Prudential Carruthers REALTORS in Lake Ridge

Early in 2011, the IRS announced a series of measures to help taxpayers buffeted by the economic slowdown. The IRS calls these measures its “Fresh Start” program and they are intended help taxpayers who want to pay their tax liabilities but because of unemployment, slow business sales or for other legitimate reasons, cannot pay their tax debts. One of the most attractive features of the Fresh Start program involves the withdrawal of a tax lien.

Early in 2011, the IRS announced a series of measures to help taxpayers buffeted by the economic slowdown. The IRS calls these measures its “Fresh Start” program and they are intended help taxpayers who want to pay their tax liabilities but because of unemployment, slow business sales or for other legitimate reasons, cannot pay their tax debts. One of the most attractive features of the Fresh Start program involves the withdrawal of a tax lien.

Liens

When the IRS files a notice of federal tax lien (NFTL) it makes a claim to a taxpayer’s property as security or payment for a tax debt. The IRS must follow very detailed procedures, including sending the taxpayer a notice and demand for payment. If the taxpayer pays the tax debt, the IRS must release the lien within a prescribed period of time; generally within 30 days after the taxpayer satisfies the tax due, including interest and other additions.

There is an important distinction between release of a lien and withdrawal of a lien. Although the IRS may release the lien, the lien generally continues to be reflected on the taxpayer’s credit report unless the lien is withdrawn. This can negatively affect a taxpayer’s ability to get credit or, in some cases, could have a negative impact on the taxpayer obtaining a job if the employer reviews the taxpayer’s credit history.

Full payment

Under the “Fresh Start” program, the IRS has announced that liens will be withdrawn immediately once full payment is made by the taxpayer. The IRS has instructed taxpayers, whose lien has been released after full payment, to request withdrawal of the lien in writing. Taxpayers use Form 12277, Application for Withdrawal, to make this request.

Direct Debit installment agreement

The IRS will also withdraw a lien if the taxpayer agrees to enter into a Direct Debit installment agreement. In this arrangement, the taxpayer consents to having funds automatically debited from a bank account for the agreed upon installment amount. The IRS prefers Direct Debit installment agreements because they are automatic: the taxpayer does not need to remember to send a check or money order.

Not everyone is eligible for lien withdrawal after entering into a Direct Debit installment agreement. The IRS has explained on its web site that qualifying taxpayers are individuals; active businesses with income tax liability only (this would exclude active businesses with unpaid employment taxes); and defunct businesses with any type of tax debt. The current amount owed by the taxpayer must be $25,000 or less. The IRS has advised on its web site that taxpayers owing more than $25,000 may pay down the balance to $25,000 prior to requesting the lien withdrawal to be eligible for the relief. Additionally, the taxpayer’s Direct Debit installment agreement must pay in full the amount owed within 60 months or before the collection statute expires, whichever is earlier. The taxpayer also must have made three consecutive Direct Debit Payments before the IRS will withdrawal the lien.

Taxpayers should use Form 12277 to request withdrawal of a lien after entering into a Direct Debit installment agreement. The IRS warned it will file a new NFTL if the taxpayer subsequently defaults on its Direct Debit installment agreement.

Lien filing thresholds

The IRS has also adjusted the lien filing threshold under the Fresh Start program. The Fresh Start changes increase the IRS lien filing threshold from $5,000 to $10,000. However, the IRS has reserved the right to file liens on amounts less than $10,000 when circumstances warrant.

For more information about the Fresh Start program contact your accountant

If this the way people communicate today, and can even change the way they live, how can it not be good for business? Anyone who is out there still resistant to using social media to reach their following, soon may be out of business. Real estate agents are resisting while their buyers and sellers are constantly  engaged in social media and are finding their agents there as well. Anything that can change a country can certainly help improve your business.

Happy Networking!

Jim Evans

Prudential Carruthers REALTORS

703-501-5960

October 2010 Summary:

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The 4 Personality Types

Analytical

People who are analytical generally enjoy or even get a thrill out of working with specific details. They are usually perfectionists who take a systematic approach to most of the things they do.  When working with an analytical seller or buyer, it’s important for you to cover each comp in detail. Show them graphs, percentages, statistics, and then allow them some time to process everything. They make their decisions very logically and with very little emotion.

Characteristics of Analyticals:

• Little to no emotion
• Loves facts, figures and numbers
• Easily get frustrated when others can’t see their point of view
• Hardly ever get bored because they’re always thinking about something that keeps them busy
• Enjoy problem solving and love to be admired for it
• Incredibly indecisive

Amiable

Have you ever had a friend who is always there for you, no matter what? Even if they are busy, they drop everything to talk with you. Amiable personality types are great team players. They usually want what’s best for the group.  Most amiable people are “externals,” they seek the opinion and approval of the people around them (to make sure everyone is okay with what they are doing).  When you’re working with an amiable seller, it’s important for you to be ‘soft and warm,’ always ask them about how they “feel” and what their spouse thinks about the situation.

Characteristics of Amiables:

• Team player
• External, seek the opinion and approval of others
• Soft spoken
• Avoids confrontation
• Warm/friendly

Expressive

Have you ever been in a conversation with someone who is extremely animated and just doesn’t stop talking? Maybe you’ve encountered this person at a party with many people circled around him or her? The expressive person enjoys attention, typically wears bright colors, likes being flashy, and tends to run late. When working with an expressive seller, your goal is to let them talk and sell themselves on why they should hire you and sign the contract. They generally enjoy being spontaneous, as long as you ask the right questions and guide them down the right path, there is a good chance that they will sign the contract with you on the spot.

Characteristics of Expressive:

• Center of attention
• Has a story for almost everything
• Flashy colors with clothes, cars, and lifestyle
• Very animated and at times, loud

Driver

People with the driver personality often come across as demanding, abrupt, or even short fused. Drivers typically just want you to get straight the point and cut the fluff. Like analytics, they too like facts and figures, but they are definitely not as detail oriented.  They can be very intimidating. Also, like analyticals, they show little to no emotion.  When working with a driver seller or buyer, avoid telling any stories, get straight to the comps, be brief, and close strong.

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Sellers are receiving offers at or above list price at the time of sale.

The median sales price continues its upward trend.

Time on the market also continues to decrease as the demand stays much higher in the DC suburbs than in many parts of the Country.

Continue to follow this data by following this blog.