Denver Tax Help

What is tax help or IRS tax help?  As a tax attorney I hear the term quite often and thus, thought I would provide information as to what I feel can be considered tax help.  Please read the article and view the video below, and of course, you can contact our law firm to speak with a tax attorney regarding your specific circumstances.

In my opinion tax help would include or mean assisting an individual or a business with a tax problem or tax issue.  Below are examples of situations whereby a taxpayer may need help nd the help that could be provided.

1) If an individual or business owed taxes to the IRS, tax help would likely include helping the taxpayer resolve the tax debt through a formal agreement with the IRS such as an installment agreement of offer in compromise.

2) If an individual or business had missing tax returns (had not filed tax returns with the IRS for a number of year or tax periods) tax help could include assisting the taxpayer to file these returns.  Such assistance may come in the form of providing information and transcripts to the taxpayer and/or actually preparing the tax returns.

3) An individual or business may have been levied by the Internal Revenue Service, and under such circumstances, tax help could include working to release the IRS levy and/or helping the taxpayer establish a resolution so that the IRS would not issue bank levies or wage levies in the future.

4) A taxpayer being audited by the IRS could use help in resolving the tax audit with as little to no additional assessment of tax as possible.  Tax audits can be very scary and confusing to a taxpayer, and quite often a tax audit on one period, can turn into a tax audit on multiple periods meaning the taxpayer could be exposed to additional tax assessments on multiple periods.

5) Tax help could come in the form of working with a business or individual to make sure they understand their tax obligations and responsibilities based upon their circumstances.  For example, a business with employees will need to understand how to withhold payroll taxes and how & when to deposit these payroll taxes with the IRS.  Moreover, such taxpayer must understand the 941 tax return filing requirements.

Thus, taxpayers may need “tax help” in a number of ways and circumstances.  If you have questions relating to a tax issue or matter, you can speak with a tax attorney in Denver by contacting The McGuire Law Firm.

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IRS Form 12153

What is IRS Form 12153?  Form 12153 is used to request a Collection Due Process Hearing with the Internal Revenue Service.  If you owe taxes to the Internal Revenue Service, and the IRS issues a Final Notice of Intent to Levy, files a Notice of Federal Tax Lien or other circumstances exist, you may wish to request a Collection Due Process Hearing.  The article and video below have been prepared by a Denver tax attorney at The McGuire Law Firm and should be used for informational purposes only.  Please speak directly with a tax attorney or tax professional regarding your tax issues.

If the IRS has filed a Final Notice of Intent to Levy (Letter 1058) in regards to taxes you owe, you have the right to request a collection due process hearing.  Requesting this hearing is a right you have as a taxpayer and will act as a hold on enforcement if you make the request within 30 days of the issuance of the final notice of intent to levy.  If you do not request the hearing within 30 days, you can still have a hearing known as an equivalent hearing, but you are not guaranteed an automatic hold on enforcement as if you timely requested the collection due process hearing.  It is also important to note that the collection statute (the time the IRS has to legally enforce collection of the tax debt) does not run and is tolled once you file for the collection due process hearing and until the hearing is held a determination is made.

After you file for the hearing, you will eventually receive notice that the request has been received, and then you will receive a notice stating a hearing date with an IRS appeals officer.  An IRS appeals officer is supposed to be an impartial party and review the case in regards to whether the IRS has taken the correct steps and provided the taxpayer with due process, as well as consider collection alternatives such as an installment agreement or offer in compromise to resolve the tax debt.  Generally, the appeals hearing can be conducted via phone and you will forward certain information to the appeals officer prior to the hearing.  For example, if you owe 1040 individual income tax debts, and the hearing was set for October 15th, the appeals officer would likely request that you submit a Form 433A and a collection alternative proposal prior to the hearing and then such information and request would be discussed during the hearing.  Thus, you would submit Form 433A, along with the necessary attachments and a proposal such as an installment agreement, or you could submit the necessary documents for an offer in compromise.

A collection due process hearing is a valuable right you have as a taxpayer and can be used to your advantage when resolving a tax debt or other IRS tax problem.  Please contact The McGuire Law Firm to discuss your tax questions with an experienced Denver tax attorney.

Denver IRS Back Tax Help

How Do I Settle My IRS Taxes?

