Seizure on Restaurant Released, But Tax Problems Still Loom

By Jarret Bencks
Medford Patch, June 2, 2011

The bright orange seized sign on the front door of Il Faro restaurant has been taken down, but the Medford Square restaurant is still in hot water with the state’s Department of Revenue.

The seizure on the business was lifted after revenue officials determined nearly all of the restaurant equipment belonged to the landlord at 21 Main St. and could not be auctioned off to pay some of the back taxes, said revenue spokesman Bob Bliss.

The Italian eatery, owned by Giuseppe Longo, still owes $142,784.20 in taxes and penalty fees dating back to 2006, and has made no efforts to create a plan to start paying the debt off, Bliss said.

“The taxpayer clearly is not taking any steps to work anything out with DOR,” Bliss said.

Nearly all of the back taxes, which date back to 2006, stemmed from failing to pay the meals tax, Bliss previously said.

Before being taken down, the sign, dated May 11, read: “The Business Property of Il Faro, Inc. had been seized for nonpayment of taxes, and is now in possession of the Commonwealth of Massachusetts…Any person who attempts to tamper or interfere with this property will be prosecuted to the full extent of the law.”

Medford Square Restaurant Seized By MA DOR

By Jarret Bencks
Medford Patch, May 18, 2011

A seized Medford Square restaurant charged patrons a meals tax but didn’t pay what they collected to the state, a Department of Revenue Spokesman said Thursday.

Il Faro, an Italian eatery located at 21 Main St., was seized by the Department of Revenue last week because it owes the state a total of $142,784.20 in taxes and penalty fees, department spokesman Bob Bliss said. Nearly all of the back taxes, which date back to 2006, stemmed from the meals tax, he said.

“Patrons paid the meals tax, but the restaurant didn’t forward that to DOR,” Bliss said.

Seizing a business is the last thing the Department of Revenue will do in their efforts to collect unpaid taxes, Bliss said.

“You only get to this point when everything else DOR tries to collect has failed,” he said. “This is sort of the last stop.”

The restaurant had an orange sign on its door Tuesday, reading “SEIZED.” Several florescent signs remained lit inside the windows of the Italian eatery Tuesday afternoon.

If Giuseppe Longo, the owner of the restaurant, can come up with a reasonable down payment and payment plan going forward, the business could be reopened, Bliss said.

“We always hope that’s the case, because it’s a lot easier for us,” Bliss said. “We get the money, the business opens back up and the jobs don’t get lost.”

The business, not the building, was seized. If a payment plan isn’t agreed upon, the property of the restaurant will go to auction in about 4 to 6 weeks, Bliss said.

A call to the restaurant Tuesday was unanswered.

Original Story:

A restaurant in Medford Square has been seized by the Massachusetts Department of Revenue for nonpayment of taxes, according to a sign on its door.

Il Faro, an Italian restaurant located at 21 Main St. in Medford, had an orange sign on its door Tuesday, reading “SEIZED.” The sign was dated May 11, 2011.

Several florescent signs remained lit inside the windows of the Italian eatery Tuesday afternoon.

According to filings with the Massachusetts Secretary of State, the owner of the business is Giuseppe Longo. Il Faro first filed as a business with the Secretary of State in 1996, according to state records.

The business was seized but not the building.

The sign on the door read, “The Business Property of Il Faro, Inc. had been seized for nonpayment of taxes, and is now in possession of the Commonwealth of Massachusetts…Any person who attempts to tamper or interfere with this property will be prosecuted to the full extent of the law.”

Lawyer for North Highlands ‘tax lady’ wants out, says he’s not getting paid

By Andy Furillo
The Sacromento Bee (
Published: Friday, May. 6, 2011 – 12:00 am | Page 6B
Last Modified: Sunday, May. 8, 2011 – 12:35 pm

Embattled tax attorney Roni Deutch hasn’t been paying her legal bills in the state’s effort to shut her down, according to the lawyer representing her, who now says he wants out of the case.

