High-income earners and business owners deserve straight answers—not marketing scripts. Here is what the rules actually say, and how to think through a real resolution strategy.

If you have found yourself watching a confident social-media video about “IRS loopholes,” “secret tax forgiveness rules,” or resolving years of tax debt for pennies on the dollar, you are not alone. These pitches reach a wide audience—and they often reach people in genuinely difficult situations who deserve better guidance than a sales script.

The clients we work with across Tennessee and Michigan—business owners in Murfreesboro, executives in Nashville, families in Midland and Saginaw—frequently arrive having already absorbed some version of those claims. By the time we sit down together, the goal is straightforward: replace the noise with a realistic picture of what the tax code actually requires, what the IRS actually does, and what resolution actually looks like.

What follows is a plain-language guide to three of the most persistent myths in the tax resolution space, grounded in the rules as they actually work.

Myth One: “The IRS Can Only Go Back a Certain Number of Years”

This claim circulates in two forms. Some versions say the IRS can only pursue three years of returns. Others say six. In either case, the implication is the same: that older unfiled years have somehow expired or become unreachable. That is not an accurate description of the law.

What the Tax Code Actually Says

The standard three-year assessment window under IRC Section 6501(a) applies after a valid return has been filed. When no return is filed, that limitation period generally does not begin to run at all. Under IRC Section 6501(c)(3), the IRS may assess tax at any time for a year in which no return was filed. The regulations confirm this directly.

This distinction matters enormously in practice. An unfiled return does not simply age off the books. Each year a required return was not filed typically remains an open assessment year until that return is actually filed.

What About a Substitute for Return?

Sometimes the IRS prepares a Substitute for Return under IRC Section 6020(b) when a taxpayer has not filed. A reasonable question is whether that document starts the clock. Usually it does not. Under IRC Section 6501(b)(3) and the corresponding regulations, an IRS-prepared substitute return does not serve the same function as a taxpayer-filed return for statute of limitations purposes. The protective effect of filing your own accurate return is not the same as having the IRS file something on your behalf.

Where the “Six-Year” Idea Actually Comes From

There is a real IRS policy behind the six-year figure—it just does not mean what the marketing claims suggest. IRS Policy Statement 5-133 reflects an administrative practice under which nonfilers are generally not required to file more than six years of delinquent returns without prior managerial approval. This is a practical compliance tool designed to help taxpayers return to good standing without the burden of reconstructing decades of records.

But an administrative policy is not a legal cutoff. Older filing obligations do not disappear. The IRS retains the legal authority to pursue earlier years, particularly when there are signs of fraud, willful noncompliance, trust fund issues, or other aggravating circumstances. The six-year guideline describes what the IRS often does—not what it is legally limited to do.

Myth Two: “Filing Multiple Back Returns at Once Will Automatically Trigger an Audit”

This concern keeps some people from filing returns they know they owe. The fear is understandable, but the claim is overstated—and acting on it creates more risk, not less.

How the IRS Actually Selects Returns for Examination

The IRS does not flag returns based on simplistic rules about how many were filed together. Return selection involves a combination of systems and judgment. A significant component is the Discriminant Index Function (DIF), a confidential scoring system that identifies returns with examination potential. Beyond DIF scoring, returns may be selected through manual classification, referrals from other IRS functions or outside parties, related-return or multi-year examinations, and refund claim review.

None of these mechanisms treat the act of filing several delinquent returns simultaneously as an independent trigger.

What Actually Affects Examination Risk

What matters far more than how many returns arrive together is what is on them. Returns that are inconsistent with third-party documents—W-2s, 1099s, K-1s—poorly supported, tied to known compliance issues, or connected to other examined returns carry more risk. Accuracy and documentation are the real variables, not the logistics of how returns were submitted.

The better set of questions before filing back returns is not about audit avoidance. It is: Are the returns accurate? Are they consistent with available income records? Can we support the positions taken? Are there existing IRS collection or examination matters that should affect how we approach the filings?

Myth Three: “Almost Anyone Can Settle Tax Debt for Pennies on the Dollar”

This one appears in more advertising than any other claim in the tax resolution space. It is also the one most likely to result in a taxpayer paying significant fees for a program they were never likely to qualify for.

What an Offer in Compromise Actually Is

An Offer in Compromise (OIC) is a real IRS program, established under IRC Section 7122, that allows the IRS to settle a tax liability for less than the full amount owed. It exists because the IRS recognizes that in certain circumstances, accepting less produces better results for the government than pursuing uncollectible debts indefinitely. The IRS itself describes compromise as a tool for cases where full collection is unlikely—not as a routine forgiveness mechanism available to most taxpayers.

The IRS recognizes three grounds for compromise: doubt as to liability, doubt as to collectibility, and effective tax administration. For most people asking about settling tax debt, the applicable standard is doubt as to collectibility.

The Standard the IRS Actually Applies

Under the regulations, doubt as to collectibility exists when a taxpayer’s assets and income are insufficient to satisfy the full liability. In practical terms, the IRS asks whether, looking at a taxpayer’s available equity and realistic future income, full collection is a reasonable expectation. If the answer is yes, an offer is unlikely to be accepted.

The IRS calculates what it calls “reasonable collection potential”—a figure that incorporates net realizable equity in assets and an allowance for future income after necessary living expenses. This is a mathematical analysis, not a negotiation based on persuasive marketing. Living expenses are evaluated against IRS national and local standards, so a taxpayer’s personal budget is not accepted as-is.

What Is Typically Left Out of OIC Advertising

Most promotional content omits several important details:

• Offers must be submitted on the proper IRS forms (Form 656, along with Form 433-A or 433-B), with required financial disclosure.
• Most offers require upfront payment at submission, which is generally nonrefundable even if the offer is rejected.
• The IRS retains any refunds for returns filed through the date of acceptance.
• An accepted offer requires five years of full tax compliance—timely filing and payment—or the compromise defaults and the original liability is reinstated.
• The IRS itself recommends that compromise be considered only after other payment options have been explored.

The acceptance numbers are worth understanding as context. In FY2024, the IRS received approximately 33,591 offers and accepted 7,199. That is a meaningful acceptance rate for taxpayers who genuinely qualify—and a poor outlook for those who do not.

What Usually Resolves Tax Debt Instead

For many taxpayers, the right answer is not an offer in compromise. The appropriate resolution may be full payment after correcting an inflated substitute-for-return balance, a structured installment agreement, temporary currently-not-collectible status, penalty abatement where the facts support it, or a combination of these. A proper resolution strategy begins with a careful diagnosis of the actual balance, filing status, and collection posture—not with a preselected outcome.

If You Are Behind: A Practical Starting Point

Whether you are a business owner in Franklin or Rutherford County who has let filings slide during a difficult period, or an individual in Midland or Saginaw dealing with years of accumulated IRS notices, the path forward follows a consistent sequence.

The first step is establishing an accurate picture of the situation: which years are unfiled, whether the IRS has assessed anything through substitute returns, what income records exist, and whether there are active collection or examination matters in play. That assessment drives every decision that follows.

The second step is filing accurate returns. Properly prepared returns reduce inflated substitute-for-return assessments, open access to payment and penalty relief options, and move a matter from an open problem into a defined one. That shift—from uncertainty to a known balance with known options—is often the most significant thing a resolution engagement accomplishes.

The third step is evaluating the right resolution tool based on actual facts: the correct balance owed, the taxpayer’s assets and income, and the collection posture. That evaluation may point toward payment, installment arrangements, a penalty challenge, or, in appropriate cases, a compromise. The path is determined by the facts, not by which option was advertised most prominently.

How to Evaluate a Tax Resolution Provider

For advisors who share this article with clients, and for individuals doing their own due diligence, a few questions worth asking any tax resolution provider:

• A trustworthy professional will say directly whether a particular outcome is unlikely, not just what the best case might be.Do they explain the downside as clearly as the upside?
• Some firms are primarily sales organizations that pass matters to others after the engagement begins. Understand whether you are working with a CPA, enrolled agent, or tax attorney, and whether that person will actually analyze your transcripts, prepare your returns, and communicate with the IRS.Who actually handles the work?
• A serious analysis covers assets, income, allowable expenses, compliance history, and alternative payment options before concluding that a compromise is warranted. If the conversation starts with a settlement percentage, that is a signal worth noting.How do they determine whether an offer is appropriate?
• Sound representation depends on filing history, income sources, account transcripts, family situation, and business involvement. Representation that bypasses that analysis in favor of a standard approach is often expensive and disappointing.Is the analysis fact-specific?

A Summary of the Key Points

If there are unfiled returns in the picture, the most useful next step is a careful review of the filing history, available transcripts, and actual resolution options—not a sales consultation built around a preselected outcome.

