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…


    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…


    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,…


    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…

  • 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…

  • 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…

  • 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…

  • 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” 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…