In papers filed in Sacramento Superior Court, attorney James J. Banks said Deutch and her North Highlands law firm are “seriously delinquent and have not paid accrued fees and costs for representation in this matter.”

Banks’ declaration filed Monday also suggested he’s afraid the so-called “tax lady” who advertises heavily on late-night TV might blame him for at least some of her legal problems. Banks cited the concern as another reason he wants to be relieved as Deutch’s counsel.

Under the California Rules of Professional Conduct, Banks said in his filing that it is mandatory for him to bail out on the case as a result of his firm’s “understanding that the clients may assert ‘advice of counsel’ as a defense in a contempt proceeding initiated in this case.”

Sacramento Superior Court Judge Shellyanne W.L. Chang last month froze Deutch’s assets and appointed a receiver to oversee her accounts after the state attorney general’s office sought to have Deutch jailed for violation of court orders in the case.

The state lawyers contended Deutch shredded between 1.6 million and 2.7 million documents and refused to refund payments to her clients, both of which were ordered from the bench in Sacramento. The state sued her in August on charges that she has swindled her clients out of $34 million.

In a news release last month, state Attorney General Kamala Harris called Deutch “a predator for profit.”

Neither Banks nor Deutch returned telephone calls Thursday.

A spokeswoman for the attorney general’s office declined to comment.

Court-appointed receiver Scott M. Sackett confirmed Thursday that Banks’ law firm has not been getting paid by Deutch but did not know how much she owes.

Sackett is scheduled to file his report next week on Deutch’s finances.

A hearing on Banks’ effort to drop out of the case has been scheduled for May 13. A hearing on the contempt of court allegations is slated for July 22.

California AG says ‘Tax Lady’ Roni Deutch Should Be Jailed For Contempt

By Darrell Smith and Mark Glover
The Sacramento Bee (
Published: Wednesday, Apr. 20, 2011 – 4:34 pm
Last Modified: Sunday, May. 8, 2011 – 12:35 pm

Roni Deutch, the self-styled “Tax Lady,” could face jail time on contempt of court allegations after allegedly shredding millions of pages of documents and failing to pay clients refunds in violation of a court order.

Calling Deutch a “predator for profit,” State Attorney General Kamala Harris on Thursday asked a Sacramento County Superior Court judge to send Deutch to jail and levy thousands of dollars in fines connected to the allegations.

Harris, in a statement, alleged that Deutch destroyed as many as 2.7 million pages of documents, shredding evidence on which state’s attorneys hoped to prosecute their case.

Deutch has been in hot water with the AG’s office for nearly a year. In August 2010, the state’s top law enforcement officer filed a $34 million lawsuit against the Tax Lady accusing her of swindling her clients. Later that same month, a court order was issued preventing Deutch from destroying evidence, according to the attorney general’s statement.

“Deutch showed herself to be a predator for profit, preying on innocent, hard-working people who were simply hoping to settle their accounts with the IRS,” Harris said in a statement Wednesday afternoon.

Deutch’s law firm, based in North Highlands, posted revenues in excess of $25 million a year, according to the Attorney General’s office. Deutch is probably best-known for her brash style and television commercials that promise relief to tax payers who sign up for her firm’s services.

Attempts to reach Deutch were not immediately successful.

What to Do If You Owe the IRS

By Princess Clark-Wendel
Published May 03, 2011,

April 18 has come and gone, but many taxpayers are facing a large tax bill that they aren’t able to pay. But there are steps they can take to work with the International Revenue Service to develop a payment plan.

After the IRS has made an assessment on what you owe, you have 10 days to pay it in full or be subject to collection action.

Although an account is technically considered delinquent after 10 days, no one will show up at your door on the eleventh day. A series of threatening notices will be mailed to you, and eventually you will be contacted in person by a revenue officer.

What Power Does the IRS Have?

Dealing with the IRS is different than dealing with other debt collectors. Unlike other creditors that have to go to court to obtain a judgment against you and then go back to court to have that judgment enforced, the IRS doesn’t. The agency is vested with the power to seize your property without a court order; the only requirement is that it has a valid assessment, give notice with a demand for payment (which has to be sent to your last known address) and give notice of intent to seize.

