Click here to watch or read more information on IRS Back Taxes.<\/a><\/p>\nDARRIN T. MISH: <\/strong>\u00a0Oh, is that why it was so good?<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Yes and I had ice all over my windshield.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0 I woke up in Zephyr hills Florida and it was about 34 degrees, got down to about 32 on the drive here.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0It was colder where I was at because I had to wait for 10 minutes.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0It was kind of breezy so it was, there was a wind chill actually believe it or not. We live right on a lake and the wind was blowing right off the lake and it was cold, very cold. But I did not have ice on my windshield like you did.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Florida version of cold anyway.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0I don’t know what is up with March 16th. We got a cold front but that is it,\u00a0that is the last cold front of the season.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0There is something else we should say, because it’s March 16th.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Which means if you didn’t file an extension for your corporate or partnership tax returns yesterday, you are late.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0You’re late, you’re late for a very important date, you are late.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Yep, if you didn’t file that then you’ve got a problem.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0I was telling Darrin I’m so happy I have mine done.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Remember the refiling penalty for a corporate or partnership return is $395 per month or a portion of a month per share holder.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Or they could have filed an extension and not had that?<\/p>\nDARRIN T. MISH: <\/strong>I filed four extensions. I am going to file that 1040 extension while I’m at it. Just in case I can’t get it done by April the 17th this year.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Oh yes that’s right, you’ve got some extra days but don’t think you’ve got extra days because you will run out of time. That’s how it works.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Yeah, exactly.\u00a0 So today I thought we would talk about, we do like a breakdown of the IRS collection process.\u00a0 We haven’t done that in a while so we could talk about what happens if you are going to file a return this year. Or maybe you’ve filed many returns in the past with big balances due and you still owe the IRS. What’s going to happen? How does that work procedurally and what can the IRS do and what can’t they do does that make sense?<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0So is the collection process, does it vary depending on the type of tax you owe?\u00a0 Or is it all pretty much the same?<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Not too much,\u00a0it’s pretty much the same.\u00a0 There are some I would say payroll taxes are more serious than income tax although the process is generally the same.\u00a0 You have generally the same rights, there is some variations but no it doesn’t really matter that much.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0And they don’t, it’s more serious for the payroll. Theoretically you are holding half of someone\u2019s money that you should have already paid to the IRS, right?<\/p>\nDARRIN T. MISH: <\/strong>\u00a0We haven’t done an entire show on payroll for a while cause it’s just not that interesting. It’s really complicated and there is just lots of moving parts. But yeah for sure if you are the employer and you are not remitting the payroll taxes in a sense that is stealing it’s theft and it’s bad and you can go to jail.\u00a0 We don’t talk about jail very often on this program. But you can go to jail for the failure to pay payroll tax depending on how much money we are talking about and how often you’ve done this in your life.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0And if it’s blatant right do they look at that?<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Yeah, all the cases that I’ve seen just the media type cases that I have seen about payroll taxes and the failure to pay those. The people that have gone to prison or have been prosecuted have been you know repeat offenders and\/or just blatant.\u00a0 I will give you an example that comes to mind a guy in the Midwest owned a chain of restaurants and instead of paying the payroll taxes he went out and bought boats and fast cars and big mansions and things like that…<\/p>\nPAT GEORGE: <\/strong>\u00a0My kind of guy.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Yeah, he is probably going…<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Not the IRS’s kind of guy.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0I’m going to suggest that he is probably going through a midlife crisis kind of thing or something like that and the IRS really looked dimly on that.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0The running joke is anybody you know 40’s ish 50’s they buy a corvette midlife crisis.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0That is the reason why I won’t buy a corvette.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0That’s why I told my husband you want to buy a corvette you are not buying a corvette.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0So I may or may not drive a large pickup and that is my version of a midlife crisis.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0That’s way better than a corvette I think.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Well actually it has a lot more uses.\u00a0 We haven’t talked about the farm in a while so last weekend I just had a hankering to do some farm work and remember I have that big orange orchard that’s pretty much dead and I need to clear the orange trees out because I want to turn it into just a hay field you know for cattle or what not and so I chained my pickup truck up to some orange tree for fun…<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0No you did not?