If you've got an IRS letter on your desk right now, you have a decision to make, and the clock matters. I'm Darrin Mish. I've spent 32 years helping people with exactly this kind of situation. Here's what you should do.<\/p>\n
As a tax attorney, I see people with IRS tax problems that have lasted for years. Yet they only get serious when tax time rolls around. It most\u00a0likely is the case because during tax season you hear everyone talking about it.<\/p>\n
Click here to read or watch more IRS Problem resources.<\/a><\/p>\n This places focus on the subject and creates a great deal of stress for delinquent taxpayers. January happens to be the \u201cresolution\u2019 month for all kinds of things imaginable, including taxes. It\u2019s when people want to do something to change or improve their lives. The only thing is there\u2019s that nagging thought that they haven’t \u00a0paid taxes in decades! \u00a0Click here to watch or read more information on IRS Back Taxes.<\/a><\/p>\n Actually, I can\u2019t recall a time of year that people are more active than in January.<\/p>\n As an attorney, my job is to realize the very best outcome for my clients with IRS tax problems. I advocate for my clients just as IRS employees advocate for the IRS. Their goal is to win\u2014it\u2019s the same as mine.<\/p>\n It pays to know the laws of your state. Take, for instance, here in Florida, there\u2019s a strong homestead exemption law that has two definitions. The first definition deals with tax breaks that you can get for homesteading your real estate. Then, there is the definition that refers to your home being exempt from all creditors if a lawsuit judgment is levied against you.<\/p>\n In so many words, a homeowner can\u2019t be forced to sell their house to pay for a judgment. A good example of this is when O.J. Simpson moved to Florida from California.<\/p>\n On the other hand, there\u2019s a thing called the supremacy clause. This\u00a0upholds the proposition that when there\u2019s a conflict between state and federal law; federal law reigns supreme. So, in reality, you can lose your house to the IRS when there\u2019s an unpaid debt, but it\u2019s rare.<\/p>\n I\u2019ve represented thousands of people, and there are occasions when a person will lose their home. However, it\u00a0usually happens to those who fall under the category of being tax protestors.<\/p>\n These are people who don\u2019t think taxes are constitutional. The reality is I just don\u2019t prescribe to all the excuses that people throw on the table. My job is to represent the client and work toward the best tax solution possible.<\/p>\n These are people who will file 1000 or more pages with the IRS over a ten-year period rebutting the system. What happens is the IRS finally gets fed up and decides to make that person\u2019s life a living hell. \u00a0These are the folks who may end up losing their home. Otherwise, as an attorney, I can safely say that it\u2019s rare for the IRS to take a person\u2019s home to satisfy a tax debt.<\/p>\n Believe it or not, the majority of people don\u2019t know the difference between a lien and a levy<\/a>. They\u2019re not the same, even though people use them interchangeably. Lien is the good one, and levy is the bad one<\/a>. Levy means the IRS is going to seize something.<\/p>\n A lien is simply when the IRS files paperwork stating that a person owes them money. This lien actually gives formal notice to the world that an individual owes a debt. The lien will show up on your credit report and can hurt your chances of getting loans or purchasing things.<\/p>\n People should know that a lien damages\u00a0their credit for about 50 points and that it can attach to property that\u2019s real or personal. The lien can attach itself to anything a person owns\u2014even socks in their underwear drawer.<\/p>\n There is something called the taxpayer bill of rights, and it actually discourages the IRS from seizing a person\u2019s property. This works for people who have pushed the IRS too far, for years even. This clause prevents the IRS from just unilaterally seizing property.<\/p>\n They have to file a lawsuit and a district court must sign off on the lawsuit. Then, a whole set of procedures and processes must be observed. There\u2019s a strong government bias about throwing people out of their primary home, and that\u2019s a good thing. But, if there\u2019s a tax lien against someone\u2019s home who dies, the IRC can get involved in state proceedings.<\/p>\n This is an independent brand of the IRS. Their job is to help unravel bureaucratic snarls where nothing is getting done. People are locked up in a mess when using this service. As a tax attorney, I know that I can solve a problem because the IRS may have done something inappropriate, or even\u00a0illegal<\/a>.<\/p>\n This is not coming down on the IRS in a bad way, but things do happen. Even though these advocated do work for the IRS, and are more like a liaison than anything else.<\/p>\n Take it up another notch and there\u2019s such a thing as national taxpayer advocate that\u2019s appointed by Congress. This person\u2019s name is Nina Olsen, who has been in office a long time. Providing\u00a0a valuable service each year by putting out an annual report to Congress outlining problem areas in dealing with the IRS.<\/p>\n She also outlines solutions and\u00a0helps to solve problems on a daily basis. Those of us deeply involved in the business tend to agree with her. When she releases a report, we read it because we\u2019re serious about helping clients.<\/p>\n Systematic problems are those that keep occurring over and over. An example would be when filing an Offer in Compromise (OIC<\/a>). We make sure all the client\u2019s paperwork is up to speed. Things go wrong when the IRS doesn\u2019t include information in our filing.<\/p>\nWith IRS Tax Problems, It Pays to Know the Laws<\/h2>\n
The Difference Between a Lien and a Levy<\/h2>\n
The Taxpayer Bill of Rights<\/h2>\n
The IRS Taxpayer Advocate Service<\/h2>\n
National Taxpayer Advocate<\/h2>\n
Systematic IRS Tax Problems<\/h2>\n