Most people know the government can go after taxpayers who owe back taxes. However, few individuals realize that both New York State and the IRS now have the ability to restrict delinquent taxpayers’ ability to travel, whether by suspending their driver’s licenses or by revoking their passports. [Read more…]
Are you personally responsible for taxes owed by your employer’s business?
Many people are surprised to learn that there are circumstances when New York State is permitted to collect a business’s withholding tax and sales tax from responsible persons at the organization. Individuals who are notified that they are being held personally responsible for taxes often try to argue “it wasn’t me” and point fingers at someone else. However, that argument doesn’t necessarily work so it’s important to know the rules. [Read more…]
Since 1998, taxpayers have had an important right available to them to help them protest an IRS collection action and settle a tax debt. They have the right to request a Collection Due Process (CDP) hearing. CDP hearings can provide tremendous benefits, providing a fair and equitable process for both the IRS and taxpayers. They provide an opportunity to discuss the appropriateness of the collection action and whether alternative methods are available. A CDP hearing also provides temporary relief from the IRS collection efforts in most cases, allowing the taxpayer time to resolve the matter voluntarily. However, there are a number of things taxpayers must know in order to take advantage of CDP hearings and not lose their rights. [Read more…]
The IRS recently announced plans to begin private collection of certain overdue federal tax debts as early as the spring of 2017. It has already awarded contracts to four companies to participate in the collection program. Under a law passed in December 2015, the IRS is required to use private collection agencies for the collection of outstanding inactive tax receivables. [Read more…]
Taxpayers who owe back taxes may be getting some extra help. The IRS announced recently that it is testing expanded criteria for streamlined processing of taxpayer requests for installment agreements. When a taxpayer owes money to the IRS, there are several options for him/her to address the outstanding balance. In many instances, it is not possible or feasible to pay the balance due all at once. An Installment Agreement permits payment over time. [Read more…]