In addition to seizing your property, the IRS can also place a levy on your bank accounts and on your salary. This means that both your bank and your employer must turn over all funds being held for you to the extent of the levy. (Note: Special rules apply to levies against salary.)

Certain types of property are exempt by law from levy including:

1. Apparel and schoolbooks (expensive items of apparel such as furs are luxuries and are not exempt from levy);

2. Fuel, provisions, furniture, and personal effects, not to exceed $1,500 in value (for the head of household);

3. Books and tools used in your trade, business or profession, not to exceed $1,000 in value;

4. Unemployment benefits;

5. Undelivered mail;

6. Certain annuity and pension payments (including Social Security benefits);

7. Workers’ compensation;

8. Salary, wages or other income subject to a prior judgment for court ordered child support payments;

9. A minimum amount of wages, salary, and other income – $75 per week – plus an additional $25 for each legal dependent.

The IRS has been seizing personal residences more frequently in recent years. After a “notice of seizure” is placed on the front door of your house, you have 10 days to come up with the owed money, or there is an excellent chance your home will be sold at auction to satisfy the tax bill. You can redeem the house at any time within 180 days after the sale by paying the purchaser the amount paid for the property plus interest; by law, the purchaser must sell.

Act Now

The IRS cannot put you in jail because you owe money, even if the debt has been outstanding for years, unless you fraudulently conceal your assets or otherwise conspire to beat the government out of its money. No crime has been committed merely because you cannot afford to pay your taxes.

But don’t burry your head in the sand if you can’t pay your tax bill, respond immediately to all notices sent requesting payment and make every attempt to speak to someone at the IRS and follow up the conversation with a confirmation letter.

Depending upon your circumstances, the IRS may be willing to enter into an installment agreement for payment of the outstanding taxes. Usually, such a partial-payment agreement requires a down payment, followed by monthly payments over a year or 18 months. If you fail to comply with the terms of the partial-payments agreement, which also requires that all current taxes be paid on time, the agreement becomes void and your property is then subject to levy seizure.

The beginning of the collection process is the best time to try to get the IRS to offer you an installment agreement. If you have ignored the IRS’ attempts to work out an arrangement and you now have a “notice of seizure” on your door, it is extremely unlikely that the agency will create a partial payment agreement with you.

How to Negotiate with the IRS

The first step in negotiating a settlement of taxes owed is to provide the IRS with a current financial statement. Without a statement verifying your financial situation, the IRS will not even consider a settlement. If you don’t want the IRS to know about certain assets, don’t furnish the financial statement, it is better to offer no statement than offer one that is misleading or fraudulent.

If the IRS already knows about all of your assets, and there is no disadvantage in providing a financial statement, then go ahead and submit the statement. The IRS will be interested in knowing how much money you receive each month, and how and where it is being spent. When you complete the personal living expense portion of the form, it is generally a good idea to arrange for some money to be left over each month to pay taxes. The IRS is more inclined to go along with a partial payment offer if it feels confident there is money available to make the agreement work.

If you have no assets and no income, there is nothing the IRS can levy. If you are in this predicament, the agency does provide an opportunity to discuss an “offer in compromise,” which is a little publicized procedure where the IRS will accept a one-time payment of as little as 10 cents for each $1 owed.

If IRS officials think they will receive more money from you in the long run by entering into an offer in compromise than a collateral agreement, (an agreement whereby you agree to pay a certain percentage of your income for five to 10 years), it may agree to the compromise.

The best chance of successfully agreeing to an offer in compromise is when the tax debt has been on the books for a number of years. The IRS must be convinced that conventional collection procedures will not work, so don’t expect a relatively-recent tax obligation to be settled this way.

However, if the IRS has had a chance to collect and has not succeeded, it is likely to accept your compromise offer.

