We received a phone call the other day from a man wondering if we could connect him to JK Harris. He had been calling JK Harris, never getting connected, and he needed an update on his account with them. The Lothamer employee who answered was confused, and apologized telling this man that we are not affiliated with JK Harris, but if he needed any tax help in the future to give us a call back and that we’d be happy to help him. After this conversation, the Lothamer employee tried calling the national JK Harris number as well as a few local numbers, and none of them even rang.
It turns out JK Harris’ plan for bankruptcy reconstruction has now been turned into liquidation. Not only is this bad news for the more than one hundred people losing their jobs, but this is awful news for any client who was expecting JK Harris to resolve their tax issue. Most have already paid JK Harris for their services and will now have to start over, most without getting that initial money spent back. While this is a financial burden on these clients, there is also the issue of time. Many tax issues can be time-sensitive, with firm deadlines that need to be met.
Well, our phone is still ringing.
We are ready to give you the tax help that you need. If you are a confused former client of JK Harris’, or if you are going through a tax issue and would like to talk to someone you can trust, give us a call. Setting up a free consultation is easy, and our experienced CPAs, attorneys, and enrolled agents are ready to work hard for you.
January 11th, 2012
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With tax season quickly approaching, it’s important to remember to get your W-2 before January 31st. This will make doing your current year taxes quick and easy.
Unfortunately, this isn’t such a quick and easy task when you’re looking for a W-2 from last year, or for some people, ten years ago. We understand that there are people who haven’t filed their taxes in years, and while they are ready to lift this lingering burden off of their shoulders, they don’t even know how to start because they have since misplaced their past W-2’s.
Set up a free consultation with one of our CPAs, attorneys, or enrolled agents. They are capable and have the experience to find them for you. Let us do the searching and get you current with filing your taxes. That way, when January 31st comes around next year, you will only have to worry about getting your current W-2’s. Quick and easy.
January 11th, 2012
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The holiday season can be stressful. With crowded malls, searching long and hard for the right gifts, staying within budget, and making sure you don’t forget anyone on your holiday card list – sometimes the cheer is taken right out of the season. Now imagine how much harder all of that would be if you had a levy on your bank account? Or, if the IRS was flooding your mailbox with overdue tax notices?
Talk about taxing.
If you know that someone you care about is struggling and needs tax help this holiday season, here is a gift idea that you may not have considered. You could give the gift of offering to help pay for their tax issue to be resolved by professionals. You would be giving them the gift of not having to deal with the stress of opening letter after letter from the IRS. Or the gift of being able to sleep at night knowing that the CPAs and attorneys at Lothamer are on their side, working hard to resolve their issue for them.
This holiday season, give the gift that could significantly change a loved one’s current situation. Refer them to our office, and assure them that you will be there financially along their journey to resolution.
December 16th, 2011
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Do you owe back taxes to the State of Michigan? Think you’ll never get any relief with all the interest and penalties they are imposing?
The State of Michigan doesn’t have a settlement program to reduce your tax burden like the IRS does. Normally, there is no way to get a “break” on these taxes, no matter what your financial situation. It’s difficult to even get them to agree to a payment plan, let alone reducing any taxes owed.
However, for a limited time, from May 15th through June 30th, 2011, the State will be offering a tax amnesty program on all penalties, and the interest on those penalties. This includes Sales & Use tax, MI Business tax, personal income tax, and any other type of tax owed to the State.
The last time the State offered this amnesty in 2002, they collected $31.7 million in back taxes and forgave $22.9 million. That’s a 42% reduction!
To determine if this program could benefit you, please call our office at 1-877-TAX BILL to schedule a free consultation with one of our CPAs, who will review your information to see if you qualify.
Don’t wait another decade for this program to come back around! By acting immediately, we can make sure the proper paperwork is filed in a timely manner so that you don’t miss out on this opportunity. We look forward to assisting you on the path to resolution.
March 14th, 2011
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The IRS has announced recent changes to its procedures regarding tax liens that will make it easier for some taxpayers to avoid liens on their credit or property. A tax lien is typically issued when a person owes back taxes, and can affect whether or not a person can get loans or sell their home or other assets. Some employers even check for liens, making it difficult to apply for certain jobs.
The IRS does not divulge a minimum dollar amount a taxpayer must owe to have a lien, but did state that they were “significantly increasing” that amount, so that there would be less tax liens issued overall. More good news for taxpayers owing less than $25,000 is that if they set up a Direct Debit Installment Agreement, the IRS will withdraw any liens. If a taxpayer is already on an Installment Agreement, they can qualify for lien withdrawal by switching to a debit payment arrangement. The IRS also stated that they are simplifying the process of making sure a lien is removed once a person’s tax bill is paid in full.
In addition to these changes, the IRS also plans to make Installment Agreements more accessible to struggling small businesses, and streamline the Offer in Compromise program so that more taxpayers would qualify. Currently, only small businesses owing $10,000 or less qualify for a streamlined Installment Agreement; the new maximum would be $25,000. For Offers in Compromise, the IRS has raised the maximum taxpayer income level, allowing those with incomes up to $100,000 to participate.
There are many options for dealing with your overdue taxes. If you have questions about your back tax bill and what programs you might qualify for, don’t hesitate to contact us at 1-877-TAX-BILL.
February 26th, 2011
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The mere mention of the IRS strikes fear into the hearts of many Americans. People have nightmares that the IRS will throw them in jail for not filing or paying your taxes, or come to their home and seize their belongings. Of all debt collectors, IRS agents have a reputation of being especially nasty in their attempts to collect a tax debt.
While this reputation is not entirely unfounded, the fact of the matter is that the IRS will work with people to assist them. After all, their goal is the same as the taxpayer’s in many cases- to get things caught up and resolved.
In many instances, getting resolution can be as simple as going on the IRS website and setting up a payment plan. Many taxpayers are unaware that if they have all returns filed and owe less than $25,000, the IRS will automatically grant a 5-year payment plan, provided that the taxpayer files and pays on time going forward.
If you’re unable to make payments, or if your tax bill is over $25,000, things may get a bit more complicated, and the IRS is likely to want to collect much more personal information from you. It is usually in your best interest NOT to answer any of the IRS’s questions before consulting a professional. Some clients have given their personal info to the IRS thinking they were trying to be helpful, only to have it used against them in a collection attempt.
You can certainly attempt to deal with the IRS on your own, but most people find that a tax professional is much more likely to obtain a favorable result due to experience. If you do choose to tyr to work with them on your own, you should be armed with detailed information on your income, assets and expenditures, as well as a good deal of patience.
August 12th, 2010
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If you owe the IRS but have been putting off getting resolution for your past due tax debt, now is a great time to see if you may be eligible for a settlement, or Offer in Compromise. The Offer in Compromise program is where the IRS agrees to accept a smaller amount than what you owe, based on your financial situation and ability to pay.
Why is now a better time than ever? Recent reports show that as a result of the home buyers’ tax credit that was being offered, the housing market has finally started to show some signs of improvement, and that means home prices are beginning to pick back up. What does this mean in relation to your tax bill? The IRS uses a number of factors, such as the value of your assets, to determine what you can afford to pay them. That is why it is to your advantage to look into settling now, while home values are still relatively low, so that your assets will total at a lower amount.
Don’t own a home? Now is still a great time to try to get a settlement- the IRS has recently stated that they are loosening the guidelines for the OIC program due to the state of the economy. Those who wait until the economy picks back up may find themselves in a situation of having to pay back their taxes in full due to a change in job status, a raise in income, or other financial change that would then put them in a fully collectible status.
To find out whether the Offer in Compromise program or some other option would be right for you, schedule a consultation with a tax professional.
May 4th, 2010
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Another tax season has come and gone. Most people at this point are sitting back, anxiously awaiting their refund checks. For others, this time of year is just a stressful reminder that they are now one more year delinquent with unfiled returns.
There are a variety of reasons why people stop filing. Often time it’s because they know they’ll owe, and don’t have the money to pay. Other times, something as simple as a missing document can lead someone not to file; then the following year they falsely believe they cannot file the current year without filing the prior year, so they get further behind. Other folks simply find doing their taxes to be a headache, and put it off for that reason.
