tax lien

Episode 13:  In this episode, Timalyn discusses retirement and taxes.  Those topics were a result of some interesting conversations she recently had with her mother.  The economy is turbulent and when combined with complicated tax laws, it can generate a lot of confusion.  Timalyn is going to provide some interesting tips and perspectives for your consideration. 

Is Retirement Income Taxable?

Timalyn reminds us that we may have different types of income during our retirement years.  Most people have social security.  You may have worked for a company that offered pension benefits.  If you worked for the government, you may have a state pension.  There are traditional IRAs, 401(k)s, and Roth IRAs.

Tax planning for people approaching retirement needs to take into consideration 2 important factors:

1. What their total retirement income will be?
2. How much should be withheld in taxes from each income source?

Tax-Deferred Income

Many plans such as 401(k)s, 403(b) plans, or a traditional IRA generate taxable income in your retirement years.  The contributions to the plans were made on a tax-deferred basis.  Basically, the money that went into your plan was contributed before you paid taxes on that money.  Think of it as this was paid from your gross income, each pay period, rather than from your net income.

Social Security Income

This depends on provisional income.  Stick around until the end of the episode for more on this topic.

Roth IRA Distributions

The distributions from your Roth IRA are not taxable.  The contributions were originally made with after-tax dollars.  Roth IRA contributions are made from your net income, rather than from your gross income.  This is different from the tax-deferred contributions of the other plans.  The growth and interest accumulated in your Roth are tax-free. 

Timalyn recommends that your work with a financial advisor and a tax professional to help you make a good, long-term tax plan.

Adjusting Your Withholdings

If you work a W-2 job, you can tell the company how much you want to be withheld from each paycheck.  You do this on your W-4.  You have a Form W-4P for pension.  It takes into account the income from a variety of sources, including annuities and social securities.  If you don’t complete this form correctly, you could have a significant tax liability at the end of the year.

Watch Timalyn’s video on how to complete your W-4 correctly.  Her YouTube channel has a collection of helpful videos.  She’ll soon have a video specifically discussing the W-4P.

Is Social Security Taxable?

As stated earlier, it depends on your provisional income.  The IRS sets provisional income as the threshold at which your income becomes taxable.  Begin with your base income.  These levels are fairly low.  If you’re not retired yet, this is an important decision to consider with your financial advisor.  You may want to share this information with your retired parents.  Many people aren’t prepared for the taxes in retirement.

If you file as a single, head of household, or qualified widower, your base level is $25,000.  Any income beyond this amount is taxable.  As a result, your social security can be subjected to a very high tax rate (i.e. 50% or higher, up to 85%).  If you’re still working, you may want to delay taking social security until your income decreases.

If you’re married and filing jointly, the base income is $32,000.  If you go over that amount, 50%-85% of your social security will be considered taxable.  It depends upon your total household income. 

It’s Not Too Late

If you owe $10,000 or less, can’t pay it today and you’ve filed your taxes on time, go back and watch Timalyn’s video or use the IRS Social Security Tax Calculator to help you adjust your withholdings.  You can set up a guaranteed payment arrangement with the IRS.  Timalyn has a step-by-step e-book you can purchase by clicking this link.  Some people can get your plan set up in as little as 20 minutes.

As we conclude Episode 13, we encourage you to connect with Timalyn on social media. You’ll be able to subscribe to this podcast on Google Podcasts, Spotify, and many other podcast platforms.  

Remember, Timalyn Bowens is America’s Favorite EA and she’s here to fill the tax literacy gap, one taxpayer at a time.  Thanks for listening to today’s episode.

 

For more information about tax relief options, visit https://www.americasfavoriteea.com/ .

If you have any feedback, or suggestions for an upcoming episode topic, please submit them here:  https://www.americasfavoriteea.com/contact.

 

Disclaimer:  This podcast is for informational and educational purposes only.  It provides a framework and possible solutions for solving your tax problems, but it is not legally binding.  Please consult your tax professional regarding your specific tax situation.

 

Episode 10:  In this episode, Timalyn discusses installment agreements related to your tax payments.  She’ll explain how to set them up with the IRS when you can’t pay your taxes in full.  Grab your pen and paper and let’s get started.

Interesting Facts

Did you know, according to a recent study by Amplify Media, Apple podcasts features over 2 million podcasts?  However, 26% of those only have 1 episode.  Of the 2 million+, 64% of them have fewer than 10 episodes.  For this reason, Timalyn is pretty excited to be launching her 10^th episode today.  If you are new to this podcast, feel free to visit the website and listen to previous episodes.

What Is an Installment Agreement?

An IRS installment agreement is a payment arrangement between you and the IRS.  If you are a  qualified taxpayer, you can set it up or it can be handled by your authorized representative.  Your representative must have Form 2848, Power of Attorney and Declaration of Representative on file with the IRS. .  An authorized representative is empowered to negotiate, on your behalf, with IRS. This is what Timalyn does when she steps into her client’s shoes.

You Must be Compliant

A qualified taxpayer is a compliant taxpayer.  This means your tax returns for prior years have been filed and you are making payments on the current tax year.  This is through paycheck withholding or for business owners, which means filing your quarterly, estimated tax payments.  In Episode 2, Timalyn discussed the importance of getting the missing returns filed. Timalyn also addressed compliance in Episode 8.

Owe $10,000 in Taxes or Less?

If you owe $10,000 or less in taxes, have no missing tax returns, haven’t defaulted on a previous tax plan during the past 5 years and could pay off the tax debt in 36-months, you may qualify for a guaranteed installment agreement.

