About Jared R. Rogers, CPA

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So far Jared R. Rogers, CPA has created 26 blog entries.

Origins – The History of xXx Racing

xXx Racing – Athletico                             Racing Since 1999

Many people who know me, may be familiar with the fact that I race bikes for a team called xXx Racing – Athletico. The team was founded back in 1999 by a group of messengers, but just who exactly were these individuals? Where did they come from and what prompted them to form the team? As the team has grown and membership has changed over the years, some of the nuances and details have become lost to the sands of time. With the team approaching it’s 25th Anniversary, this story pieces some of that “lost history” back together for all to witness and revel in for years to come.

Me at Cherry Roubaix Crit, Traverse City, MI Cir. 2013

Now a special note about this post. I’ve been on xXx, commonly referred to as “Triple X” since 2007. Back in 2012 I did a lot of the research that appears in this post between the team’s 10th and 15th Anniversaries. I had the opportunity to speak with Marcus (see below) on several occasions as I wanted to get the details correct. But as time has passed, a lot of the internet links that contained that history have since been broken or deleted. To that end, this post contains links and PDF files of those same links so that if they are broken in the future, readers will still be able to enjoy and find the original content. If there is a file with the content, it’s denoted with (PDF) to alert you to it. Now with that said, let’s get to the story!

The Beginning

It all began with a guy by the name of Marcus Moore. Marcus worked as a bike messenger in downtown Chicago up until 1995 when he then started working as a mechanic. In 1997 he founded Yojimbo’s Garage, a local bike shop, (PDF) after splitting time between being a carpenter and working at Upgrade Cycles.

Marcus Moore, xXx Racing Founder and owner of Yojimbo’s Garage

As Marcus was into the racing scene as well as that of messengering here in Chicago, he sponsored a single rider in 1997 at our local track, the Northbrook Velodrome. However, the rider burned out and didn’t go back the following season. In 1998, one of his fellow messenger friends, Patrick Babcock, decided to try his hand at track racing. It took Patrick about three or four times to get comfortable with the style of racing, but then he got hooked.

My track number, still being sponsored by Yojimbo’s Garage!

Patrick got wind of a race that was being held in Toronto Canada in October of 1998 and wanted Marcus to go. The race? One of those crazy Alley Cat Scrambles on the Human Powered Roller Coaster track (PDF). This track saw messengers come from all over the world to compete in events such as the Cycle World Messenger Championships. Marcus and Patrick really liked the messenger scene and the vibe they got about racing. There were some organized teams; some that even had women. During the ride back to Chicago, Marcus and Patrick wondered if other messengers might also have an interest in racing. They also talked about forming a race team.

Messenger racing at The Human Powered Roller Coaster

In late 1998 Marcus founded the Alley Cat series called the “Tour Da Chicago” (PDF), which was a muti-race series that was run over a period of time and held on the city streets. It wasn’t necessarily “sanctioned” racing, but it was “organized” and allowed messengers and other strong men/women to prove their mettle and show who was the baddest on two wheels. In November, Marcus and Patrick called a meeting among the messenger community to see to what extent their desire to race actually was. The result? 28 people showed up, which was a very promising turnout. At another meeting, the group sifted through more than 40 suggested names for the team, finally settling on xXx. The name wasn’t inspired by anything of a racy nature, but by a Toronto restaurant named the xXx Cafe that Moore liked and he and Patrick had eaten at during their trip. With that, the foundation had been laid for the team to start racing in 1999.

Team Colors

During that winter of 1998 – 1999, they filled out the paperwork to formally launch the team. It was also during this period that the team settled on our team colors of red, black and white. The history of this is that the colors came from the historic Chicago colors (PDF) of the anarchist movement and uprisings in the early 1900s (PDF) and the fact that they were edgy. Most of the other teams at that time were rather “traditional” whereas the founders of xXx wanted to push the envelope and prove a point. You didn’t have to have a fancy bike and all that gear to be fast or win races. Messengers are fast too and we’re about to show Chicago how we can throw down!

