Stop your Tax Debt from Spinning out of Control!

He saved 100% off his tax debt! Is that possible!?

You’ve opened the mail, you’ve gotten the notices, and your heart’s tickled with anxiety every time there’s a letter from the IRS. For most people, it’s never good news, and so was the case with Ronald L. from Washington, who learned he owed $169,000 after a fateful trip to his mailbox. Surely, that number couldn’t be accurate!? He scratched his head, he hoped there was a mistake, but after contacting the IRS the number was indeed correct. Deep in financial distress, Ronald began looking for help, and thankfully came across our firm and called. That turned out to be a very good decision, as we were able to get him quite the discount off his tax debt. So, how did we do it?

One of the tenets of the tax solutions industry is to always stay compliant. That means filing your tax returns on time and keeping current with your estimated payments. Ronald L. hadn’t done this, so the first thing StopIRSDebt.com did was to file his 2004-2009 US individual income tax returns. This had quite an impact, as it reduced the initial balances owed from $169,000 all the way down to $99,000. Right off the bat our client saved $70,000. But we weren’t done. We then negotiated Currently non Collectible status on the remaining $99,000 balance, which brought the amount owed to $0. All told, Ronald L. didn’t pay anything on his tax bill.

Not everyone will qualify to completely walk away from their tax debt, but for those of you who’ve recently opened a threatening piece of mail from the IRS, there can be quite a bright light at the end of the tunnel for those who get help. Just ask Ronald L.

Improving Economy Brings More Funds to State Coffers

States across the US lost out on billions of dollars in valuable tax revenue over the past few years, but they’re now recouping a bit more as the economy starts picking up.

An improving economy combined with enhanced collection efforts led tax collection to increase by $62 billion for all 50 states in 2011. The US Census Bureau recently released data showing the severe revenue shortages stemming off.

Nine states increased tax collection by more than 10 percent. The highest states: North Dakota at 44 percent and Alaska at 22 percent. California’s tax collection rose 17 percent, edging out New Mexico and Illinois at 15 percent.

Some states, like North Dakota and Wyoming, owe part of their increased tax revenue to pumping out more oil. But other states, like Illinois, owe part of it to raising taxes.

Individual income tax collection rose in all but eight states to a combined total of $259 billion. Sales tax collection rose just over eight percent to a combined $240 billion, and corporate taxes rose by more than nine percent to just over $40 billion total.

But whether they raised oil production or tax rates, states are getting more serious about taxpayers paying up. As state coffers shrink, collection efforts expand to recoup revenue for budgets.

Wealthy taxpayers, corporations and cash-based businesses are typically prime targets for state tax authorities. Those in their cross-hairs can be the subject of an audit and find that they owe back taxes.

A tax attorney can help businesses and individuals from becoming the subject of an abusive tax audit and possibly obtain a favorable resolution deal. And although you may not be able to pump oil out of your backyard to pay a tax bill, with the right help you could be in a much better position to repay it.

Movie Star Removes $6.2 Million IRS Lien, But Still Owes

Known for his storied movie career and problems with the IRS, actor Nic Cage made a sizeable dent in his total IRS tax debt and is just a few million dollars from financial freedom.

Cage recently paid off more than $6.2 million off his total IRS tax debt, leading the IRS to release a lien against his real estate holdings. That figure was what he owed for the 2007 tax year. The IRS applied the lien in late-2008.

But that massive payment leaves him less than halfway toward being in good graces with the tax man.

He admitted that he owed a total of almost $14 million to the IRS, a figure he blamed on a former business manager who he said brought him to “financial ruin.”

Cage reportedly got into all the tax heat for under-reporting his income for years. That brought him into a Face/Off with the IRS, but it’s looking more likely that he won’t have a seat on a Con-air flight to federal prison.

Cage is one of Hollywood’s highest-paid actors, but that hasn’t stopped him from having an array of financial problems.

