DENNEY & DENNEY, INC.
Criminal Audits * Liens * Levies * Seizures * Delinquent Tax Returns
Over 20 Years
Federal Tax Liens ó Wage Garnishments ó Bank Accounts
If you owe the IRS, or if the IRS thinks you owe them, your life can be a living nightmare.
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My name is Lawrence Denney, and I have been solving IRS problems at the same location in Atlanta, Georgia for over 15 years. My background as a former IRS agent (civil) and special agent (criminal) gives my clients a unique advantage in solving their IRS problems.
There are many web sites that claim they can help with your IRS problems, but no one else offers my 20 years of experience and my level of personal service. You won't be palmed off on some paralegal or administrative assistant. I will personally deal with the IRS on your behalf. Once you're a client, you can go back to your life and let me take care of your IRS problems.
I encourage you to shop around and talk to several professionals ― just make sure that one of them is me. I will handle your case personally and answer your questions myself. Wouldn't you like to know all your options ― from someone who knows how the IRS works ― from the inside? Thank you for taking the time to print this information - It costs you nothing and it may make all the difference in the world.
Please call or e-mail me right now and discuss your situation in confidence. I look forward to helping you!
Lawrence L. Denney
DENNEY & DENNEY, INC.
FREE ONLINE INFORMATION:
IRS Abuse ― Civil
IRS Abuse ― Criminal
IRS Abuse ― Undercover Agents
IRS Employees "Busted"
IRS Informant Reward Program
IRS Payment Plans
Installment Agreement Rules
Re-Entering the Tax System
The Perjury Problem
Reverse Your Penalties
Delinquent Tax Returns
Offer in Compromise
Sneak a Look at Your IRS Files
You Can Never Retire!
Frequently Asked Questions
***Confidential Special Report***
IRS ABUSE ― Civil
can't mention IRS abuse without mentioning the IRS Collection Division. The
two are synonymous. The men and women who work in the Collection Division are
known as Revenue Officers (R.O.'s). R.O.'s can be compared to bad debt
collectors or bounty hunters. They are not rewarded for being nice or helpful
to taxpayers. They are rewarded for closing cases and collecting tax.
R.O.'s are trained to "be your friend " at first because they want you to volunteer all your personal and business information. You know, just file this and disclose that, and everything will be all right. And oh, by the way, sign everything under the penalties of perjury. When the R.O. has all the chips on his side of the table, he suddenly turns into the meanest, nastiest person you have ever met. Revenue Officers will lie to you time after time if there are no witnesses around. If you get smart with an R.O., he will enter all kinds of derogatory information in your file that will indicate you are hostile and uncooperative. If you have to appeal your case, everyone up the ladder will automatically view you as hostile and uncooperative.
It is interesting to note that an R.O. can lie to the taxpayer and prepare bogus reports without fear of a reprimand. However, you, the taxpayer, can be punished with monetary fines and/or jail time for lying to an R.O., or omitting a bank account on one of your financial statements. If R.O.'s were required to submit their reports under the penalties of perjury, the entire Collection Division would implode.
R.O.'s enjoy making surprise visits to your home or office, and they will start pumping you for information as soon as you open the door, before you have had time to think about your answers. Caution: If you come face-to-face with an R.O. simply identify yourself, take his card, and tell him you will have someone contact him in a few days. Do not invite him in for a visit. Get away as soon as you can. Let a professional handle your case. R.O.'s are not your friends. They are bounty hunters and they will lie to you and violate your rights to get whatever they want as long as there are no witnesses.
According to a March 18, 2003, article in the Wall Street Journal, the Treasury Inspector General has received more than 3,500 complaints filed against IRS employees for such acts as falsification of documents, destroying documents, harassment, threats of violence, threats of audit, assault and battery, and extortion.
Many professional organizations, such as the American Bar Association, have openly criticized the Internal Revenue Service for the low standards required for initial employment with the Collection Division. Controversies oftentimes occur simply because the new R.O. was poorly trained and does not have the ability to read or comprehend the Internal Revenue Manual he is supposed to follow. This pattern of hiring less-than-qualified individuals leads to many mistakes and abuses that never get reported. Yet this is the person authorized to seize your bank account, your automobile, and your wages.
Whether the R.O. is a poorly trained beginner or a veteran collector, it won't be good for you, the taxpayer, to be alone. Don't become a victim of the IRS Collection Division. Hire a professional to protect your rights every step of the way.
Taxpayers who find themselves at odds with the IRS should never speak to them directly, even if theyíre completely innocent. Get an expert who deals with the IRS every day.
IRS ABUSE ― Criminal
IRS Guilty of Fraud
If you ever had any doubts concerning the morally depraved and illegal activities of some IRS employees, the U.S. Court of Appeals case Dixon v. U.S. [91 AFTR 2d 2003-569 (9th Cir. 2003)] filed January 17, 2003, should strike fear in your heart. The U.S. Court of Appeals remanded this case twice and finally, on the taxpayer's fourth appeal, the U.S. Court of Appeals decided to reverse the U.S. Tax Court's decision based on intentional acts of fraud, perjury, witness tampering, secret IRS payoffs, and secret IRS deals that favored some taxpayers and damaged others. All of these acts were perpetrated by corrupt IRS attorneys.
Even more reprehensible is the fact the top brass at IRS awarded the corrupt attorneys large monetary bonuses for their efforts to win this case at all costs. If this had happened in the private sector, the above acts would have been referred to as payoffs or bribes.
The Dixon case is quite long, but I have listed a few excerpts for you to get a feel for the scathing decision handed down by the U.S. Court of Appeals.
Counsel for the IRS committed intentional fraud on the court.
IRS counsel entered into secret agreements with certain taxpayers in
exchange for false testimony and cooperation in the government's case.
IRS attorneys corrupted the adversarial nature of the proceeding, the
integrity of the witnesses, and the ability of the court to judge with
IRS attorneys violated the rights of taxpayers who agreed to be bound by the
U.S. Tax Court decision.
Factual findings of the U.S. Tax Court support the conclusion that fraud
plainly designed to corrupt the legitimacy of the truth-seeking process was
perpetrated on the trial court by IRS attorneys McWade and Sims.
There can be no questions here ― the actions of IRS attorneys McWade and Sims amounted to fraud on both the taxpayers and the U.S. Tax Court. The proceeding (in U.S. Tax Court) was a charade fraught with concealed motives, hidden payments, and false testimony.
The Appeals Court ordered sanctions against the U.S. Tax Court and the IRS attorneys. Get this ― IRS attorneys McWade and Sims were suspended for two weeks without pay and transferred to another district. McWade took early retirement and kept his cash bonus. Sims returned his cash bonus, but continues to work (administrative duties only!) for the IRS Regional Counsel's Office in San Francisco.
Now stop for a moment: what fines, penalties and jail time would you and your attorney receive for the same type of illegal behavior? I guarantee ― you and/or your attorney would be serving a sentence of 3 - 5 years in a federal penitentiary!
The Dixon case offers important insight into the day-to-day operations at the IRS. Every office has a secret cadre of employees and managers that know "what is best for the IRS" and they develop their own vigilante style of enforcement. That is, they have no qualms about bending, breaking or distorting the law ― to accomplish in their view "the real mission of the IRS."
This case is a real eye-opener for the American public and I am sure this is why the IRS attorneys in collusion with their friends at the U.S. Tax Court fought so hard to beat down the taxpayers so many times ― hoping always that the taxpayers would take their licking and go home. To classify this case as repugnant is an understatement indeed! But it clearly demonstrates the widespread abuse secretly condoned at almost every IRS office nationwide.