Many individuals and businesses that owe taxes to the Internal Revenue Service will contact my office and ask, “how do I settle my IRS tax debt?”  While most people are aware that they can settle their tax debt with the IRS through an offer in compromise, they do not know what is needed to submit their offer in compromise to the IRS and the process with the IRS offer in compromise unit.  The article and video below have been prepared by a tax attorney in Denver at The McGuire Law Firm to provide information regarding a tax settlement with the Internal Revenue Service.  As always, this article and video below is for informational purposes, and it is recommended you contact your tax attorney or tax professional regarding a tax issue.

An offer in compromise is based more off of a taxpayer’s ability to pay as opposed the taxpayer’s total debt.  Thus, first and foremost, a taxpayer looking to submit an offer in compromise to the IRS must complete a financial statement.  An individual will complete Form 433A OIC and a business will complete Form 433B OIC.  An individual with an interest in closely held businesses should likely complete both Forms 433A OIC and 433B OIC.  These forms are financial statements that help calculate the taxpayer’s reasonable collection potential, which is determined by equity in assets and disposable income.  Of course, if a taxpayer does have special or extenuating circumstances, these issues can be presented to the IRS as a reason for the taxpayer to not pay their full collection potential.  Upon completing the necessary financial statements, the taxpayer should be able to calculate their offer amount.

Upon completing the offer amount, Form 656 should be completed, which states the taxpayer’s information, the tax debts of which the taxpayer is attempting to settle and the offer terms.  The offer terms will include the offer amount and over what time period the taxpayer will make such payments.  Further, the offer terms can dictate the payment that must be submitted with the offer and whether payments need to be made as the IRS is reviewing the offer.

The taxpayer will submit Form 656 and the necessary financial statements and attachments to the appropriate IRS Offer in Compromise Unit.  Currently, there are 2 units whereby a taxpayer would initially submit their offer in Holtsville, NY and Memphis, TN.  Upon submitting the offer, the taxpayer will receive verification of receipt.  Thereafter, likely in 4-8 months, the taxpayer will receive contact from the offer unit and an offer examiner.  More information or documents could be requested, or the offer could be accepted, rejected or returned.  If the offer is rejected, the taxpayer does have appeal rights and can appeal such rejection.  If you have questions related the settlement of an IRS tax debt, speak with a Denver tax attorney at The McGuire Law Firm through a free consultation.  Please enjoy the video below, and hopefully, you have found this information useful.

Call The McGuire Law Firm to schedule a free consultation with a tax attorney in Denver, Colorado or Golden, Colorado.

Denver IRS Tax Debt Relief

What constitutes IRS tax debt relief?  As a tax attorney, I think the following constitute IRS tax debt relief: formalizing an agreement to resolve an outstanding tax debt, resolving a tax audit in a manner favorable to a taxpayer or with no change to the taxpayer’s tax return and saving a taxpayer money through a successful penalty abatement with the IRS or tax settlement with the IRS.  In short, whenever a tax matter with the IRS is resolved and/or the taxpayer is able to be relieved of some of the tax debt they owe this should constitute IRS tax debt relief, right?  These issues are discussed in greater detail in the article and video below.  Please feel free to contact The McGuire Law Firm at anytime to speak with a tax attorney about your tax matters and questions.

What types of agreements are available to resolve a tax debt?  In addition to an installment agreement whereby you make monthly payments to the IRS, you may be a candidate for an offer in compromise, which can be considered a settlement with the IRS.  Yes, you pay the IRS an amount that is less than the total amount due for a resolution of your tax liability. Additionally, the IRS may agree to place your liabilities in a currently non-collectible status.  While in this status, the IRS will not actively enforce collection of the debt, and the collection statute will run.

If you are being audited by the IRS, relief may come in the form of the IRS issuing a no change letter meaning they agree with your return and are not going to issue a notice of deficiency, or the IRS agrees not to currently audit other periods.

In terms of lowering your tax bill and saving money, a potential for big relief comes in the form of the IRS agreeing to abate penalties.  If you can establish causation for the accrual of penalty and such causation is deemed reasonable cause for the abatement of penalties, the IRS can waive all or portions of the tax penalties that have been assessed.

If you are being audited by the IRS or owe taxes to the IRS please consider contacting The McGuire Law Firm to speak with a tax attorney.  A free consultation is offered to all potential clients and a tax attorney is likely to be able to help you resolve the matter.


