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Understanding IRS Levies: What You Need to Know

If you’re dealing with unpaid taxes, you may have heard the term “levy” tossed around. But what does it mean, and how can it affect you? Let's take a look at what an IRS levy is, how it works, and what steps you can take to protect yourself.

What Is an IRS Levy?

An IRS levy is a legal way for the Internal Revenue Service (IRS) to collect the money you owe in unpaid taxes. Unlike a lien, which is a claim against your property to secure payment of a tax debt, a levy allows the IRS to seize your assets to satisfy your tax liability. This can include:

• Wage Garnishment: The IRS can take a portion of your paycheck directly from your employer until your tax debt is paid off.
• Bank Account Seizure: The IRS can freeze your bank accounts and take money directly from them.
• Property Seizure: In extreme cases, the IRS can seize other assets, such as your car or home.

How Does a Levy Happen?

Before the IRS can levy your assets, they must follow certain steps:

1. Tax Assessment: The IRS will assess your tax debt and send you a bill outlining how much you owe.
2. Multiple Notices: If you don’t pay the debt, the IRS will send several notices over time, including a Final Notice of Intent to Levy.
3. 30-Day Response Period: After the final notice, you typically have 30 days to respond before the IRS can proceed with the levy.

Why You Should Take IRS Notices Seriously

Ignoring IRS notices won’t make your tax debt disappear. In fact, it will likely make the situation worse. If you receive a notice, it’s essential to take action.

What You Can Do If You Face a Levy

If you find yourself facing an IRS levy, don’t panic! You have several options to address the situation:

1. Request a Collection Due Process (CDP) Hearing: You have the right to appeal the levy and request a hearing. This can provide a temporary stop to the levy while you work to resolve your tax issues.
2. Set Up a Payment Plan: The IRS offers payment plans that allow you to pay off your tax debt over time. This can prevent the levy from happening if approved.
3. Apply for an Offer in Compromise: If you can’t pay the full amount, you may be eligible to settle your tax debt for less than what you owe. This is known as an Offer in Compromise.
4. Prove Financial Hardship: If paying your tax debt would cause severe financial difficulty, you can request to be classified as Currently Not Collectible. This status halts collection efforts, including levies, but doesn’t erase your tax debt.

How David Rappaport Can Help

Navigating the complexities of IRS levies can be challenging. That’s where David Rappaport comes in. As a tax resolution professional, he helps individuals and businesses address tax issues and negotiate with the IRS. Here’s how he can assist you:

• Evaluate Your Situation: David will review your tax situation to determine the best course of action.
• Negotiate on Your Behalf: He'll work directly with the IRS to negotiate terms that work for you, whether it’s a payment plan or an Offer in Compromise.
• Protect Your Assets: His goal is to help you keep your hard-earned assets while resolving your tax issues.

Final Thoughts

Facing an IRS levy can be stressful, but it’s essential to remember that you have options. Don’t ignore the IRS or assume that the problem will go away. The sooner you take action, the better chance you have of resolving your tax issues without losing your assets.

If you’re facing a levy or have received an IRS notice, don’t hesitate to reach out. Together, we can work on a solution that helps you regain control of your financial future. Contact David Rappaport today.

by David Rappaport

Tax Relief for House Flippers

House flipping—buying homes at a low price, fixing them up, and selling them quickly for a profit—can be a great way to make money. But it can also lead to big problems with the IRS if you're not careful. Many house flippers get into trouble because they don’t fully understand the tax rules. If you’re in this situation, it's important to know where things can go wrong and how to fix them.

Common Problems for House Flippers:

1. Misclassifying Income: One of the most common mistakes is treating income from flipping houses as capital gains rather than ordinary income. The IRS often sees it as ordinary income, which is taxed at a higher rate. Mislabeling it can lead to penalties and back taxes.

2. Not Reporting All Income: With so many transactions happening quickly, it’s easy to forget to report some income. But the IRS is strict about this, and missing even a little bit can trigger an audit.

3. Claiming the Wrong Deductions: Many house flippers try to deduct all their expenses, but not everything is deductible the same way. Claiming the wrong deductions can draw IRS attention.