Trusted advisors in the communities we serve—CPAs, financial planners, and attorneys across Nashville, Murfreesboro, Franklin, Midland, and Saginaw—often reach out when these situations arise for their clients. We welcome that collaboration, and we are always glad to help think these situations through carefully.

Every year, individuals and business owners across Tennessee and Michigan receive an IRS notice and immediately assume the situation is more serious than it actually is. Many have already spoken with a national “tax relief” company that promised dramatic outcomes before fully understanding the facts — only to find that significant fees were paid while the underlying issue went unresolved.

The reality is that many IRS tax balances — particularly smaller ones — can be resolved calmly and methodically once the situation is properly evaluated. For taxpayers in Murfreesboro, Nashville, and Franklin, Tennessee, as well as Midland and Saginaw, Michigan, the most important first step is usually not urgency. It is understanding your available options and addressing the issue before it becomes unnecessarily complicated

Key Takeaway: Tax problems become more manageable — not less — when addressed early and thoughtfully. Early action preserves options. Delay eliminates them.

Start With a Proper Evaluation: The Questions That Matter

Responsible tax professionals rarely recommend a specific resolution strategy before reviewing the relevant facts. Before determining the right path forward, several important questions must be answered:

• How much tax is actually owed?
• Have all required federal and state tax returns been filed?
• What stage of the IRS collection process has been reached?
• What is the taxpayer’s current financial ability to pay?
• Are there planning opportunities that could prevent future issues?

Only after these questions are addressed does it make sense to determine whether a payment arrangement, negotiation, or another resolution strategy is appropriate. For many taxpayers, the answer is more straightforward than they expected.

Why Early Communication With the IRS Prevents Escalation

One of the most common drivers of IRS collection problems is lack of communication. When IRS notices go unanswered, the collection process continues moving forward automatically. Over time, that process escalates from simple billing notices to more serious enforcement measures — including liens, levies, and wage garnishments.
When taxpayers respond early — requesting time to pay, setting up payment arrangements, or providing requested financial information — the situation is often stabilized before enforcement becomes necessary. Early communication preserves options.

Understanding IRS Collection Thresholds

Federal Tax Lien Filing

Under IRS administrative guidelines, the Service may consider filing a Notice of Federal Tax Lien (NFTL) when an unpaid balance exceeds $10,000. However, in practical terms, the IRS often does not routinely file liens until balances approach $50,000 — though this can vary depending on the specific facts of a case. Many taxpayers still have meaningful time to resolve the situation before enforcement escalates.

The “Seriously Delinquent” Tax Debt Threshold and Passport Risk

Under Internal Revenue Code §7345, when a taxpayer’s total federal tax debt exceeds a threshold adjusted annually for inflation — currently approximately $64,000 — the IRS may certify the debt to the U.S. State Department. This can lead to denial of a passport application, revocation or limitation of an existing passport, and restrictions on international travel. For business owners and professionals who travel internationally, addressing IRS balances well before this threshold is essential.

IRS Tax Resolution Options: What Is Actually Available

The IRS offers several programs designed to help taxpayers resolve manageable balances in an orderly way. In many cases — particularly when balances are below $50,000 — the process can be relatively straightforward.

Short-Term Payment Extension (Up to 120 Days)

Taxpayers who expect to pay their balance within approximately 120 days may qualify for a short-term extension. No formal installment agreement is required, though interest and penalties continue to accrue until the balance is paid in full.

Streamlined Installment Agreement

One of the most commonly used IRS resolution tools. Available when the total balance owed is $50,000 or less:

• The balance must generally be paid within 72 months or before the collection statute expires
• A detailed financial disclosure is typically not required
• The arrangement can often be established online or with Form 9465
• Payments are usually made through direct debit or payroll deduction

Standard Installment Agreement

If the balance cannot be paid within the streamlined time frame, the IRS may still allow a payment plan after reviewing the taxpayer’s financial condition. This process generally requires submitting financial information through Form 433-F or related forms.

Partial Payment Installment Agreement (PPIA)

When a taxpayer can make monthly payments but cannot fully satisfy the debt before the IRS collection statute expires, the IRS may accept a Partial Payment Installment Agreement. This involves ongoing financial review and can result in a portion of the total debt never being collected.

Offer in Compromise (OIC)

An Offer in Compromise allows certain taxpayers to settle their tax debt for less than the full amount owed when the IRS determines the full balance is unlikely to be collected. Offers are evaluated based on the taxpayer’s ability to pay, equity in assets, and income relative to allowable living expenses.
Important: Offers in Compromise receive significant attention in national advertising but are appropriate only in specific circumstances. They require careful financial analysis before submission. Not every taxpayer qualifies.

Currently Not Collectible (CNC) Status

If paying the tax would prevent a taxpayer from covering basic living expenses, the IRS may place the account in Currently Not Collectible status. Active collection efforts are suspended, though interest and penalties continue to accrue. The IRS may periodically review the taxpayer’s financial condition.

When Does a Tax Resolution Attorney Add Value?

Although many IRS balances can be handled directly with the Service, certain situations genuinely benefit from experienced professional guidance:

• Multiple years of unfiled federal or state tax returns
• Balances approaching IRS enforcement thresholds
• Business owners with payroll tax liabilities or complex financial structures
• Disputes regarding the accuracy of a tax assessment
• Negotiating advanced strategies such as Offers in Compromise or Partial Payment agreements
• Situations involving IRS revenue officers or active collection enforcement

For business owners in particular, unresolved IRS matters can create complications with financing, business partnerships, and long-term succession planning. Addressing these issues thoughtfully — before they reach enforcement — helps maintain both financial clarity and operational stability.

A Practical Perspective on Tax Resolution

In our experience, the most effective approach to resolving an IRS problem is rarely dramatic. More often, it involves carefully reviewing the facts, stabilizing the situation with the IRS, and creating a clear, documented path toward resolution.

In some cases, that means professional representation. In others, it simply means helping a taxpayer understand the steps needed to address the issue responsibly — without overpaying for solutions they do not need.
The families and business owners we work with in Rutherford County, Nashville, Franklin, Midland, and Saginaw appreciate this approach because it focuses on reducing uncertainty rather than creating it.

Headlines about prominent tax cases tend to focus on spectacle: a well-known name, a large dollar amount, and the outcome of a criminal trial. What receives far less attention is the quieter and far more useful question for successful professionals and business owners: what practical steps could have prevented the situation from reaching that point in the first place?

The recent federal conviction of Thomas C. Goldstein — a widely known Supreme Court advocate and co-founder of SCOTUSblog — offers an opportunity to reflect on exactly that question. A federal jury in Greenbelt, Maryland found him guilty on 12 of 16 counts, including tax evasion, filing false tax returns, willful failure to pay taxes, and making false statements on mortgage applications. Prosecutors described a pattern in which millions in gambling income were concealed, law firm funds were diverted to cover personal debts, and lenders were misled about substantial liabilities.

🔗  Source: U.S. Department of Justice — Prominent Lawyer Convicted at Trial of Tax Evasion and Mortgage Fraud

The purpose of this discussion is not to revisit the specifics of one individual’s circumstances. Instead, it highlights several governance and tax-planning issues that often sit quietly in the background of similar cases. These are the types of issues experienced advisors regularly address with business owners, investors, and professionals in communities such as Midland and Saginaw, Michigan, and Murfreesboro, Nashville, Franklin, and throughout Rutherford County, Tennessee.

When handled thoughtfully, these matters rarely become crises. When handled casually, they can create avoidable risk.

FOUR INSTRUCTIVE THEMES

LESSON 1    Treat Gambling Like a Ledger, Not a Hobby

Federal tax law treats gambling winnings as taxable income regardless of the source — casinos, private poker games, online platforms, tournaments, sports wagering, or lotteries. Losses may be deductible, but only to the extent of gambling winnings, under   IRC §165(d)  . For individuals who are not professional gamblers, winnings are typically reported as “other income” on the individual return, while losses are claimed as itemized deductions subject to that limitation.

For someone playing casually, these rules may seem straightforward. But when the stakes increase — especially when significant sums move through private games, loans among players, or informal settlements — accurate reporting becomes difficult without deliberate record-keeping.

The IRS expects gamblers to maintain detailed records, including:

• The date and type of gambling activity
• The location or establishment involved
• Amounts won and lost
• Names of other participants when relevant
• Supporting documentation such as tickets, bank records, or credit statements

In higher-stakes environments, that level of documentation is often only a starting point. Many experienced advisors encourage clients to maintain a centralized gambling ledger that records:

• Buy-ins and cash-outs for each session
• Transfers between players and whether they represent loans, stakes, or settlements
• Written agreements for substantial loans or staking arrangements
• Periodic reconciliations with bank statements and casino win/loss summaries

The objective is not simply tax compliance. Clear records allow a taxpayer to understand whether an activity is actually profitable, substantiate allowable deductions, and reduce the risk that transactions later appear inconsistent or incomplete.