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Denver IRS Wage Garnishment

So your employer received a notice from the IRS to garnish your wages.  That being said, what is an IRS wage garnishment?  The article and video below have been prepared by a tax attorney at The McGuire Law Firm to provide additional information regarding an IRS wage garnishment.

If you owe individual income taxes, or are responsible for the trust fund recovery penalty from a business, you as an individual owe taxes to the IRS and the IRS can collect from your personal assets.  Generally speaking a levy is a taking of property, and a wage garnishment is a form of levy, basically a levying of your wages.  So how were your wages levied?  Initially, you accrued a tax debt, would have received notices from the IRS and you have yet to establish a formal agreement with the IRS.  After the IRS provided you with due process (a series of notices and appeal rights) the IRS can levy bank accounts and wages.  The IRS will issue the wage garnishment to your employer and your employer is required by law to withhold monies that are not exempt from the wage garnishment and pay them over to the IRS until your employer receives a release of wage garnishment from the IRS.  Further, it is important to note that your employer is subject to liability of they do not properly abide by the wage garnishment that the IRS has issued.

How much if my income will be garnished?  The IRS provides a chart whereby a specific amount of wages are exempt from the wage levy.  The exempt amount is determined by your number of dependents.  After the exemption amount, all other income (wages) are to be paid to the IRS.

Will the IRS release my wage garnishment?

Yes, the IRS will release your wage garnishment under certain circumstances.  If a formal agreement is established, the IRS will release the wage garnishment.  If the wage garnishment is creating an economic hardship, the IRS will release the wage garnishment.  Of course, if the liability is satisfied, the IRS will release the wage garnishment.

How long does the IRS wage garnishment last?

The bad news in regards to a wage garnishment is that unlike a bank levy, which is generally a one-time levy, a wage garnishment is typically continuous meaning that your wages will continue to be subject to the garnishment.  A wage garnishment is not a one-time levy- your wages are levied each and every pay period until the garnishment is released!

If your wages have been garnished by the Internal Revenue Service, you need to deal with and resolve your tax debt.  You can speak with a tax attorney at The McGuire Law Firm regarding your tax matters and a tax attorney can outline a resolution plan and your resolution options based upon your circumstances.  Do not wait until your wages are garnished or your bank account is levied!

Where is a IRS Tax Lien Filed?

Where is a tax lien filed?  The place of filing of a lien is important for multiple reasons and will be discussed in the article below.  Please understand the information provided below and within this email is for informational purposes.  You should always contact a tax attorney or tax professional to discuss current law and/or your specific facts and circumstances.

Internal Revenue Code Section 6323(f) and state law will determine the correct place for the filing for a Notice of Federal Tax Lien.  A tax lien may not have priority over a later purchaser, security interest holder, judgment lien creditor or a mechanic’s lien if the Internal Revenue Service files the Notice of Federal Tax Lien in the wrong place.  The Internal Revenue Code allows for a state to designate one office for the filing of a federal tax lien for real and personal property, but different rules may apply for real property and personal property (tangible or intangible property).  When filing a lien for real property, the tax lien is filed in one office that is designated by the state where the real property is physically located.  Generally this site for filing would be the county recorder or clerk of the county (sometimes referred to as the county clerk and recorder) in the county where the real property is located.  In terms of personal property the place for filing of both tangible and intangible property is the residence of the taxpayer at the time the tax lien is filed.  Most states would generally provide that the office for filing the tax lien regarding an individual’s personal property would be the county clerk’s office in the county where the taxpayer lives or resides.

So given the above, where would the IRS file a tax lien in regards to a business such as a corporation or partnership?  The residence of a corporation or a partnership is considered to be the place whereby the principal office is located, which would be the office where the major business decisions or executive decisions are made.  See S. D’Antoni, Inc. v. Great Atlantic & Pacific Tea Co., Inc., 496 F.2d 1378 (5th Cir 1974).

What if a taxpayer lives in Cambodia or elsewhere abroad?  If a taxpayer lives outside of the United States, for purposes of the filing of a Notice of Federal Tax Lien, the taxpayer is considered to live in Washington, DC.  Therefore, the tax lien would be filed against the taxpayer’s personal property with the Recorder of Deeds for the District of Columbia.

If no office is designated by a state for the filing of the tax lien, the Internal Revenue Code would provide that the lien should be filed in the office of the clerk of the United States District Court for the judicial district in which the property that the tax lien would attach to is situated.  Generally, there have not been many states where the tax lien is file in district court.