Timalyn has written an e-book with step-by-step instructions on how to set up a Guaranteed Payment Plan.  You can click here to purchase this e-book via her website. 

If you owe the IRS more than $10,000, keep listening.

Interest Accrues on Your Installment Agreement

You may be exposed to interest and penalties on the balance of your tax debt.  In Episode 7, Timalyn explained the importance of tax transcripts.  These may help you to get some of the penalties removed. 

How to Apply for Your Installment Agreement

You will use IRS Form 9465 to begin the process.  There is a significant IRS backlog, so Timalyn doesn’t recommend filing tax forms on paper.  Rather, you should consider filing electronically.  The Form can be filed along with your tax return.

Timalyn walks you through completing IRS Form 9465, step by step in the video IRS Installment Agreement.

Is There a Cost to Set Up an IRS Installment Agreement?

Timalyn explains there’s a $31 monthly fee to set up the plan.  Also, you will still accrue penalties and interest, until the balance is paid.  Low-income taxpayers may be eligible to have the $31 fee waived. 

Note, that the IRS will take the $31 monthly fee based on a debit card installment agreement for your bank account or as a payroll deduction.  The direct debit method is usually required if your balance is $25,000 or more.

Owe the IRS $25,000 or More?

If you decide not to set up a direct debit installment agreement, the IRS may file a tax lien to make sure you don’t try to avoid paying them.   You’ll also pay a higher set-up fee. The non-direct debit installment agreement setup fee is $130, plus the penalties and interest accrued.  Low-income taxpayers will pay a fee of $43, instead of $130.

Avoiding a Revised Payment Plan Fee

Timalyn explains the importance of setting up the plan correctly.  You want to avoid submitting the wrong information about your address or other information.  There is a $10 fee to correct it.  If you change your bank account, there’s a $10 fee.  Bottom line, make sure you thoroughly review your paperwork before submitting it to the IRS.

Streamlined Installment Agreement

What if you owe more than $10,000 and you don’t qualify for a guaranteed installment agreement?  If you can pay off your tax debt in full over 72 months, you can qualify for a streamlined installment agreement. 

As long as the Collection Statue Expiration Date (CSED) doesn’t expire before the 72-month period you should not have to submit your financial information.  Timalyn explains the importance of your CSED when negotiating with the IRS in Episode 7.  However, to avoid having to submit your financials, your tax debt must be lower than $50,000.

Remember, if you owe between $25,000 and $50,000, you still may have to deal with an IRS tax lien, if you don’t have a direct debit installment agreement in place. 

Owe $50,000 or more to the IRS?

You can still set up an arrangement, but you’ll be required to submit your financial information.  It’s now more complicated. You’ll be required to submit IRS Form 433-F Collection Information Statement.

Owe the IRS $100,000 or more?

This situation is even more complex, but it can be done.  Timalyn works with people in this situation. The IRS will require your financial information. This includes your financial investments and business assets.  You’ll use IRS Form 433-F to show how much you can afford to pay the IRS. 

Remember, back taxes don’t have to ruin your life.

You Don’t Have to Do This Alone

If you’d like to speak with Timalyn and her team about your specific situation, visit www.BowensTaxSolutions.com .  Penalties, interest, and other fees are building.  Don’t wait to address your tax issues.

As we conclude Episode 10, we encourage you to connect with Timalyn on social media. You’ll be able to subscribe to this podcast on Google Podcasts, Spotify, and many other podcast platforms.  

Remember, Timalyn Bowens is America’s Favorite EA and she’s here to fill the tax literacy gap, one taxpayer at a time.  Thanks for listening to today’s episode.

For more information about tax relief options, visit https://www.americasfavoriteea.com/ .

If you have any feedback, or suggestions for an upcoming episode topic, please submit them here:  https://www.americasfavoriteea.com/contact.

 

Disclaimer:  This podcast is for informational and educational purposes only.  It provides a framework and possible solutions for solving your tax problems, but it is not legally binding.  Please consult your tax professional regarding your specific tax situation.

Episode 9:  In this episode, Timalyn discusses tax relief.  She’ll discuss what it is and how you can get tax relief.  Most people don’t get excited about taxes.  However, if you’re listening to this podcast, you’re probably trying to avoid tax issues or, unfortunately, you may have one or more right now.  Timalyn will explain how you can find relief from those issues.

If you are new to this podcast, feel free to visit the website and listen to previous episodes.

What Is Tax Relief?

Typically, it’s a government program to provide or ease people into a program to forgive or lower back taxes.  During the pandemic, there were various types relief such as stimulus payments and other resources. The IRS also provides tax relief for individuals and businesses.

The Fresh Start Program

This program enables taxpayers to more easily qualify for certain tax relief programs.  Originally, it was difficult for people to identify options for tax relief and/or tax forgiveness.  Timalyn comments that 1 in 50 taxpayers have some type of IRS issue.  The Fresh Start Program reduced the paperwork required to qualify for tax relief. Some of it can even be streamlined by completing it online. 

For example, if you owe $50,000 or less, you don’t have to submit financial statements, if you can get the taxes paid within a certain amount of time.

How Much Do You Currently Owe the IRS?

