Collection Law

IRS Delays Benefit my Clients

The IRS is woefully understaffed: in IRS offices across the country staffing is down 7 to 41% and not one office has seen an increase. Complicated correspondence is not answered timely, or sometimes at all. I have a large collection of letters from the IRS saying that it received my inquiry some time ago, that […]

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IRS Tax Debt Ten-Year Clock

Most people don’t know that the IRS stops trying to collect on tax debt after 10 years. This 10-year clock can be valuable to people who owe back taxes from several years ago. The statute of limitation on collecting tax owed is at 26 U.S.Code § 6502(a)(1): the IRS may start a collection proceeding only […]

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When Dealing with the IRS, More Documentation is Better than Less

There are hundreds of strategies for handling IRS issues. But not all strategies are as effective as others. A car-repair owner got audited and brought his tax-return preparer (Jim) to handle the audit. The preparer said to give the IRS as little information as possible . “The IRS won’t want to go to trial, and […]

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It’s Not Easy Dealing with the Franchise Tax Board

My clients owed the California Franchise Tax Board (FTB) $8,000 for the  2011 tax year; they filed their return late, and couldn’t pay it all at once. The FTB sent a notice that it was about to levy – standard procedure, it wants to get paid, let’s scare the taxpayers into making an agreement to […]

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Who Really Owns Your Debt?

I deal a lot with bill collectors.  Here is an eye-opening description of how their business works. Settling a debt can be . . . .unsettling.  If some unknown company collects on a credit card debt that’s five years old, how do you know that the collector actually has the right to collect that debt […]

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Back Payroll Taxes and the IRS: Revenue Agents Aren’t Loan Officers

Business owners owing back payroll taxes often ask me why the IRS won’t lift its levy. After all, these clients argue, I just need a bit of free cash to invest back into my business and then I’ll make enough money to pay what I owe the IRS. Why can’t the IRS act more like […]

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How to Deal with Debt Collectors

Pasadena attorney Daniela Romero has a good article on how to handle calls from debt collectors.  I invite you to read her post because I don’t have the time today to write this myself, and I can’t do it better than her.

Posted in Collection Law, Credit Cards | Comments Off on How to Deal with Debt Collectors

What to do if you get a summons and complaint in a collection case

You are a person who can’t pay your bills.  One day, a disheveled guy comes to your door, asks whether you answer to your name, and when you say “yes,” he hands you a summons in a state-court lawsuit seeking a money judgment for an unpaid debt. Once you get the summons, you have 30 […]

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Unethical collection actions

In the cat-and-mouse game between debtors and creditors, it’s no surprise that there are dishonest debt-collection groups.  This article mentions Brachfeld Law Group: we interact often with this collector.  I generally find them ethical, although I have seen them go out of the bounds of legal and ethical propriety.  They can get away with a […]

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