Now let's talk about how the IRS cabal (secret cadre) takes care of their own. The Treasury Inspector General for Tax Administration is charged with the responsibility of investigating and recommending for prosecution any IRS employee that participates in any illegal activity involving fraud, waste, abuse, etc. Where is the Inspector General for this case? Why has there not been a housecleaning of corrupt IRS employees in the Regional Counsel's office? How can these criminals (officers of the court) continue to practice law and continue to work for the IRS? The answer: the cabal is alive and well, and as demonstrated by this court case the secret web of vigilantes runs from the lowest post of duty to the highest IRS offices in Washington, D.C.
The costs associated with said crimes of the Internal Revenue Service and its corrupt employees involved two court systems, four appeals, thousands of wasted hours for the taxpayers and the government, and unbelievable legal fees to represent the taxpayers in four courts. Yet the total cost to the career IRS employees that committed these crimes was nothing more than two weeks pay and a transfer ― not a real deterrent for future activities of the cabal.
The IRS is unlike any other bureaucracy. It is a living, breathing juggernaut run by men and women who have unlimited resources and unlimited power over most American citizens. If you remember only one thing after leaving this web site, I want you to remember this ― IRS employees represent the government; they do not represent you, the taxpayer. If you have an IRS problem, make sure you hire someone that deals with the IRS every day and is willing to fight for your rights every step of the way.
The more things change, the more they remain the same.
IRS ABUSE ―
Attention, all citizens, business owners and self-employed persons: Lend me your ears! The next time you respond to an ad in a newspaper, receive a telephone call or a visit from a stranger promising you a business opportunity that sounds "too good to be true," you may want to proceed with caution because that person may be an IRS Special Agent. The agent may appear as a business broker, clergyman, lawyer, or used car salesman. He will have a phony office, business cards and stationery, telephone numbers, license plates and plenty of cash ó all courtesy of the IRS Criminal Investigation Division.
"Business Opportunity Projects" (a.k.a. BOP's) always involve IRS Special Agents posing as prospective purchasers of businesses. They always represent themselves as buyers of businesses that will allow them to skim lots of cash. Most owners tend to exaggerate their claims and point out the reasons why their business is a particularly good buy; then they proceed to tell the undercover agent everything he wants to know. Smile, you're on Candid Camera! You have been Bopped!
The typical business owner does not have a clue he is dealing with an IRS undercover agent until it is too late. Many citizens want to refer to the above tactics as entrapment; however, as you will soon see, even if you challenge the "con" and ask the person if he works for the IRS, the agent is authorized to lie to you. This issue was specifically addressed in United States vs. Centennial Builders, Inc. (summarized below).
[Special Agent] McCammon visited [the taxpayer], Jones, at his retail cleaning business identifying himself as a private businessman interested in buying a cleaning business. During the meeting, the agent asked for information about his cash business and Jones specifically asked McCammon if he was an IRS investigator. McCammon denied that he was, and continued to ask questions.
Based on the information provided by Jones, McCammon issued eight summonses to four banks, two corporations, and two accountants demanding books and records relating to the taxpayer's income tax liabilities. The summonses were enforced by the federal district court, and the taxpayer appealed this decision to the U.S. Court of Appeals.
Here is what the court had to say:
In the end, the appellant's arguments boiled down to the proposition that it is just not fair for an undercover IRS agent to entice taxpayers into discussing assets relating to their tax liability without informing them of his identity as an IRS Agent. We have rejected similar contentions before and we reject them here. We are not here to prescribe "fair" rules for the "game" of lawmen vs. lawbreaker. The law does not denounce clever or innovative police work within the bounds of the Constitution even though the lawbreaker really has no chance of escaping prosecution. [emphasis added]
Woe be unto you if you are 100% compliant with all IRS rules and regulations, but you choose to exaggerate your cash opportunities simply because you want to sell a "dog" business to an "idiot" that has too much money. Hold on to your hat; you are in for the ride of your life.
Your only defense against an IRS undercover agent is references, references, and more references. Who does the agent know and what deals has he done in the past?
IRS Employees "Busted"
Twice a year the U.S. Treasury Inspector General for Tax Administration (TIGTA) is required to publish a report that includes the number of complaints filed against IRS employees for civil and criminal violations. The number of "officially numbered complaints" averages 6000-8000 per year.
The complaints that can be verified with witnesses and/or documents will be worked, and the IRS employee will suffer various reprimands that may or may not affect his career. However, if the charge is serious, most IRS employees elect to transfer to another government agency or take early retirement once they become aware of an impending investigation. If the charges are criminal, they simply go to jail.
It should be noted that the number of IRS violations is far greater than the number reported by TIGTA. The reason is ― all IRS employees must terminate their interview the moment they become aware the taxpayer is tape-recording their conversation. Taxpayers are required to give IRS employees 10 days written notice of their intent to tape-record an IRS interview. Furthermore, the tape-recorded interview must take place in an IRS office and the employee's group manager must be present. No chance of collecting any evidence here!
Let's take a casual look at some of the criminal violations reported by TIGTA for the period April 2002 - September 2003.
IRS employee indicted for soliciting $500,000 bribe and receiving partial payment to "fix" case under his control.
IRS employee sentenced to 63 months in federal prison for affiliation with known prostitution ring, theft of government automobile, and impersonation of an FBI agent.
IRS employee indicted for theft of $127,000 in tax payments from IRS lockbox.
IRS employee sentenced to four months in federal prison for illegally accessing IRS computer system and arranging tax refunds for herself and friends.
IRS employee sentenced to five months in federal prison for entering the IRS computer system and deleting $55,000 tax liability for a friend.
IRS employee indicted for threatening two state police officers that he would have their tax returns audited should they continue with his arrest.
Two IRS employees indicted for the destruction of records stolen from the IRS processing center. The records affected 300 taxpayers and cost the government $1.2 million in lost revenue.
IRS employee signs agreement to repay government $132,000 in illegal wages he received while working full-time at his own business.
IRS employee sentenced to 30 months in federal prison for accepting a $6,000 bribe to disclose secret grand jury information.
IRS employee pleads guilty to storing 9000 digitized images of child pornography on government computers.
IRS employee arrested for submitting false documents regarding workmen's compensation claim that paid him $110,000 in benefits.
IRS employee pleads guilty to altering checks and money orders made payable to the IRS. Employee altered documents and deposited them to his personal bank account.
IRS employee pleads guilty to opening envelopes from taxpayers and altering tax return information in a way that would direct their refunds to his personal bank account.
The above cases represent only a sample of the 6000-8000 complaints filed against IRS employees each year. If you have the stomach for reading more about the above cases, as well as many others, you should visit TIGTA's website at http://www.ustreas.gov/tigta.
It grieves me greatly to see the overall decline in the hiring practices of the Internal Revenue Service. Twenty years ago the Service hired only the best and brightest college graduates. When I entered the Service, only graduates in the upper 10% of their class need apply. Now it appears any warm body will do. The IRS is struggling to maintain order by relying on their past reputation for excellence. However, as the annual number of complaints against IRS employees approaches the 10,000 mark and the number of criminal cases increases by leaps and bounds, it is plain to see the Service is in trouble. As long as these conditions exist, all citizens should be guarded in their dealings with the IRS.
If you have a serious IRS problem, you should not put your business, family, or personal assets at risk by attempting to resolve your problem alone without proper representation. Remember, IRS employees represent the government. They do not represent you, the taxpayer. If you don't get help from me, make sure you hire someone with previous IRS experience.
