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It's tax season and the scam artists are also out in force. Even our law office -- which specializes in tax matters -- recently got an email asking us to pay a phony tax bill!

There are a number of scams out there with criminals pretending to be IRS agents and contacting persons by email and telephone trying to get them to pay up a phony tax debt.

The single most effective rule to remember is this: IRS does not make initial contact with taxpayers by email. If there is a tax problem, you will be notified by mail. Period.

Below is a press release from IRS warning taxpayers about telephone scams that are also common.

IRS Reiterates Warning of Pervasive Telephone Scam

R-2014-53, April 14, 2014

WASHINGTON -- As the 2014 filing season nears an end, the Internal Revenue Service today issued another strong warning for consumers to guard against sophisticated and aggressive phone scams targeting taxpayers, including recent immigrants, as reported incidents of this crime continue to rise nationwide. These scams won't likely end with the filing season so the IRS urges everyone to remain on guard.

The IRS will always send taxpayers a written notification of any tax due via the U.S. mail. The IRS never asks for credit card, debit card or prepaid card information over the telephone. For more information or to report a scam, go to www.irs.gov and type "scam" in the search box.

People have reported a particularly aggressive phone scam in the last several months. Immigrants are frequently targeted. Potential victims are threatened with deportation, arrest, having their utilities shut off, or having their driver's licenses revoked. Callers are frequently insulting or hostile - apparently to scare their potential victims.

Potential victims may be told they are entitled to big refunds, or that they owe money that must be paid immediately to the IRS. When unsuccessful the first time, sometimes phone scammers call back trying a new strategy.

Other characteristics of this scam include:

• Scammers use fake names and IRS badge numbers. They generally use common names and surnames to identify themselves.
• Scammers may be able to recite the last four digits of a victim's Social Security number.
• Scammers spoof the IRS toll-free number on caller ID to make it appear that it's the IRS calling.
• Scammers sometimes send bogus IRS emails to some victims to support their bogus calls.
• Victims hear background noise of other calls being conducted to mimic a call site.
• After threatening victims with jail time or driver's license revocation, scammers hang up and others soon call back pretending to be from the local police or DMV, and the caller ID supports their claim.

If you get a phone call from someone claiming to be from the IRS, here's what you should do:

• If you know you owe taxes or you think you might owe taxes, call the IRS at 1.800.829.1040. The IRS employees at that line can help you with a payment issue, if there really is such an issue.
• If you know you don't owe taxes or have no reason to think that you owe any taxes (for example, you've never received a bill or the caller made some bogus threats as described above), then call and report the incident to the Treasury Inspector General for Tax Administration at 1.800.366.4484.
• You can file a complaint using the FTC Complaint Assistant; choose "Other" and then "Imposter Scams." If the complaint involves someone impersonating the IRS, include the words "IRS Telephone Scam" in the notes.

Taxpayers should be aware that there are other unrelated scams (such as a lottery sweepstakes) and solicitations (such as debt relief) that fraudulently claim to be from the IRS.

The IRS encourages taxpayers to be vigilant against phone and email scams that use the IRS as a lure. The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

The IRS also does not ask for PINs, passwords or similar confidential access information for credit card, bank or other financial accounts. Recipients should not open any attachments or click on any links contained in the message. Instead, forward the e-mail to [email protected].

More information on how to report phishing scams involving the IRS is available on the genuine IRS website, IRS.gov.

You can reblog the IRS tax scam alert via Tumblr.

If you have, or think you have a real tax problem, call our office. We'll be happy to talk to you.

If you want to get the best result for your bankruptcy case, then you need to listen really closely to your bankruptcy attorney when he’s giving out his advice. If you fail to follow the advice, you may find yourself owing people money after your bankruptcy case is over. The most common example of this+ Read More
The post Listen Closely To Your Bankruptcy Attorney’s Advice appeared first on David M. Siegel.

It’s tax season and the scam artists are also out in force. Even our law office — which specializes in tax matters — recently got an email asking us to pay a phony tax bill!
There are a number of scams out there with criminals pretending to be IRS agents and contacting persons by email and telephone trying to get them to pay up a phony tax debt.
The single most effective rule to remember is this: IRS does not make initial contact with taxpayers by email. If there is a tax problem, you will be notified by mail. Period.
Below is a press release from IRS warning taxpayers about telephone scams that are also common.

IRS Reiterates Warning of Pervasive Telephone Scam
R-2014-53, April 14, 2014
WASHINGTON — As the 2014 filing season nears an end, the Internal Revenue Service today issued another strong warning for consumers to guard against sophisticated and aggressive phone scams targeting taxpayers, including recent immigrants, as reported incidents of this crime continue to rise nationwide. These scams won’t likely end with the filing season so the IRS urges everyone to remain on guard.
The IRS will always send taxpayers a written notification of any tax due via the U.S. mail. The IRS never asks for credit card, debit card or prepaid card information over the telephone. For more information or to report a scam, go to www.irs.gov and type “scam” in the search box.