Racing Since 1999

In its earliest incarnation, xXx served primarily as a support system for couriers, but the team made a conscious decision not to restrict its membership, and soon attracted racers of all stripes. While this is in no means an exhaustive list, here are some of those riders who made up the founding/initial team with the years for which results listing xXx Racing can be found:

Marcus Moore (’99), Patrick Babcock (’99), Mike Genge (’99), Eric Sprattling (’99), Thomas McBride (’99), Jason Pyrzynski (’99), Donny “Quixote” Perry (’00), Jeff Benjamin (’00) Zach Fiocca (‘99), Sarah Tillotson (’01), Lissa Krawczyk (’01)

The exact date of when the team was founded isn’t necessarily known but the first race that included results with a majority of the founding riders was the Parkside Criterium Number 3 that was held in Kenosha Wisconsin on April 11, 1999. Back then there was no Cat 5 so most of the riders were in the “Senior 4” category…with the exception of Eric Sprattling.

Team Mentoring

Each one of the riders above brought something unique to the table. All had a love for the bike and going fast. However, there was one rider who brought a little something extra with them; the gift and desire of mentorship. Eric Sprattling rode as a messenger for 13 years. One of the companies he rode for was named Deadline Express. He was also into the Alley Cat racing scene as well as that of sanctioned racing; Eric actually rode for the True Value team of the ‘90s before he helped with the foundation of xXx. With that being said, Eric had a good idea of how racing worked. He also knew that it took training to be any good at it.

Eric Sprattling rockin his True Value race jersey!

Rumor has it that Eric would bump into other messengers during the week and would ask them what they were doing on Saturday. When the respondent replied, Eric would say “Wanna Go For A Ride?” or something along those lines. Early on Saturday morning, Eric would ride to one guys house and meet up with them. The two riders would go to the next guys house and repeat the process until they had a caravan of riders. They would then all traipse up to the northern suburbs (e.g. Highland Park, Fort Sheridan) and sometimes even farther. It was this mentorship that afforded these messengers and friends a route into structured training and racing. Fellow teammate Kyle Wiberg recounts (PDF) how Eric dragged him out to a bike race being held in Sherman Park back in 1989. Eric would later join Kyle at the messenger company Kyle founded back in 1989, Velocity.

Aside from being a mentor, Eric was also an inspiration to these riders. When xXx was founded, Eric was already in his 40’s. As some put it, he was winding down his racing career and wanted to pass on what he knew to others. But while he may have been winding down, he certainly wasn’t being a slouch. You see, stories have it that Eric was one heck of an endurance rider. Many accounts point to the fact that he participated in 6 and 12 hour time trials on more than one occasion. These events were held somewhere around the Charles Mound Illinois area. In preparation for these events, Eric often rode long distances as part of his training. One account mentions that Eric rode from Chicago to Wisconsin, raced his bike and then rode back home. It was also known that he would ride to the Wisconsin and Indiana boarders all within the same day. An account of Eric’s racing prowess appeared in Chapter 13 “Alley Cat” (PDF) of Travis Culley’s book The Immortal Class.

Side note – I rode as a messenger between 1995-1997 during the Summers of my Senior Year in high school and the one leading into my Junior year in college. I was #512 of the Chicago Messenger Service. Now, I do not have a great memory of who ALL the messengers were during that time because I was a kid. But it is literally quite possible that I could have bumped into Eric during those years. If it did happen, I chalk it up to fate that I would later ride on the same team that he founded!

Tragic Moments

While 1999 remains a focal point in our founding, it was one of three very challenging years for our team. Tommy McBride was one of the early messengers who joined the team. As a young chap, he worked at Arrow Messenger in 1996 and later helped found On The Fly Courier. Unfortunately, Tommy’s life was cut short when he was killed in a road rage incident at 5300 W. Washington on April 26, 1999. A memorial dedicated to Tommy can be found on the bicycle messenger memorial page (PDF).

That same year, just a few short weeks later, Eric suffered a brain aneurysm during the Circuit of Sauk (aka Baraboo) road race in Wisconsin. Unfortunately he would not recover and passed away on May 7, 1999. A memorial dedicated to Eric can be found on the same bicycle messenger memorial page (PDF).

McBride and Sprattling were memorialized in the 13th issue of “Dead Air,” the messenger zine edited by Donny “Quixote” Perry (former leader of the Windy City Bike Messenger Association).

In 2007, the year I joined the team, we were unfortunate to suffer two other tragic losses.