IRS Informant Reward Program
In the former Soviet Union, people had to be very careful about discussing their business and personal affairs because almost everyone was a spy for the secret police agency known as the KGB. It appears that the Internal Revenue Service has studied the "Soviet Model" and has set up a new division known as The Informant Reward Program.
When Congress passed the Tax and Healthcare Act on October 6, 2006, itradically changed IRC ß 7623 that authorizes the IRS to contract with private individuals to act as part-time IRS Agents who will investigate business entities and individuals involved in civil and criminal tax violations. This new program will become the "Central Intelligence Agency" for processing and managing all information received from informants nationwide. It will also establish revenue production goals, communication procedures, data bases, and operating guidelines for handling the new informants that will be contracting with the IRS. This new office will be located in Fresno, California and it will be similar to the Special Situation Room used by the FBI for monitoring federal crimes in the U.S.
Many people who have personal knowledge of federal tax violations will suddenly want to give up their day job and become subcontractors for the Internal Revenue Service. Unfortunately, most of these people will be disgruntled corporate employees, former business partners, ex-spouses and professionals who have inside information including, but not limited to, lawyers, accountants, bankers, and stockbrokers. This new program is guaranteed to not only enrich the IRS coffers (its primary purpose) but, it will also enrich the bottom line for the new breed of IRS Informant.
Commissions for IRS Informants
Rewarding snitches that inform on taxpayers has been around since 1939, but the early Code only authorized IRS to pay rewards to informants for criminal tax violations. The statute was changed in 1996 to authorize payment of rewards relating to civil tax violations. In 1997, IRS raised the reward ceiling from $100,000. to 2 million. In 2004, the IRS raised the reward ceiling to 10 million. The 2006 Act changed Code ß 7623 by allowing the reward payments to be based on a percentage of the amount of tax, interest, and penalties actually collected. The new percentage range is 15% to 30% and the actual percentage for each reward depends upon the amount of credible information provided by the informant.
Example: Let's say a high-level accounting employee works for a large corporation that decides to engage in a scheme that will allow it to avoid paying $100 million in federal income tax. Should this employee decide to become an IRS informant, the amount of the tax liability could easily double to $200 million due to interest and penalties. If this employee receives only the minimum reward of 15%, he will be entitled to a check in the amount of $30 million. Similar numbers will surely appear on future IRS Recruiting Posters at a web site near you.
IRS Agents vs. IRS Paid Informants
When an IRS Agent is auditing a taxpayer and fraud is discovered, he must immediately withdraw from the case and turn the case over to the Criminal Investigation Division (CID). A few days later, two Special Agents from CID will notify the taxpayer that he is the target of criminal investigation and they will read him his Fifth Amendment Rights. From this point forward, the taxpayer does not have to answer any questions and his individual records are protected from further scrutiny.
But what happens when the informant has established a relationship with his IRS Handlers, and he continues to work at his place of employment where he will be able to monitor the actions of the taxpayer, copy records, remove and return records, make voice and video recordings and initiate probes for further information. Remember, an informant working on commission is going to be aggressive in collecting the evidence his IRS Handlers need for a successful prosecution. Especially so when the informant's paycheck will be in the millions.
Informants have always been a good source of information for IRS investigations, but once the snitches become aware of the "new and improved" Informant Reward Program that allows them to collect up to 30% of the tax, penalties and interest collected by the government there will be a flood of new applicants knocking at the IRS door. The risk reward ratio will be too great for most people who have inside information and this is the reason why IRS had dedicated an entire service center to handle the Informant Reward Program.
Under the old program, there was no central office to manage informant data and there were few regulations on how informants were hired or paid. Many informants provided information that led to successful investigations but they never got paid. Under the new program, the informant's right to a paycheck has been dramatically improved and for the first time in IRS history, the informant will have the right to demand judicial review of the amount recovered by IRS and the method that was used by IRS Managers to determine the amount of his reward.
It appears IRS has created a monster that will recruit many part-time paid informants and we will see the erosion of our rights against unreasonable search and seizure and self incrimination under the Fourth and Fifth Amendments to the U.S. Constitution. Early this year, the Director of the Fresno Center reported that he has already received boxes and boxes of records from individuals who have applied for rewards under the new program.
The huge economic incentives offered by the IRS to recruit informants will surely result in a back log of litigation: There will be problems associated with the Fourth and Fifth Amendment violations previously discussed, and there will be problems associated with the criminals that will be hired and paid as IRS Informants. All you have to do is look at the number of DEA and FBI paid informants who have robbed, framed, and murdered their competitors and enemies while working for the government. A more subtle example is as follows: Let's say there are two criminals that owe IRS a lot of tax on their unreported income and one of the criminals decides to become an IRS Informant; moreover, the informant agrees to testify against his partner in exchange for immunity from prosecution. In this situation, one criminal goes to the federal penitentiary for 10-years and the other is on his yacht enjoying his $10 million reward courtesy of the IRS. Who says crime doesn't pay?
Many taxpayers are under the impression they can request a fair and impartial hearing before an independent judicial officer who will understand their problems, and thereby stop the Revenue Officer from seizing their wages, automobiles, bank accounts and other property. Wrong! Forget everything you have seen on Court TV ― this is the IRS.
The IRS definition of a fair and impartial hearing is as follows:
The IRS employee will listen to your complaints about the IRS and he will acknowledge your pitiful attempts to beg and plead for the release of your assets.
The IRS employee will not call you names or twist your arm. However, he may provoke your anger as he gazes out the window, studies his watch, and quietly listens to your excuses.
The IRS employee will conduct your "hearing" in a 6x9 grey cubicle with no witnesses and no recording of your testimony or the issues that were discussed. The IRS employee is free to write whatever his manager wants him to write in your case file.
The IRS continues to state that taxpayers are guaranteed a fair and impartial hearing conducted by a disinterested party. But, all you really get is a Revenue Officer who has been promoted to the Appeals Office. There is no so-called independent person conducting a hearing to ensure fairness, accuracy, or anything else. The Appeals Officer (i.e. Revenue Officer) is sitting in front of you with a 3-5 inch file that contains all of your violations and he wants you to pay the tax. The burden is on you to show how you are going to resolve your tax problem(s). The Appeals Officer is under no obligation to research your case and help you find a way out of your mess!
If you believe you have a financial solution to resolve your tax problems, the Appeals Office is the right place to present your proposal. At a minimum, you will need to research and catalog all the facts and then select only the exact facts that affect your case. You must analyze and present both sides of your case. You must prepare your rebuttal with proper footnotes and exhibits. Finally you must prepare your summation of tax law that supports the solution to your problem. Generally speaking, a well-written proposal will be accepted by the IRS. But you have to do all the work!
Confessions of a Former IRS Appeals Officer
The title IRS Appeals Officer sounds great and we get a little more money, a nicer desk, and a little more respect. But the problem is ― 60% of our cases don't require the expertise of an Appeals Officer. Most of our cases should have been handled at the field agent/group manager level. And guess what? If you entered my office unprepared, without a well-written proposal, I would have rejected your frivolous appeal and would send your case right back to the field, where it belongs.
Federal tax law and Internal Revenue Manual (IRM) procedures are esoteric and mercurial by nature and most people refer to them as a foreign language. If your representative is not actively involved in "IRS Practice" you will have committed the fatal error of wasting my time and you will have achieved nothing more than a temporary delay in the seizure of your assets. The best-kept secret for all taxpayers is ― hire an accountant, lawyer or an enrolled agent that is actively involved in "IRS Practice" and, by all means, a preference should be given to former IRS Agents.