Once you know that amount, what’s the amount you can afford to pay?  True tax relief is accomplished in 3 phases:

• Phase 1 – Transcript investigation. This will show you the amount of tax owe, including interest and penalties.  You may also be able to find errors made by the IRS.  If you hire Timalyn, she can assist you in determining if certain reasons for your non-payment may qualify for forgiveness from the IRS. 
• Phase 2 – You need to file any unfiled tax returns. This will include a minimum of the past 3 years.  The IRS also wants you to be current on your quarterly, estimated tax payments.  As an individual wage earner, social security recipient or you receive payments from a pension, your estimated tax payments are actually taken from each paycheck, based on your withholdings.  When you work with Timalyn, she will help to ensure you can make your estimated tax payments, going forward.  She’ll show you how to get and to stay compliant with your tax payments. 
• Phase 3 – Resolution. Timalyn refers to this as the negotiation phase.  You’ve verified how much you owe. You and Timalyn are creating a tax payment plan, including any amount to be forgiven.  Next, she’ll help you to compare your cost of living to the national standards for your area.  You may be able to lower your payment amount based on that standard.

The amount of tax relief for which you qualify, depends upon your personal situation.  It will be different from other people.  Each situation is unique.  This is why the above 3 phases are so important.

If you’d like to speak with Timalyn and her team about your specific situation, visit www.BowensTaxSolutions.com .  Penalties, interest and other fees are building.  Don’t wait to address your tax issues.

As we conclude Episode 9, we encourage you to connect with Timalyn on social media. You’ll be able to subscribe to this podcast on Google Podcasts, Spotify, and many other podcast platforms.  

Remember, Timalyn Bowens is America’s Favorite EA and she’s here to fill the tax literacy gap, one taxpayer at a time.  Thanks for listening to today’s episode.

For more information about tax relief options, visit:  https://www.americasfavoriteea.com/ .

If you have any feedback, or suggestions for an upcoming episode topic, please submit it here:  https://www.americasfavoriteea.com/contact.

 

Disclaimer:  This podcast is for informational and educational purposes only.  It provides a framework and possible solutions for solving your tax problems, but it is not legally binding.  Please consult your tax professional regarding your specific tax situation.

Episode 8:  In this episode, Timalyn answers a question she’s heard many times, “What is self-employment tax?  For a small business owner, this tax can be an unwelcome surprise when they go to file their tax return.  It winds up hitting the business owner with a much larger tax liability than originally anticipated.  Let’s join Timalyn for this episode to learn more.

Self-Employment Tax and Divorce

Timalyn shares a story about how a client ended up owing over $140,000 in back taxes, even though he had filed his taxes.  His wife was ready to leave him because he wouldn’t be able to go on an anniversary trip.  The IRS was preventing him from renewing his passport.  After he hired Timalyn to handle his tax relief situation, she pulled his tax transcripts.  The transcripts revealed that the majority of the back taxes were due to self-employment tax.  He immediately asked her the question, what is self-employment tax?

What Is Self-Employment Tax?

This tax is the entrepreneur’s share of social security and Medicare (FICA).  As a W-2 employee, your FICA is split between you and your employer’s contribution.  Generally, that is 7.65% from both parties.  An entrepreneur is responsible for the entire 15.3% It consists of 12.4% to social security and 2.9% to Medicare. 

In 2022, the first $147,000 in profit is subjected to self-employment tax.  You are eligible for the self-employment tax deduction, which is one-half of the tax. 

Which Types of Businesses Require the Self-Employment Tax?

Timalyn explains the following are subject to the tax:

• Single-member LLCs
• Partners in a partnership

The standard deduction does not reduce the amount of self-employment tax you can pay.  You can calculate the self-employment tax liability using IRS Schedule SE.  It’s submitted with your personal tax return. Timalyn will explain how a partner’s guaranteed payments are treated, in a future episode.

Do Other Individuals Also Have to Pay the Tax?

Yes, and it may surprise you that these other individuals have to pay the tax:

• Anyone who has net earnings of $400 in their business, sole proprietors
• Church employees earning $108.28 or more

Should I Switch to an S-Corp to Avoid Having to Pay the Self-Employment Tax?

This is a common question Timalyn handles.  Actually, it depends.  Timalyn likes the S-corp model, but there are additional costs to consider before making the election to become an S-corp. 

It’s true, as an S-corp, you would no longer pay self-employment tax.  Remember that the tax is a combination of contributions to social security and Medicare.  If you choose S-corp status, you are required to be on payroll.  You will then go back to paying your 7.65% FICA tax from your wages and the business will also pay its 7.65% share.  You’re still paying the 15.3%. 

However, when done correctly, you should be able to save roughly $0.50/dollar, but there are variables and considerations.  Timalyn recommends consulting with a tax professional skilled in tax planning, before you make this decision.

Tax Preparation Expense

Another consideration is that an individual tax return costs less to prepare than a return for a S-corp.  The IRS estimates it should take 10-15 hours to complete the Schedule C portion of the return.  The S-Corp will use IRS Form 1120S.  The form is much more complex and therefore costs more to prepare.  Timalyn discussed this in Episode 6 (look for Step 5 in the audio and show notes for that episode).

You will need to provide your tax preparer income statements and balance sheets, each year.  This means you may have to be much more diligent with your bookkeeping during the year.

Additional Payroll Expense

If you are an S-corp, you have to be on payroll.  Payroll companies obviously charge for these services, so you need to also consider this additional payroll expense.  Timalyn does not recommend companies handling their own payroll.

Closing Thoughts

At the end of the day, one could argue that contributing to social security and Medicare provides a benefit to our society as a whole. 

