Taxing Advice: Life's short. Don't represent yourself in an IRS ...

Taxing Advice: Life's short. Don't represent yourself in an IRS ...: Have you received a letter from the IRS?  Go ahead and open it.  I can't tell you how many clients come to me with unopened letters from...

Taxing Advice: Do You Need a Tax Lawyer That is A Certified Tax S...

Taxing Advice: Do You Need a Tax Lawyer That is A Certified Tax S...: Why would you need a tax lawyer that you hire to be a Certified Tax Specialist?  The State Bar of California certifies attorneys as Tax Spec...

Taxing Advice: New Tax Problem Website Launched by The Lively Law...

Taxing Advice: New Tax Problem Website Launched by The Lively Law...: TAX PROBLEMS?  The Lively Law Group specializes in handling IRS Tax Problems and has launched a new website to specifically address the i...

Taxing Advice: ENFORCED COLLECTIONSWhat exactly is enforced coll...

Taxing Advice: ENFORCED COLLECTIONS
What exactly is enforced coll...: ENFORCED COLLECTIONS What exactly is enforced collections? Enforced collections is when the government has exhausted their efforts to...

ENFORCED COLLECTIONS

What exactly is enforced collections?

Enforced collections is when the government has exhausted their efforts to get a taxpayer to voluntarily pay the taxes that they owe.  When this happens the government will go into enforced collections mode.  This means levies, garnishments, and liens.  It is not where you want to be with the government.  The government will work with you to pay your taxes based on your current financial situation.  Thus, there is rarely a good reason to get into a situation whereby the government has to take extreme measures to collect the tax.

Garnishments, Levies and liens can be an embarrassment that you never have to face.  All you need to do is cooperate and work out a plan.  Remember this plan will be based on your current wherewithal to pay.  

What are Your Options?

Your easiest option or the option to use to buy time is to enter into an installment arrangement.  This can also be done while you are doing something else like an Offer in Compromise.  This will stop enforced collection and allow you to have time put other alternatives together while not being under the constant threat of enforced collections.

You can also enter into an Offer in Compromise to pay less than you actually owe.  This is based on your current financial situation and ability to pay.  We analyze our clients current financial situation and present it in the best light possible to the government.

Another option is some circumstances is to put the client on uncollectable status.  No further collection efforts are made while the taxpayer is on uncollectable status, but interest and penalties continues to accrue.  In certain circumstances this can work very well.

Finally, and usually the last step we consider is bankruptcy.  Believe it or not, there are a number of taxes that can be discharged in bankruptcy.

A combination of the above techniques may be used on any given client.  Each case must be reviewed independently to determine the best course of action.  This is why we offer a free initial consultation.  A no risk way to have a tax professional review your situation.

New Tax Problem Website Launched by The Lively Law Group, PC

TAX PROBLEMS?

 The Lively Law Group specializes in handling IRS Tax Problems and has launched a new website to specifically address the issues of individuals and businesses that are facing Tax Problems.  The site  www.USTaxRescue.com will specifically address the issues of Tax Problems and offer a Free Initial Consultation for anyone that has such a problem to make sure they do not make a mistake in the early stages of their case that could seriously damage their defense.

This is great news for anyone or any business seeking professional advice when they receive a letter or contact from the government on a Tax Issue.

USTaxRescue.com can be contacted through the contact section of the site or by calling 714-708-2593.

Residential Energy Efficient Property Credit

IRC Section 25D.  The Internal Revenue Service provides for a 30 percent credit for the installation of qualified solar water heating property, qualified solar electric property, geothermal heat pumps, and small wind energy property.  This credit will apply for property placed in service through December 31, 2016.

The expenditures that are eligible for this credit include the cost of installation.  However, costs that are allocable to a swimming pool or a hot tub are not eligible for the credit.  The installation does not have to be in the taxpayers principal residence, but it does have to be in a property located in the United States and used by the taxpayer as a residence (ie, could be a second home). 

This credit can be applied against any Alternative Minimum Tax through the 2011 tax year and any unused credit is carried forward.  There is no Adjusted Gross Income limitation for this credit.