Tax Debt Grounds Travelers

1. Taxpayer owes the IRS over $50,000 (indexed annually for inflation).
2. A notice of lien must have been filed and all administrative rights exhausted or lapsed or a notice of levy has been filed.

IRS Correspondence

• IRS will not call, drop by, or email - The IRS will not call you or show up at your address unless a letter has first been sent to you regarding a tax question. If you have not received a letter about an IRS issue and you get a phone call or visit from the “IRS” it is most likely a scam. Also, the IRS will not email you, as their email systems are not secure. 
• If you receive an IRS notice in the mail about taxes due and a proposed adjustment, do not panic and don’t automatically pay the amount due. As you will see the notice states that it is a “proposed adjustment” in which you have at least 30 days to respond.
• If you receive an IRS letter stating that your return has been chosen to be “audited”, again, don’t panic. Most “audit” letters are computer generated from an IRS Service Center regarding the matching of tax forms the IRS has received with the information reported on the taxpayer’s return. Most of these “audits” can be handled through correspondence and do not require a meeting or telephone call with the IRS.

Household Employees

Many State’s unemployment funds are severely underfunded and are unable to cover the unprecedented employment benefit claims. In addition, the Federal government is coordinating efforts to combat unpaid employment taxes and the misclassification of workers. The federal government (and most states) do not classify nannies, housekeepers, maids, drivers, caregivers, and other similar employees, as independent contractors. These workers are considered domestic employees subject to the Department of Labor employment rules and payroll taxes. The following are some definitions to keep in mind when hiring a household employee:

• You have a household employee if you hired someone to do household work where you can control not only what work is done, but how it is done. If the worker is your employee, it doesn't matter whether the work is full time or part time or that you hired the worker through an agency or from a list provided by an agency or association. It also doesn't matter whether you pay the worker on an hourly, daily, or weekly basis, or by the job.
• If only the worker can control how the work is done, the worker isn't your employee but is self-employed. A self-employed worker usually provides his or her own tools and offers services to the general public in an independent business.