Arizona

IRS Debt Blog

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By Michael S. Anderson of Anderson Tax Law logo for Arizona tax attorney Michael S. Anderson P.C.
  • 17 situations when the IRS won’t collect

    Tax Debt left unattended will result in IRS collection activity…levies, liens and property seizures. IRS collection activity just doesn’t stop on it’s own. It will happen after the tax debt has been: a.  Assessed  (entered into the books as a debt) b.  You have been sent a notice of the debt and demand for…

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  • 10 BANKRUPTCY FAQ

    1. BANKRUPTCY – WHAT IS IT? Bankruptcy is a process that takes place in Federal Court. The Bankruptcy Code governs the process and it is designed to provide debt and other relief to consumers and small businesses. Most consumers and small business people file a bankruptcy as a “liquidation” case called a Chapter 7, and…

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  • 10 BANKRUPTCY MISUNDERSTANDINGS

    1. YOU WILL LOSE YOUR HOME In Arizona, a person or married couple is allowed to protect the first $150,000.00 equity in their personal residence from creditors. This rule applies in bankruptcy as well.For example, if you own a home, you live in it, and it is worth $200,000.00 and your only mortgage is $50,000.00,…

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  • TAX DEBT? YOU HAVE OPTIONS

    Tax Debt?  You Have Options The following is a list of the most common legal ways to deal with large IRS tax debt. Some are obvious, some are difficult and require extensive planning, and some only work best in combination with another option. Despite the fact that a review of the list alone won’t solve…

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  • Debt Collection Protection Using Chapter 13 Bankruptcy Co-Debtor Stay

    In most bankruptcy cases, a powerful tool called the “automatic stay” comes into existence the moment the case is filed. This “stay” prevents almost every type of debt collection from continuing.  A home foreclosure, car repossession, and garnishments all end by operation of law.  The automatic stay applies to the “debtor” or “debtors” who actually…

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  • Received a 1099 for canceled debt? Make sure it’s right

    Creditors like to issue 1099-c documents if they’ve worked out a settlement and decided to forgive the debt entirely.  Creditors also issue 1099 forms when bankruptcy is filed and it discharges the obligation to pay the debt.  These forms also show the IRS that the debt forgiven matches the amount written off in their own tax…

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  • 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…

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  • 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…

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  • 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…

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  • 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…

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