Like the old saying goes, it was more money, more problems for Cage. He gained a reputation for spending heavy, including buying a dinosaur skull on top of islands and castles. He also got into a dispute with the IRS over whether certain expenses were business and security-related.

From 2008-11 he acted in or produced 11 movies, helping him make a few bucks, remove his IRS lien, and reach partial financial freedom.

Cage was once able to pay a $1.8 million IRS tax bill for $666,000 – a big win for his tax attorneys.  But you don’t have to be a Hollywood star to settle your back tax debt for less than what you owe.

Whether your back tax debt is the size of Nicolas Cage’s, or more the size of an average Joe, our tax attorneys and tax professionals are able to represent you and help you obtain an outcome that works in your favor. Which is one Hollywood ending worth cheering.

IRS Commissioner Cautions Americans on Next Filing Season

If you think your tax filings this year have been confusing, just wait until next year’s.

That was the warning IRS Commissioner Doug Shulman gave taxpayers. He said if Congress waits until after the November elections to determine next year’s tax rates, the 2013 filing season could be a disaster.

The 2011 tax filing season gave a preview of what could come. The IRS delayed the start of the filing season for some taxpayers because Washington made changes to the tax code the previous December, during a lame duck session of Congress.

The delay lasted weeks with some taxpayers having to wait until mid to late-February to file their returns.

Tax filing seasons typically begin at the beginning of the new year, but the IRS had to reprogram its processing system due to the late-2010 changes.

With the Bush tax cuts and payroll tax cuts set to expire at the end of this year, Congress isn’t expected to do anything with an election season approaching. Action on those rates will likely come until after Nov. 6 Presidential election.

Also on Washington’s need-to-do list: the Alternative Minimum Tax and other tax breaks for research and development, ethanol production and those for teachers who buy supplies for the classroom.

If Congress doesn’t get its act together and resolve those matters, individual and some corporate taxpayers won’t know how high or low their tax burden will be, a situation Commissioner Shulman labeled “total confusion” for taxpayers.

Only time will tell whether Congress resolves these matters swiftly and allow taxpayers to plan ahead with a bit more certainty.

But if you’re certain you owe back tax debt to the IRS, hiring a tax attorney can help bring your financial situation out of limbo and into safe waters.

Tax rates may change after the election, but a tax attorney knows all the ins and outs of the tax codes and what the changes mean for you. That can help you avoid “total confusion” when dealing with an IRS agent.

Even Top Golden State Politician Can’t Avoid Taxman

Average Joes commonly think that politicians have it easy. They get to work the system, make connections, and avoid certain things, like taxes.

But tell that to former California Lieutenant Governor Abel Maldonado, who now finds himself in the middle of a tussle with the IRS over $470,000 in disputed taxes.

Maldonado’s no stranger to Golden State politics. Former governor Arnold Schwarzenegger tapped him to serve as “LG” after  several years in the state legislature. He’s now running for Congress in California’s Central Coast, and his tax dispute surely won’t help his campaign.

Maldonado’s tax troubles aren’t uncommon for businesses around the country. Citing errors in deduction and depreciation calculations, the IRS is going after extra money owed by his family business that includes a farm and equipment rentals.

Trying to avoid more political fallout, the former state Senator and Assemblyman filed papers to dissolve himself from the family business. He cited the way the companies were legally structured made him individually liable for its taxes.

But it’s not the first time he and his family have run into tax trouble.

Protesting, they paid more than $110,000 in back taxes in 2010. That originated from a dispute over pickup trucks and whether they were for business or personal use. The IRS even put a lien on Maldonado’s 6,000-acre family farm in Santa Barbara County.

But if there’s any less for regular taxpayers, it’s that even politicians can run into trouble with the IRS. And if the IRS puts liens on a politician’s business, imagine what they can do to the rest of us without friends and connections in the Capitol.

Whether it’s your business or you as a taxpayer who owes a back tax debt to the IRS, hiring a tax attorney or seasoned tax professional will help you reach an outcome that’s fair, and can sometimes save you thousands off your tax bill. That’s something a few select public officials could learn from.