For every $100 you make as a self-employed person, you going to have $15.30 going to your self-employment tax (after you made at least $400 profit that calendar year).  You also need to set aside funds based on your income tax brackets for federal, state and possibly local tax. 

It takes planning and discipline.  Don’t find yourself in the same situation Timalyn described at the beginning of this episode.

If you’d like to speak with Timalyn and her team about your specific situation, visit www.BowensTaxSolutions.com and click on the blue Book Now button to schedule time.  Penalties, interest and other fees are building.  Don’t wait to address your tax issues.

As we conclude Episode 8, we encourage you to connect with Timalyn on social media. You’ll be able to subscribe to this podcast on Apple Podcasts, Google Podcasts, Spotify, and many other podcast platforms.  

Remember, Timalyn Bowens is America’s Favorite EA and she’s here to fill the tax literacy gap, one taxpayer at a time.  Thanks for listening to today’s episode.

 

For more information about tax relief options, visit:  https://www.americasfavoriteea.com/ .

If you have any feedback, or suggestions for an upcoming episode topic, please submit it here:  https://www.americasfavoriteea.com/contact.

 

Disclaimer:  This podcast is for informational and educational purposes only.  It provides a framework and possible solutions for solving your tax problems, but it is not legally binding.  Please consult your tax professional regarding your specific tax situation.

Episode 7:  In this episode, Timalyn discusses the importance of your tax transcript.  If the IRS has begun sending you letters about unpaid taxes such as failure to file notices or intent to levy notices.  You need to act quickly.  Timalyn explains why the tax transcript is the best place to begin.

What Is a Tax Transcript?

When clients hire Timalyn to represent them in tax relief matters before the IRS, one of the first steps she takes is to review the tax transcript.  Your tax transcript lists everything the IRS recognizes as income for a particular tax year.  It also lists potential deductions.  It’s possible that your tax return omitted income generated or income that was reported to the IRS, but you didn’t receive.  You may also have additional deductions, beyond what the IRS shows on the tax transcript.

This document will verify the amount you actually owe as a tax liability.  This is very important because you don’t want to pay more than what you actually owe.  The IRS does make mistakes.  Timalyn explains a situation she encountered when working with a couple on their tax issues.

Various Types of Tax Transcripts

Timalyn explains that there are multiple types of transcripts.  The wage and income transcript can help you when you can’t find your W2s or 1099s.  It can help you to accurately prepare your returns.

Form 1098 is a mortgage interest statement.  This for can also show interest paid on a student loan.  This form can also be useful when preparing your tax returns.

A return transcript shows what you reported on your return. 

An account transcript is a very powerful transcript.  It shows when you filed your return, was there a refund due and how long you have to claim that return.  If you have back taxes, this account also informs you of how much longer the IRS has to collect those taxes and information on tolling events. 

Tolling events, including a bankruptcy filing or divorce proceeding can extend the time the IRS has to collect the tax debt. 

The Clock is Running

Remember, the IRS only has a specific period of time during which it can collect back taxes. Likewise, you only have a specific period of time to collect a tax refund.  Timalyn recommends that you work with an experienced tax relief expert who can properly analyze your various tax transcripts and ensure that not only are they accurate, but that you take the steps necessary to claim any eligible, but unclaimed refunds. 

The Collections Statute Expiration Date (CSED), which Timalyn discussed in Episode 5, is the last date the IRS has to collect on a past due tax debt.  Depending upon your CSED date and your specific situation, an experienced tax relief expert may be able to help you effectively navigate the tax relief journey, so as to minimize what you actually have to pay the IRS.

What Is a Tolling Event?

Timalyn explains that the IRS, typically, has 10 years to collect.  However, a tolling event can extend the collection period.  A tolling event basically pauses the collection period.  For instance, if you are filing bankruptcy, the IRS cannot collect on back taxes, during that time.  That non-collection period of time will be added onto the back of the original collection period. 

How to Request an IRS Tax Transcript

There are several ways to do this.  You have the option of creating an account at IRS.gov and requesting the information.  Self-service can be convenient, but if you make a mistake regarding the information provided, or simply can’t figure it out due to the complexity, it doesn’t really help you.

Another option is to work with Timalyn Bowens, America’s favorite EA, or another tax professional to properly analyze your transcripts. 

Note:  At this point during the podcast, Timalyn references something she covered in Episode 5, but she actually meant Episode 6.  Hey, mistakes happen.  She’s human, too.

An important point Timalyn makes is that you have to know what you’re dealing with, in order to effectively negotiate with the IRS.  The IRS Tax Transcript can be a complicated document.  Mistakes can be costly.  Timalyn and her team will be happy to assist to resolve your tax debt issues for both you and the IRS.

If you’d like to speak with Timalyn and her team about your specific situation, visit www.BowensTaxSolutions.com and click on the blue Book Now button to schedule time.  Penalties, interest and other fees are building.  Don’t wait to address your tax relief issues.

As we conclude Episode 7, we’d like to encourage you to connect with Timalyn on social media. You’ll be able to subscribe to this podcast on Apple Podcasts, Google Podcasts, Spotify, and many other podcast platforms.  

Remember, Timalyn Bowens is America’s Favorite EA and she’s here to fill the tax literacy gap, one taxpayer at a time.  Thanks for listening to today’s episode.

For more information about tax relief options, visit:  https://www.americasfavoriteea.com/ .

If you have any feedback, or suggestions for an upcoming episode topic, please submit it here:  https://www.americasfavoriteea.com/contact.

