Many taxpayers are unaware of enforcement procedures that can be used against them to collect back taxes. The difference between how New York and the IRS collect on that money may not seem crucial. However, it is important to understand how New York State tax warrants and federal tax liens work in order to avoid them or take appropriate steps to challenge them. [Read more…]
If you owe more in back taxes than you have in assets and income, the IRS may provide a remedy. An IRS Offer in Compromise (OIC) is an agreement between the taxpayer and the IRS to settle the taxpayer’s liabilities for less than the full amount owed. However, there are strict requirements for an OIC and they are only granted in limited cases. The most common ground for an OIC is if there is doubt as to the collectability of the tax debt. [Read more…]
Many taxpayers do not realize all the different tools the IRS can use in it’s attempts to collect taxes owed. One way is through a federal tax lien. A lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. Tax liens have a significant impact on your assets and credit so you need to act quickly if you want to get rid of them.
The Smoking Gun recently reported that the IRS had filed a Notice of Federal Tax Lien against Robert De Niro for over $6.4 million in back taxes. You can view a copy of the lien on the Smoking Gun website.
Let’s not immediately judge Mr. De Niro as a bad taxpayer. His spokesperson said that the IRS notices for the balance due were sent to an old address and that he paid the balance in full immediately after learning of the lien.
The IRS doesn’t file liens just when it’s in the mood. There are a couple of things that first must happen: