Posts Tagged: ‘Tax Debt’

How do you know if it’s the IRS Contacting You?

August 11, 2017 Posted by kingcade

When the IRS contacts you, their first form of communication is through the U.S. Postal Service.  The IRS will NEVER initiate contact though email, social media or text messages.

Here are some additional ways the IRS will contact tax payers. It is important to be aware of these so you do not fall victim to an IRS-related scam.

  • An IRS agent or tax compliance officer may call you after mailing a notice to confirm an appointment or discuss an item for a scheduled audit;
  • Private debt collectors can call taxpayers for the collection of certain outstanding inactive tax liabilities- but only after the taxpayer and their representative has received written notice;
  • Private debt collectors for the IRS must respect taxpayers’ rights and abide by the consumer protection provisions of the Fair Debt Collection Practices Act (FDCPA).

All payments should be made to the U.S. Treasury.  Taxpayers should never use a prepaid debit card or wire transfer to make a payment.  Specific guidelines to make tax payments can be found at irs.gov/payments.

IRS employees will NEVER:

  • Be hostile or insulting;
  • Demand payment without giving taxpayers the opportunity to question or appeal the amount;
  • Require a specific payment method (i.e. – a prepaid debit card);
  • Threaten lawsuits, arrest or deportation for not paying;
  • Request credit or debit card numbers over the phone.

A special page on IRS.gov, “How to know it’s really the IRS calling or knocking on your door,” helps taxpayers determine if a person claiming to be from the IRS is legitimate or a scammer.

If you have any questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

http://www.examiner-enterprise.com/business/20170806/how-do-you-know-when-irs-is-contacting-you

 

400 Percent Increase in Scams this Tax Season

April 17, 2017 Posted by kingcade

According to the IRS, there has been a 400 percent increase in tax scams during this year’s filing season, compared to last year. The IRS has issued warnings about the growing threat of scams as the end of tax season nears. Scammers use tax season to trick taxpayers into disclosing confidential information so they can access bank accounts, make fraudulent purchases, apply for loans and steal tax refunds.

The most common way scammers steal W-2s is through phishing emails. Hackers create a fake email address, posing as a CEO or CFO of a company and send a request to an employee in payroll asking for a PDF of all employees’ W-2s.

According to the Department of Justice, stolen identity tax refund fraud has affected hundreds of thousands of taxpayers and has cost the United States Treasury billions of dollars.

Other common scams claim there is an urgent situation requiring taxpayers’ immediate attention, such as an issue with processing refunds, additional forms or an audit warning.

The best way to protect yourself from tax scams is to know the signs:

  • Emails that appear to be from the IRS with suspicious links and attachments
  • Text messages that instruct you to call a toll-free number
  • Phone calls with pre-recorded messages that ask for confidential information

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

 

The IRS Has Hired a Debt Collector That is Being Sued by The Government

April 7, 2017 Posted by kingcade

The IRS has hired for-profit debt collectors to collect on long-overdue taxes that the government lacks the resources to work on. Four debt collectors were selected for the new contracts, including one whose parent company is currently being sued by the U.S. government over its student loan debt collection practices.

Pioneer Credit Recovery is a subsidiary of Navient, a student loan debt collector. The Consumer Financial Protection Bureau filed a lawsuit against both companies in January claiming that the companies “systematically misled consumers.” A few months prior, Pioneer was selected as one of the IRS debt collection contacts in September, alongside ConServe, Performant and CBE Group.

Pioneer’s parent company Navient, formerly known as Sallie Mae, holds a federal government contract to service approximately $300 billion in student loans owed by 12 million borrowers.

The IRS was mandated by Congress to hire debt collectors, in language that was inserted into a $205 billion highway funding bill in late 2015. Experts on consumer protection say the new contracts create more potential for bad behavior in debt collection.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

What Happens to Tax Debt in Bankruptcy?

January 26, 2017 Posted by kingcade

If you are considering filing for bankruptcy, you may be wondering if your tax debts can be discharged in bankruptcy court. Although the automatic stay will delay the IRS from contacting you about your debts, there are some taxes that cannot be eliminated in bankruptcy court. Here are three basic rules that will tell you if your tax debts are eligible for discharge.

  1. The Three Year Rule. Your tax debts must be three years old from the date they were due, not from the date that you filed. Tax returns are due on April 15th each year. This means that your 2010 taxes are not eligible for discharge until April 15th of 2014. This is because your 2010 taxes were technically due in April 2011. Calculate three years from the time the taxes were due.
  2. Your Tax Returns Must Have Been Filed for Two Years Before Bankruptcy. Taxes must be filed for two years prior to the bankruptcy filing to prevent delinquent taxpayers from filing late returns one day and bankruptcy the next.
  3. The Taxes Must Have Been Assessed More Than 240 Days Ago. The IRS must formally determine that you owe the taxes you are trying to eliminate in bankruptcy more than 240 days before you file the paperwork with the court. Note that an offer in compromise will delay the 240-day rule while it is pending plus an additional 30 days.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

http://www.natlbankruptcy.com/bankruptcy-and-tax-debt-what-happens-to-tax-debt-in-bankruptcy/

http://www.thebankruptcysite.org/resources/bankruptcy/stop-irs-collecting-tax-debts.htm#

The IRS Selects Private Debt Collection Contractors

October 3, 2016 Posted by kingcade

The Internal Revenue Service (IRS) has chosen four private debt collection agencies to help them collect unpaid tax debts. The IRS is required to do so as a result of a provision in a highway funding bill that Congress passed last year. The controversial program is expected to start up next spring.

The four agencies chosen by the IRS to assist in collecting the debts include: CBE Group of Cedar Falls, Iowa, Conserve of Fairport, New York, Performant of Livermore, California and Pioneer of Horseheads, New York.

This will be the third time this program has been enacted. The first two times it was discontinued due to complaints of harassment from taxpayers and low success rates of collecting on debts. A recent increase in scammers posing as IRS employees has also raised some concern in bringing the program back.

In an attempt to cut down on scamming, the IRS said it will first issue a written notice that the unpaid debts are being turned over to a debt collector and then a second letter to confirm the transfer.

The debt collectors will be able to identify as contractors of the IRS and will be expected to follow the provisions of the Fair Debt Collection Practices Act.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com