What Records Every Taxpayer Needs to Keep

By Bonnie Lee
Published May 05, 2011,

If you filed your taxes on time this year, it’s time to put away your tax file.

And while you may be looking at the cartons of tax records sitting in the garage and wondering if you can shred some of them, we live in an age of complexity so the answer is: it depends.

The IRS states that you must retain your tax returns for a minimum of three years, which is generally how long it has to audit a tax return. However, three years may not be long enough if you live in a state that levies an income tax. The window of opportunity for audit in most states is four years, so save your tax returns and all the supporting documents to prove your income and deductions for at least that length of time. This includes every bank statement for all your accounts.

The audit clock starts ticking after you file the tax return. For example, you may have filed your 2010 income tax return on April 18, 2011. You should keep a copy until 2014 to make the IRS happy and 2015 to keep the state happy. After that, you can destroy the file.

But wait…don’t roll out the shredder just yet.

The IRS says that if you underreported your income by 25% of the gross income shown on your tax return, you should keep that tax return for six years. It also says that if you have filed a fraudulent tax return you need to keep it forever (no joke). Perhaps you should have it mounted and framed.

But there are other reasons to keep a tax return and other supporting documentation including:

1. If you have a capital loss carry forward, you should keep the tax return on which the original loss was reported. Also keep the documentation that supports the original loss. Keep these documents up to four years after the loss has been used up.

2. If you sold rental real estate via a 1031 exchange you need to keep the tax returns and supporting documents until four years after the disposition of the final property in the exchange sequence.

3. If you sold your previous home before May 7, 1997, and deferred tax on the gain from the sale (rolled it into the basis of your new home) you should keep indefinitely, those escrow closing papers and a copy of IRS Form 2119, which establishes the basis of your new home.

4. If you have passive loss carry forwards, credit carry forwards, net operating loss carry forwards, – or any other type of carry forward, you will need to retain the tax return where the carry forward originated.

Other documents to keep:

1. Receipts for all major improvements made to your home for four years after the sale of your home. The cost of capital improvements is added to the basis of your home when determining if there is a taxable gain upon sale. Especially maintain records proving certification of any energy-efficient products for which you took an energy tax credit.

2. IRA contribution statements Form 5498, Form 1099-R, and IRS Form 8606, should be kept until you take the last distribution from your IRA.

3. Physician’s statement(s) stating you were permanently and totally disabled on the date of your retirement if you are taking the Credit for the Elderly or the Disabled.

4. Keep the last paystub of the year. Union dues, health insurance premiums, charitable contributions withheld from your pay may be deductible and in the event of audit you may need proof of payment.

5. Photographs may be an element necessary to your tax file to help prove certain deductions such as home office or casualty or theft losses.

You may need to keep records even longer for nontax purposes. Your creditors or insurance company may need the data supplied on certain transaction receipts. For example, you purchased the Hope diamond at auction. If it is stolen from you 10 years later, you may need the receipt to prove to the insurance company how much you paid for it.

For more information on record keeping, refer to IRS Publication 552.

Don’t Lose Your Tax Refund Because of Your Spouse’s Debt

By Bonnie Lee
Published March 17, 2011,

“Injured Spouse” is an IRS term for the husband or wife who is forced to watch a tax refund fly out the window instead of into the bank because of debts or taxes owed by the other spouse.

The IRS and many state tax agencies have a habit of taking tax refunds to satisfy other debts, and if your filing status is married-filing joint, your well-earned income tax refund may be in jeopardy if you married someone who:

1. Owes back child support,

2. Is delinquent on student loan payments or other federal agency debts,

3. State income tax liabilities,

4. Repayment of overpaid unemployment benefits.

Instead of a refund check, you may receive a letter from the Treasury’s Financial Management Services Department [FMS] telling you the original refund amount, the amount taken and the agency who received your money. If you did not receive a letter or if you have questions about the offset, you can contact the FMS at 1-800-304-3107 or TDD 1-866-297-0157.

