There are certain opportunities during the IRS Collection Process where taxpayers are given an opportunity to invoke their Collection Due Process (CDP) rights. These opportunities include when a Notice of Federal Tax Lien (NFTL) is filed, or when the IRS issues a Final Notice of their Intent to Levy the taxpayer (typically Letter 11 or 1058). When these notices are sent to the taxpayer, the taxpayer has 30 days to respond by filing IRS Form 12153 to invoke their CDP rights. I believe that if a taxpayer is given this right, they should ALWAYS invoke their CDP rights. When the Form 12153 is filed timely and correctly, three good things happen for the taxpayer: Collection Activity is put on hold for the taxpayer, The taxpayer has the right to go before an Appeals Officer to negotiate a sol... 08/30/2019

There are many benefits to a VA home loan. It’s important to know how these loans can help you. First, thank you for your service to our country. According to the Mortgage reports, VA loans stand apart for its combination of low rates, lenient underwriting, and secondary benefits. These are 10 Richardson TX VA loan benefits in 2019. These are:        No down payment on a VA loan        No mortgage insurance        VA loans have a government guarantee        Your ability to shop and compare VA loans        VA loans don’t allow a prepayment penalty        They come in many varieties        It’s easier to qualify for a VA loan        VA loan closing costs are lower        The VA loan offers funding fee flexibility    VA loans are assumable Backed by the U.S. Department of Veterans Affairs,... 08/27/2019

Most of the taxpayers who come into our Richardson TX tax office believe that there are no limitations in the amount of time that the IRS has to collect tax debt. Did you know that the IRS has actually has only 10 years of time to collect tax debt from you once your tax is assessed? There are certain exceptions that may delay or toll the 10 year time limit that we’ll cover, but in general, without any actions by the taxpayer which stop the clock, once the 10 years are up, the IRS has to stop its collection efforts and the taxpayer no longer owes the government for its tax debt.  How is the 10 Year Statute calculated?The calculation begins on the date that the tax is assessed, not the date the tax is filed. Basically, it is the date the tax return is processed in the IRS’s system. This i... 08/25/2019

Audit Reconsideration is an option for a taxpayer if an audit occurred and there was a tax assessment made that the taxpayer disagrees with. It is also available if the IRS prepares a substitute for return on behalf of the client who did not file the return. IRS will consider Audit Reconsideration if: The Taxpayer submits information not previously provided The IRS created a Substitute for Return The IRS made a computational or processing error The Liability is unpaid or credits are denied  How To Request Audit ReconsiderationThere is no form for Audit Reconsideration. A letter is written to the IRS office last corresponded with, stating that the taxpayer would like audit reconsideration. The letter should explain why you disagree with the amount that the IRS claims you owe, and you sho... 08/21/2019

Navigating the IRS Collection Process can seem like a maze for most taxpayers who owe the IRS. It can be a very intimidating situation. Taxpayers with IRS balances receive threatening notices and not resolving balances timely and properly can end with levies, seizures of assets, and a Federal Tax Lien. While it’s important to understand all of your rights and obligations as a taxpayer, it’s just as important to understand what NOT to do. In today’s article, here is are list of 8 mistakes to avoid when resolving your IRS tax debt. They Don’t Open Mail from the IRS! As simple and humorous as this sounds, it’s very common with taxpayers who come into our office with levies or liens. They come to my office and give me a bundle of IRS mail, often unopened. While they are ignoring their mail,... 08/18/2019

One of the most important opportunities a taxpayer has is when they receive a Final Notice of Intent to Levy and Notice of Your Right to a Hearing (IRS Letter 11 or Letter 1058) from the IRS. As part of these IRS Notices, the taxpayer has the right to a Collection Due Process Hearing but must request it within 30 days of the date of the letter to exercise that right.  It is a very important and powerful right of the taxpayer. When they request their CDP hearing, three good things happen for them: The Taxpayer gets an Appeal Hearing Collection is put on Hold while the hearing is pending The Taxpayer’s right to take their case to the US Court is preserved  What is an Equivalent Hearing?If taxpayers come directly into our Richardson TX tax office when they receive the notice, I’m very happ... 08/15/2019

One of our most popular You Tube Video's is our video on How to Get Penalty Abatement (Removal) for first time offenders.  Click the link below to listen to that video.  If you have any questions or need help with tax penalties or have any other tax problems, please call me at (972) 821-1991 or email me at bob@jablonskyandassociates.com  08/13/2019

