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By Michael S. Anderson of Anderson Tax Law logo for Arizona tax attorney Michael S. Anderson P.C.
  • IRS to begin using private collection within months

    In September of last year, the IRS issued a notice indicating an intent to use private debt collection services.  This is going to become reality when the collectors begin handling old accounts within a few months. The IRS will send a notice explaining the details and the private debt collection agencies will also send a…

  • Income Producing Assets in an IRS Offer in Compromise

    If you own a business and that business has value, many people would assume that it should be included as an asset in calculating the amount of settlement.  As a result, many offers are calculated much higher than they should be. Income producing assets in an IRS Offer in Compromise shouldn’t always be fully included…

  • 3 Problems IRS Liens create if a bankruptcy is filed

    When the IRS is owed more than $10,000.00, it will record a notice of federal tax lien in the County in which you or your real property are situated.  It will do this unless you’ve arranged a streamlined installment agreement, or you file a bankruptcy case before the recording occurs. The recorded document puts the world…

  • Why did the IRS terminate my installment plan?

    Just because you are in an IRS Installment Plan with the IRS doesn’t mean that your work is done.  One of the common questions I get is “why did the IRS terminate my installment plan?”. The following are the most common reasons why this happens. Your Income Changed When you file a tax return the…

  • Differences between the IRS CP504 letter and the IRS LT11 letter are important to understand

    IRS CP 504 Letter vs. IRS LT 11 Letter The IRS likes to remind you about tax debt.  As part of it’s collection process it sends these reminders in the mail with bold lettering that says “NOTICE OF INTENT TO LEVY”.   Most people don’t know however that there are two types of Notice of…

  • 5 Common Methods To Deal With IRS Debt

    If you are faced with a large IRS tax debt, you may feel like there is no solution. For those willing to create a “strategy” and combine it with some hard work and a little patience, there usually is. The following are the most 5 common methods to deal with IRS debt.   1. Use…

  • Self Employed? Pay your estimated taxes monthly

    The Robert Burns poem To a Mouse, written in 1786, is an apology.  The story has it that Mr. Burns upended a mouse’s home while plowing a field and felt bad about it.  To make amends, he wrote a poem, the most famous portion of which reads: But little Mouse, you are not alone, In proving…

  • Avoiding IRS Seizure of Retirement Account After Bankruptcy

    There are dozens of issues that have to be recognized, discussed, and planned for… before a bankruptcy is filed.  For people with IRS debt and an IRS lien, the issue of avoiding IRS seizure of a retirement account after bankruptcy is a big one. First, some background: When you owe the IRS money, it will record…

  • How much money can the IRS garnish from my paycheck?

    The most an Arizona creditor with a judgement can garnish from your paycheck is 25%.  The IRS is a different animal and isn’t subject to Arizona’s exemption laws.  As a result, it can garnish much more.  In some cases, the majority of the paycheck can be taken.  (See IRS wage levy page) In 2015, a…

  • Chapter 13 Bankruptcy Can Be A Good Alternative to an IRS Payment Plan

    Dealing with a large IRS debt is difficult.  The IRS doesn’t want to “settle” and most people aren’t able to qualify for a real settlement.  They end up in a payment plan as a second choice.  That payment plan is often difficult as well, as the IRS isn’t taking into account all of the budget…