If you feel your tax refund is mostly your money, it would be unfair (even if you live in a community property state) for the funds to be applied to a debt that isn’t yours. What to do? First of all, you may want to change the exemptions you claim on your form W4 on file with your employer so that you will have a break-even situation rather than a refund that can be absconded at tax time. Use the worksheet on form W4 or speak with your tax pro to determine the number of exemptions you should claim to net either no refund or a small amount of tax due. This can result in a bigger paycheck and the knowledge that the government hasn’t had your money tax free all year.

A second option is to use married-filing-separate filing status. While this may not be beneficial for maximizing the refund you could receive, there are many good legal reasons for using this filing status. Check with your attorney and/or tax pro to determine if this will provide the best protection for you.

Right now, you may be looking at a refund situation for 2010 or prior years and wonder how you can guard your refund against the tax man. Well, there is help!

File form 8379 Injured Spouse Allocation with your tax return. Part 1 contains a series of questions that qualify you for using the form and Part II asks for the names and Social Security numbers of the two spouses in the order listed on the tax return. Check the box to indicate which spouse has been injured.

Part III is an allocation of income, adjustments to income, itemized or standard deduction, exemptions, other taxes (such as self-employment tax, tax on early withdrawal from a retirement plan, etc) and credits (except the Earned Income Tax Credit) between the spouses. Basically, the tax return data is split out to see who should get the lion’s share of the refund. The amount allocated to the spouse that owes the debt will be snatched to satisfy it. The remainder will be refunded to the now happy couple. If you file electronically the refund will be held up for about 11 weeks while the IRS processes it. If you are filing a paper copy, then write “INJURED SPOUSE” and highlight it in yellow at the top of page 1 of Form 1040. Make sure you also sign and date Form 8379 at the bottom of page 2. It will take approximately 14 weeks to get your refund from a paper-filed return.

If you’ve already filed your income tax return, you may file Form 8379 separately. Mail it to the IRS service center where you filed your original return. It takes approximately eight weeks for the IRS to process the separately filed form. And it may be too late to apply it to this year’s income tax refund. Do it anyway. And every year you file, be sure to include a new Form 8379 if you are expecting a refund.

Can’t Pay Your Taxes? How To Set up an Installment Agreement

By Bonnie Lee
Published February 17, 2011,

If you owe current year taxes or liabilities from prior years, you may want to consider setting up an installment agreement with the IRS.

But know this: It’s a revolving payment arrangement and the interest and penalties that accompany the unpaid balance can be killers. Not only that, but there is a one-time user fee (currently $52 for direct debit agreements and $105 for non-direct debit agreements).

If you qualify as a low-income individual, the fee is $43, and if you default on the agreement, the IRS will charge you a $45 fee to reinstate the agreement and they may consider seizing your bank account or garnishing your wages.

Even if you set up an installment agreement, The IRS may still file a Notice of Federal Tax Lien to secure the government’s interest until you make your final payment. This could play havoc with your credit rating.

So if mom, dad, your BFF, the local loan shark, or your banker, is willing to cut you a deal to front the balance owing, take it. You will be better off.

If you owe for the current year only and need less than 120 days to come up with the money, don’t bother applying for an installment agreement. Simply pay what you can with the tax return.Then over the course of the next several months, continue paying off the balance. During the first six months of delinquency, your account is handled by Simon, a giant IRS computer, which generates letters requesting then demanding payment. Simon is nothing to fear.

A real person at the IRS will not be assigned to your account until you have fallen very far behind. It varies of how long the IRS waits until they send someone a callin;’ I’ve seen the IRS loom like predators over some taxpayers and ignore others for years and years.

All that said, if you are still interested in setting up an installment agreement, the process can be fairly easy. If you owe less than $25,000, go to and complete Form 9465. If you propose a monthly payment amount that will satisfy the debt within a three-year period, your request will likely be accepted automatically.

If the debt is your current year liability, attach the Form 9465 to the front of your tax return. To limit interest and penalties, send as much money as possible with the tax return. Make sure you indicate the tax year and your Social Security number on the memo line of the check.

