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Mark Glennon of wirepoints.com

by

Steven A. Leahy

Mark Glennon of wirepoints.com

By Steven A Leahy

This week on the IRS Radio Hour, we are pleased to welcome Mark Glennon of wirepoints.com. Mr. Glennon is an attorney, an entrepreneur, venture capitalist and consultant. He is Managing Director at Ninth Street Advisors, providing consulting services to high growth technology companies and their investors. He specialties include business development, operations and management, equity and debt transactions, e-commerce, B2C, mobile applications, entrepreneurial ventures, reorganizations and workouts. Before moving on to his current passions, Mark practiced law with expertise in debt transactions, turnarounds, bankruptcy and venture capital.

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Recently, Illinois Governor Bruce Rauner appointed Mr. Glennon Co-Chair of Innovate Illinois Advisory Council. The council works closely with the Illinois Department of Commerce and Economic Opportunity and has a core mission of bringing new opportunities to the forefront on behalf of the community. Innovate Illinois Advisory Council is “all about bringing together leaders from different backgrounds who can bring different perspectives — venture capital, business, research, universities, education, community leaders, corporate executives — everybody we can who has a stake in the success of the technology sector,” Rauner said. “We want to get their ideas, we want to get input, we want to get their collaboration.” Mr. Glennon is the perfect choice for that task.

Mr. Glennon writes extensively for wirepoints.com about Illinois Government, pensions, financial matters, technology, and capital formation. He has served on the Board of directorship for Tech companies such as GrubHub, Shoutlet and FunMobility. But, in addition to writing about these important issues, Mr. Glennon is also the founder of Wirepoints.com. Wirepoints.com is a news site that bills itself as a “One stop for all economic and governmental news of macro importance to Illinois and Chicago.”

“WirePoints delivers both original stories and hand selected articles from other sources about Illinois’ economy and government. We want to be a one-stop source for all news of major importance to Illinois’ economy. We have a particular focus on the state and local fiscal crises. Our frustration with poor coverage of those crises by the regular press was the primary reason for starting this site, and that frustration continues. We try to stick to policy, facts and numbers, not politics.”

Not only am I on board with the right of center viewpoints. Listeners may remember that I have a great interest in technology – I have a LL.M. in Information Technology and worked with computers and coding from the birth of personal computers, and BEFORE! Finance is also one of my interests, having earned a Bachelor of Arts Degree in Business Administration, concentration in Finance from Loyola University of Chicago. So, Mr. Glennon is a welcome guest!

We, at the IRS Radio Hour, are anxious to discuss Illinois’ complex and dangerous pension obligations, public school financing, tax policies, budget woes and political corruption. We will also discuss the work of the Innovate Illinois Advisory Board and their efforts to to grow the state’s innovation economy, including developing high-growth industry clusters, attracting resources, developing and retaining top talent, and fostering collaboration among all the parties in the state’s technology and innovation community. These are important issues to all of us at the show, and all of our listeners.

How Long Can You Dodge the IRS? The Answer May Astound You…

by

Steven A. Leahy

How Long Can You Dodge the IRS? The Answer May Astound You…

By Steven A Leahy

Most of the taxpayers who come to see me have been playing hide-and-seek from the IRS for some time. They wonder “How long can I Dodge the IRS”? They hope the IRS will forget about them. I hear, “can I fly under their radar” a lot. The truth is – it may take some time before the IRS catches up with you. But in the end, they will find you. The IRS is like a battle ship: It may take a long time to turn on you and get you in their sites. But, once they do, the damage can be devastating.

The common scenario follows this pattern: The taxpayer owes the IRS on tax day, but doesn’t have the money to pay. The taxpayer gets VERY UPSET and SCARED. So, the taxpayer files an extension. The extension pushes the due date of the return to October 15th, typically. By filing an extension, the taxpayer feels a false sense of relief. It is false because, the taxpayer doesn’t recognize that they have already sustained a penalty for not paying any tax owed. That’s right – the extension, extends the time for filing the return, not for paying the tax. Next, as time goes by, the tax deadline gets lost in life, and goes by without notice.

The next time the taxpayer worries about their tax return is when the next tax year is upon them. The taxpayer has yet to file the previous year, and believes they have to file that year before filing the current year. So, you guessed it, as the April 15th deadline approaches, the taxpayer files another extension – Peace settles in until the next year. This is when the sleep starts to evade the taxpayer. They can bury the thought of their tax problem during the day. But, while laying in bed at night, their tax problem in all they can think of.

The IRS Has 3 Years to Audit

Did you know that the IRS has three years to audit a tax return. If you haven’t filed, they can’t audit the return. But they can file a return for you. When the IRS files a return for you, that is called a Substitute for Return, or SFR. The taxpayer may believe the IRS has forgotten about them, only to learn later (much later) that the IRS has filed the SFR and assessed a tax far in excess of what the taxpayer actually owes. So, often the IRS won’t even begin coming after you 5 years, or more, after the original return was due. This is what gives taxpayers’ with unfiled returns a feeling the IRS has forgotten them.

Now, not filing returns limits you options on resolving your IRS problem. For example, if you haven’t filed a tax return, the tax for that year will never be dischargeable in bankruptcy. That is true, even if the IRS filed an SFR for you. One more problem – if you file your tax return on time, the Collection Statute Expiration Date, or CSED, begins to tick right away.

If, however, the IRS files an SFR, the CSED begins on the date the tax is assessed, not on the date the tax was due. CSED is the time limit set on the IRS to collect a tax debt or file a complaint in court. Generally, CSED is ten years from the date of assessment. Although there are some events that may extend that date. If the IRS believes you are trying to avoid paying your taxes, they will simply file a complaint in court, obtain a judgment and seek to collect that judgment. There isn’t a time limit on collecting a judgment. That means the IRS may never go away until they are paid in full.

Dodging the IRS causes bigger problems down the line. Resolve your IRS problem today. So, if you have ANY IRS questions, Call me, Attorney Steven A. Leahy at 312-664-6649. I am the Chicago IRS Answer Man.

IRS Telephone Scams

by

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.

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

by

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.

Supreme Court Stealing Our Liberty

by

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.

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