Tax evasion penalty is a very serious problem. If you have failed to file tax returns, the I.R.S. can file Substitute for Return (SFR) tax returns; of course what they file will be in favor of the I.R.S. SFRs tax returns will give you only standard deductions and one personal exemption. In addition, failure to file tax returns can be construed as tax evasion and that comes with significant penalties which can include criminal charges punishable by a prison sentence for each year the return is not filed. You will want to file your own tax returns so you can get deductions for your home interest, exemptions for your spouse and children, business expenses, property taxes, etc. Even if you own taxes that you cannot pay you need to file your tax returns to prevent criminal charges and imprisonment.
(more…)

Most people have never heard of an Offer in Compromise. If you have a tax bill you cannot pay and the I.R.S. is demanding that you pay that tax bill, you may be eligible to resolve your delinquent tax problem for far less than you actually owe. It depends on your situation, but it may be an option to resolve your tax problem. An Offer in Compromise is a little known provision that allows the amount of your tax bill to be negotiated with the I.R. S. Offer in Compromise applies when there is no way that you can pay the full amount of your tax bill and it is highly unlikely that you will be able to pay the full amount of the tax bill in the future.

(more…)

A Federal Tax Lien is a very serious problem. When you have not been able to successfully resolve a tax problem with the I.R.S., they can put a lien on your property. A Federal Tax Lien gives the entity holding that tax lien a legal right to your property. You cannot sell a property with a Federal Tax Lien and you also cannot use the property as collateral for a loan. The simple fact is that you need a clear title to sell or borrow against a property and a Federal Tax Lien prevents you from having a clear title. This, in effect, puts you in an impossible situation. You cannot sell the property or borrow against it to clear the Federal Tax Lien.

(more…)