There are other ways to request an installment agreement. To set up a plan online go to and from the pull down menu, select “I need to set up a payment plan.” Or call the phone number on the most recent collection letter and set up one over the phone.

I normally recommend you low ball the proposed monthly payment. This will give you some leeway if you experience a lean month and you can always pay extra each month. Just don’t try paying any less than what you propose or you will hear from them.

7 Tips for Negotiating With The IRS

By Bonnie Lee
Published January 27, 201,

From time to time every taxpayer will have to go head to toe with the IRS. Whether you are setting up an installment agreement, facing the auditor from hell, resolving a misunderstanding, or dealing with collectors on the phone or worse yet, on your doorstep, you would be well advised to heed the following suggestions.

1. You get more flies with honey. Dealing with bureaucracy can be very frustrating, but park your bad attitude and anger at the door. Take a deep breath, demonstrate a cooperative attitude, and proceed in an orderly fashion to resolving your issue. In my 28 years of dealing with the IRS, I have found that most IRS personnel are compassionate humans that bend over backward to find ways to resolve issues and help taxpayers. Of course you are going to run into that power-hungry, condescending, surly agent from time to time, but if you do, you can always trade up to a more understanding and respectful model by asking for the manager.

2.Use IRS lingo. When you use IRS lingo the agent you are speaking with will find you knowledgeable and may treat you with a little more respect. Here is some verbiage you may find useful:

Ask for penalties to be “abated” rather than removed. Tell them, if it’s the case, that your failure to (pay or file or comply with a document request) was due to “reasonable cause.” Use this term if you didn’t just flake and have a good reason, which could include such things as unemployment, losing your records, losing your home, health problems, etc.

If you can’t pay a tax bill because you are suffering financial reversals, you can ask to be deemed “currently not collectible.” If you are granted this status, they will leave you alone for an entire year while you get it together.

If you feel a spouse or former spouse should be responsible for a tax matter, ask to be treated as an “innocent spouse.” There are certain criteria to this status; do some research or discuss the issues with your tax pro.

If defending business deductions during an audit, the term “ordinary and necessary” business expense will help–but only if that’s really the case.

3. Don’t talk too much. IRS agents are trained to draw as much information from you as possible. Answer questions truthfully, but keep your answers short, succinct and to the point. There is no need to elaborate or discuss your personal life or disclose too much. This will only lead to misunderstandings and maybe even investigations.

4. Always tell the truth. Lies have a way of uncovering themselves. Once you are caught in a lie, you will always be suspect. And when you are suspect, you lose the cooperation you would normally receive. Don’t hide assets, don’t run for cover. There are many ways to resolve tax problems using a straightforward and honest approach. Lies may lead to jail time.

5. Only make promises you can keep. This is especially true when it comes to paying your liability. If an IRS agent asks you if you can pay $200 per month on a tax balance and you know you can only afford $100, tell him so. Indicate that you will try to pay extra when you can, but you are not going to set yourself up for failure by promising more than you are able. Throw that in with the fact, (if it’s the case), that you have always timely filed and paid liabilities in the past and now you need a break. Note that this will not work if their analysis of your financial situation indicates you can pay more.

6. Go to them before they come at you. If you are unable to keep a promise you make, tell the IRS immediately. The agency is usually so happy with the cooperation it will likely grant you the extensions you need. The collections department notes your file whenever you or your representative calls.

7. Stop the Interview. If at any time during an audit or a phone conversation you feel intimidated, disrespected, or out of your depth, simply say so and end the interview. Tell the IRS that you will be seeking representation and will get back with them soon. This will give you a chance to take a deep breath and discuss the matter with your tax pro. If you felt disrespected, you can always request a different auditor. Or if it was a matter of a surly customer service rep you were speaking with on the phone, you can hang up and call again in hopes of getting someone kinder or a little more understanding.