Whatever a person’s reason for not filing, it is important to know that regardless of whether you owe or get refunds, filing your back taxes (and filing on time going forward) can benefit you. If you haven’t filed because of something as simple as a missing document, you can get copies of wage & income transcripts at E-Tax Resolution. If you think you may have refunds, it’s crucial to file your returns before those refunds expire (three years from the date the return was due).
If you owe, it is also beneficial to file on time, for several reasons. Obviously, by filing on time you will avoid late filing penalties. Also, the IRS will not work with you on any kind of payment arrangement or reduction of your tax bill unless you have your returns filed. Filing your returns prevents the IRS from filing them on your behalf and charging you more tax than what you’d owe (they do not take into account any deductions). Last but not least, the 10-year collection period starts from the time the returns are filed, not when they were due. So if you file late, you are extending the time period the IRS has to collect those taxes from you!
To get caught up with your unfiled taxes and get on the right track going forward, contact us for a free consultation.
April 21st, 2010
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According to a recent article in the Washington Post, right now could be the best time in recent history to resolve your past due IRS tax bill. The IRS has recently announced changes to their collections guidelines, in an acknowledgment of the fact that many taxpayers are struggling in the current economy.
The IRS has announced it will host a series of open houses, where people who are behind can sit down with an IRS agent to attempt to work out a payment schedule that fits with the taxpayer’s budget. To see times and locations of the open houses, you can visit the IRS website. If you do choose to attempt to work directly with the IRS, be prepared to answer detailed questions about your income, assets, and regular monthly expenses. This information is used to determine the amount they feel you should be able to pay monthly.
In addition to having greater flexibility with payment plans, the IRS has also announced it will slightly loosen the standards for the Offer in Compromise program. Rather than taking an average of your last three years of income to determine your collectability, they will consider your current income and potential for future income. However, you may be required to sign an agreement requiring you to pay an additional amount if your income goes back up.
While it is generally a good thing that the IRS is being more sympathetic to taxpayers, they typically will not explore ALL of the options open to you to resolve your tax bill (for example, filing a Chapter 13 bankruptcy to reduce your tax bill). That’s why it can be beneficial to meet with a tax professional to review these options. Offer and compromise
March 31st, 2010
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Have you ever wondered, “Should I file bankruptcy?” When a person has a back tax issue, there are many different paths towards resolution. For those who make too much money to qualify for an Offer in Compromise, or for those unable to come up with the funds to pay a lump sum settlement, filing a Chapter 13 bankruptcy can be a very effective way to put your financial house in order, and to reduce the total tax liability owed.
In a bankruptcy, the IRS distinguishes between priority and non- priority debt. Priority debt is generally your most recent three tax years owed, while anything older is considered non-priority. Any unpaid balances of the non-priority debt will be fully discharged upon completion of the bankruptcy. Clients have been able to go through a Chapter 13 and come out with a totally clean slate with the IRS, effectively paying “pennies on the dollar” for their tax bill.
There can be other advantages of a Chapter 13 as well. For example, if someone could afford $500 a month to pay their IRS bill, but the IRS is demanding $1,000 per month, a bankruptcy can be a means of forcing the government to accept lower payment terms based on your actual ability to pay. Also, all interest and penalties cease to accrue during the bankruptcy period, allowing you to keep the debt from spiraling out of control.
Most national tax relief firms attempt to steer all clients towards an Offer in Compromise or payment plan, and do not look at bankruptcy as a potential solution because they do not offer that service. At Lothamer, we will analyze ALL your options to offer you a comprehensive plan that will make the most financial sense for you. If you’d like to find out your best option, you can contact us here.
March 4th, 2010
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Lothamer is a professional firm of Certified Public Accountants, and was founded by Jesse I. Lothamer, J.D., C.P.A. in 1978. The firm specializes in Tax Representation and Tax Problem Resolution, and has helped thousands of clients settle their tax problems with the IRS and State of Michigan. We not only solve tax problems, but we also show clients innovative ways to get current. With offices across the State of Michigan, Lothamer is Michigan’s leading Tax Resolution Firm, and will continue to provide the general public with tax representation and tax problem resolution for a wide variety of tax problems.