ASK THE CALIFORNIA EMPLOYMENT TAX AND PAYROLL TAX ATTORNEY – WHEN YOU OWE THE IRS – MEDIA ADS – HUNTER BIDEN
By Robert S. Schriebman
Hunter Biden’s matter may be yesterday’s news but there are important takeaways that you need to know. Mr. Biden was charged with an IRS tax crime for owing taxes and not paying them. I have written 20 books dealing with IRS practice and procedure and specifically with IRS collection matters. I have also practiced in this area for decades defending clients who owe the IRS, and either intentionally do not pay or cannot pay due to circumstances beyond their control. Criminal prosecution for failure to pay taxes is a rare event. In all the decades that I have represented those who owe the IRS, I have never had a single client charged with a crime for not paying his/her taxes. But the Hunter Biden affair sends a huge signal to all of us that there is potential criminal exposure for failing to pay the IRS.
Beware of Media Advertisers
Media ads promising miracles for those who owe the IRS, are for the most part, falsehoods. The media advertisers charge big upfront fees, take the client’s money and do very little to help them. My advice is to approach these advertisers with the same caution you would use when negotiating a barbed-wired fence naked! The feedback I have received from clients who, prior coming to me, hired a media advertiser has been consistently negative.
When You Owe the IRS, Communication is the Key!
There are some basic fundamentals that have proven the test of time when dealing with the IRS collector:
- Keep the channels of communication open between you and the tax collector.
- Do not mislead, do not lie.
- Do not secrete your assets.
- Nothing talks to the IRS like money. If you want to achieve the desired result and avoid enforced collection, bring money.
- You can catch more flies with honey than with vinegar. Watch your attitude.
- The IRS collector is not a monster. He/she has a thankless job to do. Remember, no one likes the bill collector.
IRS Has Payment Plan Options and Online Payment Agreements at No Charge
You do not need to spend hard-earned money hiring a media advertiser, an attorney, CPA or an Enrolled Agent. On June 12, 2023, the IRS issued FS-2023-15 touting online services to help you deal with your tax debt at no charge. There are online plans for individuals, online plans for businesses, and online plans for those already working with the IRS.
Individual Taxpayers’ Online Plan Options Include:
The IRS has both a long-term and a short-term online option.
Short-term plan: if you owe the IRS less than $100,000 in taxes, interest and penalties, you will be given an extra 180 days to pay the balance in full.
Long-term plan: if you owe less than $50,000, in taxes, interest and penalties, you may make a free online arrangement to make monthly payments up to 72 months. The IRS will encourage you to use direct debit automatic bank payments, so you do not have to send in monthly check.
Business Taxpayers’ Online Payment Plan Options Include:
Long-term plan: businesses that owe less than $25,000 in taxes, interest and penalties, can make an online installment agreement for up to 24 months.
Taxpayers Already Working With IRS:
Individuals and out-of-business sole proprietors who are already working with IRS to resolve a tax issue, and who owe $250,000 or less, have the option to propose a monthly payment that will; pay the balance over the length of the collection statute – usually 10 years. These payment plans don’t require a financial statement, but a determination for the filling of a notice of federal tax lien still applies.
Owing the IRS, and not having the ability to full-pay, can be very stressful. Unfortunately, the problem can be so overwhelming that many choose a path of denial and never contact the IRS for payment option. If you do not want to go-it-alone, contact a reputable tax professional experienced in negotiating payment arrangements with the IRS. Sadly, the feedback that I have received from clients who first elected to go with a media advertiser has been consistently negative. They charge big upfront fees and do little, if anything, to solve the taxpayer’s problem and to work with the IRS for a win-win solution. The most important thing to remember is that communication with the IRS collector is of prime importance.
Robert Schriebman has a successful practice in the Rolling Hills Estates area of Los Angeles County serving clients throughout California and the United States. He has successfully dedicated more than 50 years to helping individual taxpayers, business owners, CPAs, Enrolled Agents, and tax attorneys navigate the complicated tax systems of the federal and state governments. Mr. Schriebman is in private practice. He is not affiliated in any way with the EDD, and he is not employed by the EDD or any other agency of the State of California.
Robert Schriebman has written the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House
Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House.
Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House in addition to the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.
Web Site Article 742