 

Disclaimer:  This podcast is for informational and educational purposes only.  It provides a framework and possible solutions for solving your tax problems, but it is not legally binding.  Please consult your tax professional regarding your specific tax situation.

Episode 5:  In this episode, Timalyn discusses one of the biggest fears taxpayers have.  It’s when the IRS actually takes money out of your banking account or seizes other property.  In Episode 4, she discussed issues related to getting a tax lien removed.  This episode focuses on what happens if the tax lien is not successfully resolved.

What Is a Tax Levy?

A tax levy is a legal seizure of your property to satisfy a debt.  This could be money in a bank account, a home, a car, a boat, etc.  The IRS can legal seize up to 80% of your social security benefit check.  Basically, if there’s an asset attached to your name, it can be taken.  The IRS can and will take this step.  However, the process of arriving at a tax levy is worth understanding.  It’s doesn’t have to get to this point.

If you’re about to be faced with a tax levy, Timalyn points out that it’s decision time.  Is enough, enough?  You need to take action, if you want to avoid a tax levy.

5 Steps Before a Tax Levy is Issued

Step #1 – The tax must be assessed.  The IRS will let you know how much is owed.  However, you should have this information from your tax return. 

Step #2 - The IRS will issue a Demand for Payment letter.  It will include a specific date by which the debt must be paid.  Interest will start accruing after that date.  Failure to Pay penalties will also be applied.  As Timalyn discussed in Episode 2, you could also include a Failure to File penalty, if you didn’t file a return or properly request a filing extension.

Step #3 – You’ve either neglected or refused to pay the amount included in the Demand for Payment letter.  This often can be dealt with through simple communication.  If your situation is preventing you from paying, you need to explain the situation to the IRS.  Ideally, they will work with you to set up an arrangement.  Timalyn can also represent you and handle the negotiations on your behalf. 

Step #4 – You receive “the nasty letter.”  This communicates the IRS’ Intent to Levy.  There is a specific process and series of steps the IRS must take before seizing your money and/or other assets.  Normally, you’ll have up to 30 days to respond, but don’t wait.  They are actively trying to identify potential assets attached to your name. 

You have the option of filing a Collections Due Process Appeal.  You have the opportunity to explain why a levy would not be the best course for either you or the IRS.  You should proactively attempt to set up a payment arrangement.  It may or may not be accepted by the IRS, but it’s worth trying. 

Step #5 – The IRS issues an Advance Notification of Third Party Contact.  The IRS has a legal right to contact your employer.  They may decide to send your employer a Lock-in Letter.  This must be completed and returned to the IRS, by your employer.  It shows how your W-4 is filled out.  The IRS also tells your employer how much the employer must take out of your check for payment to the IRS.  They can take up to 80% of the paycheck to satisfy back taxes. 

How Can We Try to Prevent a Tax Levy?

The IRS is operating within its rights.  There have been steps along the way, during which the tax debt could have (or should have) been addressed.  The IRS obviously wants you to make a payment in full.  However, this may not be possible.  Good communication may make it possible to set up a payment arrangement to satisfy the debt. 

It setting up a payment arrangement, you’ll let the IRS know the amount you can afford to pay on a monthly basis.  If the tax debt is less than $50,000, you do not have to submit financial information, assuming you can get it paid off within 36-months or 72-months. 

However, if you are close to the Collection Statute Expiration Date (CSED).  The arrangement may not be approved.  The CSED is the last date the IRS has to collect on a specific amount.  The IRS wants to have a full repayment, prior to the Collection Statute Expiration Date. 

If your tax debt is more than $50,000, you have to option of a Partial Pay Installment Agreement.  Note:  This option is also available if you owe less than $50,000. 

The IRS will look at your living expenses to see what you actually can afford to pay.  As more funds become available, your repayment amount will increase or until the CSED date expires; whichever comes first.

Timalyn created a Back Tax Negotiation Checklist for you to use.  It’ll help you to make sure you have your documents and information prepared, before you try to negotiate with the IRS.  This is a very helpful checklist. 

“Can I Handle this IRS Problem Alone?”

Timalyn receives this question on a regular basis.  Timalyn is passionate about tax work.  It’s what she does every day.  She can’t actually assess your ability to handle tax issues, on your own.  Understanding how to complete tax returns is not the same as handling tax relief issues.  It’s a different area of the tax law.

If you owe $10,000 or less, you may also be able to use Timalyn’s e-book to resolve your tax issues.  It’s available on her website.  It’s called:  Guaranteed Payment Plan; How to Guarantee a Payment Plan with the IRS.

However, if your situation is more complicated, or you want Timalyn’s help, she can speak with you on a discovery call set up via her website at:  https://bookingbowens.as.me/schedule.php. 

Parting Advice from Timalyn

You control the narrative with the IRS.  You can take action TODAY!  The next step is up to you. 

As we conclude Episode 5, we’d like to encourage you to connect with Timalyn on social media. You’ll be able to subscribe to this podcast on Apple Podcasts, Google Podcasts, Spotify, and many other podcast platforms.  

Remember, Timalyn Bowens is America’s Favorite EA and she’s here to fill the tax literacy gap, one taxpayer at a time.  Thanks for listening to today’s episode.

For more information about tax relief options, visit:  https://www.americasfavoriteea.com/ .

If you have any feedback, or suggestions for an upcoming episode topic, please submit it here:  https://www.americasfavoriteea.com/contact

 

Disclaimer:  This podcast is for informational and educational purposes only.  It provides a framework and possible solutions for solving your tax problems, but it is not legally binding.  Please consult your tax professional regarding your specific tax situation.

