Arizona

Tax Debt and Bankruptcy Blog

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By Michael S. Anderson of Anderson Tax Law logo for Arizona tax attorney Michael S. Anderson P.C.
  • 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…

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  • 5 Common Methods To Deal With IRS Debt

    If faced with large tax debt, you may feel hopeless.  But… if you are willing to create a “strategy” and combine it with some hard work and patience, there may be a real solution. The following are the most 5 common methods people use to deal with tax debt.   1. Use the IRS Statute of…

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  • 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…

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  • 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…

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  • 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…

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  • 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” with most people because they don’t qualify under the IRS’ standards.  The vast majority of people with tax debt end up in some form of IRS payment plan end up in a payment plan as a second choice.  That payment plan…

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  • How does the IRS know so much about me?

    The IRS is in the business of collecting money and it has some advantages that other money collectors don’t have.   Your employer submits a report of your income each year to the IRS.  If you are self employed, your vendors or others send the IRS a 1099 misc. form.  The bank sends the IRS…

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  • 9th Circuit BAP Reviews the Late Filed Return and Bankruptcy Issue

    Keith Fogg, at the terrific tax blog “Procedurally Taxing” has provided a short review of the Martin v. United States Case wherein the 9th Circuit Bankruptcy Panel (BAP) rejects the literal interpretation of Bankruptcy Code Section 523(a)(*).   You can read his review here. If you have tax debt, and have been following the issue…

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  • If the IRS can’t recover, it can’t seize or levy

    If the IRS can’t recover, it can’t seize or levy Pursuant to Internal Revenue Code Sections 6331(f) and 6331(j)(2)(c), the IRS cannot seize property or levy unless doing so will result in money for it. I recently represented a client who had some equity in a vacation home.  The IRS Revenue Officer wanted the home…

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  • Tax Withholdings – Use them to ensure you won’t owe again

    It’s easy to file a tax filing extension with the IRS.  A simple form is filled out, the amount you think you owe is included, and in theory… that amount and the form are sent into the IRS before the April 15th deadline. This allows you to put off filing the return until much later…

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