I often have taxpayers come into our Richardson TX Tax Office who have heard about the IRS Fresh Start Program. They often hear of it advertised as a new IRS program that made it much easier to resolve their debt with the IRS. While the IRS Fresh Start Program did make some improvements in resolving tax debt, in reality, it’s neither new nor is it the game changing program that taxpayers are sometimes led to believe.   Today, I’ll give a quick overview of the IRS Fresh Start Program and what it is and is not.  The IRS initiated its Fresh Start Program back in 2008 and expanded it in 2012 so it is not exactly new. The Fresh Start Program isn’t really a Program. It created changes to some guidelines of existing IRS programs that in some cases, made it easier, to qualify for previous progr... 08/11/2019

When most of us think of an Offer-In-Compromise (OIC), we think about where a Taxpayer owes and agrees that they owe an amount to the government, are unable to pay, and qualify to settle the debt with the government using an OICfor less than the full amount. This is the typical example of an OIC. However, there are three types of Offers-In-Compromise: Doubt as to Collectability (the most frequent OIC referenced above), Doubt as to Liability, and Effective Tax Administration  Today we’ll discuss Doubt as to Liability and when we would use that option to deal with a tax issue. With Doubt as to Liability, the argument is not that the taxpayer can’t pay the tax but that the underlying liability is incorrect, and that they don’t owe the government the money. Typically, this happens when a ta... 08/08/2019

  Address SqFt Total Beds Total Full Baths Half Baths Pool Current Price 1801 Dawn Circle 1,492 3 2   No $250,000 1602 Wendy Way 1,862 3 2   No $254,000 1619 Nantucket Drive 1,465 3 2   No $255,000 614 Cambridge Drive 1,362 3 2   No $257,000 107 Dover Drive 1,556 3 2   No $259,000 629 Downing Drive 1,348 3 1 1 No $259,000 414 Hanbee Street 1,400 3 1 1 No $264,900 1803 Longmont Place 1,894 3 2 1 No $265,000 1135 Midway Drive 1,610 3 2   No $269,800 615 Nantucket Circle 1,849 3 3   No $269,900 923 Wedgewood Way 1,785 4 2   No $269,900 637 Scottsdale Drive 1,265 3 1 1 No $269,900 1416 Somerset Place 2,059 4 2   No $270,000 1813 Hanover Drive 1,940 4 2   Yes $274,990 421 Grace Drive 1,215 3 1 1 No $275,000 440 Jolee Street 1,098 3 1 1 No $275,000 504 Hyde Park Drive 1,420 2 2   No $279,000 ... 08/05/2019

Most of the taxpayers that come into our Richardson TX tax office with IRS debt have heard the advertisements stating that taxpayers can settle their IRS debt for pennies on the dollar. This is done using the IRS’s Offer-In-Compromise program. Not everyone qualifies for an Offer-In-Compromise however. How can you determine if you’re a candidate? While it’s not possible to give you a definite answer without knowing your exact situation, here are some of the factors that will determine if you are a candidate. You MUST be in tax compliance or get in tax compliance to successfully file an Offer-In-Compromise. What this means is: Your last six years of taxes have been filed, and You must be properly withheld or made Estimated tax payments for the current year. You are not in Bankruptcy Proce... 08/04/2019

You probably know that if you borrow money, and you are legally obligated to repay that debt at a future date, and the debt is either forgiven in full or in part by the lender, the amount of cancelled debt must be reported as income on your tax return. However, did you know that there are situations where the law allows you to exclude the amount from your gross income? There are many taxpayers who come into our Richardson Texas office that are not aware of those potential exclusions. When debt is canceled, the lender may send a Form 1099-C that identifies the amount and date of cancellation among other things. The taxpayer is required to report the amount of cancelled debt as Other Income on Form 1040.  When Canceled Debt is excluded from IncomeThis article will discuss amounts of Cance... 08/01/2019

The IRS sends a CP2000 notice to taxpayers when the income or payment information on file with the IRS doesn’t match the information that was reported on your tax return. Due to that difference, there may be an increase, decrease, or no change to the tax reported.  Taxpayers come into our Richardson TX office and want to know how to properly respond to the notice.  Read further to learn more on effectively dealing with the CP2000 Notice. What Should You Do? First, make sure you open your mail. While this sounds like sarcasm, in reality, many of the problems that I assist taxpayers with could have been resolved easily if addressed timely. The IRS is bad news and many people don’t want bad news. Don’t be that person. Open your mail! Read the notice carefully. You need to understand what t... 07/28/2019

