Category Archives: taxes

New IRS Contact Information

IRS Logo

 

 

 

 

 

Effective January 1, 2011

Send Regular Mail directed to IRS to:

Internal Revenue Service

PO Box 7346 (replaces 21126)

Philadelphia, PA 19101-7346

Send Overnight Mail directed to IRS to:

Internal Revenue Service

2970 Market Street

Mail Stop 5-Q30.133

Philadelphia, PA 19104-5016

Toll-free # will remain the same (800) 913-9358 but

Facsimile transmission # changes to (267) 941-1015

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Lisle Ch. 13 Trustee (Chicago Suburbs)

From Glenn Stearns, Chapter 13 Trustee for the southwest suburbs of Chicago:

pay advices, tax returns, tax transcripts: Attorneys and Debtors may e-mail or mail these to the appropriate analyst but never fax them. See Trustee Office Directory in the Box widget on the right >>

schedule E: must be completed if child support appears as a deduction on schedule I or an expense on schedule J. See Schedule E in the Box widget on the right >>

full creditor names: If you download creditor names and addresses from a credit report, convert them to the full creditor name (not just abbreviations).

Next BAPCPA CLE class: Aug or Sep at the DCBA

:: Bankruptcy Attorney in Illinois :: M. Hedayat & Associates, P.C. ::

 

is free advice still worth what you paid for it, or should you add 4% compound annual interest and deduct capital gains?

I have a problem with the plot of brokerage and retirement commercials. Have you ever noticed how they make everything look so easy? And what about the actors? How am I going to grow a mane of silver hair by age 60? For the last time, no I do not have a 401(k)Roth SEP-IRA(MSA) okay?

Maybe I, and the rest of the shrinking middle-class, can worry about protecting my millions when I’ve got a few (or even one).  Until then, where are we going to go for retirement advice that makes sense and could even make us some money? As a matter of fact, I have a few ideas:

First, forget about going it alone. Brain surgery is cheaper when you do it yourself, but the headaches afterwards…

Second, don’t even think about patronizing the big investment houses that charge an arm and a leg for the privilege of working with them.  Outfits like Merrill Lynch, Morgan Stanley, Goldman Sachs, and others, turn up their noses if you start off with less than a fortune anyway.  P.S. I never understood this thinking … if I’m already a millionaire why should I bring you a fortune just so you can make one yourself?

Finally, get educated. Nowadays with the Internet and a wealth of information available 24/7, if you can do basic financial research and establish a relationship with an investment professional you trust, it’s easier than ever to create and follow a strategy that any investment jock would envy.

Follow Up: Take a look at this article by Wachovia Securities for some good ideas and basic strategies. E-mail financial consultant Naveed Ahmed with any questions and mention that you read his name here. He’ll not only explain the process he’ll even do the heavy lifting to get you started on the road to financial security. When you are through, feel free to e-mail me here to discuss how to protect your assets or check out M. Hedayat & Associates, P.C. for more helpful information.

Bankruptcy Blog | Bankruptcy Attorney In Illinois | M. Hedayat & Associates, PC

tax system explained at last

10 people go out for beers every night. The bill comes to $100 every time. They decide to pay the way we pay taxes, so the bill gets divided like this

  • the 4 with the lowest incomes pay $0
  • the 5th pays $1
  • the 6th pays $3
  • the 7th pays $7
  • the 8th pays $12
  • the 9th pays $18
  • the 10th pays $59

One night the owner of the bar decided to lower the cost of beer to $80 for the 10 of them: an overall savings of $20 per visit. The group still wanted to pay their bill the way we pay our taxes, but since some of them weren’t paying for their beer anyway, they decided to divide the $20 savings between the ones who were paying. So the effect looked like this

  • the 4 with the lowest incomes still paid $0
  • the 5th now paid $0
  • the 6th now paid $2
  • the 7th now paid $5
  • the 8th now paid $9
  • the 9th now paid $14
  • the 10th now paid $49

Once outside the bar, the drinkers began comparing their savings, and it sounded like this

  • “I only got a dollar out of the $20,”declared the sixth man. He pointed to the tenth man,” but he got $10!”
  • “Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar, too. It’s unfair that he got ten times more than I!”
  • “That’s true!!” shouted the seventh man. “Why should he get $10 back when I got only two? The wealthy get all the breaks!”
  • “Wait a minute,” yelled the first four men in unison. “We didn’t get anything at all. The system exploits the poor!”

So the nine men surrounded the tenth and beat him up. The next night the tenth man didn’t show up for drinks; the other nine had their beers without him. But when it came time to pay the bill, they discovered that they didn’t have enough money between them to pay even half the bill!

And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia

For those who understand, no explanation is needed. For those who do not understand, no explanation is possible.

2nd cir cases

In Re: Iridium Operating LLC (03/05/07 – No. 05-2236)
The most important factor to consider in approving a pre-Chapter 11 settlement agreement under Bankr. R. 9019 is whether it would distribute assets of the estate in accordance with the code’s priority scheme.

EDP Med. Computer Sys., Inc. v. US (03/09/07 – No. 06-0106)
The Order of a Bankruptcy Court allowing an uncontested proof of claim to stand constitutes a “final judgment on the merits” and prevents any contrary contentions under the theory of res judicata. In this case, once the government filed its tax claim without objection, another party could not seek a different outcome later on in the proceedings.

In Re: Burt and Pamela Barton, 02-12199

seal of the us bankruptcy court

Issued: 11/08/06
Judge: Bruce W. Black
Read the Opinion here

Questions Addressed:

  • Was the county afforded sufficient notice of the bankruptcy and debtors’ claim?
  • Is the county exempted from the effect of the automatic stay?
  • Were county’s actions authorized by 362(b)(3)?
  • Is the county bound by the debtor’s confirmed plan?

private collection no more?

David Goch, Washington Legislative Counsel for the CLLA, reports that last week Sens. Dorgan (D-N.D.) and Murray (D-Wash.) introduced S. 335, a bill to suspend any further use of private debt collectors by the IRS. the bill draws on a report to congress by National Taxpayer Advocate Nina Olson and cites the following as reasons for disbanding the program:

* IRS employees collect tax debts for 3 cents on the dollar, while private collectors are paid up to 25 cents;
* private collectors have less incentive to train employees on taxpayer rights; and
* tax collection is a core function of the Federal Government.

at least for the moment however, the IRS will continue to use private collection agencies, which have been and continue to be more successful than the agency itself at collecting delinquent taxes.