 

Episode 4:  In this episode, Timalyn provides information for both the sellers and the buyers who are involved in a real estate transaction with a tax lien.  If there is a tax lien on the property, it could cause a significant delay in the sale, but there are options available to help avoid or minimize the delay.  Let’s join Timalyn to learn more.

Timalyn discusses what a tax lien is and how it could affect you, in Episode 3.  If you’re trying to sell a house, a tax lien could be a major obstacle.  In this market, a seller may be able to realize a significant profit, if they can get the transaction completed. 

If you’re trying to purchase a home that has a tax lien, Timalyn will address this issue later in the episode (so stick around).

How Do They Know a Tax Lien Is Involved?

It’s possible the seller may have forgotten about the lien, or not realized the impact a tax lien can have on the sale of a home.  When the title is run in preparation for the sale, a tax lien will show up. 

Timalyn comments that the title company, mortgage lender or even the realtor will often recommend the seller simply contact their tax professional.  This isn’t the best route, because if their tax professional could fix the problem it would already be fixed. All tax professionals do not know how to remove a tax lien.

Tax Lien Basics

If the IRS places a lien on a taxpayer's account the lien is filed at the County Clerk's office and made public record. This informs all creditors (and potential creditors) that the IRS has priority in debt repayment.  The IRS will step in ahead of all other creditors. This means a lender may lose their interest in the house if the IRS issues a tax Levy, and seizes the property due to a tax debt.

Ways to Sell Your Home with a Tax Lien

Timalyn recommends contacting the Centralized Lien Office at 1-800-913-6050 to verify the amount of the lien, how much longer the lien will last, and a payoff amount. 

Whether you intend to sell or buy the property, you can fill out the Application for Certificate of Discharge of Property from a Federal Tax Lien.  You’ll need to have specific information, including the amount of equity the seller has in the home.

The IRS will review the amount of the tax lien, the proposed sale price and current equity.  This information will help to show the IRS they will be able to get paid, after the sale.

What Is Discharging a Lien?

The IRS may give permission for the sale to happen. A lien discharge removes the lien from one piece of property. When selling a home, the IRS discharges the lien but the taxpayer must still agree to pay them from the proceeds. 

What is Lien Subordination?

A lien subordination allows another creditor to step ahead of the IRS. The IRS maintains priority whenever a tax lien exists.   However, in certain circumstances, such as with a subordination, the IRS steps aside allowing a taxpayer to obtain a mortgage or other type of loan.

Timalyn Can Handle the Application as POA

When someone decides to hire Timalyn Bowens to represent them in a tax relief matter, Timalyn will be appointed Power of Attorney (POA) to act on behalf of her client.  The application and documentation are complicated.  Some individuals find it easier to simply let Timalyn handle the process.  This Tax POA authority is granted via tax Form 2848.

How Long Does It Take to Get a Federal Tax Lien Discharged?

Timalyn explains that the process typically takes 45 days.  You should consider this period, especially if a buyer has already expressed an interest in your property.  Time is of the essence.   You may want get Timalyn involved as early as possible.

Schedule a Virtual Appointment with Timalyn

If you’d like to speak with Timalyn Bowens about your particular situation, you can sign up for a tax relief evaluation phone call at https://www.bowenstaxsolutions.com/.  Look for the blue, Book Now button.

During this call, you and Timalyn will evaluate your issues, determine if it’s a good fit, and decide whether or not to work together. 

Can You Make a Profit with a Tax Lien?

Yes.  It’s possible to still walk away with a profit if you sell your home with a tax lien.  Timalyn comments that there are companies low-balling offers to sellers when a tax lien is involved.  These companies understand sellers often don’t understand their options or the process itself.  

If you’re willing to complete and submit the application, or have Timalyn do it on your behalf, you may still be able to walk away with a profit.  You don’t have to accept a low-ball offer just because a federal tax lien is involved.  You have options.  You can empower yourself to move forward with cash, after the sale.  You can stay in control of the process.

Can You Refinance Your Home with a Tax Lien?

Yes.  If you have equity in your home, Timalyn explains that it may be possible for you to refinance.  The mortgage company may have concerns due to the IRS’ involvement, but again you have options. 

Can I Get a Federal Tax Lien Discharge if I Don’t Have a Home to Sell?

Even if you don’t own a home, if you have a tax lien, you may have problems trying to get a loan to buy a home.  Remember, when the IRS attaches a tax lien, it includes all of your assets.  This can include the money in your bank account and 401(k) funds. 

It’s important to get your federal tax lien removed.  Contact the Centralized Lien Office at 1-800-913-6050 to verify the amount of your lien.  If it’s less than $25,000, you may be able to get it removed via a request for a lien withdrawal.  This will require that you make some payments and set up a direct debit arrangement with the IRS before the public notice is removed.  This enables the IRS to be paid on a monthly basis.

Back Tax Negotiation Checklist

Timalyn provides a checklist to help you to prepare for negotiations with the IRS.  You need to have your facts straight and be prepared.  Yes, Timalyn can handle the negotiations for you.  Again, you’ll want to set up an appointment with Timalyn. 

Timalyn explains that a Federal Tax Lien doesn’t directly affect your credit score, but it may influence a lender’s decision to offer you a loan.  If the lien exists, the creditor understands that the IRS would get paid before they do. The denial of a loan based on this will affect your credit score.