People have reported a particularly aggressive phone scam in the last several months. Immigrants are frequently targeted. Potential victims are threatened with deportation, arrest, having their utilities shut off, or having their driver’s licenses revoked. Callers are frequently insulting or hostile – apparently to scare their potential victims.
Potential victims may be told they are entitled to big refunds, or that they owe money that must be paid immediately to the IRS. When unsuccessful the first time, sometimes phone scammers call back trying a new strategy.
Other characteristics of this scam include:

• Scammers use fake names and IRS badge numbers. They generally use common names and surnames to identify themselves.
• Scammers may be able to recite the last four digits of a victim’s Social Security number.
• Scammers spoof the IRS toll-free number on caller ID to make it appear that it’s the IRS calling.
• Scammers sometimes send bogus IRS emails to some victims to support their bogus calls.
• Victims hear background noise of other calls being conducted to mimic a call site.
• After threatening victims with jail time or driver’s license revocation, scammers hang up and others soon call back pretending to be from the local police or DMV, and the caller ID supports their claim.

If you get a phone call from someone claiming to be from the IRS, here’s what you should do:

• If you know you owe taxes or you think you might owe taxes, call the IRS at 1.800.829.1040. The IRS employees at that line can help you with a payment issue, if there really is such an issue.
• If you know you don’t owe taxes or have no reason to think that you owe any taxes (for example, you’ve never received a bill or the caller made some bogus threats as described above), then call and report the incident to the Treasury Inspector General for Tax Administration at 1.800.366.4484.
• You can file a complaint using the FTC Complaint Assistant; choose “Other” and then “Imposter Scams.” If the complaint involves someone impersonating the IRS, include the words “IRS Telephone Scam” in the notes.

Taxpayers should be aware that there are other unrelated scams (such as a lottery sweepstakes) and solicitations (such as debt relief) that fraudulently claim to be from the IRS.
The IRS encourages taxpayers to be vigilant against phone and email scams that use the IRS as a lure. The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.
The IRS also does not ask for PINs, passwords or similar confidential access information for credit card, bank or other financial accounts. Recipients should not open any attachments or click on any links contained in the message. Instead, forward the e-mail to [email protected].
More information on how to report phishing scams involving the IRS is available on the genuine IRS website, IRS.gov.
You can reblog the IRS tax scam alert via Tumblr.

If you have, or think you have a real tax problem, call our office. We’ll be happy to talk to you.

I get dozens of questions each day from potential clients, but the top question when it comes to bankruptcy is this:
Isn’t it a better idea to settle my debts instead of filing for bankruptcy?
Sadly, there’s no right or wrong answer to that question. For some people, filing for bankruptcy makes the most sense. For others, debt settlement is the weapon of choice.
Here are some of the considerations you should take into account when making the decision between filing for bankruptcy and engaging in debt settlement.
How many debts do you have? If you’ve got only 1 or 2 outstanding obligations then it makes sense to look into debt settlement before bankruptcy. With fewer open accounts, it’s easier to negotiate settlements. When you’ve got a large number of creditors, it’s tougher to get them all to fall into line.
What types of debts do you have? Some creditors will talk settlement, others won’t. Credit card companies, for example, may be willing to accept an amount lower than what’s due to pay the debt in full. Federal student loans, however, don’t settle that often.
Do you have the money to settle your debts? When a creditor agrees to a settlement there’s usually a requirement that the funds be paid immediately or within a few months. Without the money to spend on a settlement, negotiations won’t get you very far.
Can you live with the tax fallout? A creditor who agrees to forgive more than $600 of the balance due is required to send you a Form 1099 at the end of the year, and you may have to pay taxes on the forgiven amount. There are some situations where you can get out of the tax obligation, but you definitely want to sit down and talk with your tax professional before making the decision to settle your debts.
What’s the impact of settlement? When you settle a debt for less than the amount due, your credit report is updated to reflect that fact. The settlement notation can remain on your credit report for up to 7 years.
Do you need the money? Even if you’ve got the cash to fund a settlement of your debt, you need to consider the others uses that may exist for that money. Whether it’s a savings account for retirement, emergencies, or home repairs it’s important to remember that settlement is going to hit you in the wallet so plan accordingly.
Deciding to settle your debts rather than filing for bankruptcy may seem like a good idea on its face – and for you, it may be the right decision. Before making that choice, however, you need to weigh all your options and come to the decision that makes the most sense for you.