Elizabeth “Beth” Kobeszka

Elizabeth “Beth” Kobeszka, was an avid triathlete and joined xXx and began competing in bike races throughout the region. On June 30, 2007, at the age of 24, Beth was killed in a biking accident during the 20th Annual Proctor Cycling Classic in Peoria, Illinois. Continuing her lifelong legacy (PDF) of helping others, Beth was an organ donor.

Pieter Ombregt

Pieter Ombregt was a member of xXx Racing-Athletico for two seasons from 2006-2007. He was a gifted photographer, an accomplished cyclist and a dear friend to the Chicago cycling community. Pieter died at the age of 27 (PDF) on September 11, 2007, from injuries he sustained in a bicycle racing accident.

Richard Moellering

In 2018, the team suffered our most recent loss with the passing of Richard Moellering. A member of xXx since 2012, Richard embodied the spirit and mission of xXx both on and off the bike. I know many of us strive to be even half as engaged, adventurous, and active as him when we’re in our 70’s. Richard passed (PDF) on April 20, 2018 of complications from a cycling accident.

In honor of all our fallen riders, we wear their hearts on our sleeves as a constant inward and outward reminder that their lives will never be forgotten.

Traditions & Legacies

Over the years, many things that became common place within xXx Racing actually had their origins with the people and places surrounding the events in 1998/1999.

As mentioned earlier, the team began with the focus of mentoring couriers as they began sanctioned racing. As early as June 19, 1999, (PDF) riders were venturing up to the Northbrook Velodrome to participate in track races under the xXx Racing banner. This attracted other non-messengers who wanted to race; none of which were ever turned away. It was this open door policy that started the practice of xXx racing being a team open to all. To this day, we remain one of the principle conduits within Chicagoland for new racers to enter into the sport. Additionally, xXx maintains an active and accomplished presence at the Northbrook Velodrome.

In 2001 Randy Warren joined the team in a coaching capacity. This move filled the role started by Eric with regards to someone being able to provide advice and knowledge with regards to training and racing. It was also during this time that the team began working closely with the Active Transportation Alliance and other cycling organizations to help promote cycling in the community.

Athletico Physical Therapy joined xXx Racing as a sponsor in 2002 and became our co-title sponsor in 2003, creating the xXx Racing-Athletico team. We are thrilled to be partnered with Chicago’s finest source of physical therapy and sports medicine.

With regards to us being a development team, various programs focused on fostering this aspect began to emerge over time. The current Men’s Development Program (MDP), Women’s Development Program (WDP), Junior Development Program (JDP) and Elite Development Program (EDP) all have their roots in the concept of nurturing and growing our riders. In 2006/2007, one of those programs was the Messenger Program, which was a historic nod back to our roots.

Our team ride that leaves Wicker Park and heads up to the northern suburbs, follows popular routes that are used by many North Shore cyclist. However, Eric was using these routes back in the late ‘80s and early ‘90s for his own training and that of his messenger colleagues. Maybe it’s no coincidence that we still venture that way to this day on our Saturday Team Ride. And on a related topic, in 2010 Coach Warren started the 3 States Memorial Ride as a nod to Eric and some of the epic training that was attributed to him. Back in 2012, as a personal nod to Eric I rode to all 4 of our surrounding states (Illinois, Indiana, Michigan and Wisconsin) in a single day. You can read about it in “200+ Miles & 4 States on A Bicycle” which is here on our blog.

For years, xXx held the Sherman Park Race at the location which bears this moniker. In fact, the park is one of the few in Chicago, that has a roadway in it that was actually designed to be used for leisurely activities, like bike riding, back in the early 1900’s. The inaugural race (of recent times) according to the Chicago Tribune was held by the Chicago Park District in 1989. As mentioned above, both Eric and Kyle were in attendance. xXx began hosting the race sometime later and ran it annually through 2011. In 2012 we shifted the venue up north to Lincoln Park, but remain committed to introducing bike racing to those within the city limits.

Notable Championships

With a rich and deep history of riders throughout the years, the team has had several win championship medals and titles. Below is a list of some of the archived and recorded championships. I am sure that there are more that may be undocumented and were lost to the sands of time.