LESSON 2    When Gambling Begins to Look Like a Business

A common misconception is that gambling automatically becomes a “professional” activity once the stakes or frequency reach a certain level. In reality, the determination is based on a facts-and-circumstances analysis. Courts and the IRS typically evaluate the regularity and continuity of the activity, the time devoted to it, whether there is a genuine profit motive, and whether the activity is conducted in a businesslike manner with formal records and planning.

If gambling rises to the level of a trade or business, income and expenses may be reported on Schedule C, similar to other self-employment activities. This may allow deduction of ordinary and necessary business expenses, though the overarching limitation remains: gambling losses and expenses cannot exceed gambling winnings.

For high-income professionals or entrepreneurs whose primary identity lies in another field, this classification decision carries practical implications. A structured gambling operation with disciplined record-keeping may reasonably qualify as a business. But claiming business treatment while maintaining casual or incomplete records can undermine credibility if the returns are examined.

LESSON 3    Tax Returns and Loan Applications Must Tell the Same Story

Many complex tax cases involve more than the tax return itself. They often intersect with lending and financing arrangements. Tax returns, personal financial statements, and loan applications frequently serve as key documents in mortgage or credit decisions. These documents are typically signed under penalty of perjury or subject to federal laws governing false statements to financial institutions.

Several legal provisions are directly relevant to this intersection:

•   IRC §7206(1)    —  criminalizes willfully submitting a tax return known to be materially false
•   18 U.S.C. §1014    —  prohibits knowingly making false statements to influence a financial institution
•   18 U.S.C. §1344    —  addresses bank fraud more broadly

Importantly, a false-statement charge under these provisions does not require proof of a tax underpayment. The offense centers on the willful misrepresentation of a material fact. In the Goldstein matter, prosecutors noted that mortgage applications required the disclosure of all liabilities — and that millions in personal debt and unpaid taxes were omitted, enabling the purchase of a multi-million-dollar home in Washington, D.C.

For business owners and high-income professionals, the most effective safeguard is financial consistency. Differences between documents can exist — timing differences, pending K-1 income, or unusual deductions — but they should be explainable and well documented. Experienced advisors frequently serve as a bridge between tax reporting and lending documentation, ensuring that lenders understand the economic reality behind complex tax structures or fluctuating income.

LESSON 4    Amended Returns Are Not a Time Machine

When a taxpayer discovers that a filed return is inaccurate, filing an amended return may be the correct course of action. But it is important to understand what an amended return can — and cannot — do.

An amended return does not erase the original filing. The initial return remains part of the historical record. If it was used in connection with a loan application or other financial transaction, it may continue to carry legal significance. Timing also matters: courts often examine whether an amended return was filed voluntarily before the taxpayer became aware of an audit or investigation.

Another concern arises when the narrative changes. If a taxpayer’s original return reported income in a way that supported a loan application, and a later amended return substantially changes that portrayal, the inconsistency can draw scrutiny. For that reason, amended returns should rarely be approached casually. Early involvement of experienced tax counsel can help determine whether the appropriate response is filing an amended return, providing additional disclosure, or coordinating communication with lenders or other parties. Handled thoughtfully, corrections can often be made without creating additional complications.

Broader Governance Lessons for Successful Professionals

High-profile tax prosecutions often arise from a combination of factors rather than a single mistake. Complex finances, side ventures, informal loans, and multiple advisors can create gaps in oversight if no one is looking at the full picture. Several governance practices can significantly reduce those risks.

Coordinated Advisor Relationships.  Effective tax planning rarely happens in isolation. Tax advisors, estate planning attorneys, business counsel, and financial advisors each see a different part of a client’s financial life. The most effective outcomes occur when those advisors communicate and work from the same set of facts.

Formalizing Informal Debts.  Large personal loans between friends, business partners, or fellow investors often begin informally. Over time, undocumented obligations can create confusion when preparing tax returns or financial statements. Written agreements, interest terms, and repayment schedules help ensure these obligations are treated consistently.

Understanding How Lenders Read Tax Returns.  Sophisticated tax planning can produce financial statements that appear confusing to lenders. Large depreciation deductions, pass-through losses, or complex entity structures can make income appear unusually low in certain years. Helping lenders understand these figures in context prevents misunderstandings and protects future financing relationships.

Embracing Transparency Rather Than Perfection.  No complex financial life is perfectly tidy. The objective is not flawless documentation but honest, organized disclosure. When an issue surfaces — an undocumented loan, incomplete records, or an omitted account — addressing it early with experienced advisors is almost always safer than hoping it never attracts attention.

Bringing the Lessons Together

When the public narrative fades, many high-profile tax cases reveal familiar patterns: large financial flows managed with informal record-keeping, significant obligations treated casually among insiders but not fully documented, financial documents presenting slightly different versions of the same story, and attempts to reconcile inconsistencies after the fact.

These are rarely unsolvable problems. In most cases, they could have been addressed much earlier through disciplined record-keeping, coordinated advice, and careful tax planning.

Families and business owners in communities such as Midland, Saginaw, Murfreesboro, Nashville, Franklin, and throughout Rutherford County often face sophisticated tax and financial questions. With thoughtful planning and careful governance, most of those questions can be resolved quietly — long before they ever become disputes.

This article is provided for general informational purposes only and does not constitute legal or tax advice. No attorney-client relationship is formed by reading this content. Please consult qualified legal counsel regarding your specific circumstances.

When a high-income professional or business owner receives a letter from the IRS, the reaction is often immediate and intense — even among sophisticated taxpayers. Physicians, attorneys, real estate investors, and closely held business owners can feel blindsided by a balance-due notice or “Intent to Levy” letter.

Yet in most cases, IRS enforcement does not begin suddenly. The IRS follows a structured, legally required notice process before taking any enforced collection action such as bank levies, wage garnishments, or the filing of a Notice of Federal Tax Lien.

Understanding this process reduces risk. Responding early preserves options. Delaying increases cost, complexity, and exposure.

The IRS Does Not “Come Out of Nowhere”

In nearly every levy case we review, multiple notices were sent before enforcement began. Sometimes the taxpayer had moved without updating their address. Sometimes a bookkeeper set the letters aside. Sometimes the issue was deferred during a busy quarter.

The IRS notice sequence exists specifically to give taxpayers meaningful opportunities to respond before enforcement begins. Each notice has a legal function — and each one that passes without response narrows your available options.

The IRS Balance-Due Notice Sequence

Here is how the sequence typically unfolds, from the initial assessment through final levy authority:

Why High-Income and Business Taxpayers Face Unique Risk

National “tax resolution” firms typically market to middle-income individuals. High-income earners and business owners face a fundamentally different risk profile:

• Public lien exposure that can appear in searchable databases and affect deal closings, refinancing, and professional reputation
• Complex asset structures — partnerships, LLCs, trusts, and real estate holdings — that require more sophisticated analysis
• Payroll tax issues that can escalate to Trust Fund Recovery Penalty assessments against individual owners and officers
• Business account levies that can disrupt payroll and operational continuity
• Prior compliance gaps from unfiled returns processed as Substitutes for Return, often with incorrect income figures

The Most Common Strategic Mistake: Waiting Too Long

Many high-income taxpayers assume the problem will resolve itself or can wait until a slower season. Delayed response typically results in reduced negotiation flexibility, higher accrued penalties and interest, public lien filings, and increased professional fees. Early intervention consistently preserves leverage.

Resolution Options Before Enforcement Begins

Depending on the stage and the taxpayer’s financial situation, several resolution pathways are available:

Every resolution option requires accurate financial disclosure, full filing compliance, and a strategy that accounts for forward-looking tax obligations. For business owners, the resolution must also integrate with operational planning and cash flow forecasting.

The Difference Between Reactive and Strategic Representation

Many national tax resolution firms rely on urgency-based messaging — promises to “settle for pennies on the dollar” or “stop garnishment immediately.” High-income taxpayers require a fundamentally different approach.

A durable resolution involves determining how the liability arose, correcting compliance gaps, evaluating the accuracy of the assessment, analyzing asset structure, protecting business continuity, and designing preventative systems going forward.

Stopping enforcement is only one piece of the solution. Preventing recurrence is equally important.

