Veterans Property Tax Exemption Illinois

September 24, 2015 by admin

Steven A. Leahy
Veterans Property Tax Exemption Illinois

By Steven A Leahy

Finally, Illinois legislators proposed a bill that I think everyone can agree. Senate Bill 107 (SB 107) provides tax relief for disabled veterans. This bill sailed through the Illinois house and senate without opposition. That’s right, both chambers voted unanimously to pass this bill and Governor Rauner signed it. So, this bill recently became the law of the land. It’s about time the men and women who have given so much for our country are given some form of relief.

SB 107 (Veterans Property Tax Exemption Illinois) creates a multi-tiered set of exemptions from local property taxes for Illinois homeowners who have a service connected disability. The tiers are based on the U.S. Department of Veterans Affairs certification of disability. If a veteran has been certified as at least 30 percent disabled but less than 50 percent, that veteran would qualify for an annual property tax exemption of $2,500.00. If the veteran is certified as least 50 percent disabled, but less than 70 percent, that veteran would qualify for an annual property tax exemption of $5,000.00. And finally, if a veteran is certified to have a disability of 70 percent of greater, “the property is exempt from taxation.”

Understanding property taxes is almost impossible in Illinois. Determining the property tax is dependant on three factors – The assessed value less exemptions (Adjusted Value), multiplied by the tax rate. The assessed value depends on the market value of the property and determines your share of all the taxes paid in your neighborhood. Our sample Vet has a property worth $180,000.00 with an assessed value of $80,000.00.

Next we subtract allowed exemptions from the assessed value, which gives us the Adjusted Value. This is how it works. SB 107 allows exemptions, the first tier grants an exemption of $2,500.00. Veterans in the first tier can deduct $2,500.00 from the assessed value of their property – in addition to any other exemptions they may be eligible for (e.g. homestead, senior citizens, etc.). The second tier may deduct $5,000.00 and the final tier is totally exempt from all property taxes.

Our sample Vet is certified 51% disabled and eligible for the second tier exemption, or $5,000.00. In addition, let’s assume our sample Vet can subtract another $6,000.00 automatic owner-occupancy exemption and perhaps a senior citizen exemption of $4,000.00 (the maximum senior citizen exemption in Illinois). Added together, this veteran would be eligible for $15,000.00 in exemptions. In our example, an accessed value of $80,000.00 less the exemptions of $15,000.00, or an Adjusted Value of $65,000.00.

Finally, we multiply that Adjusted Value by the tax rate of that neighborhood. Our sample Vet lives in Cook County and faces a tax rate of 9.964%. Tax rates differ by communities, depending on all the local governments providing services in your neighborhood. Taxing bodies include municipalities, School Districts, Park Districts, Sanitary Districts, and libraries (there may be others).

Veteran is certified second tier disabled, total exemptions of $15,000.00 with a total Adjusted Value of $65,000.00, multiplied by the tax rate of 9.964%, for a tax bill of $6,476.60, compared to the property tax bill without the SB 107 exemption of $6,974.80. Our sample Vet would realize a total savings of $498.20.

There are nearly 28,000 veterans with service related disabilities in Illinois. This new law (Veterans Property Tax Exemption Illinois) will help those veterans – and we should all be grateful to the veterans and this new law that recognizes their contributions to all of us. If you have questions about how this new law can work for you call Opem Tax Resolutions & The Law Office of Steven A. Leahy, PC (312) 664-6649. Call NOW to set up your FREE Consultation.

Supreme Court Stealing Our Liberty

July 13, 2015 by admin

Steven A. Leahy
Supreme Court Stealing Our Liberty

By Steven A Leahy

Over the next several weeks I am going to review recent Supreme Court of the United States (SCOTUS) opinions that, in my opinion, evidence of our diminishing liberty. Each time the SCOTUS decides a case that is clearly not based on the Constitution or the actual language of the statute – the citizens lose; even if one may agree with the outcome.

The four cases from this last session I will review are KING ET AL. v. BURWELL (King v. Burwell), SECRETARY OF HEALTH AND HUMAN SERVICES, ET AL., ARIZONA STATE LEGISLATURE v. ARIZONA INDEPENDENT REDISTRICTING COMMISSION (Az State Legislature v. AIRC), OBERGEFELL ET AL. v. HODGES, DIRECTOR, OHIO DEPARTMENT OF HEALTH, ET AL. (Obergefell v. Hodges), and TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS ET AL. v. INCLUSIVE COMMUNITIES PROJECT, INC., ET AL. (Texas DOHCA v. ICPI).

Let’s begin with a summary of each case and the issues the court faced. King vs. Burwell is the case involving the Affordable Care Act (ObamaCare). The court was asked to determine if the words “Exchange established by the State” means “Exchange established by the State.” In Obergefell v. Hodges, the court was asked to determine if the Constitution Regquires every state in the Union to recognize same sex marriage. The Court in AX State Legislature v. AIRC was asked if the word “Legislature” really means “The people.” And finally, in Texas DOHCA v. ICPI the court was asked if discrimination, to be actionable, must be intentional, or can a statistical analysis showing “disparate impact” on minorities be enough to prove “unconscious prejudices.” such a way as to make the statute unnecessary.