Contact a Denver tax attorney at The McGuire Law Firm if you have questions relating to a tax matter, IRS tax lien or any other tax question.  A tax attorney can assist you with tax matters from tax problems to tax planning and analysis.

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Transferring Property Subject to a Federal Tax Lien

What happens if I sell property and have an IRS tax lien?  Can I transfer property if the IRS has filed a tax lien against me?  These are common questions that individuals or businesses who have had a tax lien filed against them may ask a tax attorney.  John McGuire is a tax attorney in Denver, Colorado at The McGuire Law Firm and has drafted the article below to provide some information regarding the above topics.  Please remember that all information on The McGuire Law Firm website is for informational purposes and should not be relied upon, and does not create an attorney client relationship.  Furthermore, when cases are referenced in an article, it is important to know that case law may change, and again, should not be relied upon as current law.

When the IRS files a tax lien against a taxpayer this tax lien will attach to the property of the taxpayer and remain attached to the taxpayer’s property until the lien is either released, expires or the property is discharged from the tax lien.  It is possible to have property discharged from a tax lien whereby the lien remains, but the IRS no longer considers the lien to attach to the property.  This occurs through the acceptance by the Internal Revenue Service of a request for certificate of discharge of a federal tax lien, and will be discussed in other articles.  Once, the lien has attached to property, the transfer of such property that is subject to the federal tax lien does not impact the IRS’ tax lien.  See U.S. v. Bess, 357 U.S. 51, 57 (1958).  If the taxpayer sells property with a tax lien attached, the lien will attach to whatever the taxpayer receives through the transfer.  For example, if a taxpayer owns a corvette and a tax lien has been filed, and thereafter the taxpayer exchanges the corvette for an RV, the lien would attach to the RV.  Thus, the lien will attach to whatever the initial property is substituted or exchanged for because the tax lien can attach to all of the taxpayer’s property and rights to property.  See Phelps v. U.S. 421 U.S. 330, 334-35 (1971)  whereby a tax lien can even attach to cash received through a sale of property.  Of course, it would likely be pretty hard for the Internal Revenue Service to enforce a federal tax lien on cash.

If property that is encumbered by a federal tax lien is transferred to a third party and thereafter the third party exchanges or transfers such property for other property (substitute property) in a manner that the lien would not attach to the initial property (or property transferred) the lien will now attach to the substituted property.  See, Municipal Trust and Savings Bank v. U.S., F.3d 99 (7th Cir. 1997).

The transfer of property subject to a federal tax lien can create many issues including substituted property that the IRS then has a lien on as well.  Speak with a Denver tax attorney at The McGuire Law Firm if you have questions relating to a tax lien.

IRS Installment Agreement

What is an IRS installment agreement?  How much will the IRS want each month to pay back my taxes?  As a tax attorney, these are common questions I am asked when an individual or business owes back taxes to the IRS and is looking at paying such taxes through an installment agreement or payment plan.  The article an video below have been prepared by a Denver tax attorney at The McGuire Law Firm to provide information regarding an IRS installment agreement.

What is an installment agreement with the IRS?

An installment agreement with the IRS is an agreement whereby a taxpayer will make a monthly payment each month to eventually satisfy their IRS tax debt.  The payment can be made by mailing a check, paying via phone or other automatic payment options.

What forms may I need to complete?

If you owe 1040 individual income taxes, you may have to complete Form 433A or 433F.  If you own a business and the business owes taxes, you will need to complete 433B.


Do penalties and interest continue to accrue when I am on an IRS installment agreement?

Yes, penalties and interest continue to accrue.  The failure to pay penalty is cut in half to .25% per month as opposed to .5% per month when an agreement is finalized though.  This penalty will max out at 25%.  Interest continues to accrue until the debt is paid in full at the current interest amount.

Can the IRS levy me when I am on an installment agreement?

No, there is a hold on enforcement as long as you are complying with the installment agreement terms, which will include making the monthly payment and timely paying all future taxes and filing all tax returns.  Thus, if you are making your monthly payment per the payment plan arrangement, timely filing all applicable tax returns and timely paying all taxes, the IRS will not levy your bank account, garnish wages, seize assets or other types of collection action.

Can the IRS still file a tax lien if I am on an installment agreement?

