Tag Archive for Venar Ayar

How Bankruptcy Affects IRS Collections

Venar Ayar- Bankruptcy And The Internal Revenue
Bankruptcy And The Internal Revenue

Bankruptcy may temporarily delay collection activities by the IRS. However, some types of tax debt are not dischargeable in bankruptcy, so the IRS may be able to resume their collection efforts once the automatic stay is lifted.If you are considering filing for bankruptcy primarily due to delinquent tax debt, you should first consult with a tax resolution attorney to weigh your options.

The Automatic Stay In Bankruptcy

The automatic stay in bankruptcy immediately stops all collection activities by your creditors, including the IRS. Once you file for bankruptcy, creditors can’t send you collection notices in the mail or attempt to seize your assets. If they try to collect during this time, they are breaking the law.

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Virtual Currency And The IRS

Venar Ayar- Virtual Currency

Virtual currency refers to any digital currency which is only available in an electronic form and not as a physical form of money. Virtual currencies, like Bitcoin, are created by a process known as “mining,” where an individual, using powerful computers, authenticates transactions in what is known as a “blockchain,” or a ledger of digital transactions.

Virtual currencies may be traded on digital trading platforms, such as the third-party Coinbase, and can be used as a form of online payment, held as an investment, or used in loans to other individuals.

The IRS And Virtual Currencies

According to IRS Notice 2014-21, “the sale or exchange of convertible virtual currency, or the use of convertible virtual currency to pay for goods or services in a real-world economy transaction, has tax consequences that may result in a tax liability.”  This means, per IRS determination, virtual currencies, such as Bitcoin, are treated as property, and subject to tax regulations.

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Payroll Tax Errors: Who Does The IRS Hold Accountable?

Venar Ayar- Payroll Tax Errors

If you are an employer or employee who has fallen behind on payroll taxes and are now facing a hefty bill from the Internal Revenue Service, ignoring it will not make it go away. When it comes to unpaid payroll taxes, the IRS often comes down much harder on taxpayers than they do with unpaid income taxes. There have been countless instances where the IRS has gone as far as closing down a business or sending the owners of those businesses to prison for back payroll taxes. But, who does the IRS hold accountable for payroll tax errors?

What Is the Employer’s Responsibility?

According to the IRS, employers are responsible for reporting the income and employment taxes that are withheld from their employee’s paychecks. This information is required to be reported on the Employer’s Quarterly Federal Tax Return form, also known as Form 941. The employer is also responsible for the depositing of these reported taxes, in full, to a bank or other financial institution that is authorized in compliance with Federal Tax Deposit Requirements. Employers are also required to submit a Federal Unemployment Tax (FUTA) return each year and deposit those taxes as well.

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When To Make An Administrative Wrongful Levy Claim

Venar Ayar - When To Make An Administrative Claim

What is an Administrative Wrongful Levy Claim?

You can file an administrative wrongful levy claim when the IRS seizes property to collect tax revenue owed by another person and you have a superior right to this property. This typically means you either own the property or have a security interest that was filed before any IRS tax lien was filed.

If your property was levied because of taxes you owe, you’ll need to either appeal the levy at a collection due process hearing or ask for a levy release. Wrongful levy claims are limited to cases where the tax debt at issue is owed by another person.

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What To Know About The IRS 1099-K Form

Venar Ayar- What To Know About The 1099-K

IRS Form 1099-K is a form used by the Internal Revenue Service to report certain transactions to improve voluntary tax payments and compliance. The form originated in 2008 as part of the Housing Assistance Tax Act, even though the document has nothing to do with housing at all. A 1099-K is required for those who received payments:

  • From payment card transactions (e.g., debit, credit or stored-value cards), and/or
  • In settlement of third-party payment network transactions above the minimum reporting thresholds of –
    • gross payments that exceed $20,000, and
    • more than 200 such transactions

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All You Need To Know About The Tax Evasion Statute

Venar Ayar- Statue On Tax Evasion

As defined within the 26 United States Code section 7201 by the Internal Revenue Code, failure to report taxes accurately, failure to report taxes and failure to pay taxes are all forms of tax evasion. In order to establish a case of tax evasion against you the government is tasked with the duty of proving beyond reasonable doubt that you the taxpayer attempted to evade a tax or the payment of a tax; an additional tax due and owing and that you as the taxpayer acted willfully. If the IRS proves your guilt then the repercussions to you will range from monetary fines to jail time.