The SCOTUS, with these decisions, has eroded all of our freedoms. This trend is only growing more brazen with each passing term. If our Constitution and our statutes mean what 5 judges say it means, no matter the words used, then we are no longer a nation of laws – we have become a nation of subjects.

Justice Scalia, Thomas and even Roberts have some harsh words for their colleagues dissenting from these decisions. At least they recognize the danger we are all in when our Constitution becomes a “living breathing document,” with absolutely no meaning at all. Many have fought and died for that document. All of our federal leaders have taken an oath to uphold the Constitution. These decisions should demonstrate the disconnect between that oath, and their actions.

My office protects businesses and families from the IRS; the biggest, baddest federal agency in our government. If you are facing IRS problems, you should give me a call. We can discuss your options in fighting the IRS. – Opem Tax Resolutions & The Law Office of Steven A. Leahy, PC (312) 664-6649. Call NOW to set up your FREE Consultation.

6 Things You Can Do If You Owe The IRS

June 5, 2015 by admin

Steven A. Leahy
6 Things You Can Do If You Owe The IRS

By Steven A Leahy

My office helps businesses and families fix their IRS problems fast. What you need to know is there are only Six Things you can do if you owe the IRS.

The first thing you can do is – pay the IRS. Generally, I recommend that taxpayers pay the IRS any way they can. Borrow from family and friends, even credit cards, better to owe anyone else but the IRS. You can still apply to abate any penalties after you pay. But, it is best to resolve your IRS problem as quickly as you can.

The second thing you can do if you owe the IRS money is to enter into an installment agreement. There are several different kinds of installment agreement: Guaranteed Installment, Streamlined Installments; Partial Pay Installments and Full pay installments. Determining what your monthly payment should be is more an art than a science. If you enter into an installment agreement and default, you will find yourself right back where you started. So, be careful! Don’t let the IRS force you into an agreement you can’t afford.

The next thing you can do if you owe the IRS is an Offer-in-Compromise. An Offer-in-Compromise is a reduced amount the IRS will agree to accept “in compromise.” The recent IRS Fresh Start Initiative changed some of the parameters of this program, making it easier for taxpayers to qualify. Historically only about 18% of applications were approved. So all of those commercials you hear about “paying the IRS pennies on the dollars” actually very rarely occurred. It may take a year or longer before you find if your offer is approved or denied – once the offer is denied you may find yourself right back where you started.

The fourth thing you can do is have the IRS declare you Currently Not Collectible. If you can prove to the IRS that you don’t have enough money at the end of each month to pay your reasonable and necessary expenses and pay the IRS. The IRS will agree to leave you alone for a time – not forever. But they will give you time to recover, without worrying about the IRS garnishing your wages of levying your bank accounts. If your income increases, the IRS may ask you to re-establish your currently not collectible status, or work out an installment agreement. Often, this is a good alternative. People often panic because they know they owe the IRS and know they can’t pay them – so they bury their head in the sand. Instead, address the problem and prove you can’t pay.

You can also file bankruptcy if you owe the IRS – that’s the fifth thing you can do. Taxes in bankruptcy can be very complicated, and not all taxes are dischargeable in bankruptcy. But many taxes are dischargeable, and we have helped many taxpayers walk away from their tax obligations. Because taxes in bankruptcy are complicated, make sure you find an attorney who understands tax issues and not just bankruptcy. Not all bankruptcy attorneys do.

The final thing you can do if you owe the IRS money, and this is what many of my clients do before they hire us to help them, is nothing. You can stick your head in the sand, pretend the IRS will forget about you and worry day and night about freezing bank accounts, garnishing wages and taking away your assets.

While there are only six things you can do if you owe the IRS, there are unlimited ways to mix these options to achieve the best results for you. So, if you have IRS problems, you should work with a local law firm. Better, you should give me a call – Opem Tax Resolutions & The Law Office of Steven A. Leahy, PC (312) 664-6649. I want to help! Call NOW to set up your FREE Consultation.

How You Can Legally Settle Your Bad Debt, Avoid Foreclosure And Get A Fresh Beginning Starting Today…

April 1, 2015 by admin

Steven A. Leahy

How You Can Legally Settle Your Bad Debt, Avoid Foreclosure And Get A Fresh Beginning Starting Today…

By Steven A Leahy

On my radio show, The IRS Radio Hour, we talk a lot about helping people with financial problems. What I have discovered is when people have IRS problems, they often have other financial issues haunting them. My mission is to help as many people as I can achieve full financial recovery. That means, helping with more than just IRS problems. I help people with foreclosure issues, loan modifications, bankruptcy and other debt related problems.

A perfect case study can illustrate this approach:

Bob & Eddie (not their real names) ran a successful home repair business. But, because of health problems and the economic crash, their business seemed to disappear overnight. They were facing immediate foreclosure on two properties, bad debt law suits and massive IRS debt with liens & levies pending. Bob had given up and went into a state of depression. Eddie heard our ad and decided to see if I could help.