4. Underestimating Quarterly Taxes: Flipping houses means you’re making money throughout the year, so you need to pay taxes quarterly. Many flippers underestimate how much they owe, which can lead to a big tax bill at the end of the year and penalties for underpayment.

How to Fix IRS Problems:

If you’re already facing IRS issues, or you think you’ve made mistakes, it’s important to act quickly. Here’s what you can do:

• Talk to a Tax Professional: A tax expert like David Rappaport can help you navigate the complex tax rules related to flipping properties. With over 36 years of experience, David can help you correct mistakes and reduce penalties.

• Amend Your Tax Returns: If you’ve made errors on past tax returns, you may need to file an amended return. A tax professional can guide you through this process.

• Explore Your Options: Depending on your situation, you might qualify for IRS programs like an Offer in Compromise or an installment agreement to help settle your tax debt.

• Plan for the Future: To avoid future problems, work with a tax expert to make sure you’re reporting income correctly, claiming the right deductions, and paying your quarterly taxes on time.

If you’re a house flipper dealing with IRS issues or want to prevent future problems, contact David Rappaport at Rappaport Tax Relief.

With hundreds of clients helped and nearly four decades of experience, David can guide you through the process and help you get back on track.

Call David at 917-488-8295 NOW for a free consultation, and secure a brighter financial future.

by David Rappaport

Help! The IRS Sent Me a CP1058 Letter. What Do I Do Now?

Receiving a letter from the IRS is never a pleasant experience, especially when it's a CP1058.

But don't panic! Understanding what this letter means and how to respond can make a big difference in how you handle the situation.

What Is a CP1058 Letter?

A CP1058 letter is a final notice from the IRS indicating their intent to levy, which means they plan to seize your property or assets to satisfy your unpaid taxes.

This could include your wages, bank accounts, or other financial assets. It's essentially the IRS saying, "We need you to pay your tax debt, and if you don't, we will take action."

What Happens in 30 Days?

When you receive a CP1058 letter, you have 30 days to respond before the IRS moves forward with their levy. During this time, you have the opportunity to resolve the issue by paying the owed amount, setting up a payment plan, or disputing the amount if you believe it's incorrect. If you don’t act, the IRS intends to take action. 

What Can You Do?

1. Pay the Amount Owed: The quickest way to resolve the issue is to pay the amount owed in full. This stops the levy process and clears your tax debt.

2. Set Up a Payment Plan: If you can't pay the full amount, you can set up a payment plan with the IRS. This allows you to pay off your debt over time, usually in monthly installments.

3. Dispute the Amount: If you believe the IRS has made a mistake, you can dispute the amount owed. This involves providing evidence to support your claim that the tax debt is incorrect.

4. Request a Collection Due Process Hearing: If you need more time to resolve the issue or wish to dispute the levy, you can request a Collection Due Process (CDP) hearing. This hearing gives you the chance to discuss your situation with an independent IRS Office of Appeals.

The Importance of Hiring a Professional

Dealing with the IRS can be complex and intimidating. Having a professional on your side can make the process much smoother and increase your chances of a favorable outcome. A tax resolution expert knows the ins and outs of the system and can provide the guidance and support you need.

Why David Rappaport Is the Professional You Need

When it comes to handling IRS issues, David Rappaport is the expert you want in your corner. With over 30 years of experience as an Enrolled Agent, David specializes in representing clients before all administrative branches of the IRS and State Taxing Authorities. His hands-on approach and commitment to Concierge Accounting mean he goes the extra mile to ensure his clients' complete satisfaction.

David believes in establishing personal relationships with each of his clients, ensuring they receive the highest level of service tailored to their specific needs. Whether you're facing a CP1058 letter or any other tax issue, David Rappaport has the expertise and dedication to help you navigate the complexities of the IRS.

Call David Rappaport Now

Don't wait until it's too late. If you've received a CP1058 letter or are dealing with any other tax issues, call David Rappaport now. Let his experience and commitment to exceptional service guide you to a resolution and peace of mind.

If you’ve received a CP1058 notice, you’re running out of time.

Call David NOW at (917) 488-8295.

by David Rappaport

CP71a Letter in Connecticut

Receiving a CP71a letter from the IRS is more than just a reminder—it's a warning that your tax debt is growing. 