Our firm frequently represents taxpayers in Richardson, TX, and other areas of Texas, who have had the IRS levy their bank accounts. The result of doing so can create chaos in the lives of those taxpayers  and a high level of stress with not knowing what is coming next. When these taxpayers come to us, our first priority is to have the levy removed if possible, and then to assist the taxpayers in resolving the issue which caused the levy, and bring an end to their problems. Bank Levies are one-time levies. A one-time levy means that the IRS gets only one shot at the taxpayer’s bank account per levy action. For example, if the balance in the account is $200 today when the levy is served, and tomorrow there is a $10,000 deposit into the account, the IRS gets $200, the amount on the day th... 07/26/2019

Many small businesses elect to file income taxes as S-Corporations. As an S-Corporation, income taxes are not paid at the corporate level as C-Corporations are, but flow to the personal tax returns of their shareholders, where taxes are reported and paid.  One of the perceived advantages of electing S-Corporation status for a business is the ability to avoid or minimize self-employment taxes on earnings or a part of earnings.  How does this work? An S-Corporation shareholder may be both an Shareholder/Investor and an employee of the business.  As an employee, they should be paid wages for their services, just as any other employee would be paid. The wages are subject to both income taxes and Social Security and Medicare taxes.  As shareholder, they receive a Form K-1 for their portion o... 07/24/2019

When taxpayer’s come into my office in Richardson, TX related to IRS tax collection problems, the entire process often seems like a maze to them and they don’t know where to start. The first step for me is to just understand where they are in the process. Once I know where the client is in the collection process, it helps me to understand risks and opportunities and formulate a plan to move forward. Today, I want to spend some time walking through an overview of the process. What is the IRS Collection Process: Assessment of the Tax – Preferably, a taxpayer files their return voluntarily. If the don’t the IRS will create a substitute return on their behalf to file the return and assess the tax. 10 Year Collection Statute – Once the tax is assessed, it begins the ticking of the 10 year cl... 07/21/2019

Taxpayers who come into our Richardson, TX tax office are sometimes confused by the difference between  Innocent Spouse vs. Injured Spouse tax relief. Today, we’ll outline the differences between the two. Injured Spouse Injured Spouse Relief occurs when a couple file a joint return and the refund for the return is offset against a debt that relates to only one of the spouses. In these cases, the spouse who does not owe that financial obligation is the “Injured Spouse”. Financial Obligations that the IRS offsets refunds for include prior IRS debt, State Income Tax Debt, unpaid child and spousal support, and defaulted educational loans.  In order to protect their share of the refund, the injured spouse will seek relief by filing Form 8379.  Page 2 of the form includes an allocation of the... 07/19/2019

You may have heard the term Fractional CFO and wondered what that means.   A Fractional CFO is typically a consultant who provides CFO (Chief Financial Officer) services to a business on a part time basis. A Fractional CFO is also referred to as a Part-Time CFO, Outsourced CFO, Virtual CFO, and a Project CFO among other terms. With a Fractional CFO, smaller organizations that do not have the full-time need or the financial wherewithal of a larger company, have access to the same experience and skills of those larger organizations, at a fraction of the cost.  What does a Fractional CFO do?A Fractional CFO should be able to provide the same skills and financial leadership that a Full-Time CFO can provide to a larger company, based on the needs of the organization.  Some of the these would... 07/18/2019

Most married taxpayers file using the Married Filing Joint filing status. This makes sense in most cases since it typically results in the lowest combined tax for the taxpayers. However, one impact of filing Married Filing Jointly, is that by default, each spouse is jointly and severally liable for the taxes due on a joint return, regardless of who earned the income, and the IRS can collect from both spouses.  This is usually fair and equitable as joint filers, but what happens if one spouse was unknowingly the victim of fraud or misstatement on a tax return? Is the “Innocent” spouse responsible for the additional tax burden? As mentioned above, by default they are, but if they qualify for Innocent Spouse Relief, they may be able to get relief from all or part of the IRS debt. Innocent ... 06/11/2019

Payroll Tax Debt can become a nightmare for a taxpayer who gets behind. In addition to the potential penalties to a corporation, LLC, or partnership for unpaid taxes, there is also the potential for personal liability. Today, we will cover Payroll Taxes and personal liability. When taxpayer’s come into our Richardson TX office with Payroll tax debt, one of our priorities is to minimize their potential personal exposure.  Remember, from our previous article that there are two Sides of Payroll Withholdings - Trust Funds – the fiduciary portion withheld from the employee’s pay and includes Federal Income Tax withheld as well as the employee’s portion of Social Security and Medicare. Employer Taxes – Employer’s match of the Social Security and Medicare taxes and Federal Unemployment.  As I ... 05/28/2019