World Championship Medals

  • 2010: Greta Neimanas (bronze, Paralympic time trial)
  • 2009: Greta Neimanas (silver, Paralympic time trial; silver, Paralympic road race)
  • 2007: Greta Neimanas (bronze, Paralympic time trial)
  • 2004: Rebecca Much (silver, juniors time trial)

USA Cyling National Champions

  • 2016: Steve Burton (masters 60-64 scratch)
  • 2016: Johnny Khufahl (juniors 17-18 individual pursuit)
  • 2015: Nikos Hessert (juniors 17-18 scratch, team pursuit)
  • 2015: Johnny Khufahl (juniors 17-18 team pursuit)
  • 2014: Nikos Hessert (juniors 17-18 points, team pursuit)
  • 2010: John Tomlinson (juniors 17-18 points)
  • 2010: Greta Neimanas (paralympic road race, criterium, time trial)
  • 2009: John Tomlinson (juniors 17-18 scratch)
  • 2006: Aaron Harrison (juniors 10-12 omnium)
  • 2005: Randy Warren (masters 40-44 points race)
  • 2004: Rebecca Much (juniors 17-18 time trial)
  • 2004: Rebecca Much (juniors 17-18 road race

USA Cyling State Champions

  • 2017
    • Jake Buescher (cat 1 criterium, team pursuit)
    • Courtney O’Neill (team pursuit, individual pursuit, points)
    • Tyler George (kilo, individual pursuit, team pursuit, match sprint, Roger Delanghe Trophy Race)
    • Solomon Triester (team pursuit)
    • Katie George (team pursuit)
  • 2016
    • Erika Kondo (cat 3 road race, criterium, 500M, scratch)
    • Emily Laflamme, Katie George, Erika Kondo, Courtney O’Neill (team pursuit)
    • Johnny Khufahl (Cat 1/2 Madison)
    • Sean Metz (Cat P/1/2 Road Race)
    • Andrei Cismas (junior 15-18 road race)
    • Steve Burton (Cat 3/4 Madison)
    • Tyler George (Cat 1/2 time trial, Madison, 1000M, team pursuit, individual pursuit, team sprint)
  • 2015
    • Daryus Patel (juniors 15-18 criterium)
    • Courtney O’Neill (Cat 3 criterium)
    • Erika Kondo (Cat 4 criterium)
    • Emily Laflamme (Cat 4 road race)
    • Ryan O’Boyle (Cat P/1/2 road race)
    • Tracy Dangott, Michael Kirby (Cat 3/4 Madison)
    • Tracy Dangott (Cat 4 Keirin)
  • 2014
    • Nikos Hessert (Cat P/1/2 points)
    • Alec Dinerstein (Cat 3 points)
    • Tyler George, Nikos Hessert (Cat P/1/2 Madison)
    • Michael Kirby, Rob Whittier (Cat 3/4 Madison)
    • Sue Wellinghoff (time trial)
    • Tom Briney, Jake Buescher, Tyler George, Randy Warren (team pursuit)
    • Alec Dinerstein (Cat 3 scratch)
    • Tyler George (4k pursuit)
  • 2013
    • Nikos Hessert (junior 15-16 omnium)
    • WilliamPankonin (35+ road race)
    • Sue Wellinghoff (Cat 3 road race)
    • Fred Schuler (50+ criterium)
  • 2012
    • Brenda Culver (Cat 3 mountain bike)
    • Mark Baranowski (Cat 3 40-49 mountain bike)
    • Ben O’Malley (juniors 15-18 time trial)
    • Sandra Samman (3K pursuit)
    • Kyle Mindick (juniors 17-18 omnium)
    • Tristan Whitehead (Cat 4 criterium)
    • Sue Wellinghoff (Cat 4 criterium)
    • Daryus Patel (juniors 10-14 criterium)
  • 2011
    • John Stainthorp (60+ cyclocross)
    • William Pankonin (Cat 3 cyclocross)
    • Larry Stoegbauer, with help from Jason Garner (Madison)
    • Liam Donoghue (individual pursuit)
    • Dave Moyer, Liam Donoghue and Larry Stoegbauer, with help from John Tomlinson (team pursuit)
    • Dave Moyer (points)
    • Ryan Fay (Cat 3 criterium)
    • Ryan Fay (Cat 3 time trial)
    • Nikos Hessert (juniors 10-14 criterium)
    • Dave Moyer (Cat 1 criterium)
  • 2010
    • Mike Seguin (Cat 3 cyclocross)
    • Liam Donoghue (scratch)
    • Liam Donoghue, Dave Moyer, John Tomlinson, Randy Warren (team pursuit)
    • Dave Moyer (Cat P/1/2 criterium)
    • Heidi Sarna (women’s open criterium)
    • Samuele Bianchi (juniors 10-14 criterium)
  • 2009
    • Seth Meyer (Cat P/1/2 road race)
    • Dave Moyer, John Tomlinson, Randy Warren, Shane Winn (team pursuit)
    • Dave Moyer (points)
    • Liam Donoghue (Cat 4 criterium)
    • Mike Seguin (Cat 4 30+ criterium)
  • 2008
    • John Tomlinson (juniors cyclocross)
    • Eileen Neville (Cat 4 cyclocross)
    • Cecile Redoble (Cat 4 time trial)
  • 2007
    • Peter Allen (30-34 time trial)
    • Joe Ebenroth (Cat 4 30+ criterium)
    • Andy Harrison (juniors 10-12 omnium)
    • Kevin Krakovsky (Cat 4 30+ road)
    • John Tomlinson (juniors 15-18 omnium)
    • Jeff Wat (Cat 4 criterium)
  • 2006
    • Greta Neimanas (juniors 15-18 omnium)
    • Ben Popper (Cat 4 cyclocross)
    • Janet Lin (Cat 4 criterium)
    • Eve Pytel (500M)
    • Eve Pytel (3K pursuit)
    • Eve Pytel (masters 30-39 500M)
    • Eve Pytel (masters 30-39 pursuit)
    • John Tomlinson (juniors 10-14 omnium)
  • 2005
    • Anita Dilles (500M)
    • Anita Dillles, Jennifer Hoover, Susan Peithman, Eve Pytel (team pursuit)
    • Anita Dilles, Susan Peithman, Eve Pytel (team sprint)
    • Emily Macdonald (C cyclocross)
  • 2004
    • Eric Weisenburger (B cyclocross)
  • 2003
    • Heather Calomese, Rebecca Much, Brianna Nichols, Eve Pytel (team pursuit)
    • Heather Calomese, Brianna Nichols, Eve Pytel (team sprint)
    • Sean Hopkins (juniors pursuit)
    • Sean Hopkins, Matt Kaminecki, Justyn Moore, William Chotes (juniors team pursuit)
    • Sean Hopkins, Matt Kaminecki, William Chotes (juniors team sprint)
    • Rebecca Much (200M time trial)
    • Randy Warren (points race)