How to Reduce the Likelihood of Future IRS Problems

Most collection cases originate from preventable structural gaps, not willful misconduct. Long-term prevention for business owners and high earners includes:

• Quarterly estimated tax discipline with cash flow-based projections
• Payroll tax oversight systems with segregated tax reserves
• Separation of operating accounts from tax liability reserves
• Entity structure review aligned with current operations
• Periodic compliance audits before IRS contact occurs

If You Are Receiving IRS Notices Now

The presence of IRS letters does not mean:

•   You are out of options

•   Enforcement is imminent

•   The matter cannot be negotiated

•   A public lien is inevitable

It does mean:

•   The clock may be running

•   Deadlines may affect your procedural rights

•   Early review consistently produces better outcomes than delayed response

Calm, informed action typically produces better results than reaction driven by fear. An experienced review can clarify what stage the account is in, what rights remain available, what realistic resolution options exist, and what steps will prevent recurrence.

Ready for a Calm, Informed Review?

If you or your business is receiving IRS balance-due or intent-to-levy notices, a professional review before escalation occurs can clarify what stage your account is in, what rights remain available, and what realistic resolution options exist.

FRAZIER LAW  |  Tax Resolution & Tax Planning

Tennessee  ·  Michigan  ·  Texas

Schedule a Confidential Consultation  |  crfrazierlaw.com

Download the IRS Collection Notice Guide

If you are receiving IRS letters, understanding where you are in the notice sequence can make a meaningful difference in what happens next, since each notice carries specific rights and deadlines. We created a concise IRS Collection Notice Guide for high-income individuals and business owners to help clarify the most common notices and the steps you can take before enforcement begins. Click the button below to complete the form and download the guide.

MIDLAND, Mich – Moving between states is one of the basic freedoms we have as Americans but state individual tax rules can make it a little more challenging. Here is a brief summary of the steps you need to do to prove to Michigan that you’re no longer a resident for individual income tax purposes.

What You Need to Know
A person who used to live in Michigan needs to know how to officially end their residency with the Michigan Department of Treasury. You must understand the legalrules for changing your “domicile” (your main home), what to do with your taxes, and how to prove that you no longer live in Michigan.

The Rules
What is Domicile and How Do You Change It?
In Michigan, your “domicile” is your main, permanent home that you always plan to return to. To stop being a Michigan resident, you have to do three things at the same time:

1. Decide to leave your Michigan home for good.
2. Decide to make a new state your permanent home.
3. Actually move to and live in that new state.
   The Department of Treasury will look at many things to decide if your domicile has
   changed, such as:
   ● Where you keep your most important belongings.
   ● Where your family lives.
   ● Where you vote.
   ● Where you have memberships (like clubs or gyms).
   ● Where your car is registered.
   ● Where you do your banking.
   ● Where you run your business.
   No one single thing is the most important. The state looks at all of them together.

What to Do with Your Job’s Withholding
If your job takes out taxes from your paycheck, you must tell your employer that you no longer live in Michigan within 10 days of moving. This will make sure that they stop taking out Michigan taxes. This change will only affect future paychecks, not any that came before you told them.

Proving You No Longer Live in Michigan
The state of Michigan assumes you are still a resident unless you can show them proof that you are not. You have to give the Department of Treasury detailed information to prove you have moved. If you don’t pay taxes in the state where you now claim to live,
the state of Michigan might not believe you have moved.

File a final Michigan Form MI-1040
When you are a resident of Michigan, you are required to pay income tax on all income
you earn, regardless of where it was earned. A “part-year resident” is someone who
moved their permanent home into or out of Michigan during the tax year. For the time
you were a resident, you must pay Michigan income tax on the income you earned,
received, or accumulated while living there. Filing a final return ensures you have
properly reported and paid tax on that income.

The state presumes that a taxpayer is a Michigan resident unless they can prove
otherwise. Filing a part-year return is a formal way of notifying the state of your change
in residency status for tax purposes. This helps to prevent the Department of Treasury
from mistakenly believing you are still a resident and sending you notices about unpaid
taxes on income earned after you moved.

What This Means for You
To officially end your Michigan residency for tax reasons, you must:

1. Meet the legal rules for changing your domicile. This means you must show that
   you planned to leave Michigan, planned to live in a new state, and actually moved
   there. You should provide proof like voter registration, car registration, and
   banking information from your new state.
2. Tell your employer. If your job takes out taxes from your paychecks, you must tell
   them you are no longer a Michigan resident within 10 days of moving. This will
   change your future tax withholding.
3. Give the state proof. You must give the Department of Treasury detailed proof
   that you no longer live in Michigan. This includes showing that you have moved
4. your life to another state. If you are not paying taxes in your new state, it will be
5. harder to prove you have moved.
6. File a final tax return. Your final partial-year resident tax return is your final
   declaration showing that you have left the state and have appropriately resolved
   your Michigan residency status.
   
   By following these steps, you can make sure that the state of Michigan officially
   recognizes you as a nonresident for tax reasons.

This information is provided for information purposes only. Please consult with a licensed practitioner before acting on any advice you read in a web post or other media.

Nashville, TN, and Midland, MI

A sense of dread hung in the air as a couple sat across from my desk, their tax returns spread between us. “Something just feels wrong,” the wife said, her voice tight with anxiety. “Our tax preparer… I don’t think he did this right.”

It took only a glance at the first page of their business return to see she was right. Staring back at me was a blatantly fraudulent loss, an impossible figure more than ten times the company’s annual revenue. It was a ticking time bomb waiting to detonate in an IRS audit.

But as shocking as that was, the real tell—the clue that exposed the preparer’s malicious intent—was hidden in plain sight. At the bottom of the return, in the section clearly marked “Paid Preparer Use Only,” the signature line was empty. The firm’s name simply read: “Self-Prepared.”

They had been conned. They paid a professional, but the return was designed to look like they did it themselves, leaving them solely responsible for the fraud embedded within. They were victims of a ghost preparer.

The Vanishing Act of the “Ghost Preparer”

You place immense trust in the person who prepares your taxes, handing over your most sensitive financial data. But what if that person is a phantom, intentionally setting you up for financial disaster while they collect their fee and vanish?

This is the danger of the ghost preparer.

The IRS has an ironclad rule: any person paid to prepare a tax return mustsign it and include their Preparer Tax Identification Number (PTIN). This signature isn’t a formality; it’s a legal chain of accountability. It tells the IRS, “I prepared this return, and I stand behind its contents.”

A preparer who refuses to sign is committing a cowardly, calculated act. They are intentionally making themselves invisible to the IRS, severing the chain of accountability and leaving you to face the consequences alone.

How They Trap You

Why would a preparer do this? The motive is almost always greed, fueled by fraud. These predators lure in taxpayers with promises of massive, unbelievable refunds. They achieve this by:

• Inventing Phantom Deductions: They will claim you gave thousands to charity or had massive business expenses you never incurred.
• Claiming Credits You Don’t Deserve: They will wrongfully claim lucrative credits, like the Earned Income Tax Credit, knowing you don’t qualify.
• Hiding or Shifting Income: They manipulate your income figures to create a false financial picture that benefits them.

The most sinister ghost preparers take it a step further. In the case of the couple in my office, their preparer had not only fabricated a loss but had also set up the tax filing to route the fraudulent refund directly into his own bank account. They were not only being set up for an audit but were also being robbed.

The Weapon of Choice: Consumer Software

Another disturbing tactic is the use of consumer-grade tax software. A legitimate professional uses specialized software built for preparers, which allows them to properly sign and document their work.

Ghost preparers use off-the-shelf software like TurboTax or H&R Block’s consumer versions. This software is licensed for individuals preparing their own returns and often makes it physically impossible for a paid preparer to affix their required signature.

This is a deliberate choice. By using this software, they can print the return and have you sign it—with the preparer section ominously blank. This act of deception isn’t just lazy; it’s a strategy to place all legal and financial liability squarely on your shoulders.

The Nightmare Awaiting the Victim

When the IRS’s powerful analytics flag your return, the fallout can be catastrophic. “I didn’t know” is not a defense the IRS will accept. You are legally responsible for every number on the return you sign. The consequences include:

• A Bill for a Phantom Refund: You will be forced to repay the entire fraudulent refund, often a sum you never even saw.
• Crippling Penalties and Interest: The IRS will tack on substantial penalties and daily compounding interest, turning a manageable problem into a mountain of debt.
• Years of Audits: A fraudulent return can trigger invasive audits of not just the current year, but previous years as well, creating a multi-year nightmare.
• Criminal Investigation: In severe cases, what starts as a financial issue can escalate into a criminal investigation, threatening your freedom.

Charles R Frazier, an expert tax specialist with offices in Nashville, Tenn., Midland, Mich. and Prosper, Texas explains it as “The taxpayer is trying to find legal ways to save on their taxes while the devil in this case is someone who is close, trusted and has been paid to perform a service.  This taxpayer would have been liable for potentially thousands, perhaps over a million dollars of tax repayments, penalties and interest while providing a pathway for the fraud perpetrator to get away.  I’m glad they called Frazier Law for help as soon as they knew something wasn’t right.

Your Shield Against Deception

You are not powerless. Protecting yourself from these predators is about vigilance.