After meeting with me face to face, they decided to hire me to help them to full financial recovery. My team and I immediately began our investigation, filed our appearance in court on both of the Foreclosure Actions and our Power of Attorney with the IRS. We slowed down the foreclosure actions, and stopped the IRS collections efforts in order to give us time to complete our investigation.

In this case, after close consultations with Bob and Eddie, we represented them in a Chapter 7 bankruptcy. The bankruptcy resolved their bad debt issues, the threat of deficiency in the foreclosure cases and most, but not all, of their IRS problems.

After discharge of their Chapter 7 bankruptcy, Bob and Eddie were confident to start up a new business. With their new found freedom, they rebuilt their home repair business into a successful enterprise. We negotiated a loan modification on an investment property. Because the second foreclosure was pending more than 2 years after their discharge, they had an opportunity to save some money. In addition, we negotiated a cash for keys arrangement on their home, whereby they received $35,00.00 in cash upon surrender of the home.

Because we timed the chapter 7 correctly, much of their IRS debt was discharged in bankruptcy. There still remained, however, a small balance. We negotiated an installment agreement with the IRS and protected them from further levies and other IRS collection efforts.

Finally, they used this $35,000.00, in addition to money they saved during the duration of the foreclosure case, and purchased a new home. We represented them in the purchase of their new home and they moved on with their lives, in a new home, with a minimum payment to the IRS and free of any other debt.

So, if you have an IRS problem, you should consult with a local attorney. The strategy you use will make ALL the difference in how your life progresses. Before you do anything, you should give me a call. We can discuss your options, complete your an investigation and determine the best course of action. – Opem Tax Resolutions & The Law Office of Steven A. Leahy, PC (312) 664-6649. Call NOW to set up your FREE Consultation.

Time Limits to IRS Collection Efforts

March 24, 2015 by admin

Steven A. Leahy
Time Limits to IRS Collection Efforts

By Steven A Leahy

One of my clients recently experienced a wonderful event. Something he has been waiting a number of years for – an IRS claim for more than $900,000.00 in back taxes, penalties and interest along with the IRS Tax Lien that went along with it, has expired. That means he and his wife can sell their house, free and clear of the IRS claim. Great news!! But to understand this we have to go back to the beginning.

This client ran a company with a number of employees. The manager of the company failed to pay payroll taxes for two quarters. Instead, the manager took that money for himself. The IRS obligation totaled more than $900,000.00! The resulting effects cost my client his business – and a personal tax obligation in the form of the Trust Fund Recovery Penalty for more than $500,000.00.

He battled the IRS for a number of years before he contacted my office. He insisted that an Offer-in-Compromise was his best option. I never reach a conclusion until we gather all the facts and complete an investigation. First thing we did was protected him from IRS collection efforts – so the IRS could not attach his bank account or levy his social security any more. Next, we conducted an investigation and determined the best course of action. He was already 5 years into his battle with the IRS, and he had some equity in his home, that made an Offer-in-Compromise unattractive.

What many don’t know is the IRS has a time limit to collect IRS obligations; a sort of Statute of Limitations. Each tax assessment has a Collection Statute Expiration Date (CSED) – a date after which the government’s right to pursue collection ends. Normally the CSED date is 10 years from the date of assessment of a tax liability.

There are numerous events that can delay, suspend and/or extend the CSED. For example, an Offer-in-Compromise, Bankruptcy, entering a combat zone, moving out of the country and a Collection Due Process Appeal stay the tolling of the CSED, adding time for the IRS to collect. That’s why a full investigation should be completed to deduce the actual CSED date.

For my client, trying to resolve the IRS obligation through other means, such as an Offer-in-Compromise may have worked against him. As it turned out, he was granted Currently Not Collectible status with an outstanding balance at the time of more than $800,000.00! Then he rode out the remaining CSED time. In the interim, the IRS did come back, several years later, and required us to re-establish his Currently Not Collectible Status. But all in all, not a bad result – he walked away from more than $900,000.00 in taxes, penalties and interest.

Now, the IRS can bring an action to collect a tax obligation in court. Once a judgment is entered, the CSED date is no longer applicable. Judgments do not have a statute of limitations. But, in most cases, the IRS does not pursue court action against taxpayers. Court is generally reserved for those egregious cases you may read about in the news. Also, depending on the case, the IRS may ask a taxpayer to waive the CSED date – sometimes that’s a good thing – sometime it isn’t. That should be determined on a case by case basis after consultation with your IRS attorney. That isn’t the kind of decision a taxpayer should make without a complete understanding of the consequences.

Veterans Property Tax Exemption Illinois

Supreme Court Stealing Our Liberty

6 Things You Can Do If You Owe The IRS

How You Can Legally Settle Your Bad Debt, Avoid Foreclosure And Get A Fresh Beginning Starting Today…

How You Can Legally Settle Your Bad Debt, Avoid Foreclosure And Get A Fresh Beginning Starting Today…

Time Limits to IRS Collection Efforts

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