As I bring this history lesson to a conclusion, I want to thank the many people who took the time with me back in 2012 to share all of it with me. I won’t name them here, because many of them are mentioned above. But there were also several sites and articles that contained data that were also used to piece things together. If you want to learn more about the late 90’s messenger or cycling community, or some of the other events that took place around that time, then make sure you check out some of these other articles, which are linked below.

Jared R. Rogers, CPA
xXx Racing – Athletico
Racing 2007 – present
Unofficial “Current” Historian

Other Notable Reads

By |2023-10-21T14:39:14-06:00October 20, 2023|Categories: Who's The Boss?|Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |0 Comments

Our FREE Monthly Tax Debt Webinar

Join us for our FREE Webinar!

Tax relief companies advertise help for taxpayers in distress — in exchange for an upfront fee, which can be thousands of dollars. They say they’ll apply for IRS hardship programs to lower or even eliminate your federal tax debts. They even promise to stop back-tax collection. But the truth is that most taxpayers are unlikely to qualify for the programs these scammers advertise.

In many cases, these companies don’t settle your tax debt. Some don’t even send your paperwork to the IRS to apply for programs to help you. These companies often leave people even further in debt.

If one owes back taxes and doesn’t know how their going to pay the debt, then we’ve got news for you! Join us for our next FREE webinar “10 Ways To Settle IRS & State Tax Debt” which is being held on Thursday June 15th 2023 at Noon CST.
We plan to hold these webinars monthly so if you’re reading this after June 15th, still click the link below.  If another webinar is planned, the page will be updated to show you the date of the next scheduled webinar.

Upon sign up, you will immediately receive instructions on how to join to the webinar, as well as Jared’s special report 5 Questions To Ask Any Tax Resolution Firm BEFORE Paying Them A Dime.”

ALL attendees will be eligible to receive a comprehensive 30-minute Tax Debt Settlement Analysis and personalized Tax Resolution Plan. This plan is regularly $175, but FREE to all attendees, so act NOW!