• Demand a Signature: Never, ever sign a return if the “Paid Preparer” section is blank. This is non-negotiable. The preparer must sign and include their PTIN.
• Verify Their Credentials: Ask for their PTIN upfront and use the free IRS online directory to confirm they are a legitimate, credentialed preparer.
• Question Their Tools: Ask what software they use. If it’s a consumer product you could buy at a retail store, that is a massive red flag.
• Reject Cash-Only Deals: Ghost preparers often work in cash to avoid leaving a paper trail. Insist on a receipt or invoice that documents your payment.
• Trust Your Gut: If a preparer promises you a refund that sounds too good to be true, it is. Walk away immediately.

Thankfully, the couple in my office discovered the fraud before signing and filing. They avoided a devastating financial blow, losing only the exorbitant fee the ghost preparer charged them. Many are not so lucky.

Your tax return is a legal document signed under penalty of perjury. Your financial future is on that signature line. Make sure your preparer’s is there first.

PRACTICE NOTE:  The preparer’s signature may be printed by the tax professional’s software.  The key here is that his or her name is clearly printed with all of their identifying information.  An actual signature is preferred, but may be represented by their printed name.

As summer unfolds, it’s an opportune time to assess your tax situation and implement strategies to optimize your financial standing before the year’s end. Proactive mid-year tax planning can help you avoid surprises come tax season and potentially reduce your 2025 tax liability.

Adjust Your Withholdings

Life changes such as marriage, the birth of a child, or a new job can impact your tax obligations. It’s advisable to review your W-4 form to ensure your withholdings align with your current circumstances. The IRS provides a Tax Withholding Estimator to assist in this process.

Evaluate Estimated Tax Payments

For those with income not subject to withholding—such as self-employment income, dividends, or rental income—it’s crucial to make timely estimated tax payments. The next payment is due on September 15, 2025. Assess your income to date and adjust your payments accordingly to avoid penalties.

Maximize Retirement Contributions

Contributing to retirement accounts not only secures your future but can also provide immediate tax benefits. For 2025, the contribution limits are:

• 401(k): $23,500 (plus $7,500 catch-up for those 50 and older)
  
• IRA: $7,000 (plus $1,000 catch-up for those 50 and older)
  

Consider increasing your contributions to take full advantage of these limits.

Review Potential Deductions

Keep track of deductible expenses such as:

• Charitable donations
  
• Medical expenses
  
• Education-related costs
  
• Business expenses
  

Maintaining organized records throughout the year can simplify the deduction process when filing your taxes.

Reassess Life Events or Changes

Summer is a good time to pause and consider how recent events may affect your tax picture:

• Bought or sold a home?
  
• Launched or closed a business?
  
• Gained new dependents?
  
• Received an inheritance or major windfall?
  

Each of these life events could create significant tax implications. A mid-year strategy session can help you plan appropriately and avoid surprises later.

Consult with a Tax Professional

Tax laws and regulations are complex and ever-changing. Consulting with a tax professional can provide personalized advice tailored to your unique situation, ensuring compliance and optimizing your tax outcomes.

Contact UsIf you have questions about your tax situation or need assistance with tax planning, the experienced team at Frazier Law is here to help. Contact us at 615-510-4000 or visit our Contact Page to schedule a consultation.

Frazier Law Firm, a leading tax law firm in Nashville, Tennessee, has successfully resolved a complex tax court matter, achieving a settlement that saved their client in excess of $170,000. This specific case involved the sale of inherited assets where the taxpayer needed to ensure that proper treatment was considered. The IRS had initially assessed a substantial tax liability against the taxpayer, which Frazier Law Firm challenged on their behalf.

“We are extremely pleased with this outcome,” said Charles R. Frazier, Lead Attorney at Frazier Law Firm. “This settlement demonstrates our firm’s commitment to vigorously advocating for our clients and our in-depth understanding of the complexities of tax law.”

The successful resolution not only resulted in significant financial savings for the client but also prevented further aggressive collection actions by the IRS.

Frazier Law Firm emphasizes the importance of seeking expert counsel in complex tax disputes. “Taxpayers facing serious issues with the IRS often find themselves in a daunting situation,” noted Rick Miller, CPA and Director of Tax & Business Services at Frazier Law. “This case highlights how a proactive approach and skilled representation can make a substantial difference. By leveraging the services of a specialized tax law firm, the client was able to navigate the complexities of the tax court system, avoid potentially greater financial losses, and prevent further stressful IRS collection actions.”

The firm advises anyone facing a significant tax dispute to seek professional advice as early as possible.

Taxpayers, including both individuals and businesses, throughout the entire state of Tennessee now have until November 3, 2025, to file various federal tax returns and remit tax payments. This extension applies to all areas designated by the Federal Emergency Management Agency (FEMA), encompassing all 95 counties within Tennessee.

This tax relief effectively postpones a range of tax filing and payment deadlines that originally fell between April 2, 2025, and November 3, 2025. Consequently, affected individuals and businesses will have until November 3, 2025, to fulfill their tax obligations, including both filing returns and submitting any taxes due within this period. 

Specifically, the November 3, 2025, deadline will now apply to key obligations, including individual income tax returns and payments, normally due on April 15, 2025; contributions to IRAs and HSAs for 2024; quarterly estimated tax payments, normally due on April 15, June 16, and September 15, 2025; quarterly payroll and excise tax returns, normally due on April 30, July 31, and October 31, 2025; calendar-year corporation and fiduciary returns and payments, normally due on April 15, 2025; and calendar-year tax-exempt organization returns, usually due on May 15, 2025. Furthermore, the IRS will abate penalties associated with the failure to make payroll and excise tax deposits due on or after April 2, 2025, and before April 17, 2025, provided that these deposits are made by April 17, 2025.

The IRS is proactively granting this filing and penalty relief to all taxpayers whose IRS address of record is located within the designated disaster area. These individuals and businesses are not required to take any affirmative action to receive this automatic relief.

In addition to these extensions, individuals and businesses in the federally declared disaster area who have sustained uninsured or unreimbursed disaster-related losses have the option to claim these losses on either their 2025 tax return or their 2024 tax return. Taxpayers have up to six months after the standard due date of their federal income tax return for the disaster year, without regard to any extensions, to make this election. For individual taxpayers, this deadline is October 15, 2026. When claiming a loss, taxpayers must include the FEMA declaration number 3625-EM on the return.

Generally, qualified disaster relief payments are excluded from gross income. This exclusion typically applies to amounts received from government agencies to cover reasonable and necessary personal, family, living, or funeral expenses, as well as expenses related to the repair or rehabilitation of a residence or the replacement of its contents.

Taxpayers who participate in retirement plans or individual retirement arrangements (IRAs) may have access to additional relief options, including special disaster distributions and hardship withdrawals, subject to specific plan rules.

The IRS remains dedicated to ongoing recovery efforts and may provide further disaster relief in the future. Taxpayers who do not qualify for the aforementioned disaster tax relief may still be eligible for reasonable cause penalty abatement.

The entire Frazier team expresses its solidarity with the people of Tennessee during this challenging time and is committed to providing the necessary tax guidance and representation.

Time is of the essence when dealing with any tax authority, but especially the Tennessee

Department of Revenue. We have a common phrase in our office: it is often easier to handle a

$100,000 issue with the Internal Revenue Service than it is to have a $10,000 issue with the

State of Tennessee. While that may sound surprising, the reality is that the Tennessee

Department of Revenue can be incredibly tenacious and efficient in their pursuit of tax revenue.

Don’t underestimate the seriousness of any communication you receive from them.

Tennessee is one of the few states without a state personal income tax. This means that

businesses in Tennessee bear the direct responsibility for funding the state government. As a

result, the state is particularly focused on ensuring that businesses are correctly reporting and

remitting all taxes owed. This heightened scrutiny makes it even more critical for businesses to

be meticulous in their tax compliance.

The State of Tennessee is extremely protective of all tax revenues, but especially Sales and

Use Tax. This tax comprises the largest single element of revenue for the state, making it a

prime focus for the Department of Revenue. Even small discrepancies in sales tax filings can

trigger an audit and lead to significant penalties if not addressed promptly and correctly.

One of the most critical aspects of dealing with the Tennessee Department of Revenue is the

extremely tight time constraints involved in contesting an assessment. You only have a very

limited window to request an Informal Conference. This conference is your only avenue for ajudicial review of the Department’s decision. Missing this deadline effectively waives your right

to appeal, leaving you with very few options.

The Tennessee Department of Revenue employs aggressive collection procedures. They are

not hesitant to pursue liens, levies, and other collection actions to recover outstanding tax debts.

Ignoring a notice from the Department of Revenue will only escalate the situation and increase

the likelihood of these aggressive measures being taken against your business.

