Happy Autumn!
Scott I. Fegley, P.C.
Is The IRS Getting On Your Last Nerve???
While most businesses and individuals try to pay their taxes on time, occasionally taxpayers fall behind with payments. A slowdown in business, unexpected car repairs or medical expenses, or a divorce are just some of the reasons why people fall behind or may become unable to pay their taxes at all. Even worse, the IRS continues to add interest and penalties to your tax bill as long as the principal debt remains unpaid. Your debt to the IRS can mushroom to many times the amount of your original tax liability!
Unfortunately, the folks at the IRS are not paid to understand and sympathize with your problems. They are paid to do one thing . . . collect your taxes! And they are very good at it!
Since the debt is not going to simply disappear, ignoring the problem is a big mistake. The IRS may place liens against your home, bank accounts and other property, and ultimately may seize them, to satisfy your debt.
Many taxpayers do not realize that they do not have to deal with the IRS themselves. In fact, our clients generally never have to meet or even speak with the IRS! Our office will file all the forms and handle all the contacts with the IRS. Our clients simply help us gather the necessary information.
The IRS has several programs for qualifying taxpayers that may lead to elimination of penalties and interest and a significant reduction of your original tax liability. For example, with an "Offer in Compromise," the IRS will completely eliminate your debt if it accepts your offer based on what you are capable of paying. You get a fresh start! In some cases, an "Innocent Spouse" may be relieved of all tax liability without having to pay anything!
For a FREE BROCHURE about these IRS programs and others, and how our office can help, call or e-mail our office at (215)493-8287 or info@fegleylaw.com.
Even though you own the assets in your 401(k) account, getting control of your account can be tricky if your employer suddenly closes its doors. By law, if there is no one from your former employer authorized to approve a rollover to a new account, the third party administrator of your plan cannot release the money. Finding the right person in your former company to authorize the rollover may take time. If one cannot be found, a court may have to appoint someone. Meanwhile, you will be unable to change your allocations, make further investments or loan money from your 401(k). The Wall Street Journal has estimated that over 33,000 employees and $850 million in assets are affected every year.
While new regulations have been proposed to allow employees direct access in the event of a company closing, there are things you can do to protect yourself right now. Keep all of your 401(k) statements as well as copies of rollover forms with your other financial documents at home. That way, you will know where to look for them if something happens. If you do not already know the individual at your company who is authorized to make changes to your account, find out who that person is. Especially in small companies, you may also know that person’s home address or phone number. Keep it with your statements. From time to time, check to make sure that person is still employed and that 401(k) authorization has not been reassigned to someone else.
For any employee benefit questions, call or e-mail our office at (215)493-8287 or info@fegleylaw.com.
Scott Fegley to Speak at NALS Conference
on September 22, 2006
On September 22, 2006, Scott Fegley will be presenting a seminar entitled "The ABC’s of Employment Law for the Gatekeeper" to the National Association of Legal Secretaries at their annual conference. The seminar will provide basic information to legal secretaries on key employment laws and train them how to elicit from clients the important information the attorney will need to know.