Filing taxes can be a cumbersome and complex affair especially when it is done for a self-operated business or over a substantial amount of assets. Even the most innocent of mistakes may be interpreted as tax evasion thus making the line between a law-abiding tax-payer and a tax evader quite thin. Which is why you should know what the tax evasion statute is all about because in a case like this, ignorance can be quite expensive.

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Resolving Trust Fund Recovery Penalty Disputes

Venar Ayar - Trust Fund Penalty Dispute

What are Trust Fund Taxes?

Trust fund taxes include the Social Security, Medicare, and federal income tax a business withholds from its employees’ wages. These amounts are held in trust by the business until they are transferred to the IRS.

In other words, these taxes are effectively being paid by the employee to the IRS. The employer is just an intermediary responsible for facilitating the transaction.

When the employer fails to remit these amounts to the IRS, bad things can happen. First, the employer can face the failure to deposit penalty for unpaid payroll taxes if the payments are even one day late.

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How To Recover Damages For An IRS Error

Venar Ayar- How To Recover Damages For An IRS Error
Recovering Damages

You may be able to recover economic damages if an IRS error ends up costing you money. However, the circumstances under which you can recover damages are quite limited.

These situations typically occur when an IRS mistake results in a bank charge. There are three ways this can happen:

  • You have a direct debit installment agreement, and the IRS makes a mistake when processing your payment, such as withdrawing the incorrect amount or making a withdrawal on the wrong date.
  • You send a check to the IRS and they lose or misplace it.
  • The IRS wrongfully levies your bank account.

In these situations, you may seek reimbursement of the associated bank charges using Form 8546, Claim for Reimbursement of Bank Charges.

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When The IRS Can Levy Property Without A Hearing

Venar Ayar - When The IRS Can Levy Property Without A Hearing
IRS Levy Procedures

The IRS must follow certain procedures before seizing your property. Typically, that process goes something like this:

  • You receive a notice stating that tax has been assessed and asking you to pay it.
  • You don’t pay or resolve the matter by the deadline.
  • A Final Notice of Intent to Levy is sent to you.

If these notices aren’t sent, the levy may be improper and you could request a levy release. When these procedures are followed, you have 30 days to request a hearing and attempt to stop the levy.

Levy Without Notice

There are limited circumstances where the IRS doesn’t need to let you know about the levy until after it takes place. Those situations are as follows:

  • The IRS believes the collection of the tax is in jeopardy
  • Levy of a state tax refund.
  • Levy for tax debt owed by a federal contractor.
  • Levy for unpaid employment taxes when the taxpayer has previously requested a Collection Due Process (CDP) hearing for employment taxes in the past two years.

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Appealing The Findings Of Your IRS Examiner: Should You Appeal?

Venar Ayar-Appealing The Findings Of Your IRS Examiner

All you need to know about appealing your IRS findings

The Internal Revenue Service better known as the IRS is the governmental agency that ensures that you “give Caesar what belongs to Caesar”. In other words, it conducts the fundamental function of tax collection on a nationwide scale. And so given the importance of the functions performed by such an agency it is typical that such an organization would keep records, records that may in the future be used for reference when the need arises. Read More

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How To Deal With IRS Revenue Officers

What Are Revenue Officers?

Revenue officers are the senior-most collection agents at the IRS.  They get assigned the cases with the highest priority within the IRS.  If your case is assigned a revenue officer it means that the IRS considers your collection matter a top priority and you should take it seriously.  I highly recommend you seek professional representation if your case is assigned a Revenue Officer.  In the event that you cannot do so, I have outlined some of the best strategies for dealing with these highly-trained people.  Read More

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How To Get An IRS Levy Released

IRS Levy, Tax Help, Venar Ayar

To get a levy released, you’ll need to contact the IRS and give them an acceptable reason for releasing the levy. Generally, you can request a levy release if you’ve worked out a payment arrangement, are experiencing an economic hardship due to the levy, or the IRS failed to follow the correct procedures.

Releasing Continuous Levies

Levies can be continuous or one-time events. Bank account levies are one-time only. Wage garnishments and levies of certain federal payments, including Social Security retirement benefits, are continuous.

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