If you find yourself in trouble with the Tennessee Department of Revenue, do not delay. Every

day that passes can make your situation more complex and costly. Get Frazier Law involved

immediately. We have extensive experience representing businesses before the Tennessee

Department of Revenue and can help you navigate the complex process, protect your rights,

and achieve the best possible outcome. Don’t wait until it’s too late. Contact Frazier Law today

at 615-510-4000 or 989-899-1040, or visit us online at www.frazier.law.

Recent headlines in Franklin, Tennessee, have brought attention to a Certified Public Accountant (CPA) indicted on charges of wire fraud, money laundering, and tax fraud. These serious allegations highlight how devastating the consequences of financial misconduct can be for both individuals and businesses. At Frazier Law, we understand that news like this can raise concerns, especially during tax season or if you’re relying on professionals to handle your financial matters.

Let’s break down what these charges mean, how they could affect you, and how we can help protect your interests.

Understanding the Charges

1. Tax Fraud: This includes any intentional wrongdoing to evade taxes, such as underreporting income, inflating deductions, or hiding money offshore. Tax fraud is one of the most severe allegations that can lead to audits, penalties, and even imprisonment.
2. Money Laundering: This involves concealing the origins of illegally obtained money, often by passing it through a complex sequence of banking transfers or commercial transactions. This crime is a red flag for anyone in the financial ecosystem.
3. Wire Fraud: This typically involves using electronic communication—such as email or phone—to intentionally defraud someone out of money. In this case, wire fraud charges suggest that the CPA allegedly misrepresented facts to gain financial advantage.

How This Affects You

Even if you are not directly connected to this case, stories like this underscore the importance of due diligence when working with financial professionals. Here are a few things to consider:

• Vet Your CPA or Financial Advisor: Ensure your financial professional has a clean track record, certifications, and a solid reputation. Online reviews, references, and state licensing boards can provide valuable insights.
• Understand Your Tax Return: Don’t sign off on a tax return or financial document without fully understanding what’s in it. Fraudulent filings can leave you liable, even if a third party prepared them.
• Protect Your Assets: Regular audits, open communication with your financial team, and consulting with a tax attorney can prevent issues before they arise.

How Frazier Law Can Help

If this story has raised questions about your financial practices or the professionals you’re working with, we’re here to help. Frazier Law specializes in tax law and financial compliance, offering a range of services designed to protect your interests, including:

• Tax Matter Defense: If you’re under investigation, our team will build a robust defense strategy to safeguard your rights and assets.
• Preventive Consultations: We review your financial dealings and tax filings to identify potential risks and offer proactive solutions.
• Review Representation: Facing an IRS audit? We’ll guide you through the process, ensuring your case is handled with professionalism and care.

Take Action Today

Financial fraud and tax-related crimes are serious matters with life-changing consequences. Don’t wait for a headline to turn into a personal crisis. If you have questions about your tax filings, financial records, or simply want peace of mind, contact Frazier Law today.

Schedule a consultation to discuss your concerns and learn how we can help you navigate complex tax laws with confidence. Your financial future depends on it.

At Frazier Law, we’re committed to helping our clients stay informed and protected. Follow us on social media for more updates, tips, and insights into the world of tax law.

Stay proactive. Stay protected. Call Frazier Law today!

• Don’t bring work home. While your business is probably the sole source of your income, it is vital to separate your work lives and home lives. Boundaries can be established by adopting a rule that you and your partner will only discuss business while working. Home-based business partners can establish times when work will not be discussed, which will be treated as sacred personal time. It would be best to allocate enough time to do business, no matter which approach you use.
• Decide on a family and business budget. Money can be a very tense topic, even for the average married couple. A growing family and business will require the couple to agree upon a budget for your family and your business budget. By having open and honest communications about your finances, both personally and professionally, you can later stave off more heated conversations.
• Enjoy time apart. It is essential to do something that you enjoy alone because you probably spend most of your time. So, you each get your own time watching your favorite team sport with friends, shopping alone, or going to the salon to the barbershop. Having hobbies allows you to take a break from the usual routine and access another part of yourself. Studies have also shown that individuals who have hobbies they enjoy are happier, less stressed, and tend to have lower blood pressure.
• Update or prepare your estate plan. Like any other couple, estate planning is important for business-owning spouses to protect each other and ensure a financially stable and prosperous future for the family and loved ones you leave behind. When a couple works in a business together, things can become even more complicated, making proper estate planning an even greater necessity. Below are some of the necessary estate planning tools you need to protect yourself, your family, and your business.
• Trust: By having a trust, you can have your money, property, and business owned by an entity other than yourself. While this may seem scary, in most circumstances, transferring the ownership does not mean that you are giving up control. In creating the trust, you can name yourself as the trustee (the one in charge of managing the money and property, including the business, in the trust) and name yourself as the current beneficiary (the person who gets the enjoyment from the money, property, and business). The primary benefit of having the trust own your money, property, and business is that when you die, you do not own any of these things (the trust does), and therefore, they do not have to go through probate court proceedings. Avoiding probate will save your family time and money and can keep your personal affairs private.

In addition to avoiding probate, a trust can give you a place to write down your instructions for the business’s future. Who will run the business if you are unable to or if you die? Is the next generation ready to step up and run the business? Does money need to be provided to a beneficiary who does not work in the business, or will the entire family participate?

Lastly, a trust offers additional protection for your business by allowing you to select an individual to run the business if you cannot make decisions for yourself, thereby allowing for your business’s continuous operation.

• Financial Power of Attorney: Your spouse cannot make decisions for you unless you formally appoint them as your agent-in-fact (via a durable power of attorney). Failure to select a person to decide on your behalf could land your family in probate court, where a judge will decide who makes decisions for you. Your spouse needs the appropriate authority to make decisions about you and your business, even though he or she may be the best-positioned person to do so. If you are unable to make decisions for yourself, signing a financial power of attorney can facilitate a smooth transition during a stressful and emotional time if, for some reason.

A financial power of attorney is vital if only one of you is the business’s legal owner. Although the other spouse may be intimately familiar with the operations, without the proper authority, he or she cannot make any decisions that may be necessary to keep the business going.

• Medical Power of Attorney: As is the case with financial matters, no one has the authority to make medical decisions for you unless you select them or the court appoints them. If you cannot communicate your wishes when an emergency arises, the person who will be deciding your treatment course must be someone you can trust.

Growing a business while keeping the embers in your marriage, burning takes hard work. The Law Offices of Charles R. Frazier exist to help families and business owners live without anxiety, fear, or confusion by guiding them through a comprehensive estate plan process. Family and business are protected if unforeseen circumstances befall your family. Give us a call today at 615-510-4000 to schedule an appointment.

If you are a former service member living in Tennessee, contact a local Veterans Benefits attorney at the Law Offices of Charles R. Frazier at 615-510-4000 to represent you with the VA. We can help you build your case to prove that your disability is service-connected, fight for a home loan, and more.

Benefits the Veterans Affairs Office Offers

Depending upon the terms of their discharge, service members retiring from active duty are eligible to receive several benefits through the VA, including:

• Educational benefits for college like the GI Bill, tuition assistance, the Army, Navy, and Marine College Funds, and the college loan repayment program
• VA loans, including the VA home loan, small business loans, and more
• Treatment through the VA Veterans Healthcare and Hospital network

Additionally, disabled Veterans can pursue VA disability benefits for disablement suffered in service to the armed forces.

Benefits That Disabled Veterans and Their Families Can Seek

Any service member who has a disability rating for a service-connected condition may apply for VA Disability if they:

• Served active duty in any branch of the U.S. military
• Served active duty training
• Served inactive duty training

Additionally, any Veteran applying for Disability Benefits must not have suffered disability due to their own misconduct nor have been dishonorably discharged or discharged in any way but honorably.

The VA might deny your disability claim, leaving you and your family to find ways to pay for your healthcare without assistance from the federal government. You can appeal for a case review with the VA, but the results could be the same without help from an experienced Veterans Benefits attorney.

Speak with a Tennessee Veterans Benefits Attorney

The Veterans Benefits attorneys at the Law Offices of Charles R. Frazier in Nashville, TN, have the experience necessary to fight the VA for access to your Veterans Benefits, including educational benefits, VA home loan, and Veterans Disability Benefits.

You may need the assistance of a knowledgeable Veterans Benefits attorney to help you appeal a denial of VA benefits or update your discharge status, so you qualify to apply for VA Disability Benefits.

Our team is proud to serve you who have served this country. Although the VA strives to serve every Veteran the benefits they have earned, many Veterans still must appeal for these benefits, and we’re ready to help in your fight.

Contact Us at the Law Offices of Charles R. Frazier in Nashville, TN

Veterans and their families qualify for several benefits that the federal government provides through the Veterans Affairs office. However, the VA often denies valid claims for these benefits, leaving many Veterans out in the cold.