To make the Appeals Office work for you, your representative must prepare a proposal that clearly demonstrates how you plan to resolve your tax problems in accordance with IRM guidelines. Furthermore, all good proposals must anticipate and address the routine challenges that may be raised by me and the IRS review staff. The key element in successful negotiations with an Appeals Officer is your representative's noble effort to prevent the Appeals Officer from having to engage in any additional work. Mental or Physical!
*** Conclusion ***
The IRS Appeals Office is your last chance to present your plan of action to resolve your tax problems based on your evidence and your application of the law. If you treat this one-time opportunity lightly, you do so at your own peril.
IRS Audit Letter?
What's one of the worst things you can get in the mail? How about an IRS Audit Letter? You know, the one that says, "Come on down to see us or we'll be out to see you. Oh, and by the way, bring in every piece of paper you have for the last 3 years."
Dealing with an IRS Audit takes up a great deal of time ― precious hours you could be spending with your family or your business. The worst part is that if you don't comply, the cost of any changes made by the Auditor can be more than your annual income. Whether it's a business or an individual, we strongly advise against meeting with the IRS alone in connection with an Audit.
IRS Auditors are trained to get more information out of you than you legally have to provide. They audit people and businesses all day long, every day! How are you supposed to WIN?
If you are smart, you will hire an experienced accountant to handle all correspondence and meetings with the IRS. As a former IRS agent, Lawrence Denney will put the IRS on notice that you are serious about winning your case. The preparation time before the audit is extremely important.
Our firm handles IRS Audits by actually performing an audit of your records in our office BEFORE the scheduled Audit Date. This way we uncover areas of weakness before the IRS Auditor looks at your records.
IRS Audits usually start with one year and then expand to other years as the Auditor makes changes. Your goal must be "To stop the Auditors in their tracks on the first year being audited in order to prevent changes to other years."
Our firm meets with the IRS Auditors in either their office or our office, BUT NOT IN YOUR HOME OR OFFICE. Our methods allow you to continue on with your life.
IRS Payment Plans
If you find yourself behind in tax liabilities, you can always borrow at the IRS Bank. The IRS has over 280 billion dollars owed to them by individual and business taxpayers.
When you find that you canít pay what you owe, the IRS will work out some type of payment arrangement. The IRS guidelines for personal living expenses are very stringent. But the bottom line is that you only pay what you can afford each month. For example: A taxpayer who owes the IRS $43,000 may only be paying $50 per month and a taxpayer who owes $16,000 may be paying $800 per month.
How much you owe does not matter. The payment arrangements are based on how much you can pay. You must understand what the IRS guidelines allow BEFORE any contract is made with the IRS regarding monthly payments.
We review the taxpayerís financial condition and can usually suggest the amount which the IRS will accept for a monthly payment before we contact the IRS. Our clients must approve the monthly payment amount before we agree to anything with the IRS. The best time to handle an IRS payment arrangement is BEFORE the IRS levies your bank account or garnishes your wages.
Don't Pay Penalties!
The IRS assesses penalties for all kinds of reasons. The purpose of penalties is to punish taxpayers so they wonít do the same thing again.
What most people donít know is... that many of these penalties can be reduced to zero. The IRS has guidelines which allow circumstances where the taxpayer is relieved of all penalties. We request that the taxpayer write our firm a letter explaining all the things going on in his life at the time of the penalties. Then we compose and file a "Request For Penalty Abatement." Nine times out of ten we can persuade the IRS to reverse all penalties and related interest.
INSTALLMENT AGREEMENT RULES
An installment agreement (IA) is a written agreement used to satisfy prior year tax liabilities by allowing the taxpayer to make monthly payments for a specified period of time. For an IA to be legal the following criteria must be met:
The liability must be paid in full prior to the expiration of the statute of limitations (SOL) or 60 months, whichever is less.
The taxpayer must be in full compliance during the entire term of the agreement.
The taxpayer must provide updated financial information when called upon to do so by any IRS employee.
The taxpayer must pay a service charge of $43.00.
The taxpayer is always bound by the terms of the agreement; however, the IRS is not. The IRS can terminate and/or change the terms of the agreement for the following reasons:
The taxpayer fails to make his payments on time.
The taxpayer fails to file on time and/or fully pay the tax due on subsequent year tax returns.
The taxpayer fails to have the proper amount of tax withheld by his employer. Or, if self-employed, he fails to send quarterly estimated payments to the IRS.
The taxpayer fails to provide updated financial information to IRS employees.
The IRS determines the taxpayer failed to provide complete and accurate information at the time he requested the IA.
The IRS determines that collection of the tax is in jeopardy and must take immediate action to seize assets.
The IRS determines the taxpayer's financial situation has changed and the taxpayer is able to make larger payments.
The Internal Revenue Code allows IA's only if the payments liquidate the entire tax liability within the SOL or 60 months, whichever is less. For example, if you owe $50,000 and can only afford to pay $200 per month you can quickly determine you are not going to be eligible for an installment agreement because your monthly payments will not liquidate the amount you owe in 60 months or less. If you don't qualify for an IA the Revenue Officer (R.O.) is authorized to seize your assets.
Generally speaking, the R.O. assigned to your case has heard every excuse in the world and quite frankly he does not like "low-life tax cheats." The mere fact he has been assigned to your case indicates to him you are not a good citizen and he assumes you are totally untrustworthy. He will act nice at first because you probably did not read all the paperwork that he sent to you and he hopes you did not request a due process hearing. Once the 30 day period for requesting a hearing has passed, you will notice a sudden change in the R.O.'s attitude. You will have given him the power he needs to bring you to your knees! And he will threaten to seize your bank accounts, automobiles, and wages if you don't do exactly what he tells you to do.
This is where planning comes in. If you have not retained an advisor familiar with the internal procedures of the IRS and you do not understand how their employees think you will be at a severe disadvantage. You must make a pre-emptive strike by providing the R.O. with every document he needs to close your case. This includes all the financial records, questionnaires, exhibits and other memoranda needed to support the amount you can pay on a monthly basis. If you let the R.O. do it, you are going to be miserable for a very long time.
There is a little-known provision that taxpayers can use when they can afford only a very small payment and it is known as Partial IA (PIA). Most Revenue Officers don't even know it exists and if they do know about it they also know it is much more difficult to set up.
The PIA works like this: the R.O. must investigate each tax year and determine which ones can be paid off by the small payment you proposed; then the IRS writes off the other tax years as uncollectible. Now this is the deal of a lifetime! You won't see this procedure advertised in the IRS literature on IA's. But as I have mentioned throughout this website, your key to success in getting the results you want is directly proportionate to the amount of knowledge you and your advisors have about the internal procedures at the IRS.
Conclusion: Your advisors must know more about the R.O.'s job than he does, and they must prepare all the documents needed to support your position for the PIA. The documents should be prepared in accordance with the Internal Revenue Manual guidelines so the R.O. does not have to do any work (mental or physical). All he has to do is add a few comments and turn it in. Case closed!
RE-ENTERING THE TAX SYSTEM
This section should be of particular interest to taxpayers who have not filed federal tax returns for three years or more and owe more than $75,000 in tax (i.e., pure tax ― no interest, no penalties).