The CP71a letter is sent annually to remind you that you still owe taxes, and with each passing day, interest and penalties continue to pile up. If you've received this letter, you need to act fast. Here’s what it means and why you can’t afford to wait.

What the CP71a Letter Means

The CP71a letter is a yearly notice alerting you to an unpaid tax balance. It shows the total amount you owe, including all accumulated interest and penalties since the debt was first assessed. 

While this letter doesn’t mean the IRS will take immediate action like garnishing your wages or levying your bank account, it’s a clear signal that they could do so if you don’t take action. Your tax debt is not going to disappear on its own.

Why You Can’t Afford to Ignore the CP71a Letter

Ignoring the CP71a letter is a mistake that can lead to serious, irreversible consequences. If you continue to ignore your tax debt, the IRS won’t hesitate to escalate their efforts to collect what you owe. This could mean wage garnishment, bank account seizures, or even a lien on your property. The longer you wait to deal with your tax debt, the more difficult and costly it will become to fix.

What to Do If You Get a CP71a Letter

If you receive a CP71a letter, don’t ignore it—act now. Here’s what you should do:

1. Read the Letter Carefully: Understand the full amount you owe, including how much of it is due to interest and penalties.
2. Consider Payment Options: The IRS expects you to pay what you owe, but if you can’t pay the full amount, there are other options. You might qualify for an installment agreement, allowing you to pay off your debt in smaller, manageable payments over time.
3. Consult a Tax Resolution Expert: If you owe $20,000 or more or have unfiled tax returns, getting professional help is crucial. David Rappaport, with 36 years of experience in tax resolution, can help you understand your options and negotiate with the IRS on your behalf.

Act Now Before It’s Too Late

The CP71a letter is a clear warning to address your tax debt immediately, before things get worse. 

By taking action now, you can avoid the severe consequences that come with ignoring the IRS. 

If you need help with your tax debt, contact David Rappaport at Rappaport Tax Relief today. With a proven history of helping clients resolve their tax issues, David is ready to provide the expert guidance and support you need to get back on track.

Call David at 917-488-8295 for a free consultation today.

by David Rappaport

What Should I Do If I Received an LT11 Letter?

Have you received an LT11 notice from the IRS?

Receiving any letter from the IRS can be nerve-wracking, but it can be especially stressful when it’s an LT11 notice. However, understanding what this letter means and how to respond can help you manage the situation effectively.

What Is an LT11 Letter?

An LT11 letter, also known as a Notice of Intent to Levy and Notice of Your Right to a Hearing, is a serious communication from the IRS.

This letter informs you that the IRS intends to levy (seize) your property or assets to satisfy a tax debt. This can include your wages, bank accounts, or other personal property. Essentially, it's a final warning before the IRS takes action to collect the debt.

What Happens in 30 Days?

Once you receive an LT11 letter, you have 30 days to respond. During this period, you can take several actions to address the situation and potentially stop the levy from happening. It's crucial to act quickly and understand your options.

What Can You Do?

1. Pay the Full Amount Owed: The most straightforward solution is to pay the full amount of the tax debt. This will stop the levy process immediately and settle your debt with the IRS.

2. Arrange a Payment Plan: If you can’t pay the full amount, you can contact the IRS to set up an installment agreement. This allows you to pay off your debt in manageable monthly payments over time.

3. Submit an Offer in Compromise: If paying the full amount or even a payment plan isn’t feasible, you might qualify for an Offer in Compromise, where you can settle your tax debt for less than the full amount owed. This requires proving that you can’t pay the full amount and that settling for less is in the best interest of both parties.

4. Request a Collection Due Process Hearing: If you disagree with the tax debt or the proposed levy, you can request a Collection Due Process (CDP) hearing. This hearing provides an opportunity to discuss your case with an independent IRS Office of Appeals, which can lead to a resolution without a levy.

The Importance of Hiring a Professional

Facing the IRS alone can be daunting and complicated.

Hiring a tax resolution professional can provide you with expert guidance and support, significantly increasing your chances of a favorable outcome. A professional understands IRS procedures and can help you navigate the complex system more effectively.

Why David Rappaport Is the Professional You Need

When dealing with the IRS, having an experienced and knowledgeable professional like David Rappaport is invaluable.