At the Law Offices of Charles R. Frazier, we fight for Veterans Benefits for our servicemen and servicewomen. Call us today at 615-510-4000 to schedule an appointment with a veteran’s benefits attorney in Tennessee.

Are you receiving mail from companies promising to fix your tax problems? Did the letter you received to notify you that the IRS has filed a Notice of Federal Tax Lien?

Beware because you may be the target of predatory debt relief firms (OIC Mills). In July 2020, the IRS included these OIC Mill operators in its annual Dirty Dozen list of tax scams. A few large tax resolution companies, JK Harris, Roni Deutsch, and Tax Masters, have been in the news in past years for the atrocious, often criminal treatment of their clients.

OIC Mills often target taxpayers by monitoring public records for tax lien information. Once a taxpayer is on their list, they send letters that are often misleading and warn of drastic consequences if you fail to contact an “800” phone number.

THE ODDS ARE AGAINST OIC ACCEPTANCE

Unfortunately, we have consulted with many potential clients who have paid thousands of dollars for either very disappointing results or no results at all. The clients have often been misled to believe that they can settle their tax debt for pennies on the dollar.

Offers in Compromise (OIC) are good options for the right situations, but many taxpayers’ OICs are rejected. In 2019, the Service accepted only about one out of every three OICs (17,890 of 54,225) that were submitted. Typically, taxpayers who have a very limited stream of income and no equity in assets have the best chance of being approved for an OIC.

THE OIC PROCESS

The OIC is an agreement between the taxpayer and the IRS to settle the taxpayer’s tax liability when the taxpayer cannot fully pay the liabilities through asset liquidation, personal loans, an installment agreement, or other methods for full satisfaction of the outstanding tax balance.

The Law Offices of Charles R. Frazier will guide you through the requirements necessary to qualify for an OIC. We advise taxpayers to ensure that they are in compliance with tax filing and required tax payment obligations.

We will advise you regarding your estimated reasonable collection potential (RCP) because the IRS won’t accept an OIC for any amount less than the taxpayer’s RCP. We can help you obtain and submit all documentation the IRS deems necessary to determine your ability to pay your outstanding tax liabilities. To determine if an Offer in Compromise is right for you, we review your financial information, including your current assets and future earning potential.

The IRS is only authorized to accept an OIC based on three grounds: (1) doubt as to liability; (2) doubt as to collectability; and a compromise based on (3) effective tax administration. We will analyze your specific tax circumstances and advise on whether you qualify for an OIC based on these grounds. However, we will not waste your time or money if we believe you will not be successful when seeking an OIC.

READY TO FIND OUT MORE?

Do not face the threat of falling prey to an OIC Mill. Turn to the Law Offices of Charles R. Frazier for an honest evaluation of your tax situation. We have the experience and know-how to help fix your tax problems. To schedule a low-cost consultation, call 615-510-4000 or contact us online.

1. Are your documents secure? It is critical that your important legal documents be kept secure in a weatherproof safe or container. Likewise, documents regarding property ownership and identity should be stored away from exposure to dangerous elements such as fire, floods, and wind. When the dust settles, you will need your important paperwork to help get you through difficult times.
2. Are your documents up to date? One unfortunate but common mistake is the failure to keep important estate planning documents current. People often forget to periodically review and update their documents after receiving them. As a result, outdated estate planning documents frequently cause confusion because they describe a situation that is no longer applicable.
3. Do people know where to find your documents? Making your important documents accessible is crucial. Having plans in place are of little value if no one can find them. There are a number of ways you can provide accessibility without significantly impacting security. A simple option is to keep the original documents in your home in a location you have disclosed to another family member, and keep a copy of the documents at a location other than your home in case your home is inaccessible. You can also utilize technology and have digital copies available regardless of where you may be.
4. Is your insurance adequate and current? Insurance is a tool that must be monitored and maintained as your family and wealth change. Review your insurance policy to make sure it adequately covers you, your family, and your possessions in the event of a crisis. If you have previously witnessed natural disasters or emergencies, these experiences can provide valuable insight to help you ensure that your policies will protect you against the recurrence of these events.
5. Should you have a rider on your existing insurance policy? Insurance riders provide additional flexibility and features to your current insurance policy with options that provide various levels of value depending upon your lifestyle and needs. For example, many policies offer a “waiver of premium” rider that creates a mechanism for continued payment of insurance premiums in the event you become disabled and are no longer able to make the payments. This means that your insurance coverage will not lapse due to your disability. There are other insurance riders, like the accidental death rider that applies if you die as a result of an accident. Most deaths and unpredictable events do not fall under the category of an accident, however, thus rendering this particular rider unprofitable in most instances. Either way, exploring the available rider options can ensure that you have customized a plan into something that works for you and your unique situation.

Disasters and emergencies are inevitable, but we can better position ourselves to remain calm in the midst of crisis if we plan ahead. When reviewing these questions, remember that you are not alone. The Law Offices of Charles R. Frazier is ready to assist you and can work with your trusted advisors to ensure that your important documents are up to date and best reflect your needs and wants. Give us a call today. We can schedule an appointment to discuss ways that we can help support you and your family to protect the people, possessions, and values that mean the most to you.

Typically, the IRS begins processing tax returns in late January. However, changes to the tax law on December 27, 2020, are prompting the agency to make adjustments and perform tests on its programs and systems. The tax law changes that occurred at the end of last year provided a second round of 2020 stimulus payments and other benefits.

“Planning for the nation’s filing season process is a massive undertaking, and IRS teams have been working non-stop to prepare for this as well as delivering Economic Impact Payments in record time,” said IRS Commissioner Chuck Rettig. “Given the pandemic, this is one of the nation’s most important filing seasons ever. This start date will ensure that people get their needed tax refunds quickly while also making sure they receive any remaining stimulus payments they are eligible for as quickly as possible.”

While tax filers can begin preparing their returns now with tax software companies, the tax agency won’t begin accepting and processing 2020 tax year returns until Feb. 12. The IRS encourages taxpayers to file electronically and use direct deposit to reduce errors and delays. Other tips from the IRS for taxpayers to speed up refunds and to get help with filing include:

• Stay up-to-date on the latest tax information by visiting IRS.gov.
• If you are eligible for stimulus payments, carefully review the guidelines for the Recovery Rebate Credit. According to the IRS, “most people received Economic Impact Payments automatically, and anyone who received the maximum amount does not need to include any information about their payments when they file. However, those who didn’t receive a payment or only received a partial payment may be eligible to claim the Recovery Rebate Credit when they file their 2020 tax return.”

The IRS has also posted key dates for this year’s filing season. They include:

January 15. IRS Free File opens.

January 29. Earned Income Tax Credit Awareness Day

February 12. IRS begins 2021 tax season.

February 22. Projected date for the IRS.gov Where’s My Refund tool being updated

First week of March. Tax refunds begin reaching those claiming EITC and ACTC (PATH Act returns) for those who file electronically with direct deposit and there are no issues with their tax returns.

April 15. Deadline for filing 2020 tax returns.

October 15. Deadline to file for those requesting an extension on their 2020 tax returns

Visit this IRS page directly for more information for filing and speeding up your returns in a pandemic. Business owners who are experiencing tax issues with the IRS should contact the Law Offices of Charles R. Frazier to see if we can assist with your specific tax matter.

Imagine no more because those days are here and many small businesses are taking the opportunity to charge clients who chose to charge their purchase to their preferred piece of plastic.

Several credit card processing companies have been marketing the idea of “passing the credit card fee onto your customers,” and I’m here to say that this might be the worst idea of client engagement I have ever heard.

Here are five reasons why you should not charge your customers extra fees when they whip out their plastic at your establishment.

1. Profit and loss envy

I completely understand why a business owner might make this election. Like most good bookkeepers, we track a separate expense line on our client’s Profit and Loss for credit card convenience fees. This amount stands out like a sore thumb and many business owners begin salivating at the idea of this cash being funneled back to their pockets.

For context, I looked up the average fee for a small dining establishment. With gross sales of around $500,000, their total credit card fees were just under $16,000 for the year. What business owner wouldn’t love the opportunity to pocket an additional $16,000?* This could replace an aging machine, provide some pay increases, or maybe afford the owner a little well-deserved vacation! But is it as easy as just jacking the price up on the credit card machine? Let’s think about this a bit deeper.

*After-tax impact would net the owner $10,520 of Distributable Net Income (DNI).

2. Customers buy more with a card

Every business owner looks for ways to increase revenue and wasn’t this one of the reasons why you started accepting credit/debit card payments in the first place? According to Forbes.com, customers will spend 12 to 18% more per transaction when using plastic instead of cash. Think about it: Would you prefer to cut 15% off your bottom line just to avoid plastic? Probably not.