Rule No. 1
Under no circumstances should you attempt to re-enter the tax system on your own. Tax evasion, failing to file a timely tax return, and perjury are very serious tax crimes and one mistake can send you to federal prison for a very long time. Your voluntary admission of a tax crime is similar to Pandora's Box: once the lid has been opened there is nothing you can do to get it closed again. The biggest mistake that most people make is hiring advisors that do not specialize in failure-to-file cases and have little or no knowledge of the IRS/Criminal Investigation Division (IRS/CID) procedures and criminal-tax violations.
Rule No. 2
Under no circumstance should you assume the IRS/CID and the U.S. Attorney's Office (USAO) will grant you immunity from prosecution simply because you volunteered to come forward, bare your soul, and beg for forgiveness.
The IRS terminated its guaranteed non-prosecution policy for voluntary disclosure of tax crimes in 1961. If you have not filed federal tax returns for three years or more and owe more than $75,000 in back taxes it is highly likely you are going to receive a visit from the IRS/CID six to eighteen months after you file your delinquent tax returns. The "reward" you get for filing true and correct delinquent tax returns is that you may be able to avoid additional perjury charges. But you will have to pay a very large tax liability which will include interest and a whopping 75% civil tax fraud penalty. Your full disclosure will be appreciated, and under current IRS guidelines you "may" avoid criminal prosecution only if you pay the entire amount due.
Rule No. 3
You must hire the best tax advisors money can buy. Preferably you will want someone with at least 20 years experience handling failure-to-file cases before the IRS, and preferably this same person will have experience as a former IRS Special Agent.
The "Unofficial" IRS Policy
on Voluntary Disclosures of Tax Crimes
If the taxpayer has given the IRS everything it needs to prosecute him, and he has not fully paid the tax, the IRS will, of course, recommend prosecution! A crime is a crime is a crime. If the taxpayer is lucky, the USAO may recommend that the judge reduce his sentence 10 or 12 months due to full disclosure and cooperation.
You have to remember the IRS is in the business of assessing tax, collecting tax, and prosecuting those taxpayers who don't comply with the law. Each year the IRS/CID reports the number of criminal investigations and prosecutions to congress; generally, they average about 3,000 and 2,000, respectively.
The important thing to notice is that the number of criminal prosecutions is quite high given the amount of time and effort it takes to present a criminal case in federal court. How does the IRS get these high numbers? Answer: Most criminal-tax prosecutions are the result of voluntary disclosure of tax crimes and perjury violations. When the taxpayer "bellies up" and gives the Special Agent everything he needs ― why go to court? These types of cases are usually plea bargained in the USAO. The IRS gets its felony conviction and the taxpayer avoids the publicity of a jury trial.
All IRS/CID agents are keenly aware of the number of prosecutions needed each year. The unwritten rule for a successful Special Agent: don't get bogged down with a time-consuming case where the taxpayer knows his rights and is stonewalling at every point and turn. Believe me, the Special Agent will try to find a way to get rid of this type case and have it returned to the Audit Division for final resolution. Remember, most criminal-tax cases require at least some cooperation from the taxpayer. If the taxpayer is not cooperating, it is highly likely the Special Agent will get rid of this case and move onto the easy ones.
Conclusion: If you try to re-enter the tax system on your own, submit tax returns signed under the penalties of perjury, owe more than $75,000 in tax, and willingly participate in interviews with IRS Special Agents, there is a high probability that you are going to be "rewarded" with a felony conviction. If you go one step further and hire a professional advisor who is unfamiliar with the internal procedures of the IRS/CID and has no experience in tax-crime cases, your chance of avoiding prosecution has not changed one iota. The worst thing you can do is hire a "general practice" attorney. You have to hire a specialist at all costs.
Your only option for successful re-entry to the tax system is to hire an expert that handles failure-to-file cases every day of the week, has worked for the IRS/CID as a Special Agent, and has a thorough understanding of how the IRS/CID works and how their agents think.
As long as the IRS continues to have the option of prosecuting taxpayers who voluntarily disclose their tax crimes and fully pay the tax, penalties, and interest, there really is no incentive (no reward) for full disclosure, full payment, and full cooperation. The bottom line: the more you help the IRS, the more likely the IRS will recommend prosecution!
THE PERJURY PROBLEM
How does the IRS turn a weak misdemeanor case into a multiple felony conviction? Answer: Find a false verbal or written statement and refer the perjury violation to the U.S. Attorney's office for criminal prosecution.
Let's take a look at the arsenal of weapons the IRS can use to get a felony conviction for someone lying to an IRS employee and/or delivering false documents. The Internal Revenue Code (IRC) has two types of punishment for tax-related perjury violations: one is a misdemeanor; the other is a felony. To me, the misdemeanor charge is the appropriate charge for most IRS violations, but it is rarely used. The IRS prefers felony convictions whenever possible!
26 USC Section 7207
Anyone who willfully delivers or discloses to the [IRS] any list, statement or other document, known by him to be fraudulent or to be false as to any material matter, shall be fined not more than $1,000, or imprisoned not more than 1 year, or both.
26 USC Section 7206(1)
Anyone who willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter shall... be guilty of a felony and, upon conviction thereof, shall be fined not more than $5,000, or imprisoned not more than 3 years, or both, together with the costs of prosecution.
Now we enter the murky waters of double and triple charges for the same crime. If you think these draconian measures are cruel and unusual punishment, you will be surprised to know that multiple charges for the same crime are legal and have been approved by the U.S. Supreme Court. Multiple perjury violations are left to the discretion of the U.S. Attorney's Office and are oftentimes used as a club to punish aggressive taxpayers.
18 USC Section 1621
Whoever, (1) having taken an oath before a competent tribunal, officer, or person, on any case in which a law of the United States authorizes an oath to be administered, that he will testify, declare, depose, or certify truly, or that any written testimony, declaration, deposition, or certificate by him subscribed is true, willfully subscribes as true any material matter which he does not believe to be true; is guilty of perjury and shall... be fined no more than $2,000 or imprisoned not more than five years, or both.
Together, the so-called tax perjury statute 7206(1) and the general perjury statute 1621 are very serious felonies, but as you have noted, the above statutes require the taxpayer to perform particular overt acts. The tax perjury statute requires the taxpayer to submit a document (such as a tax return, financial statement, or affidavit) signed under the penalties of perjury. The general perjury statute requires the taxpayer to commit perjury after taking an oath.
Whenever the federal prosecutors have a weak case and know the jury is likely to acquit, they will crank up "old reliable," the general false statement statute.
18 USC Section 1001
Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully makes any false... statements shall be fined not more than $10,000 or imprisoned not more than five years, or both.
Ironically, you can be charged with failing to file a tax return, which is a misdemeanor, and end up going to jail for up to five years under section 1001 for a careless statement you made to an IRS employee.
Taxpayers who have not filed tax returns for three years or more and owe more than $75,000 in tax must exercise extreme caution when they attempt to re-enter the tax system. The tax returns you will be submitting will be signed under the penalties of perjury, and if the IRS later proves that you omitted income and/or disguised some of your deductions, the U.S. Attorney will attempt to prosecute you under multiple statutes such as section 7201 for tax evasion, section 7206(1) for tax perjury violations, and section 1001 for the general false statement statute.
Taxpayers attempting to re-enter the tax system must hire the very best tax advisors they can find. A preference should be given to professionals who specialize in failure-to-file cases and have 20 or more years of experience.
The perjury statutes also affect taxpayers who file every year but take very aggressive positions on their tax returns. The following axiom must be adhered to at all times: Never attempt to explain, clarify, or deny any issue relating to your tax returns with any IRS employee. All communications must be through your advisors.
