I’m Darrin T. Mish; your IRS Solution Attorney. And I can freely tell you that avoiding your tax problems won’t make them go away. It can only make whatever problems you’re facing worse. I’ve been at this quite some time helping clients find solutions for 16 or 17 years.
I’ve seen a lot, and there are clients who are ashamed that they’re having problems with the IRS. There is no reason to be ashamed! I’ve personally had my own challenges with the IRS at one point in my life.
I had a tax problem, and it’s one of the main reasons I chose tax problem resolution as my life’s work. Law school, an effective and critical education by any comparison, didn’t teach me how to run a business or a law firm. There was a point where I ended up owning the IRS quite a bit of money.
I remember going out and trying to find someone who could help me out of a tight spot. I remember that I was ashamed. I had a fear that if people found out, even my wife, I’d be rejected. I can understand how people would love their IRS problem to go away.
What are the Causes for People Avoiding Tax Problems?
Some people are good at making money, and that’s a good thing. Some of these same people are also reluctant to pay their taxes. And it doesn’t always mean they have avoided paying taxes on purpose.
Making money is a talent, and it can get out of control when the money is flowing. Some people, on the other hand, choose to avoid paying taxes on purpose.
It’s ironic that people who know how to earn income are often the one’s penalized for not paying taxes. On the other hand, it’s not a reality that a person making $20,000 a year would end up owing $140,000 in back taxes.
So, while there are people who know how to make money, a certain percentage of those people have never focused on the tax end of things.
Understanding Areas of Expertise
Many clients have come to the understanding that they can focus on what they do best, while allowing me to handle their taxes—something I do best. People carrying the baggage of past or current IRS problems can rest easier knowing their concerns are going to be handled by an expert.
When you owe the IRS, there’s no need to panic. Even if you think your situation is a train wreck, we can start a process that begins to iron it out. You may even think that it’s going to get worse before it gets better, which is a likelihood if nothing is done to remedy the situation.
I might recommend to clients to start by filing an Offer and Compromise. For an expert, like myself, it’s a simple thing to do. Once the process starts, clients can remain focused on what they do best.
Watch his short video I recorded that explains the different types of Offer in Compromise
The problem is that many people on the move don’t think about the ramifications of what’s happening when, all of a sudden, the windfall profits start rolling in. And even if they’re doing well, it doesn’t necessarily mean they have cash sitting around or in the bank.
To make matters worse, they haven’t made any estimated tax payments either. This sends some people into panic mode. It places them in a position of earning more money to pay off an old tax bill, and then accruing taxes on their present earnings.
It becomes a vicious cycle for many. What was a success now begins to spiral downward out of control. It’s a terrible spot for anyone to be in, but more people arrive at this juncture than you can imagine.
The Trappings of Success
Sometimes, it’s a matter of setting a client up so that they begin collecting a salary. Money that goes directly into a bank account can present problems down the line. It’s too easy to spend.
Being organized is the key to success for anyone who comes into a windfall of cash, or who hasn’t bothered to handle their taxes because they were focused on their business success. That might be hard to fathom to anyone who hasn’t experienced the kind of cash flow that makes you forget that taxes exist. Or imagine that they shouldn’t exist. As such, it takes a while for some people to get the message that paying taxes is required.
On the other hand, people can arrive at a certain point where they realize that a certain segment of the population isn’t paying taxes to the tune of billions of dollars a year. That can actually lead people down the road to destruction out of pure rebellion. At that level, individuals and corporations understand tax “law” and how it can be tweaked for their own purposes.
Getting back to fear and avoiding paying taxes, I tell clients that bigger cases can actually be easier to solve than smaller cases. Once the tax problem is stabilized, a client can begin to see daylight and how their problem will be resolved. In fact, a person or company that owes the IRS $23 million in back taxes is easier work with.
They know they’re not going to be able to come up with the cash. You might say they have a very open mind at this point.
The Fear of Going to Prison
This is a real fear for many people. It may not have been while they were earning big money, but the reality sets in once the IRS starts knocking on their door. Unfortunately, people do go to prison.
Then, life takes on a whole new meaning. They can lose everything they worked so hard to acquire . It can be an intense worry, one that keeps a person up at night and makes them vomit and hyperventilate.
It’s the kind of worry that can send a person to the emergency room on multiple occasions. It’s not a fun time in the least. That’s when consulting with a tax expert makes all the sense in the world. For many, their biggest sobriety check is the thought of letting their families down. Imagine the mighty relief knowing that an expert is helping resolve the problem.
In This Short Video I Explain What to Do If an IRS Agent Knocks On Your Door
Apparently, there’s a deep-seated belief in many people that paying taxes is un-American. Taxes aren’t evil if they’re applied collected and applied for a true purpose. The fact remains that many people understand the concept, but it’s just difficult to fathom where everyone’s tax dollars are going. And like I mentioned, it doesn’t help when it appears there are people and corporations getting away with paying “zero” taxes.
So, while it’s all a mess, people have to do what it takes to stay off the IRS’s radar at their level of income and earnings. If you owe money, and your income is levied, it will remain in place until something, if possible, can be worked out with the IRS.
Sometime they will lift the levy, and sometimes they will not.
Can The IRS Go After Social Security Checks?
Yes, it’s possible. However, in the past few years they came up with a policy in which they aren’t going to take Social Security Disability. I think it’s a benevolent gesture.
On the other hand, a Social Security Retirement check may be initially levied at a rate of 15%. Then, it’s possible to take it up to 30%. In some instances, they may even decide to take the entire allotment. This is no time to panic. It always makes sense to get exact information. Knowledge is still power. And sometimes the only source of that knowledge is from a qualified tax attorney.
There are rules that apply when trying to get a tax levy released. There are rules that come into play with respect to the number of tax returns a person has failed to file. So, people can find themselves in a non-winnable situation. It can get messy, and all the better reason for people to handle their taxes up front before problems occur.
This is what I teach and preach to people all the time. If there’s a tax problem, handle it before it gets out of control.
Having been in the business for years, I have learned how to work with the IRS. They know that I’m a straight shooter, and that I can help my clients get things done. My goal is to always get a case resolved as quickly as possible. This benefits everyone involved.
We could talk about a million things concerning taxes, but the big takeaway is that you should never bury your tax problems. Believe me, they won’t just simply disappear. Partner with a tax expert that can help you find daylight.
If you would like to learn more about this topic, check out my Podcast episode discussing this issue.