Blog - Tim Hart

Form 433-B Collection Information Statement for Businesses

October 11, 2024 | Payment Plans

Summary The Form 433-B (OIC) is used to apply for an offer in compromise on business taxes. It requires detailed information about the business, including financial information, assets, liabilities, and income and expenses. The OIC version of the form has some notable differences from the standard version, particularly in determining equity in business assets and reporting business income and expenses. When completing the form, businesses should be prepared to provide supporting doc... CONTINUE READING

What Happens If You Commit Tax Fraud? Possible Prison and Fines

September 9, 2024 | Tax Fraud Tax Penalties

Summary The punishment for tax fraud depends on the type of fraud committed and the specific law broken. Criminal tax fraud can lead to imprisonment of up to five years and fines of up to $250,000 for individuals and $500,000 for corporations. Civil tax fraud leads to civil penalties of 75% of the under-reported tax. Tax fraud involves willfulness, which includes knowledge, intent, and purpose. Accidental, careless, or negligent mistakes are not considered tax fraud. Real-world exam... CONTINUE READING

Can the IRS Freeze My Bank Account? What You Need to Know

September 9, 2024 | Tax Debt Tax Penalties

Summary The IRS has the authority to freeze funds in a taxpayer's bank account up to the amount of their tax debt. The IRS typically sends multiple notices before levying an account, giving the taxpayer time to address the issue. There are various reasons for the IRS to freeze an account, such as significant tax debt, non-compliance, or fraudulent activity. If an account is frozen, the taxpayer has 21 days to respond before the funds are sent to the IRS. Options to release a freeze... CONTINUE READING

IRS Special Agents Investigating You? Here’s What to Do

September 9, 2024 | Tax Fraud Tax Help

Summary If you're being investigated by IRS special agents, it's crucial to contact a tax attorney immediately. They can assist in handling the investigation, safeguarding your rights, and potentially providing legal representation in a criminal court case. IRS special agents investigate possible tax crimes, and an investigation can begin when an auditor, collection officer, investigative analyst, the public, or law enforcement alerts them to a potential crime. The investigation inv... CONTINUE READING

What Is IRS Form 433-F Used for? Tips and Instructions

September 8, 2024 | Tax Debt Tax Help

Summary IRS Form 433-F (Collection Information Statement) is used to gather detailed financial information about taxpayers applying for specific tax relief programs. The form helps the IRS determine eligibility for alternative payment plans, including partial payment installment agreements and payment plans for high-balance tax bills. Taxpayers may need to file Form 433-F if their tax debt exceeds $50,000 and they want to make an installment agree... CONTINUE READING

Letter 9297 – IRS Has Assigned a Revenue Officer to Your Case

September 8, 2024 | tax collections

Summary IRS Letter 9297 (Summary of Taxpayer Contact) indicates that an Internal Revenue Service (IRS) revenue officer is working on your account, and the agency needs your financial information. The IRS typically assigns accounts to revenue officers when taxpayers have compliance issues, a substantial back tax balance, or the agency's automated approach has failed to collect payment. Form 9297 lists the documents and information yo... CONTINUE READING

What If You Don’t File Taxes for One to 20 Years?

September 8, 2024 | Tax Debt Unfiled Tax returns

Summary The consequences of not filing taxes vary depending on the amount owed and the time elapsed since the last filing. Failure to file on time incurs penalties and interest, which increase over time. After three years, unclaimed refunds are forfeited, and the IRS can take collection actions, including liens and levies once there is an unpaid tax bill and a certain amount of time has passed. Filing back taxes involves gathering financial d... CONTINUE READING

NY State Tax Warrant: What to Expect and How to Resolve

August 24, 2024 | Tax Debt Tax Help

Summary A tax warrant in New York is a legal claim by the state on personal and real property due to unpaid income, sales, or other New York State taxes. The Department of Taxation and Finance (NYS DTF) issues tax warrants, and they create a lien against assets, allowing the state to seize wages, income, and assets. Consequences include asset seizure, wage garnishment, and publication of tax debt. Tax warrants follow individuals regardless of where they... CONTINUE READING

Overcoming NY State Back Taxes: Relief and Consequences

August 24, 2024 | Offer in Compromise Tax Debt Tax Issues Tax Relief

Summary New York State taxpayers who are unable to satisfy their tax payment or filing obligations may face consequences such as tax warrants, wage garnishment, asset seizure, and penalties. Relief options include requesting penalty abatement, setting up monthly payment plans, exploring the Offer-in-Compromise program, filing for Innocent Spouse Relief, and utilizing the Voluntary Disclosure Program. Appeals against tax assessments are also possible. Unpaid taxes resu... CONTINUE READING

What Happens If You Owe the IRS More Than $10,000?

August 16, 2024 | Tax Debt

Summary People who owe the IRS $10,000 or more in unpaid taxes have several options to resolve their tax debt. The IRS offers several programs, such as installment agreements, penalty abatement, and offer-in-compromise, to help taxpayers pay off their balances. If you owe over $50,000 in taxes, you may face additional penalties and enforcement actions, including a higher chance of a wage garnishment, bank levies, asset seizures, and passport revocation. It's important to seek pr... CONTINUE READING

Behind on Payroll Taxes? Watch Out for IRS Letter 5857

Summary 1. IRS Letter 5857 is sent to taxpayers who have fallen behind on their employment tax deposits, notifying them of an impending phone call from a Revenue Officer to discuss the issue. 2. The IRS prefers to resolve tax issues early and may offer payment arrangements or ot...

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