As an Enrolled Agent with over 30 years of experience in the field of taxation, David specializes in representing clients before all administrative branches of the IRS and State Taxing Authorities.

David's hands-on approach and commitment to Concierge Accounting mean he is dedicated to ensuring his clients’ complete satisfaction. He believes in building personal relationships with his clients, providing them with the highest level of service tailored to their specific needs.

Whether you're dealing with an LT11 letter or other tax issues, David Rappaport's expertise and dedication can guide you through the process and help you achieve the best possible outcome.

Call David Rappaport Now

Don’t wait until it’s too late. If you've received an LT11 letter or are facing any other tax issues, call David Rappaport today. Let his extensive experience and commitment to exceptional service help you resolve your tax problems and regain peace of mind.

If you’ve received an LT11 letter, the clock is ticking.

Call David NOW at (917) 488-8295.

by David Rappaport

Tax Resolution in Connecticut

If you're facing tax problems in Connecticut, you're not alone. Many individuals and businesses across the state deal with issues like back taxes, IRS penalties, or unfiled returns. The good news is that you don’t have to face these challenges by yourself. At Rappaport Tax Relief, we specialize in helping people resolve their tax problems quickly and effectively.

Understanding Tax Resolution

Tax resolution is the process of addressing and solving tax-related issues with the IRS or state tax agencies. This can include negotiating settlements, arranging payment plans, stopping wage garnishments, or helping you file overdue tax returns. No matter the problem, the goal is to reduce or eliminate the stress and financial burden that come with tax debt.

Common Tax Problems We Handle

At Rappaport Tax Relief, we’ve seen it all. Whether you owe thousands in back taxes or have been hit with an unexpected audit, our experienced team is ready to help. Some common tax problems we can resolve include:

• Unfiled Tax Returns: If you haven’t filed your taxes in years, we can help you get caught up and avoid severe penalties.
• IRS Liens and Levies: If the IRS has placed a lien on your property or levied your bank account, we can work to get it removed.
• Wage Garnishments: If your wages are being garnished due to unpaid taxes, we can negotiate a resolution that fits your financial situation.
• Offer in Compromise: In some cases, we can settle your tax debt for less than what you owe by negotiating with the IRS.

Why Choose Rappaport Tax Relief?

As a locally based Connecticut tax resolution firm, we understand the unique tax challenges that residents and businesses in our state face. We’re dedicated to providing personalized service, meaning we’ll work closely with you to develop a solution that’s tailored to your specific needs.

Here’s what sets us apart:

• Local Expertise: We have in-depth knowledge of Connecticut tax laws and how they interact with federal regulations. This means we can offer solutions that address both state and IRS tax issues.
• Experience You Can Trust: David Rappaport has years of experience helping Connecticut taxpayers resolve their tax problems. His team is well-versed in all aspects of tax resolution and will work hard to get you the best possible outcome.
• Clear Communication: We believe in keeping our clients informed throughout the process. We’ll explain your options in simple terms and guide you every step of the way.

Take the First Step Towards Relief

If you’re dealing with tax issues in Connecticut, now is the time to take action. Ignoring the problem won’t make it go away—it will only make it worse. At Rappaport Tax Relief, we offer free consultations to help you understand your options and figure out the best path forward.

Contact us today to see how we can help you regain control of your financial future. Don’t wait until the IRS or state tax authorities escalate their actions—let us help you resolve your tax problems once and for all.

For more information or to schedule a consultation, reach out to Rappaport Tax Relief, your trusted partner for tax resolution in Connecticut.

by David Rappaport

LT38 Notice in Connecticut

When you receive an LT38 notice from the IRS, it's not just another piece of mail. It's a wake-up call, signaling that your tax affairs demand immediate attention.

The IRS is ramping up activities post-pandemic, and your financial stability hangs in the balance. The time to act is now.

Let's be clear: procrastination isn't an option. Every day you delay addressing this notice, your tax debt grows. This is a serious matter requiring swift action.

Begin by thoroughly examining the LT38 notice. Understand the implications of the outstanding balance it mentions and why the IRS is reaching out to you. Ignoring the issue won't make it vanish – in fact, it could worsen.

