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Man Faces Up to 20 Years

He’s accused of wire fraud and tax fraud for siphoning away company money. A federal grand jury indicted an Alabama man on wire fraud and tax evasion charges, alleging he misused company funds while managing an Alaska-based oil field services firm. According to court...

Co-Founder of Health Care Sharing Ministry Sentenced to 17 Years

The co-founder of a Christian health care sharing ministry was sentenced to 17 years and six months in federal prison for his role in an $8 million wire fraud conspiracy and making false statements on a personal tax return. "CAR" 62, of St. Joseph, Missouri, was also...

Tax Preparer Files 1,387 False Tax Returns and Claims Over $120 Million in Refunds

A tax preparer from New Jersey, was arrested for filing 1,387 tax returns falsely, and claiming more than 124 million dollars in COVID-19 employment tax credits. The tax returns this tax preparer filed claimed false credits on behalf of his clients. He told his...

Sales Manager Trades in Jacket and Tie for Orange Jumpsuit

The sales manager of a Los Angeles based wholesaler and retailer of recreational vehicles and motorsports accessories, was sentenced to 18 months in prison for embezzling $478,434 and failing to report any of the money on his tax returns. He was in charge of...

Slippery Business Owner’s Well Oiled Scams Don’t Slide by the IRS

The owner of an oil and gas leasing business  in Mississippi, was sentenced to 30 months in prison for filing false corporate tax returns. The business owner refused to pay taxes on three million dollars earned through the business in 2008, so he and his tax preparer...

Nursing Home Owner Has Unhealthy Tax Habits and Fails to Pay Ten Million Dollars in Payroll Taxes

The owner of a company that provided administrative services to nursing homes and other health care facilities, pleaded guilty for failure to pay over 10 million dollars in payroll taxes. Of the facilities this company owner provided services for, 20 were co-owned by...

RV Resort Manager Will Soon Be Kicking Back in a Prison Cell

The general manager of an RV Resort near Myrtle Beach, pleaded guilty to wire fraud and filing a false tax return. From November 2020 to December 2021, this general manager issued $828,516 in refunds through the company’s credit card reservation system that were...

IRS Sinks Its Teeth Into Dentist for Tax Evasion

A dentist in private practice in Connecticut, was sentenced to 10 months in prison for tax evasion. The dentist's troubles with the IRS go way back. For tax years 2010 through 2012, he filed his returns jointly with his wife, but failed to pay the money owed. The IRS...

Your IRS Questions Answered

“I’ve been getting aggressive collection notices from the IRS recently. I think can pay the tax due but would like these ridiculous penalties and interest charges waived.  Does the IRS waive penalties? What can I do to get these removed from my account?”

There are several different ways the IRS removes or reduces penalties. One option is called First Time Penalty Abatement (” FTA”). This is generally...

“I’m currently separated from my spouse, who owns his own business, and we are in the midst of getting a divorce.  I have always filed jointly with my husband and now the IRS is sending me notices stating I owe $87,000.  I have no idea how they are coming up with this amount as my spouse always took care of paying the IRS what was owed.”

You may be able to avoid this liability entirely under the IRS’s Innocent Spouse Relief rules.  Under federal law if an income tax return is...

“I own a small business and did not file or pay payroll taxes for the last few quarters. I may owe about $100,000 in 941 taxes. How much trouble am I in?

Owing 941 payroll taxes is very different from owing personal 1040 income taxes. Not only can the IRS padlock the doors to your business, but they...

“I received a Notice of Federal Tax Lien via certified mail for unpaid back taxes and I’m scared and don’t know what to do. Can you help?

Yes! A Notice of Federal Tax Lien (NFTL) is public record and is generally filed with the County Recorder where you reside.  A federal tax lien can...

“I haven’t filed my tax returns for several years. The IRS just sent me a letter that I owe them $57,000. How can that be? What should I do?”

When a legally required income tax return isn’t filed on time, the IRS can and will file an income tax return on your behalf.  It’s called a...

“I have heard that the IRS will take a reduced monthly payment amount to settle my tax debt in full. Is that true?”

There are several types of Installment Agreements.  One of them, is called the “Partial Pay Installment Agreement” (PPIA) where it’s possible to...

“I owe the IRS $74,367 for several years of back taxes but do not have the money to pay them at all. I want to get them off my back and heard of something called an Offer In Compromise settlement. What is that and do I qualify?”

An Offer in Compromise is a legal binding agreement between the taxpayer and the IRS that settles the full amount owed.  Many times, for a...

“I’ve heard that the IRS can’t collect on back taxes that are over 10 years old. Is that true, even if I haven’t filed in a few year?”

It depends.  The IRS is barred, by law, from collecting on a tax debt that’s 10 years or older from date of assessment.  It’s called the...

Fun Facts

The Gross Tax Gap is $693 Billion Dollars!

Articles

When IRS Problems Turn Criminal

NOTE:  I normally put these kinds of posts under the category "Consequences," but this case example addresses an important question I am often asked:  When does a civil tax debt transform into a criminal case?  Owing money to the IRS—even large amounts—is not a crime....

The Hidden Dangers of Unfiled Tax Returns

 Life gets busy, and sometimes filing your taxes can fall through the cracks. Whether it was a tough year financially, you were overwhelmed, or simply forgot, unfiled tax returns are more common than you might think. But what many taxpayers don’t realize is that the...

How Long Does the IRS Have to Collect Tax Debt?

Understanding the Statute of Limitations Dealing with a tax debt can be a stressful experience, especially when you’re unsure how long the IRS has to collect what you owe. Fortunately, the IRS is bound by a statute of limitations, which limits the amount of time they...

What Happens If You Ignore IRS Collections Letters?

Receiving a letter from the IRS is never pleasant, but ignoring these letters can lead to serious consequences. Whether the letter is a simple notice or a formal demand for payment, failing to respond can escalate your tax issues quickly. At Tax Resolution 360, we’ve...

5 Ways Tax Relief May Be a Better Option Than Bankruptcy

The amount of stress you face when you owe a significant amount of money to the IRS can feel insurmountable. Penalties and interest keep adding on to the debt, and it can feel like there’s often no way out. Oftentimes, people will consider bankruptcy as their only...

Tax Relief Options for Individuals Facing Economic Hardship

In times of economic hardship, navigating tax obligations can make financial stress so much worse. Sometimes it may be due to being out of work, unexpected medical expenses, or other financial setbacks, and individuals may find it challenging to meet their tax...

Recent Posts

How Long Does the IRS Have to Collect Tax Debt?

How Long Does the IRS Have to Collect Tax Debt?

Understanding the Statute of Limitations Dealing with a tax debt can be a stressful experience, especially when you’re unsure how long the IRS has to collect what you owe. Fortunately, the IRS is bound by a statute of limitations, which limits the amount of time they...

What Happens If You Ignore IRS Collections Letters?

What Happens If You Ignore IRS Collections Letters?

Receiving a letter from the IRS is never pleasant, but ignoring these letters can lead to serious consequences. Whether the letter is a simple notice or a formal demand for payment, failing to respond can escalate your tax issues quickly. At Tax Resolution 360, we’ve...