Yes, the IRS can still file a Notice of Federal Tax Lien if you have established an installment agreement.  Although, formalizing an installment agreement can in some circumstances prevent the IRS from filing a federal tax lien, the IRS can still determine that the filing of a tax lien is in the best interest of the government.

Does an IRS installment agreement release my IRS tax lien?

No.  Formalizing an installment agreement with the IRS will not cause your tax lien to be released.  If you continue to make payments and pay off the tax debt, the IRS will release the tax lien or tax liens upon the debt being satisfied.

What if I cannot make my IRS installment agreement payment?

It is probably best to contact the IRS and advise them that the payment cannot be made.   You may be granted a grace period or the ability to adjust the payment amount.  If your overall circumstances have changed, you may even be able to settle your tax debt with an offer in compromise.  I have assisted clients where their circumstances changed and after being on an IRS installment agreement, they became a candidate for a tax settlement with the IRS offer in compromise unit.


If you owe taxes to the IRS, speak with a Denver tax attorney at The McGuire Law Firm regarding your options to resolve such debt.  A tax attorney can assist you with establishing an installment agreement with the IRS or analyzing your ability to settle your tax debt.  The McGuire Law Firm offers a free consultation to all potential clients.

IRS Statute of Limitations by Denver Tax Attorney

How long does the IRS have to collect a tax debt?  What is the IRS statute of limitation for collecting a tax debt?  These are common questions an individual or business may ask if they owe taxes to the IRS, or especially if they have owed taxes to the IRS for quite some time and are hoping the collection statute has passed.

Generally, the IRS has a ten year collection statute.  There are times or actions that can cause the statute to be tolled such as the filing of bankruptcy or the filing of an offer in compromise.  During bankruptcy and while the IRS is reviewing an offer in compromise, they cannot actively enforce collection of a tax debt.  If or when the IRS cannot actively collect, the statute is tolled and the clock is not ticking on the amount of time the IRS to collect the taxes you owe.

If you owes taxes to the IRS, consider speaking with a Denver tax attorney at The McGuire Law Firm in regards to your options to resolve such debt, and your rights as a taxpayer.  A tax attorney can help you resolve your IRS debt and often save you time, money, stress and frustration.  At The McGuire Law Firm, we provide a free consultation to all potential clients and would welcome the opportunity to meet with you.

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IRS 941 Tax Debt

A 941 tax debt (or employment tax debt) to the Internal Revenue Service is a very serious tax liability.  Form 941 is the quarterly tax return whereby an employer will report wages paid, social security, Medicare and federal income tax withheld.  Often when a business is in a cash crunch, the net payroll will be paid to employees, but the taxes are not paid over to the IRS.  When this occurs, the business begins to accrue a 941 tax debt.

The reason a 941 tax liability is so serious is because individuals related to the business can be held personally liable for the trust fund portion of the tax debt.  The trust fund is the amount of social security and Medicare tax and federal income tax withheld from employees.  When not paid to the government, the IRS will determine who the willful and responsible parties are, and propose the personal assessment of the trust fund through the Trust Fund Recovery Penalty.  Once assessed, the IRS will look to collect trust fund from the individuals as well as the business and thus the business and the assessed individual or individuals may be paying on the same tax at the same time.  The Trust Fund Recovery Penalty is non dischargeable through bankruptcy and is considered joint and several liability and thus the IRS could collect the entire amount of the liability from one of the assessed individuals.  For example, say John and Jeff own J Squared, Inc and there is a $100,000 trust fund liability of which both John and Jeff are personally assessed.  John has $100,000 in a bank account and the IRS levies John’s bank account.  The trust fund would be paid from such levy, and John would have paid all of the trust fund debt by himself.  The IRS is not required to collect the trust fund in equal amounts or pro rata per an individual’s ownership in the business. It would be up to John to collect a portion from Jeff either voluntarily or through court action.

If your business owes 941 taxes, or you have been personally assessed the Trust Fund Recovery Penalty, speak with a Denver tax attorney at The McGuire Law Firm.  As a tax attorney Mr. McGuire has represented many businesses that owed 941 taxes to the IRS and successfully resolved such debts.  Further, Mr. McGuire has defended many individuals of whom the IRS was looking to personally assess the trust fund and has successfully resolved many individual trust fund debts if the trust fund was personally assessed.  Schedule a free consultation with a tax attorney in Denver by contacting The McGuire Law Firm.

Denver IRS Tax Problems