A Federal Tax Lien Can Impact Your Business

Interestingly, a Federal Tax Lien on your personal-side can negatively impact your business.  For the IRS, they are connected.  It may limit or deny your ability to sell business property or to obtain a business loan.

Getting a tax lien removed can provide you some breathing room.  In Episode 5, Timalyn will discuss a Federal Tax Levy.

As we conclude Episode 4, we’d like to encourage you to connect with Timalyn on social media .  You’ll be able to subscribe to this podcast on Apple Podcasts, Google Podcasts, Spotify, and many other podcast platforms.  

Remember, Timalyn Bowens is America’s Favorite EA.  She’s here to fill the tax literacy gap, one taxpayer at a time.  Thanks for listening to today’s episode.

For more information about tax relief options, visit:  https://www.americasfavoriteea.com/ .

If you have any feedback, or suggestions for an upcoming episode topic, please submit it here:  https://www.americasfavoriteea.com/contact

Disclaimer:  This podcast is for informational and educational purposes only.  It provides a framework and possible solutions for solving your tax problems, but it is not legally binding.  Please consult your tax professional regarding your specific tax situation.

Episode 3:  In this episode, Timalyn explains IRS tax liens and what you need to know to either avoid them or to get them removed.  This is especially important if you are trying to sell a house with a tax lien.  She’ll do her best to help you to avoid last minute closing delays.  This episode just might save the sale all together. What Is a Tax Lien?

A tax lien is when the IRS notifies all creditors that they have priority over any and all assets you have, due to a tax debt issue.  Before this happens, the IRS will issue a Demand of Payment letter to you.  It provides the amount owed and the payment deadline.  You will typically receive 2-3 letters.

If you ignore the Demand of Payment letters, you’ll receive a Notice of Intent to File a Lien, from the IRS.  Once filed this lien will attach to any real and personal property you own (i.e. house, car, etc.).  It’s registered at your County Clerk’s office, so all creditors know the IRS has a right to their share of the proceeds from any sale of personal property or real estate.  In other words, the IRS is going to get paid first.

Did You Miss a Tax Filing Deadline?

If you did, you should listen to Episode 2 of Tax Relief with Timalyn Bowens.  You may be able to avoid the tax lien and protect your credit.

A tax lien no longer goes on your credit report, but it can still affect your credit.  For example, if you wanted to buy a house the tax lien will show up when the mortgage company runs its reports.  This could keep you from securing the loan to purchase the house.  A tax lien could also eliminate your leverage when you are trying to sell your house. 

In Episode 4, Timalyn will explain exactly how to get a tax lien removed to enable you to buy or sell a house.

Who Gets a Tax Lien?

The Tax Lien is sent to your County Clerk, often because you owe at least $5,000 and have not responded to the previous letters. 

There’s another way you may incur a tax lien.  Assume you owe a $50,000 or more in taxes and you negotiate a payment plan with the IRS.  If you didn’t put those payments on direct debit, but elected to pay by check each month, the IRS can attach a lien to protect its interest.  This may prevent you from getting additional loans. 

If you owe in excess of $50,000, Timalyn recommends paying the balance down to below the $50,000 and then setting up a payment plan using direct debit.  This could help you to avoid the tax lien.

How Long Does a Tax Lien Stay on My Account?

There are many urban legends and misconceptions about how long the IRS has to collect on a tax debt.  In reality, the IRS has 10 years from the date the tax was assessed.  A tax lien will remain on your account for 10 years from the date the lien was issued.  If the 10 years has passed, make sure other potential creditors know the lien has expired.  Tax liens are “self-releasing.”  The tax lien certificate actually shows the release date. 

Timalyn strongly recommends reviewing your tax transcript, if you have any tax issues.  It’s important that you understand what you are responsible for paying.  She can help you to work through these tax debt issues. You may not have to pay as much as you think you owe. 

Tips to Avoid a Tax Lien

• Don’t pray and wait. Be proactive.
• Download the Back Tax Negotiation Checklist .
• Check out your tax transcripts to understand how much you owe and the expiration dates.
• Review your finances to calculate how much you can pay according to the IRS.
• Set up an arrangement to pay any existing tax debt. The IRS is hiring enforcement personnel.  They are increasing collection efforts.
• If you qualify to set up a payment plan, include a direct debit arrangement.

Remember, Timalyn will explain the steps to remove a tax lien to sell or purchase a home in Episode 4.

As we conclude Episode 3, we’d like to encourage you to connect with Timalyn on social media.  You’ll be able to subscribe to this podcast on Apple Podcasts, Google Podcasts, Spotify, and many other podcast platforms.  

Remember, Timalyn Bowens is America’s Favorite EA.  She’s here to fill the tax literacy gap, one taxpayer at a time.  Thanks for listening to today’s episode.

For more information visit:  https://www.americasfavoriteea.com/.  If you have any feedback, or suggestions for an upcoming episode topic, please submit it here:  https://www.americasfavoriteea.com/contact

 

Disclaimer:  This podcast is for informational and educational purposes only.  It provides a framework and possible solutions for solving your tax problems, but it is not legally binding.  Please consult your tax professional regarding your specific tax situation.

