen when a Notice of Federal Tax Lien is filed. First, it gives notice to the entire world that the IRS has a U.S. Federal Tax Lien. Its purpose is to protect the U.S. Government's interest in your property against third parties. For example, if you are selling your house and you have a Federal Tax Lien filed against the property, the lien tells everyone else there is the lien. The filed tax lien "perfects" the tax lien which then gives it priority over other liens. So, at closing, the IRS will have priority over any subsequent creditors and gets paid usually right behind your mortgage company being paid.
How long does a Federal Tax Lien last? The tax lien lasts until it is either paid or the time to collect has expired. The IRS has ten years to collect. 26 U.S.C. §6502. What this means is that the IRS has ten years to collect from you and the Federal Tax Lien on your property - the automatic or silent one when the tax bill was not paid - is there until you either pay it or ten years have passed since the tax lien arose.
It can get worse. Suppose you are thinking about just waiting for ten years and this all goes away. Not so fast! The IRS can refer it to the Department of Justice to sue to convert the U.S. Tax Lien to a judgment. That effectively adds 20 years that the Government has to collect from you. Sometimes, it won't seek to convert the lien to a judgment and sometimes it does.
How does the IRS get the money that is owed? It issues a levy - it takes the taxpayer's property, either the money in a bank account or the personal or tangible property that it sells it. This is why it is important that if you owe money to the IRS, you need to take action. Hiring a tax lawyer to deal with the IRS can make a big difference. Many people wake up to the terrible feeling of their world being turned upside down when they find the IRS has cleaned out their bank account and they don't have any money to pay their mortgage or utilities. We frequently have people call us for help when that has occurred. Better is to get help before it turns into a raging forest fire.
If you or someone you know has unpaid taxes, the IRS has a tax lien on everything you own or may own in the future. Please feel free to contact me at (317)-635-4010.
Richard J. Ebbinghouse
Ebbinghouse Law Group LLC
320 North Meridian Street, Suite 908
Indianapolis, IN 46204
Ph. (317) 635-4010
Fax (317)635-4024
rick@ebbinghouse.info
www.TheTaxSolvers.com
IRS, Taxes, and Business Issues: The Top 10 Mistakes You Can Avoid
The following are resources of IRS publications for "The Top 10 Mistakes You Can Avoid", click the hyperlinks below:
IRS Publication 15-A Employer's Supplemental Tax Guide (2012)
IRS Publication 463 Travel Entertainment, Gift, and Car Expenses (2011)
IRS Publication 535 Business Expenses (2011)
IRS Publication 587 Business Use of Your Home (2011)
IRS Mileage Rates for 2012 Taxes
Starting on January 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 55.5 cents per mile for business miles driven
- 23 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
These were announced on December 9, 2011, when the IRS issued IR-2011-116.
The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.
You always have the option of calculating the actual costs of using your vehicle rather than using the standard mileage rates. However, you may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. Also, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
These and other requirements for you to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51.
The bottom line is that the IRS continues to recognize it costs you more to operate your vehicle for business related travel. The strange part is that the medical and moving rate has been reduced by 0.5 cents per mile while the price of gasoline continues to go up.
We Are Not J. K. Harris - Tax Problem Resolution
We are not a big national company, we are local Indiana attorneys who help individual clients with tax problems. This includes Tax Resolution work with the IRS.
We don't claim to have offices across the country, we have one office on Meridian Street in Indianapolis.
We don't have hundreds of clients, our clients are not numbers. They are individuals people and businesses whom we care about and work hard on their cases in their best interest.
We don't charge fees for services for tax relief that you are not qualified to receive under the law. We charge fees for premium services clients are qualified to receive under the law. We help people get their life back from the IRS!
J.K. Harris has filed bankruptcy, there is a question whether their clients work will get done. We have not filed bankruptcy and our clients work will be completed.
We are not J. K. Harris. We are Ebbinghouse Law Group, LLC. Two Eagle Scouts in a family of eight Eagle Scouts (one more is about to complete his Eagle) that span three generations.