If you are approached by IRS Special Agents, you should not open your mouth. The IRS Special Agent cannot compel you to give testimony or produce documents at this time. Anything you say or do will be used against you in federal court. Remember, most criminal tax cases are "made" within the first 20 minutes of conversation.
We have all heard about the "three great lies in the world;" today I am proposing the fourth great lie: "I am a government agent and I am here to help you." I can't begin to tell you how often taxpayers fall hook, line, and sinker for this lie.
When I worked for the IRS, my first few cases with the IRS/Criminal Investigation Division (IRS/CID) were quick and easy because the taxpayers and their advisors did not fully understand they had the right to remain silent even after I read them their Fifth Amendment rights! It was like stealing candy from a baby. Most Special Agents get sick of this type of work and transfer to narcotics, money laundering, or political corruption where they can use their skills and talents against the real criminals.
The best-kept secret when dealing with the IRS/CID is to know that its agents are under tremendous pressure to produce as many easy criminal cases as possible. Every year the IRS/CID likes to boast they initiate 3,000-4,000 investigations and have a 90% successful prosecution rate; to get these high numbers their agents must pursue many easy-to-work perjury cases.
Conclusion: It is much more difficult to work a criminal case if the taxpayer declines to answer questions and declines to provide the records necessary for a successful criminal investigation. You have every right to take this position. Use it!
Overview of IRS Criminal Investigations
|Average Sentence (months)||40||44||44|
Delinquent Tax Returns
Many taxpayers get behind in filing their tax returns and make the mistake of never filing. You know the IRS is out there looking for you and you want to start sleeping again. So whatís the holdup?
Well, most people with non-filed tax returns are afraid of what will happen to them when they get back in the system. By allowing our firm to represent you, we will be the only contact for the IRS. We will deal with all IRS communications so you can get straight with the government without worrying.
Settle With The IRS For Just Pennies!
Many taxpayers find themselves in a position where they can never pay off the IRS. Itís mathematically impossible with all the penalties and interest the IRS continues to ADD every day. Your old tax liabilities can prevent you from ever own owning a house or car. The banks wonít even talk to you with a federal tax lien on your credit report. The constant worrying about how to get on with your life is never-ending.
A new IRS Program called "Offer In Compromise" allows you to pay the IRS a small amount (pennies on the dollar). Then they wipe out the total amount you owe them, including all penalties and interest. When the IRS accepts your Offer and you pay it, ALL FEDERAL TAX LIENS ARE REMOVED.
You Get Your Life Back.
Preparing and successfully negotiating an Offer In Compromise is a complicated process and currently takes 9-12 months. Our firm handles the preparation of Offers In Compromise and all of the negotiations with the IRS. Your Offer is completely handled by our firm. You never have to meet with the IRS to discuss to discuss your Offer.
Sneak a Look at Your IRS Files
Many taxpayers would be surprised to see how much or how little the IRS actually knows about them. Requesting such records is best done by someone who understands how the IRS works and can read the coded documents in your file. We can request your file without raising any red flags. If youíre concerned about your file, we can take a quiet peek for you ― in 30 days or less.
Save Your Retirement
Did you know that your IRS problems can prevent you from ever retiring? The IRS can even levy your Social Security and pension benefits. If you never take care of your IRS problems, youíll never have the opportunity to save for retirement. Do yourself a favor and take the first step to ending your IRS problems. Waiting will not help you or your family. Start now and in a short time, youíll be like your neighbors, co-workers and friends, enjoying life and not worrying about the IRS knocking at your door.
Fees are contingent upon the number of hours required to complete your case. You must realize that I handle a wide range of cases and each case is different. Some cases are relatively simple; others are very complex. Some clients are passive and only want minimum service; other clients are very aggressive and want to use every legal means possible to avoid the IRS altogether. In order for me to provide each client with excellent service, I must exercise due diligence.
At a minimum, I must review all your documents, which may include your books and records if you own a business; request and review IRS documents and transcripts; and participate in at least three interviews with you to discuss your current and future financial situation, and to explore all the options available to minimize your tax problems.
My hourly rate is $200 and I require an initial retainer of $2,000 (10 hours) to perform due diligence on your case. Some very simple cases can be worked and completed for the initial retainer amount. However, most cases involve large amounts of federal and state tax, three or more tax years, and assets and/or income that may be seized by federal or state agencies. Obviously these cases are more complex and require more time.
Almost a third of my clients are repeaters who have been "sold out" by less-than-qualified clerks that work for franchise tax clinics. Most of these clerks take a couple of correspondence courses and hold themselves out as experts. All they do is serve you up on a silver platter and look on in dismay as the IRS Collection Division takes everything you own.
Remember: you get what you pay for. A cheap price usually means you end up with cheap results. A person with serious IRS problems cannot afford cheap results.
Financing arrangements are available for clients who have serious IRS problems, but are unable to pay in full because of temporary financial difficulties.
Frequently Asked Questions
1. I haven't filed a federal tax return for the past 5 years. Is it possible that I could be prosecuted in federal court and go to jail?
Yes, it does happen, but
most failure-to-file cases are resolved administratively
by applying large fines and penalties which oftentimes
exceed 100% of the amount of the tax that you owe.
Failing to file a tax return
is considered a misdemeanor. The punishment is up to
one year in jail and a $25,000 fine for each year of not
filing. Generally, this type of punishment is
reserved for taxpayers who have not filed for 3 or more
years and have a total tax of more than $75,000.
If you have not filed tax returns for three years or more and owe more than $75,000 in federal income tax, the IRS has the option of converting your misdemeanor failure-to-file case to a felony. The IRS does this by proving that you, the taxpayer, willfully and intentionally did not file tax returns for the sole purpose of personal gain. Now your case has been upgraded to Income Tax Evasion (IRC 7201) which is a felony. The punishment for this crime is a fine of $100,000, five years in jail or both.
2. What are the criminal penalties for willfully making or subscribing to a false tax return?
This is a felony. The punishment is up to 3 years in jail and a $100,000 fine.
3. What is the difference between a Special Agent, Revenue Agent, and Revenue Officer?
Special Agents (S.A.'s) work for the Criminal Investigation Division. They are federal law enforcement officers and they collect evidence and conduct interviews with taxpayers and witnesses involved in criminal tax cases such as tax evasion, fraudulent tax returns, large failure-to-file cases, money laundering, and false documents or statements submitted to the IRS under the penalties of perjury.
Most really good S.A.'s are former Revenue Agents and they have years of experience in interviewing taxpayers and collecting enough evidence to warrant a referral to the Department of Justice for a criminal prosecution. If you are contacted by an S.A., you are going to be a witness against someone else, or you are the target of a criminal investigation. If you are the target, the S.A. will begin the conversation by reading your 5th Amendment Rights. Please note: you will never be interviewed by one S.A. They always travel in pairs. One S.A. will lead the interrogation; the other will be the witness and provide protection for the lead S.A.
If you are the target, you should terminate the meeting, take the agent's card, and indicate that you will have your attorney contact him in a few days. Do not discuss any tax or financial matters with a S.A. CAUTION: most criminal cases are "made" during the first 20 minutes of conversation with the taxpayer.
Revenue Agents (R.A.'s) are the pride and joy of the Internal Revenue Service. They hold many positions because they are infinitely more qualified than all other employees. They primarily work for the Examination Division and they conduct audits on all types of businesses including corporations, partnerships, trusts, and estates. R.A.'s have a degree in accounting and are highly trained in all aspects of auditing, tax law, research, and report writing. Most Revenue Agents stay 5 to 6 years and then move on to the private sector where they easily earn salaries exceeding six figures.