IRS Tax Levies: What You Need To Know

William Freudenthal owed the IRS some money. Quite a bit of money, actually – just over $16,000. And Freudenthal hadn’t been exactly timely about paying his tax obligation. He’d ignored notice after notice from the IRS. Finally, the IRS took action. They were going to seize some of Freudenthal’s assets – namely his classic 1965 Chevy Chevelle – to settle the debt.

This was not news that Freudenthal took well. His wife wasn’t exactly thrilled, either, and as you can imagine, the couple had an argument. Events escalated tragically, and Freudenthal struck his wife. The blow killed her.

Now, William Freudenthal is in prison. His wife is dead and his life is wrecked – and the real tragedy here is that the situation was completely avoidable. It didn’t have to end that way. Freudenthal, like every other American taxpayer, was entitled to the protections and procedures that are built into the tax code.

What is a Tax Levy?

A tax levy is the procedure the IRS uses to get money from taxpayers after they’ve exhausted every other avenue available to them. If you won’t voluntarily turn over the money to pay your tax obligation, the IRS will come and get it.

Let’s say you have some outstanding tax debt on the books – taxes that you were supposed to pay, but just didn’t, for whatever reason. The IRS will send you several notices, reminding you that you need to pay your taxes. If it remains unpaid, the IRS will eventually send you a Final Notice of Intent To Levy. This is your final warning to pay your taxes. If you don’t, the IRS is going to seize some of your assets to settle the debt.

What Type of Assets Can The IRS Seize?

The IRS has been given a great deal of latitude in their mission to collect revenue for the government. They can seize many different types of assets, including money from your bank account, real estate, vehicles, or personal property. The IRS can also garnish your paycheck, taking their share of your earnings before you even see it! This is known as a wage levy.

What Should You Do If You Receive A Final Notice of Intent To Levy From The IRS?

If you have received a Final Notice of Intent to Levy from the IRS, you have 30 days to respond. During those thirty days, the best thing you can do is find an expert tax problem solver. You are entitled to file a Collection Due Process Appeal in response to the Final Notice of Intent to Levy. However, it must be filed within 30 days of the date of the Final Notice. This appeal stops the IRS collections process and sends your case to the IRS Appeals Office. At that point, your tax accountant will work with the IRS to find a reasonable solution to your tax problems.

What If More Than 30 Days Have Gone By?

If it’s been more than 30 days since you received the Final Notice of Intent to Levy from the IRS, don’t despair! You still have options. With the assistance of your tax accountant, you can still file a Collection Due Process Appeal. At this point, the IRS collection efforts don’t stop automatically. However, your tax accountant will be working with the IRS to prevent the seizure of your assets.

If a levy has already happened, you still have options. A Collection Appeal, also known as a CAP, can be filed. In order to release the levy, you will have to meet certain conditions. Your tax accountant will let you know what these are, but they generally include filing any outstanding or unfiled tax returns, and submitting a Collection Information Statement along with a proposal of how you plan to resolve your outstanding tax debts. This could include an Installment Agreement, being placed as Currently Uncollectable Status, settling through an Offer In Compromise, or additional time to raise the funds to full pay the outstanding tax liabilities.

What Type of Resolution Can There Be For My Tax Problems?

The IRS has a single goal. They are mandated to collect as much tax revenue as possible, and they are becoming more diligent about this mission with every passing day. However, an experienced tax professional can often work with the IRS to find a resolution you can live with – and that stops the IRS from seizing your bank accounts, property, or classic cars!
Installment Agreements are a common resolution, as are Offers In Compromise to settle the tax debt for a fraction of the original amount owed. If you have to full pay your outstanding tax liabilities, a great tax problem solver will work to see if there is reasonable cause to abate any interest and penalties, which can save you thousands of dollars.

Solving Your Tax Problems

William Freudenthal learned the hard way that the one thing you don’t want to do in this situation is ignore the IRS. The IRS moves slowly, but it doesn’t stop – once they have you in their sights, they’re going to pursue you until the tax debt is settled. Having an expert tax problem solver on your side can help you get the debt resolved and the threats of levies and seizures behind you. Don’t lose everything. Get help for your tax problems!