| The Tax Man Cometh | | | | averages for the basic necessities. With an income of |
| | | | $40,000 per year, our single tax client shouldn't count |
| "I am single and I owe the IRS $80,000 in back taxes | | | | on being able to remain in his $250,000 home. |
| for tax years 2000 through 2003. I think I probably owe | | | | The good news is that the IRS has a statute of |
| some money to the State of Ohio and I currently | | | | limitations. The IRS cannot continue to collect from our |
| make $40,000 per year. I just received a Notice of | | | | tax client more than ten years after the tax was |
| Levy, which states that the IRS plans to garnish my | | | | assessed without suing him for an extension, which is |
| wages. I know I will be fired, if my employer finds out. | | | | very rare. In the case of our $40,000 per year tax |
| What can I do?" | | | | client, the taxes owing for 2000 were likely assessed |
| The foregoing is a prime example of the types of tax | | | | sometime around 2002. The IRS has a "drop dead |
| problems Jones & Ryan encounters on a daily | | | | date" in 2012. If it hasn't collected by that time, our tax |
| basis. People faced with tax problems and impending | | | | client can likely rest easy that the tax debt for that |
| levies and/or garnishments are often emotionally | | | | year is gone. |
| distraught - believing that they will lose their homes, | | | | As always, with the good news comes the bad. The |
| their jobs, their marriages. Many are concerned that | | | | State of Ohio does not have a statute of limitations. |
| they will even be sent to jail. Unfortunately, many of | | | | They can and will pursue our tax client forever. We |
| their concerns are valid. In this new age of aggressive | | | | recently had a client who owned a car dealership over |
| tax enforcement, losing your home is a real possibility | | | | 20 years ago. He failed to pay sales tax in 1982. More |
| and being sent to jail is not entirely out of the question. | | | | than 25 years later, the State of Ohio levied him for |
| Fortunately, this tax problem does not have to ruin our | | | | the unpaid sales tax. Of course, he no longer had any |
| client's life. Those of us who turn on the television even | | | | documentation to dispute the amount they claimed he |
| just once a week for 15 minutes are aware of the | | | | owed. However, he did have photographs of the |
| Infamous Offer in Compromise program. This program | | | | dealership, which were taken back in 1982. We were |
| solves your tax problems for "pennies on the dollar." | | | | able to produce these photographs to the State of |
| Unfortunately, despite what you hear on television, you | | | | Ohio, in order to document the number of vehicles he |
| really have to be in dire straits to qualify for this | | | | really had in his inventory at the time. We were able to |
| program. Our $40,000 per year single tax client might, | | | | reduce his tax debt by over $100,000. |
| but probably won't, qualify. It he has any money left | | | | Similar to our car dealer, our tax client who makes |
| over from his paycheck, he can be sure the IRS | | | | $40,000 per year is not without hope. With quick |
| wants it. | | | | involvement on our part and cooperation from our |
| However, many tax clients do qualify for an Installment | | | | client, the wage garnishment can be stopped, before |
| Agreement, either partial or full. A $40,000 per year | | | | the employer has any knowledge of it. The key is |
| single tax client cannot possibly payoff an $80,000 tax | | | | immediate action. If the IRS knows that a tax |
| debt, especially when penalties and interest continue to | | | | professional will be submitting a proposed resolution to |
| accrue. Under these circumstances, a Partial Pay | | | | the problem, any impending levy and/or garnishment |
| Installment Agreement is likely the best option. This plan | | | | will likely be stayed until a mutually-agreeable resolution |
| allows our tax client to pay the IRS a reasonable sum | | | | is put in place. It is imperative that tax problems be |
| every month. Many times, the IRS will agree to accept | | | | handled as quickly and efficiently as possible. |
| less than the total amount due and forego penalties | | | | Otherwise, our tax client may find himself unable to |
| and interest. | | | | pay his mortgage or make his car payment, as the |
| Of course, if our tax client's income increases, the IRS | | | | IRS has taken nearly all of his $770 per week |
| will likely discover this new-found money and will seek | | | | paycheck. |
| to renegotiate the payment plan. The IRS does realize | | | | The tax law firm of Jones & Ryan offers a free |
| that everyone needs a place to sleep, as well as | | | | initial consultation. To begin the process of tax |
| certain other basic necessities. In order to negotiate the | | | | recovery simply visit the Jones and Ryan Tax |
| best payment plan possible, our tax client will need to | | | | Website and take our tax relief questionnaire. You |
| account for these necessities in agonizing detail. The | | | | may also enjoy our other tax articles as well as our |
| more money he needs to pay his monthly mortgage, | | | | extensive frequently asked tax questions page. On our |
| the less money he has in his pocket to pay the IRS. | | | | website you may also learn more about our firm, our |
| Keep in mind though, the IRS has established national | | | | tax services, and how to contact us for tax help. |