<\/p>\nDARRIN T. MISH: <\/strong>\u00a0I ripped them out by the trunk, roots and all and I have to tell you, because I didn’t. I’ve seen people do it I’ve never done it myself and I have to tell you I let out a primal scream after the first one came out I was like yes I am victorious.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Oh my gosh.<\/p>\nPAT GEORGE: <\/strong>\u00a0Now let me guess I bet you drive a Ford?<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Well is there any other kind of pickup truck?<\/p>\nPAT GEORGE: <\/strong>\u00a0No.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Yeah ok so I do drive a Ford.<\/p>\nPAT GEORGE: <\/strong>\u00a0See I knew that would yank it out of there.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0What are you talking about you drive a Ford to.<\/p>\nPAT GEORGE: <\/strong>\u00a0That is why I drive a Ford.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Exactly.<\/p>\nPAT GEORGE: <\/strong>\u00a0Built tough.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0I don’t know if a 150 would do it?\u00a0 Maybe, maybe…<\/p>\nPAT GEORGE: <\/strong>\u00a0It would do some of it.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Well even with the super duty that it took it’s not one yank it’s like 4 yanks and on the fourth one I just literally flies out…<\/p>\nPAT GEORGE: <\/strong>\u00a0Well those orange trees have been there for a while.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0How big is that tree?<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Well they were big.\u00a0 They were mature, I would say the average trunk diameter is 8 inches you know they are big…<\/p>\nPAT GEORGE: <\/strong>\u00a0Wow big.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0So when Darrin’s not battling the IRS this is what he does, he roams around the farm and he yanks out orange trees with his F350?\u00a0 I don’t even know.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Yeah it is a 350.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0With his big white redneck truck.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0I think she might have just insinuated I was a redneck of sorts.\u00a0 I’m a very complex man.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Only a little.\u00a0 He doesn’t look like a redneck if you were to see him we are Facebook streaming live so you can see him hop on over to Darrin Mish’s page…<\/p>\nPAT GEORGE: <\/strong>\u00a0Although he doesn’t look like a guy that has a Ford pickup truck yanking out orange tree’s.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0He doesn’t, he does not look like this redneck attorney he, sometimes he wears boots but for the most part he’s always kind of dressed to the nine’s.<\/p>\nPAT GEORGE: <\/strong>\u00a0He’s got cuff links on all the time.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Yeah and he’s got cuff links always.<\/p>\nPAT GEORGE: <\/strong>\u00a0What farmer wears cuff links?<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0And Heather’s got a shirt pressed all nice so you know he dresses sharp like he’s dressed like he could go to court.<\/p>\nPAT GEORGE: <\/strong>\u00a0He dresses like he’s still got California in him.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Yeah, he does.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Like I said I am a complex guy you know, wear a cowboy hat on occasion not that often just can’t get used to it, it’s too hot here.<\/p>\nPAT GEORGE: <\/strong>\u00a0And he is also the kind of guy for the listeners to know that he said on spring break he is going to go to the key’s and I said Key west and he said no that’s not really family oriented. I’m going to go up in Marathon where we are going to snorkel and we are going to swim and we are going to scuba dive with the kids.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Yeah, the deer you can feed them out of your hand they are so domesticated.<\/p>\nPAT GEORGE: <\/strong>\u00a0He will probably do that.\u00a0 See I feed another kind of deer in key west out of my hands.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0I bet you do, I bet you do.\u00a0 Alright let’s hop back to our topic so we can give our listeners that want to hear about this stuff a little bit of value today.<\/p>\nPAT GEORGE: <\/strong>\u00a0We just did we let the listeners know what kind of guy they are listening to that was knowledgeable.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Yes, he’s well if you had to hire Darrin to help you with an IRS issue I would tell you that he is very laid back he will make you feel comfortable.<\/p>\nPAT GEORGE: <\/strong>\u00a0And you would be in great hands and yes you would leave him as a friend like a lot of his clients do, they become friends.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0And Darrin you know he doesn’t say this every week but I can tell you for sure cause I’ve known him long enough. We’ve been hosting the show together long enough he does not like repeat business.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0No I don\u2019t.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0How often have you heard that?<\/p>\nDARRIN T. MISH: <\/strong>\u00a0If I’ve fixed a client\u2019s big tax mess I, the goal is to fix them pretty much for life.\u00a0 I will take repeat business, but if they just did the same thing over again then it’s really kind of demoralizing you know, you kind of get one shot at this if, like the train wreck of the week I saved the gentleman a lot of money, if he comes back in a couple of years with the same behavior and the same situation….<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Would you feel like you’ve failed him or you didn’t do him just or teach him or maybe too easy.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0I would probably internally feel like I failed him but in reality, he failed himself.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0It’s on him yeah.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Yeah, he failed himself for sure.\u00a0 So, let’s talk about real quick about how the IRS collection process works.\u00a0 Basically, if you don’t pay your tax in full when you file your tax return, you are going to get a bill right with the amount that you owe with some penalties and interest and. That’s actually a demand and you have 10 days to pay that bill.