If you've been putting off filing overdue tax returns, consider the LT38 letter your final warning. The longer you wait, the deeper the financial pit you're digging. Take control before matters spiral further.

Payment Options

While settling for less than the full amount owed would be ideal, it may not be feasible for everyone. However, delaying payment only results in more interest and penalties. It's crucial to address your tax obligations promptly, even if full payment isn't immediately possible.

Financial hardship is a valid concern. The IRS provides options for those facing difficulties, such as payment plans or debt settlement arrangements. These avenues could be instrumental in easing your tax burden.

Seek Professional Help

Feeling overwhelmed? Seeking professional assistance can offer clarity and guidance in navigating your tax situation. Don't hesitate to reach out to experts who understand tax complexities.

Enter David Rappapor. With his expertise and dedication, he will diligently work to resolve your tax issues efficiently. Don't wait until it's too late – take action now to secure your financial future.

Call David Rappaport now at 917-488-8295 for a free consultation.

by David Rappaport

I Got a CP2000 Notice. What Should I Do?

If you got a CP2000 letter from the IRS, don't panic! This notice simply means the IRS found some differences between what you reported on your taxes and what they have on record.

Here's what to do next:

Step 1: Stay Calm and Read the Letter Carefully

Getting a CP2000 notice is normal. Take a deep breath and read the letter carefully. Pay close attention to the tax year and the differences they're talking about.

Step 2: Check the Info

Compare the CP2000 notice with your tax return. Make sure everything matches up and there are no mistakes.

Step 3: Respond on Time

The IRS gives you a deadline to respond. It's usually around 30 days from when you got the notice. Make sure to respond on time. If you need more time, ask the IRS for an extension.

Step 4: Get Your Documents Together

Gather all the papers that support what you reported on your taxes. This includes things like W-2s, 1099s, receipts, and any other records. Keep them organized and ready to show the IRS.

Step 5: Write a Clear Response

Write a clear and short response to the CP2000 notice. Explain any differences and include copies of your supporting documents. If you agree with the changes, just sign and send back the response.

Step 6: Get Expert Help

Dealing with IRS stuff can be tricky. Getting help from pros like David Rappaport can make things easier. They know all about taxes and can guide you through the process.

Getting a CP2000 notice might seem scary, but it's nothing to worry too much about. Just follow these steps and consider reaching out to David Rappaport for help.

Ready to take control of your taxes?

Call David Rappaport today to set up a free consultation! You can reach David Rappaport at (917-488-8295. Remember, addressing your CP2000 notice is the first step toward a brighter financial future.

by David Rappaport

How Do I Respond to a CP14 Notice?

Have you recently gotten a CP14 letter from the IRS?

The CP14 letter is a notice that lets you know you owe the IRS money. If you’ve received this letter, you’re not alone,, but it's important to act fast and to know what to do next.

Understanding the CP14 Letter

This letter from the IRS tells you about any money you still owe in taxes. It gives details like how much you owe, when it's due, and if there's any extra money you have to pay because of late payment.

What Steps Should You Take?

Review the Letter: Read the letter carefully to know exactly how much you owe and when it's due.

Check Your Finances: Look at your money situation to see how much you can afford to pay toward what you owe.

Talk to the IRS: It's good to reach out to the IRS to figure out how you can pay. You can ask about paying in installments if you can't pay all at once.

Get Expert Help: If dealing with taxes feels too confusing, getting help from someone who knows tax stuff, like David Rappaport, can make things easier.

Why Get Expert Help?

It can be hard to figure out what to do when you get a CP14 letter. Here's why asking for help from someone like David Rappaport is a good idea:

Knowledge: David Rappaport knows a lot about taxes and can help you understand what to do.

Personalized Help: Everyone's money situation is different. David will take a close look at your situation and find the best way to help you.

Peace of Mind: With David on your side, you can feel better knowing someone who knows what they're doing is helping you.

The David Rappaport Difference

If you're dealing with a CP14 letter or any other tax problem, don't try to handle it alone. David Rappaport can help you out. He’ll make sure you understand what's going on and help you find a solution.

Take the first step toward fixing your CP14 letter.

Call David Rappaport at 917-488-8295 to take action now.

by David Rappaport