 

Der Einstieg in den US-Immobilienmarkt: Richard Banks ist seit vielen Jahren eine intimer Kenner des US-amerikanischen Immobilienmarktes und sowohl in Bayern als auch Florida heimisch. Sein Wissen rund um Tax Liens aber auch Geschäftsgründungen in den USA sowie US-Immobilien vermittelt er an hierzulande ansässige Kunden. Zusammen haben wir alle wichtigen Aspekte rund um die Anlageklasse erörtert, so unter anderem folgende Punkte: Was genau sind Tax Liens und was macht sie so besonders? Wie wird Immobilieneigentum in den USA besteuert? Welche Renditechancen bieten die Tax Lien Certificates? Was für Risiken gehen mit einer Investition in Tax Liens einher? Wie können deutsche Anleger in Tax Liens investieren? Welche einmaligen und laufenden Kosten sollten Anleger rechnen? Ab welchem Investitionsvolumen lohnt eine Anlage in Tax Liens? Was sind die größten Fehler bei der Investition in Tax Liens? Warum sind sie ein guter Einstieg in den US-Immobilienmarkt? Wo gibt es Weiterbildungsangebote zur Investition in Tax Liens? Erster Sponsor dieser Podcast-Folge ist CLARK. Mit der App von CLARK lassen sich alle persönlichen Versicherungsverträge bequem abschließen, papierlos verwalten und rechtzeitig wechseln. Als Hilfestellung vergleicht CLARK laufend die Angebotspalette von über 160 Versicherungsunternehmen. Mit dem Kennwort BARES bei der Registrierung erhalten die Hörer meines Podcasts als Willkommensprämie einen Amazon-Gutschein. Zweiter Sponsor dieser Podcast-Folge ist Blinkist. Der Wissensanbieter fasst die wesentlichen Inhalte von aktuell über 3.000 deutsch- und englischsprachigen Sachbüchern zusammen und stellt diese als Text- und Audiodatei zur Verfügung. Derzeit erhalten meine Hörer und Leser 25 Prozent Rabatt auf das Jahresabo Blinkist Premium.

Kyle Dunbar made his first gold and silver purchase at age 12. 30 years later, Kyle still buys gold as part of his financial plan and portfolio, but now he helps other people add silver and gold to their own investment portfolio.

There was a day when many everyday Americans owned gold and silver. It was common place for Americans to have a little gold in the family, and rightly so since silver and gold have been a form of money for over 3,000 years. Gold and silver are still a primary form of global currency. Do you have silver and gold as part of your financial portfolio?

During the 1930s, many Americans owned gold and silver. It was commonplace until President Franklin Delano Roosevelt passed a law during the great depression making it illegal for citizens to own gold. Americans sold their gold to the American government to help stabilize the country.

America’s currency ran on the backing of gold until the 1970s at which time the United States dollar came off the gold standard essentially separating itself from gold and silver which had been the backbone of commerce and money for over 3,000 years across cultures, empires, and governments.

On this episode of The Millionaire Choice, Tony and Kyle discuss the economics of gold (real money), fiat currencies (fake money), and how silver and gold fit into a person’s financial plans.

Discover more about Kyle Dunbar at https://www.nashvillegoldandcoin.com

 

For a complimentary Life and Money Mentor Session or copy of The Millionaire Choice: Millionaire or Not. You Can Choose. and the Creating Millionaire Families eBook, visit themillionairechoice.com.

See omnystudio.com/listener for privacy information.

Marcus Garrett and Tony talk about putting systems and habits in place to help you with your personal finances and building wealth.

Marcus Garrett is a motivational speaker, staff development manager, and author of D.E.B.T. Free or Die Trying: How I Buried Myself $30,000 in Debt and Dug My Way Out. He co-founded Paychecks and Balances, LLC.—an award-winning business dedicated to helping working professionals make money, save money, and get out of debt before selling his stake in 2020.

As a Certified Internal Auditor, Data and Financial Analyst, Marcus has over a decade of experience building systems within multi-million and multi-billion-dollar organizations. You work hard for your money, too. Let’s work together to design a process that aligns your personal finances with your lifestyle goals. 

Discover more about Marcus Garrett at https://www.themarcusgarrett.com

For a complimentary Life and Money Mentor Session or copy of The Millionaire Choice: Millionaire or Not. You Can Choose. and the Creating Millionaire Families eBook, visit themillionairechoice.com.

See omnystudio.com/listener for privacy information.

Tony talks with Mark Podolsky about a lucrative, but often overlooked form of real estate investing.

Armed with only $3,000, gut-wrenching fear, and absolutely no real estate experience… Mark bought his first few parcels of raw land in 2001.

Today Mark is the author of Dirt Rich, the ultimate guide to helping you build a passive income. and owner of Frontier Properties, a very reputable and successful land investing company, and has been buying and selling land full time since 2001. By focusing on working smart, not hard, he has completed over 5,500 land deals with an average ROI of over 300% on cash flips, and over 1,000% on the deals he sells with financing terms.

Prior to his land investing success, Mark had a high-stress, soulless corporate job, and felt trapped in a state of solo-economic-dependency (i.e. his income stopped as soon as he stopped working).

Escaping solo-economic dependency changed Mark’s life in so many positive ways that he decided to teach, coach and mentor others to help them achieve their financial goals.

Even though Mark invests a lot of his time helping others, he stays actively involved in running his land investing business, and is dedicated to teaching the most current and relevant “real world” land investing methods to his students.

Discover more about Mark Padolsky, a.k.a. The Land Geek at https://www.thelandgeek.com

For a complimentary copy of The Millionaire Choice: Millionaire or Not. You Can Choose. and the Creating Millionaire Families eBook, visit themillionairechoice.com.

See omnystudio.com/listener for privacy information.