\u00a0 This is sort of an interesting tidbit that if you go to day 11. Then something called an invisible silent Federal tax lien attaches to you and attaches to all of your property<\/a>.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Wait invisible silent tax lien is that what you said?<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Yeah, it’s an invisible tax lien, it does attach and for certain court procedures and what not. The tax then takes higher priority over most other debts that you would owe not secured debts but unsecured debts.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0And is this if they file bankruptcy or something or I don’t understand this?<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Yeah, it’s hard to explain in the time that we have allotted. It’s like an invisible lien after day 10 so they have to give you notice and demand in 10 days and then after that it becomes a more serious situation.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Because of the time we should bring up one more thing before we jump into the collection process is if you owe money at least file your returns on time. That is going to save you some money, right?\u00a0 At least get them filed even if you don’t pay it?<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Yeah, I would say if this is a single year\u00a0that you owe money and you don’t owe a lot of money then you\u00a0are going to want to file on time.\u00a0 Now it’s hard to give individualized advice on the radio…<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Correct right everybody’s scenario is different.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0So this is not individualized advice, probably no advice at all.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0I feel like we should be playing some attorney jargon here.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Instead we get to wait for the break music, right?<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Yes that’s a one size doesn’t fit all you’ve got to talk to Darrin to make sure…<\/p>\nDARRIN T. MISH: <\/strong>\u00a0So what I was going to say is if you owe a lot of money in a single year you may want to come and talk to somebody that’s professional. It might be better to have a plan in place before you just file that return.\u00a0 I see that mistake a lot, somebody owes a hundred grand for one year and they just file the return on time. They want to save the $500 or whatever for the late filing penalty. What they don’t realize is they are going to start this collection process rolling without a plan, that’s bad.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0See I’m glad I brought it up because then we got to talk about it.\u00a0 So, if you have a tax issue, problem or question or you owe a lot of money on taxes Darrin’s your guy. You can get him at 888-get-mish again that’s 888-get-mish and the numbers are?<\/p>\nDARRIN T. MISH: <\/strong>\u00a0888-438-6474, 888-438-6474.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0You’d think I would have that memorized by now but I don’t.\u00a0 We will be back in just a moment stick around.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Our northern listeners are probably laughing right now.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Yeah, they are not very happy with us. Some of them are snowed in but we are complaining about it being 32 degrees when we wake up and you know it’s what, what’s the temperature now Pat 45?<\/p>\nPAT GEORGE: <\/strong>\u00a043.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0And I think the high today is going to be around 60-65 somewhere around there.<\/p>\nPAT GEORGE: <\/strong>\u00a0Low to mid 60’s.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0I mean you really can’t complain about it.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0And I saw tomorrow is 75-77 something like that so it’s going to be real nice again here really quick.<\/p>\nPAT GEORGE: <\/strong>\u00a0Then back in the 80’s.\u00a0 This should be the last cold spell so we will be able to jump in the pool soon.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0We’ve got to wear our jackets.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Oh Pat.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0He brings flavor and color.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Oh he is so colorful for sure.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0So today we are talking about the IRS Collection process and kind of giving you a breakdown of how it works. \u00a0In the first segment of the show we weren’t talking about farm animals or whatever we were talking about.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0The weather.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0We got to the point where we were talking about well you get a notice and a bill and a demand to pay within 10 days and then what happens?\u00a0 You had asked the question well if you are going to owe should you just file on time so that you can minimize the penalties. Well you know I am a lawyer so it depends right so if you have an extension…<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0Which he doesn’t usually give that answer so I’m so proud of him that was totally an attorney answer.<\/p>\nDARRIN T. MISH: <\/strong>\u00a0If you have an extension you are not going to get a late filing penalty so you don’t have to worry about that. We have talked about on the show many times that if you don’t pay your taxes by the due date by April 15th or the 17th as in this year, then you are going to start having failure to pay penalties.\u00a0 Well those are going to come up no matter what unless you pay on April 15th. So, I don’t know about you are definitely want to file on time, you know if you owe I don’t know about that advice as a general rule.<\/p>\nKATRINA MADEWELL: <\/strong>\u00a0So I got a curious question for you just because you are so knee deep in this particular line of work. It’s just curious cause our whole administration is being reformed. So, if you could revamp this process, what do you think would fix this them just taking a payment plan no matter what?\u00a0 What would your solution be if someone wants to file the taxes but they can’t afford that hundred-thousand-dollar bill?<\/p>\nDARRIN T. MISH: <\/strong>\u00a0Well if I took off my lawyer hat….<\/p>\n
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