To learn more visit www.solvemytaxmess.com and then sign up.  Space is always limited so don’t miss your chance to attend this exclusive event!

New Website – Make My Money Make Sense!

Click the image to visit our new money management website – Make My Money Make Sense!

We know we’ve been “ghost” for a little while and all we can say is that a lot has happened during the period that we were all dealing with Covid-19. Part of what happened is we were in the Bat Cave deep in work. So today we have two VERY special announcements to make.

ANNOUNCEMENT #1 – The launch of Make My Money Make Sense

We’re very pleased to announce the launch of Make My Money Make Sense – our new financial education and money management website!

This site has been in “development” for a little over 2 years and is the culmination of all those YouTube videos we’ve created. 😁It talks about all things money management for businesses and individuals via our blog, videos and course page.

While it’s being rolled out with a small amount of content, look for it to quickly grow as we finalize some things in the very near future.

A few quick links to check out:
Website
Blog article explaining the site and related video explaining George Floyd’s inspiration of this endeavor (we bypassed the beginning of the video so it starts right at the point where Jared tells the story of creating the YouTube channel – which ultimately was being done to roll videos into this site upon completion).

Welcome video from Jared explaining what’s on the site.


ANNOUNCEMENT #2 – The launch of our first online course

With the launch of Make My Money Make Sense – comes the launch of our first online course! How to File Back Taxes – A Step By Step Guide is now available for purchase. This course is an expansion of our most viewed YouTube video How To File Back Tax Returns | TCC and will teach:

  • Those who have back taxes and are looking for a course how to solve them via a DIY method or,
  • Tax professionals who want to learn the nuances of filing back tax returns so they can either solve their client’s problems OR learn how to add this valuable service offering to their product line up.
The YouTube video that inspired the course!

To celebrate, from now until 11:30PM CST on December 31st 2022, customers can get it for 50% off the $97 normal price. To claim the discount use the coupon code “HOLIDAY50” at checkout (case sensitive). If you have any issues using the code just contact us via the email or phone number in the footer of this post.

To purchase the course or learn more you can visit the course and products page on the website or go straight to the sales page.

That’s all for now. Look for us to get back to creating blog content on a more “regular” basis in the very near future!

500 Subscriber Thank You Giveaway

Don’t want to read the post? Then click here to watch the YouTube video instead!

So back when we started our YouTube channel in 2020, we had a goal of getting to 500 subscribers by June of 2021.  Well, while we didn’t get there by June, we’re pleased to say that we reached 500 subscribers on August 5th 2021 thanks to your help!

So…thank you, thank you, thank you so VERY MUCH to everyone for helping us reach more people to help them with understanding their money and achieving their wealth goals.  But now, we’ve got a new goal, and that goal is to get to 750 subscribers by December 31st 2021. To do that, we’ve got a really awesome contest that everyone can enter whether they are or aren’t a current subscriber of our channel. 

Contest Instructions

If you’re not subscribed to the channel, all you have to do is just head on over to our channel page.  Once there, click the little subscribe button and then make sure you click that little bell icon so it turns grey.  That way, you’ll get notifications whenever we upload a new video.

Make sure you turn on notifications! ?

Once you’ve done that, just take a picture or screenshot of your subscription page and shoot it to us via and email by clicking this link. It’s just that simple!

Now if you’re already subscribed, you can still play along and win too. All you have to do is just send an email to some of your closest friends or colleagues inviting them to subscribe to the channel.  We put a sample email in the description of this YouTube video to make it really easy for you to just cut paste and send.

Once you’ve sent the email, just either send us a picture of that email or you can actually just BCC us on the email when it goes out. Now don’t worry, we’re not gonna take your friend’s email addresses and spam people or anything like that. ? In the end, you can do whatever your comfortable with. All we need is proof that you’re telling people about the channel.

The Prize?

So what’s the prize?  We’ll on Labor Day (9/6/21) we’ll pick 5 lucky winners who will receive a 100% FREE autographed copy of Jared’s book How To Slash Your Taxes Legally and Ethically.  Hey, what better way to work on minding your money then by learning how you can save on your taxes for FREE right?

Once again, we thank you all so much for helping us get to our 500 subscriber goal and here’s to us getting to 750 by December 31st

By |2021-08-17T20:11:31-06:00August 17, 2021|Categories: General Ramblings|Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |0 Comments

Money Management YouTube Series

Our YouTube videos discuss money management and tax saving strategies. Artwork compliments of Michael Voogd at VoogDesigns!