Revenue agents are true professionals and they stand by their work. Their reports are thoroughly researched and taxpayers are provided a complete explanation of their adjustments along with work papers and exhibits.
Revenue Officers (R.O.'s) work for the Collection Division and are oftentimes referred to as bad-debt collectors or bounty hunters. The requirements for entry-level positions are very low. Promotions are few and far between and morale is generally low. There are no high-paying jobs in the private sector for former R.O.'s so they usually hang around until retirement. They have a thankless job and are a necessary evil in the collection process. They generally prefer easy targets such as unsophisticated taxpayers who try to go it alone without proper representation.
See my section on IRS abuse for more information about Revenue Officers.
4. Can the IRS seize my home?
Yes, but the seizure must be approved by the IRS District Director and a Federal Magistrate. The IRS hates this kind of publicity and will do almost anything to avoid bad press. However, if you have two homes or own a rental property and owe a lot of tax, you can kiss your second home and/or your rental property good-bye.
5. Do I have to let the IRS enter my home?
No, no, and hell no. IRS employees cannot enter your home without your express permission. You may have to give up your office-in-the-home deduction, but this is a small price to pay for your privacy. The only exception to this rule is if you are served a search warrant by a Special Agent or other law enforcement officer.
Remember, all IRS employees are extremely observant and are skilled in interview techniques. Every word you say and all observations will be written down as soon as they leave your residence.
6. What occupations are at risk for greater-than-normal IRS scrutiny?
The IRS is always concerned about segments of the population that cheat on their tax returns. Why spend valuable audit resources on taxpayers who always comply with the regulations when they can collect huge sums of money from taxpayers who almost never comply with the regulations?
Number one on the IRS most-wanted list is anyone who is self-employed in the following occupations: car dealers, bar & restaurant owners, apparel shop owners, hair dressers and nail salon owners, telemarketers, all salespersons, doctors, lawyers, non-degreed ministers, adult entertainers, private detectives, home repair service providers, and practical nurses.
7. What percentage of the population refuses to file tax returns and gets away with it?
There are many people who participate in the underground economy that uses cash, gold coins, diamonds, drugs, or other merchandise to purchase products and services for their "normal business." All of their assets are in corporation names or other disguised entities. It doesn't take rocket science to figure out that people who go to great lengths to avoid receiving W-2's and 1099's have no tax return problems.
If you throw in the illegal immigrant problem, and the fact that most transient workers provide bogus SSN's to their employers, the percentage of non-filers in the United States is around 30%.
The percentage of non-filers in the U.S. is around 30% and growing.
8. Who has access to my federal income tax returns?
Unfortunately your tax returns and related files are shared with employees of at least a dozen other federal agencies, and almost every state revenue department in the United States. Security is reasonably good at the IRS, but is less secure at other federal agencies and almost nonexistent at the city, county, and state level.
Most state employees are underpaid and many low-level employees can make more than their annual salary by providing copies of federal and state tax returns to private detectives, divorce attorneys, and bad-debt collectors.
If you are a business owner, you may not be aware that various city and county governments require CPA's and bookkeepers to attach your personal and business tax returns to verify sales, inventory, and equipment reported on property tax returns and business licenses. Needless to say, the city and county government employees are good friends with all private detectives and part-time police officers.
Any unscrupulous attorney or CPA familiar with IRS procedures can send a bogus Power of Attorney form to the IRS and order copies of your previous tax returns. This is illegal, and a few professionals have been prosecuted, but this is very hard to detect.
* * * Confidential Special Report * * *
IRS Problems Have a Way of Ruining All Aspects of Your Life.
They Take a Toll On You
Financially, Physically, and Emotionally.
You Can Never Really Forget About Them, as They Always Come Back Each Morning When You Wake Up!
My name is Lawrence Denney and I have been solving IRS problems at the same location for over 15 years. My background as a former IRS agent (civil) and special agent (criminal) gives my clients a unique advantage in solving their IRS problems.
Your IRS Problems are unlike many other problems in life, which may, in fact, go away by themselves. Unfortunately IRS Problems just continue to get worse and more costly with new penalties and interest being added each day.
How Does the IRS Expect You to Pay Off Your Taxes If They Keep Adding Penalties?
I donít know what the IRS thinks, but I do know that they ruin peopleís lives every day with these ridiculous penalties. IRS penalties were supposed to be a slap on the hand to make you learn from your mistakes. But instead, they are used as a hammer to pound you into the ground so far that there are only a few options on how to get out.
What Do They Expect You To Do With Federal Tax Liens on Your Credit Report?
How can you possibly get a loan to pay them off, when your banker wonít even talk to you?
Federal Tax Liens prevent you from being able to borrow any money for a car or home.
Taxpayers with IRS problems often have to shop at "Buy Here, Pay Here" car lots because these car dealers donít care if you have a Federal Tax Lien, because they charge so much for the cars and usually have very high interest rates.
Cars are expensive enough without having to pay 18% to 21% interest on a used car loan, but with a Federal Tax Lien you donít have any choices.
The banks have gotten so tough on opening new bank accounts that anyone with a Federal Tax Lien is usually prevented from even having a simple checking or savings account.
This makes it hard for some taxpayers to cash their paychecks or to pay their monthly bills. Often they have to pay more money and use money orders or certified checks just to pay their rent or utility bills.
Taxpayers with IRS problems are always looking over their shoulder for the IRS!
Once you owe the IRS money, they become very aggressive in their collection attempts. One of the more common collection methods the IRS uses is the Levy!
They will use either a Bank Levy or a Wage Levy ― If youíre lucky enough to still have a bank account. The Bank Levy allows the IRS to present your bank with a piece of paper that requires the bank to immediately withdraw all the money you owe the IRS.
Many times these Bank Levies are wrong, but the IRS doesnít care and itís up to you to correct the problem. Meanwhile, the checks youíve written are bouncing all over town.
The worst thing about the IRS Bank Levy is that it may capture your childrenís, parents', girlfriendís, or spouseís bank account if your name happens to be on the account ― even if itís on there for convenience.
The IRS doesnít care. They just want to get paid and they donít care who pays your taxes.
After the bank has cleaned out all checking and savings accounts with your name on them, they send the money to the IRS. You should take this as notice that the IRS will issue another Bank Levy against you in the future to satisfy any remaining amounts owed to them.
Itís kind of like hitting the lottery for the IRS. Once they find out how to get your money, they will continue taking your money by issuing more Bank Levies.
As Bad as The Bank Levy Is, The Wage Levy (Garnishment) Is Much Worse!
The Bank Levy is a one-shot deal, meaning that the IRS must continue to issue a new Bank Levy every time they want to clean out your bank account. The Wage Levy (Garnishment) is much, much worse. Itís designed to bring you to your knees.
The Wage Levy is issued to your employer and it instructs the employer to immediately start withholding ridiculously HIGH amounts of money to pay old tax liabilities in addition to the normal taxes being withheld.
Wage Levies often result in you only receiving a few hundred dollars per pay period. This usually makes it impossible to pay your bills and eat. The IRS knows that Wage Levies cause all types of harm to you and your family, but they mail out thousands every day.
Having IRS Problems Gets Old!
There can be no real rest and relaxation until your IRS problem is completely solved. Itís hard to keep a good job or get your credit report cleaned up when the IRS continues to issue Federal Tax Liens and Wage Levies.
