On September 21st, 2016, the IRS officially announced their new streamline program. This new pilot program is available to taxpayers who owe between $50,000 and $100,000. This new plan means a possibility of longer terms, less documentation, lower monthly payments, and extended periods for the statute of limitations to run its course. Read more
Did you know that most of the large Tax Resolution Firms will not handle your local tax issues? Many clients come into my office every month after they have already been through the tax resolution process with one of those big firms you hear on the radio. Only to find that despite what the salesperson said initially, big firms do not work on a taxpayer’s’ state liability. Read more
Q: My taxes were under review for months, not audited. I sent them everything they asked for and it’s not enough. Their saying I will get nothing back because nothing I sent them proves my kids live with me. What should I do? My kids always lived with me and I been claiming them their whole lives. I have to send them a response or more proof by next week or I get nothing.
A: Dear Friend after speaking to you and determining your low income status I have two suggestions. The first is Maryland as well as most states have a low income tax clinic. Our clinic is called the Maryland Volunteer Lawyers. They can be reached at 410-727-6006. I feel you may be a good candidate for their services and may meet their income requirements for assistance. Also available in most states as well as for IRS matters is tax payer advocates. You can obtain their help by filling out Form 911 Request for Taxpayer Advocate Service Assistance. I believe these two entities can provide you a wealth of information as well as possible assistance.
I have warned by phone and by social media, in person and on the news. This phone scam is a very real thing and finds hundreds of victims every week. The IRS impersonation scam, as it has been referred to; is a phone scam that has topped the IRS’s dirty dozen list in the last couple of years. I will continue to warn my fellow taxpayers about the robocalls and live agents threatening good people over the phone. I hope that these posts go viral and warn some of those unsuspecting targets. Read more
When a taxpayer fails to pay their taxes, the Maryland Comptroller’s office puts them in the collections phase and starts sending letters. If after sending a series of letters the taxpayer still fails to pay or set up a qualifying payment plan or provide a reason as to which they cannot pay, the Comptroller’s office can take action. Read more
Q: I’m currently unemployed and I have 3 years of unfiled taxes. How can I get these filed and how can I get this tax lien removed from the Federal and State?
A: Hello friend, this is a great question. In order for you to file previous tax returns we find it best to start with ordering a transcript. Luckily after a long hiatus, the IRS transcript taxpayer version is back up and running. Using your IRS transcripts to file old tax returns helps you get a full picture of what information the IRS will be looking for on that return. As for a tax lien, this requires an additional conversation with follow up questions please call our office at (410) 872-8376.
Q: Is it possible to file past years’ taxes from the 90s and early 2000s? How can I get the IRS off my back, they have attached a lien on my pay?
A: Hello friend, in short yes. It is possible to file taxes from the 1990s and early 2000s. However, your question is more complex. First, if you are referring to the IRS it may not be in your best interest to file taxes that are older than six years. This determination of filing needs more investigation. If you are referring to Maryland State Tax Returns, there is no statute of limitation and you will probably have to file those older years. This can be done using your transcripts, Form 4506-T, and requesting information via the Freedom of Information Act. However, you may need an attorney to guide you through the process of removing the lien, becoming compliant, and getting the IRS off your back.
Owing taxes is a very personal thing. Most of my clients would never dream of telling their neighbors, family members, and sometimes even their spouse that they owe taxes. The flip side to that coin is the State of Maryland is all too happy to announce to the world that you owe a tax debt. It may stem from a common bookkeeping mistake or maybe a family member was sick and you did everything just keep your head above water. Whatever the reason, your name is now on a list or possibly many lists. So what types of lists and announcements are there? Read more
I written many times about IRS Offer in Compromise or (OIC) but not everyone knows that the State of Maryland also has their own OIC. The rules are a bit different but in theory the plans are the same. The taxpayer is unable to pay their full balance and they make an offer.
What types of taxes can be included in a state OIC? Read more
The collection statute expiration date (CSED), or the COSED are the time limits the IRS has to collect on your debt. Yes, Federal taxes do expire but Maryland State taxes do not. Federal taxes expire after a ten-year period from last assessment. Meaning that back taxes from 2006 and the IRS’s ability to collect on those taxes does not necessarily expire in 2016. Also, there are certain actions or events that may cause the statute of limitations to stop, hold, or extend. Read more
