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IRS Telephone Scams

May 13, 2016 by admin

Steven A. Leahy
Beware IRS Telephone Scams

By Steven A Leahy

The biggest news about the IRS lately is really NOT about the IRS. I receive at least 5 calls a week about the “IRS” contacting taxpayers and telling them they are under investigation, or about to be sued or about to be arrested because the owe the IRS money and haven’t paid.

These calls are SCAMS – it isn’t the IRS calling! That is NOT how the IRS works. They will NEVER take a payment over the phone, or accept iTune cards as payment. That’s right, iTune cards. I was on David Hochberg’s Home Sweet Home Chicago Radio show last week to address these scams. You see, David received a call himself. We had previously addressed this issue on his show, so he knew it was a scam. He played along to see where it led.

Initially, the caller told him she could not help him – it was too late. But, with a little questioning, said she could talk to her supervisor to see if they could resolve the matter without having him arrested. Sure enough! If he went to Walgreens, CVS or Rite Aid and purchased around $3000.00 in gift cards, the “IRS” would not arrest him. The gift cards are also known as, get this, iTune cards! So, the caller told him to call back when he had the iTune cards and read the numbers on the back of the card.

As silly as this sounds, it WORKS. There wouldn’t be the number of scam calls as there are if there weren’t vulnerable taxpayer’s out there falling for it. The ONLY reason the scam works is the public is scared to death of the IRS and will do just about anything to avoid being a target.

Now, on rare occasions the IRS will call taxpayer. But they will NEVER ask for payment in this manner. If you EVER receive a call from the IRS, or someone claiming to be from the IRS, tell them you need to speak with your attorney, then hang up the phone. Immediately call my office for advise. If you need help, we are the firm to help. But, if you don’t, we will let you know that for FREE.

So, if you have ANY IRS questions, Call me, Attorney Steven A. Leahy at 312-664-6649. I am the Chicago IRS Answer Man.

Chicago Parking Ticket Amnesty

December 3, 2015 by admin

Steven A. Leahy
Chicago Parking & Red Light Ticket Amnesty

By Steven A Leahy

Here is some information you probably haven’t heard – The City of Chicago has Parking & Red Light Ticket Amnesty program in effect right now! The last time they had this offer was in 2008 (they also had one in 2002 & 2005). But don’t blink, or the program will be over. Also, it doesn’t cover ALL tickets. But the program does include other fines too, like city taxes and other fines imposed by the Department of Administrative Hearings..

So, here is the nuts and bolts: The Chicago Debt Relief Program of 2015 began November 15, 2015 and runs through December 31, 2015. To be eligible for relief, the ticket must have been issued BEFORE January 1, 2012 AND not part of a payment plan or pending legal action from the City.

To take advantage of the program simply pay amount due on the ticket, less the penalties, interest and collection costs before December 31, 2015. The tickets must be paid in full in order to qualify for the program. You can pay all outstanding tickets, or just one ticket, what ever you can afford. If you can’t pay in full, you can set up a payment plan – But the amount due reverts back to the original amount due.

The City of Chicago has Parking & Red Light Ticket Amnesty program has a short life span and limited applicability – But, it is better than nothing.

If you have questions about debt issues, including IRS, Credit Card, Mortgage Foreclosures or collection actions, call me at Opem Tax Resolutions and The Law Office of Steven A. Leahy, PC at 312-664-6649. I am here to help!

If You Have An IRS Tax Lien – Avoid This Common Mistake Or You Could Regret It Forever!

October 1, 2015 by admin

Steven A. Leahy
If You Have An IRS Tax Lien – Avoid This Common Mistake Or You Could Regret It Forever!

By Steven A Leahy

Today I received an email from my friend David Hochberg, the mortgage specialist, asking questions about IRS Tax Liens. I checked my past blog posts, and did not find an article about IRS Tax Liens. So, I thought that I would correct that oversight.

One of the IRS’s collection tactics is filing a tax lien. An IRS tax lien is the government’s legal claim against a taxpayer’s property when a tax debt exists. The lien protects the government’s interest in all your property – what you own now, and what you will own in the future.

A lien automatically comes into existence if a taxpayer fails to pay taxes after receiving the first bill. To publish a lien the IRS files a Notice of Federal Tax Lien with the county where the taxpayer lives. The purpose of the tax lien is to alert creditors that the government has a legal right to your property. IRS tax liens have a detrimental impact on credit scores and limit the taxpayer’s ability to get credit. Taxpayers have a right to appeal the IRS tax lien, called a Collection Due Process hearing. But there are strict time limits to a right to appeal. So, if you receive a Notice of Federal Tax Lien, take action.

Once there is an IRS tax lien, there are several ways to get rid of the lien. The most obvious way to release a lien is to pay the tax debt in full. The IRS must release your tax lien within 30 days after the tax debt has been paid.

If a taxpayer can demonstrate that it is in the government’s best interest to reduce the impact of the tax lien on the taxpayer the IRS may Discharge the property, Subordinate the government’s interest to another creditor or withdraw the tax lien.

A discharge removes the lien from specific property. This option is useful for taxpayers seeking to sell property with a lien attached. If a taxpayer has an IRS tax lien and sells their home, the IRS tax lien remains on the property, unless the lien is paid in full or the IRS agrees to discharge the property from the IRS tax lien. The discharge removes the lien from that specific asset, while maintaining the lien on all other of the taxpayer’s property. This allows the property to pass to the buyers without the IRS tax lien attached. Without discharging the lien, the property is nearly impossible to sell.

Subordination of the lien is a process whereby the IRS allows a creditor to take a superior position over the IRS claim. Subordination is used when a taxpayer wants to refinance or obtain a loan using the property as collateral. Generally, lenders will not loan money on property when the IRS has a tax lien. The old adage: first in time, first in right applies here. If the taxpayer is seeking to borrow money, either through a refinance or a new loan, that will not pay the IRS in full, the IRS may agree to take a second position behind the new lender in order to allow the loan to come to fruition.

A “withdraw” removes the Notice of Federal Tax Lien from public record. The “withdraw,” however, does not release the tax lien or the taxpayer’s obligation to pay the debt. A taxpayer may convince the IRS to withdraw a Notice of Federal Tax Lien if:

The taxpayer’s tax obligation has been satisfied and the taxpayer remains in compliance for the past three years – that means all tax returns and estimated tax payments; or,

A taxpayer owes less than $25,000.00. Has an installment agreement in place with direct debit payments that have been on time for at least 3 consecutive payments, the installment agreement will full pay the IRS obligation and the taxpayer is in full compliance.

A tax lien remains on your credit report for seven to ten years, even after the taxes have been paid in full. However, since 2011, under the IRS Fresh Start Program, a taxpayer can remove the tax lien from their credit report, but it doesn’t happen automatically. The taxpayer must apply using IRS form 12277 “Application for Withdrawal of Filed Form 668 (Y), Notice of Federal Tax Lien.”

If you have an IRS tax lien and are looking to resolve your tax problems, you should find out what your options are. Before you do anything, you should give me a call. We can discuss your all your options. Opem Tax Resolutions & The Law Office of Steven A. Leahy, PC (312) 664-6649. Call NOW to set up your FREE Consultation.

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.

IRS Telephone Scams

Chicago Parking Ticket Amnesty

If You Have An IRS Tax Lien – Avoid This Common Mistake Or You Could Regret It Forever!

Veterans Property Tax Exemption Illinois

Supreme Court Stealing Our Liberty

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