Without a bank account itís difficult to cash your checks or even pay your monthly utility bills. Even if youíre lucky enough to have a bank account, you have to always worry about the IRS wiping out all of the money in the account without notice.
Some taxpayers with IRS Problems have just a few assets they want to hang on to!
Then The IRS Pulls Out All Of The Stops. They Simply Seize Your Assets and Sell Them At An Auction!
Getting the IRS mad enough at you to seize your assets is not that difficult. Many taxpayers with IRS problems simply cannot bear to part with all kinds of possessions, for example:
All of these things may be very personal or sentimental in value to the taxpayer. The IRS could not care less. If the taxpayer wonít agree to whatever the IRS wants, then he risks having his assets seized.
Do not underestimate any IRS employeeís ability to follow through on the threat of seizure. Every IRS office in the country has a public list of recently seized assets and details about the upcoming IRS auction to sell those seized assets.
Payroll Taxes Are the Worst!
Many small businesses have cash flow problems for all kinds of reasons. How they handle these problems, especially when payroll taxes are involved, usually determines if they stay in business or not.
The IRS takes an extremely strong position on payroll tax violations. They would rather close the business and sell off all the assets instead of trying to work out a deal with the business.
The worst thing about business payroll taxes is that the IRS has the ability to collect business payroll taxes from anyone they think was responsible for not paying the taxes. For example, the business owner or any person with signature authority on the business bank account can be singled out for collection activity.
They will try everything to get these payroll taxes. Usually a visit to your home or work is in order to start the collection procedures. Then all of the weapons in their arsenal can be used (Liens, Levies, or Seizure) until the tax≠payer has agreed to some type of repayment.
Once the IRS has determined that the business cannot pay the payroll taxes and they have turned their sights on the individuals they think are responsible. . . look out!
What About Buying A Car or Home?
Driving a new car or an almost-new car these days requires you to borrow money or lease the car. Thatís because it costs so darn much.
Well, without the ability to walk into your local Auto Dealer and cut a deal on a new or almost-new car, you are stuck with that old unreliable clunker, just because you have a tax problem. It doesnít seem fair, but itís hard to get an auto loan or lease when you have an IRS problem.
Home loans are even harder to get. Heck, they are hard to get when your creditís good if you donít put a pile of money down on the home. Not having a home to write off causes you to pay even more taxes than your friends or neighbors because you have no tax deductions.
People who do have homes and then get into IRS problems risk the chance of losing their home to the IRS. Yes, I mean selling the home and giving the money to the IRS for payment of back taxes or letting the IRS seize it and selling it at auction. You see, having a home before you get into IRS problems may be even worse than not having a home at all.
For example, if you own a home and then find yourself owing the IRS $25,000 for some income or payroll taxes, you could be making house payments on your home that effectively is owned by the IRS. Once they file a Federal Tax Lien on your home, you canít sell it without paying off the IRS. This means that you continue making the monthly payments, continue to take care of the home, and the IRS just sits there and waits. You pay all the bills on your home and they get all the equity. What a deal!
Imagine Having the IRS Attack Your Pension, Retirement Social Security Check!
The IRS leaves no stone unturned in its never-ending quest to collect all taxes, penalties and interest. Sure, people think the IRS canít or wonít levy retirement funds. They hope that when they get old, the IRS will forget about them and how much they owe the IRS.
Donít believe it. The IRS never forgets! They just keep adding penalties to what you owe each day until they find you, or your money, or your income source. Then itís pay day for the IRS!
Taxpayers with IRS Problems Never Can Build Up Retirement Funds or Assets!
Youíll always be looking over your shoulder for the IRS. This usually means you have to work until you die. Youíll have no opportunity to save up for the days when you canít or donít want to work anymore.
There Is No End In Sight!
You just get up every day with this incredible large problem on your shoulders. You wonder if todayís the day when the IRS shows up at work, at home, or if they decide to levy your bank account or paycheck. Itís a large load to bear every day.
Most people around you donít know what youíre going through. You just keep going, but you know in your heart that doing nothing about your IRS problems is not going to make them go away.
Are There Ways Out of IRS Problems?
Yes, there are ways to end IRS problems, but you must decide to end them. No one else can decide for you. When you decide that enough is enough and you want to have the things that everyone else has and youíre really ready to do something about your IRS problems, there are options available to you!
Our firm specializes in ending the misery of IRS Problems! There are many possible ways to end these problems, but they all require you to take the first step.
No one can help you until you decide to help yourself. We are very successful in ending IRS problems, but the taxpayer must be ready to follow our advice. We can walk you through the IRS maze.
We do all the talking to the IRS. We also handle all the meetings and correspondence with the IRS.
Most of Our Clients Never Even Meet With the IRS!
The solutions to IRS Problems often include filing old tax returns to get you in current compliance with the IRS. The IRS will not negotiate with anyone unless he is current with all required filings. This means all income tax returns and payroll tax returns, if you have employees, must be filed.
The IRS assumes that if you wonít at least get your required tax returns filed, then why waste the time trying to negotiate with you?
Itís a rather simple request and we have easy ways to complete old tax returns. We realize that many taxpayers have lost old records or just canít find them! We can help you file old tax returns without any records, but you have to take the first step.
Once we have filed all your old tax returns, then the IRS will at least listen. What we tell them is how you want to end your IRS nightmare by . . .
Cutting a Deal to Pay Less Than What You Owe!
How much less? Well, if you qualify, a LOT LESS! The IRS looks at these old tax liabilities and knows it canít collect most of them. So they have set up this great new program called Offer In Compromise. This program, allows taxpayers to pay pennies on the dollar to settle up on old income tax and payroll tax liabilities.
When I say settle up, I mean completely. 100%! Once the IRS has accepted the amount you offer and you pay the reduced amount, then the IRS releases all Federal Tax Liens. Your IRS nightmare is over and you get your life back.
Many Taxpayers Have Been Able To Get The IRS To Reduce The Penalties.
For taxpayers who donít file an Offer In Compromise . . . They request the IRS to abate the IRS penalties for ďReasonable Cause.Ē This can be as simple as explaining to the IRS that your basement flooded.
Itís a great way to drastically reduce the total amount you owe the IRS, and all it takes is a few letters
Many taxpayers use our firm to keep the IRS away from
them and their families.
Most of our clients never meet or speak with the IRS.
We make the IRS call US, so our clients can go to work and carry on a normal life.
Your IRS problem will not go away by itself. You only have three choices to end your IRS nightmare. You can do one of the following:
1. Pay the IRS 100% of what they think you owe today.
2. Set up a monthly payment plan which never seems to go away due to the daily compounding of penalties and interest.
3. Reduce the total amount you owe to an affordable amount and get on with the rest of your life!
I can help you explore all the choices and options but you must take the first step.
You can call me to discuss your options in confidence. You have nothing to lose except the peace of mind most people already enjoy. Why not get some for yourself and your family?
If you are in the Metro Atlanta area, call my office today at (404) 874-9866 for a consultation.
P.S. Unless you take the first step to solve your IRS problem, it will never go away.
Call now (404) 874-9866 to take this first step. What have you got to lose except a few minutes of your time?
P.P.S. The fact that you read this entire report shows me that youíre not like the normal person with IRS problems. Youíre trying to end your IRS problems.
Don't procrastinate any longer. Call now! (404) 874-9866
DENNEY & DENNEY, INC
FEDERAL TAX ARBITRATION
1355 Peachtree Street N.E.
Atlanta, GA 30309
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