3. Cash isn’t as “free” as you think

Retailers who accept cash-only payments face several hidden costs that can directly impact their business’s bottom line, a few of these hidden costs (or risks) include

• employee theft
• external theft
• costs of surveillance systems to combat theft
• time spent counting
• reconciling and depositing cash
• balancing cash drawers
• bank fees (believe it or not, cash management is why branch banking has become so expensive)
• loss of sales from people (like me) who prefer using plastic over cash
• counterfeit loss
• proper record keeping
• accounting and change management

While cash transactions may seem straightforward overall, they come with a variety of hidden costs that can affect your bottom line and operational efficiency.

4. You already increased your prices when you started taking credit cards!

Like many business owners 20 years ago, I noticed that the fees of taking credit cards were eating into my bottom line. At that time I made one simple adjustment: I raised my prices by 5% and rounded up to the next whole dollar. I made this adjustment many years ago. By making that adjustment years ago and adjusting my prices for inflation, I have already accepted the fees as a part of my operational reality.

I will gladly pay (and deduct) the credit card processing fees because ultimately my clients are happy and I’m thrilled that my systems automatically reconcile these transactions with no effort on my part.

5. Customers (like me) will intentionally avoid you because you charge.

I live near Midland, Michigan and many Mom and Pop restaurants around here charge the added convenience fee when using a credit card. When I find myself in these situations, I prefer to reach for my emergency $100 to avoid paying the discretionary fee. I find it appalling that the restaurant owner will then ask me if I have any smaller bills.

I feel like I’m darned if I do and darned if I don’t, but I only go there when someone in the family insists on visiting this establishment. I refuse to go out of my way to patronize a business that looks for ways to penalize me as a paying customer.

As a matter of principle, I will go out of my way to intentionally thank business owners who choose not to charge a fee for using my card.

Discount instead of charge!

If you’ve read my rant and still prefer cash, here’s an idea: Instead of penalizing–I mean charging your customers who prefer to use a card–why not offer a discount to your customers who use cash (or write a check for that matter)?

This will encourage your customers to make decisions based on your operational preferences and not punish your customers for doing business with you.

My dad, like many fathers, played a crucial role in shaping my understanding of developing a successful career. Wrapped throughout these lessons was the importance of serving others and treating clients well. Dad taught me a variety of strategies to instill these values, hoping and praying that one day I would be prepared for the professional world.

Leading by Example

Dad taught me that actions speak louder than words. He modeled a strong work ethic, dedication, and integrity in his career. I saw his commitment to his work and passion for his profession. This real-life demonstration of hard work and perseverance was more impactful than any advice he could have shared by simply talking alone.

Encouraging Open Communication

Open and honest communication was key. Dad fostered an environment where my siblings and I felt comfortable discussing our interests, goals, and concerns as we learned and grew with clarity and confidence. These conversations covered a wide range of topics, from the practical aspects of different professions to the personal fulfillment they can bring. By listening actively and providing thoughtful feedback, Dad guided us toward making informed decisions.

Providing Exposure to Various Careers

Exposure to different careers was essential to understanding our options. My father arranged for me to spend time with other adults, engage in job shadowing, and have detailed conversations about career opportunities. This experience helped me grasp the day-to-day realities of various professions, giving me a clearer idea of what might suit my interests and skills.

Supportive Encouragement

Supporting children in pursuing their passions is another hallmark of a good father. Whether my interests aligned with my dad’s own career or ventured into an entirely new field, Dad provided encouragement and resources. This support made me feel confident and empowered to follow my dreams, knowing I had a strong backing.

Teaching Practical Skills

Practical skills such as problem-solving, critical thinking, and financial literacy are essential in any career. Dad taught these skills through everyday activities and repetitive learning opportunities. I didn’t always appreciate these lessons in the moment, but I seem to recall those lessons time and time again (and, of course, repeating them to my own sons).

Networking and Mentorship

Dad introduced me to mentors and taught me that professional networks can significantly impact my career development. He encouraged me to leverage my connections to provide guidance and opportunities. Networking events, informational interviews, and mentorship relationships can offer invaluable insights and open doors to future career paths.

Emphasizing Education and Lifelong Learning

Dad emphasized the importance of education and continuous learning. He encouraged me to excel academically and pursue further education when needed. Moreover, he instilled a mindset of lifelong learning, teaching that growth and development don’t stop after formal education but continue throughout one’s career.

Setting Realistic Expectations

Preparing children for the realities of the workforce is crucial. Dad set realistic expectations about the challenges and setbacks I would face. By being open about his experiences and obstacles, he helped me develop a resilient and problem-solving mindset, which is vital for long-term success.

Encouraging Independence

For better or worse, Dad allowed me to make my own decisions and learn from my mistakes. He provided guidance while avoiding micromanaging, letting me take ownership of my career choices and navigate life paths.

Demonstrating Client Service Excellence

Finally, teaching the importance of serving clients well is a critical lesson. Dad exemplified excellent client service through his actions, showing respect, empathy, and dedication to meeting others’ needs. He shared stories about his experiences that highlighted the significance of building strong, trustworthy relationships with others. By understanding the value of client satisfaction, I learned that success in any career is not just about my own individual achievements but also about contributing positively to others.

Closing Thoughts

I am blessed on so many levels. My dad has always been present in my life, which I know firsthand is not the case for everyone. I am so grateful for my dad and the sacrifices he made throughout his life for our family. I also know, both as a father myself and by watching him, that these sacrifices bless our own souls as well. I don’t believe anyone looks back on a job well done and regrets having pursued its completion.

Thank you, Dad, for being such a large part of the person I am today. I am truly blessed, and I’m glad that my sons have you in their lives as well. Happy Father’s Day!

My time in the Ranger Battalion instilled in me the mental and physical fortitude required to succeed in challenging environments. This same toughness was crucial during my law school years and continues to play a vital role in my legal practice. Each day, I apply the discipline and tenacity learned from my Ranger training to navigate complex tax issues and deliver clear, effective solutions to my clients.

In the field, Rangers learn to confront problems head-on with honesty and courage, a practice that translates directly to how I handle tax resolution. It is crucial to acknowledge the root causes of tax issues frankly so that we can address them effectively. My approach involves providing clients with a candid assessment of their situation, helping them understand how their actions may have contributed to their tax problems, and advising them on corrective measures to prevent future complications.

Integrity is the cornerstone of both military service and legal practice. In my firm, we prioritize the client’s best interests over all else. This means I do not shy away from advising against a course of action if it does not benefit the client, ensuring our solutions are both ethical and effective. Our commitment is to offer relief and clarity to those facing daunting battles with the Internal Revenue Service (IRS), not to capitalize on their vulnerability.

Our tax resolution process mirrors the meticulous planning and execution taught in Ranger training. We begin by gathering comprehensive details about each client’s circumstances and communicating with the IRS to understand their perspective. With all the information in hand, we craft a strategic plan of action, thoroughly discuss the options with our clients, and, once agreed upon, execute the plan with precision. We stay the course, adjusting as necessary until we reach a resolution.

As we honor the Army on its special day, I am proud to say that the values learned in the 3rd Battalion of the 75th Ranger Regiment continue to illuminate my path. At our firm, “Rangers Lead the Way” in tax resolution by setting the standard for integrity, diligence, and client-focused service. If you are facing tax issues and need guidance you can trust, we are here to lead the way to resolution.

Give us a call today.

The Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit are two opportunities for taxpayers to claim credits associated with making energy improvements to their main home after January 1, 2023.

Energy Efficient Home Improvement Credit
According to the Internal Revenue Service, expenses that qualify as energy efficiency improvements can include expenditures on items such as exterior doors, windows, skylights, insulation and air sealing materials or systems. Residential energy property expenses can include natural gas, propane or oil water heaters and hot water boilers, heat pumps, water heaters, biomass stoves and boilers, and home energy audits of a main home.

Residential Clean Energy Credit
Residential improvements that are associated with clean energy production (i.e. solar, wind, geothermal, etc.) may qualify for the Residential Clean Energy Credit. Expenses that qualify for this credit include the costs of solar electric panels and water heaters, wind turbines, geothermal heat pumps, fuel cells and battery storage technology.

Both of these credits are nonrefundable, which the IRS says “means the credit amount received cannot exceed the amount owed in tax.”

To claim these credits – both the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit – taxpayers should use Form 5695, Residential Energy Credits, when filing their taxes. Be sure to keep records of your purchases and installation expenses throughout the year if you’re planning to claim this credit.

The IRS provides more detailed information about claiming these credits, which expenses qualify, and limitations on its website. As always, if you’re not certain if your expenses qualify for these credits, then reach out to a tax professional who can provide specific guidance for you.