Often, new client calls to our offices are prompted by the unpleasant discovery that a tax authority wiped out their bank accounts to pay back taxes. Callers want to know if there is anything they can do to get their money back (generally, it’s gone for good) and if bankruptcy is an option for their larger financial troubles. Five options for taxpayers who are unable to pay their taxes in full … [Read more...]
IRS Schemes That Sound Too Good to be True…Probably Are
May 26, 2011 By
Almost every client we see with unpaid taxes has been solicited by companies claiming they can fix the problem for good. They claim they have special relationships with the IRS or state department of revenue. They claim they have special expertise. They claim all sorts of things. And yes, even lawyers pose as tax-relief specialists and debt settlement companies.One California law firm making … [Read more...]
If You Want a Refund Anticipation Loan, Consider Bankruptcy Counseling, Too
January 24, 2011 By
As bankruptcy attorneys we understand more than most professionals how tight the average person's wallet is this year. Today we learned that North Carolina’s unemployment rate increased slightly to 9.9 percent in December from 9.7 percent in November.That's why we like to post tips for avoiding moves that can only worsen a tough situation.One of those is "refund anticipation loans" – … [Read more...]
More Trouble with Income Tax Fixers
October 13, 2010 By
Unfortunately, companies touting their ability to "fix/lower/relieve income tax debt" are often in the business of helping themselves to the detriment of their clients.In the latest development, American Tax Relief of Beverly Hills, CA has been sued by the Federal Trade Commission (FTC) for bilking customers of some $60-100m and siphoning off some $30m for its owners. While the FTC is … [Read more...]
Income Tax and Bankruptcy
September 10, 2010 By
We find that many people in financial distress owe taxes in addition to credit card bills and student loans and business debts. Before you succumb to an offer by a so-called tax specialist, educate yourself. MYTH: Income taxes are never dischargeable in a bankruptcy case TRUTH: Income taxes may be dischargeable in a bankruptcy case. Dischargeability depends on a number of factors, including, … [Read more...]
Discharge Income Taxes in Bankruptcy?
August 30, 2010 By
In the American Bar Association Journal last week, I read about a California attorney who has been accused by the state attorney general of operating a "heartless scheme" that takes retainers from thousands of clients while doing little or nothing to help them. Yes, even lawyers can act like debt settlement companies, many of which take fees and settle no debts I have no opinion on this … [Read more...]
Dealing With The IRS
April 23, 2010 By
Did you file for an extension on your income taxes? If you did so because you owe the government more than you can afford to pay, USAToday ran a good article on how to proceed. The best advice may be in this paragraph about installment agreements: You'll have to pay interest on the unpaid amount at a rate that's adjusted quarterly. The rate for the first quarter of 2010 is 4%, which is lower … [Read more...]
Doesn’t the IRS Say My Debt Forgiveness Income Can’t Be Taxed?
April 14, 2010 By
All this talk about mortgage principal reduction and mortgage modification in the general press is incomplete and often confusing. People searching for answers can even find that information on government websites is too general for their specific needs.Take, for example, debt forgiveness income. This IRS page on The Mortgage Forgiveness Debt Relief Act and Debt Cancellation says, in part: … [Read more...]