Many Americans often find themselves broke and living paycheck to paycheck. But why does this happen? Is it because of lack of income/earnings? Is it due to not having certain “higher” level education or degrees like a Bachelor’s or Master’s degree from college? Is it because of certain race, gender, sexual preference or other items which can be discriminated against? Contrary to popular belief, it’s NOT just tied to how much money a person makes.

George Floyd’s Impact, Inspiration and Legacy

In early 2020, because of the tragic murder and death of George Floyd, Americans were forced to confront some realities that some would rather not. His death, on top of many Americans being out of work due to the Covid-19 Pandemic, was just enough to push us into a tailspin of social unrest. The resulting looting, rioting and “every person for themselves” mentality which followed, made one thing clear (if it was to no one other than ourselves). Through no fault of their own, many Americans are only one paycheck away from disaster.

This can be a small disaster like missing a cell phone bill, a cable bill or not having enough to go out and eat at your favorite restaurant. Or it could be a serious disaster like missing a rent or mortgage payment, getting evicted, or having to turn to a food pantry for help.

Our good friend, and client, Ashanti Johnson over at 360 Mind Body Soul here in Chicago, encouraged us to start a video series in connection with a virtual wellness summit that our CEO, Jared Rogers, participated in. Check out this specific point in Episode 10 where Jared shares a snippet of her summit and talks about George Floyd and the resulting motivation to launch the series.

In the end, seeing as we deal with money on a day-in and day-out basis, it only made sense that we should work to share the knowledge we have built up over the years with those who need it the most. So, through a culmination of all of the above, we decided that we had an obligation to do more.

Minding My Money Mondays & Tax Chit Chat

Minding My Money Mondays (#MMMM) was the YouTube series that was directly birthed following the events after Mr. Floyd’s death. In early December, we created a separate series called Tax Chit Chat (#TCC) that is for those looking specifically for just tax tips. All videos will ultimately get rolled into a much larger money management website (hopefully by early H2 of 2021), but in the interim, you can follow both series by subscribing to our YouTube channel. Each series has it’s own playlist and releases videos according to it’s prescribed schedule.

Video Episode Listing

Shown below is a listing of the episodes that were created through the date of this blog post. They go from most recent back to the very first episode. To catch an episode, simply click the title above the video thumbnail and you’ll be taken directly to it within YouTube. It’s our sincere hope that that you:

  1. Enjoy the videos and learn from them
  2. Spread the word on social media via the hashtags #MMMM and #TCC as we really hope to help people “Make My Money Make Sense!”
  3. Eventually join us on the money management website once it’s launched
  4. Send us questions and video suggestions at questions@makemymoneymakesense.com as we hope to help everyone learn how to better manage their money and avoid financial disaster (although NO ONE saw a Covid-19 type event coming).
3 Reasons People Are Broke! | MMMM S1 EP26
Top Year End Tax Saving Tips For 2020 | TCC S1 EP1
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By |2024-04-13T14:31:20-06:00December 14, 2020|Categories: Accounting Talk, Tax Talk|Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |0 Comments

Can the IRS Seize My Car?

You may have heard about the IRS seizing a taxpayers assets for unpaid taxes. These can include, among other things, the vehicles that they own. So the short answer to the question is yes, the IRS can seize a taxpayers vehicle. But let’s discuss the mechanics of how it gets to this point and some other important items shall we?

Why does the IRS seize vehicles? The first thing to know is that if you owe the IRS under $5000, your assets may not necessarily be seized and sold off. Per the 2019 IRS Data Book, in 2018 and 2019 the IRS seized a total of 275 and 228 assets respectively. Also, if you lease property, then you aren’t the legal owner. The IRS can’t seize items you don’t own, unless you have built up equity, or an ownership interest, in a leased asset. For most items, such as a rented auto, you won’t have any equity or it will be too small for the IRS to consider.

In the instances above, the IRS will seek to satisfy the collection of the debt owed through other means. This could include garnishing your income or seizing your federal tax refund. Now if the debt is substantial, then that’s where vehicle seizure comes into play.

The IRS utilizes progressively serious methods to try to collect your tax debt before seizing your vehicle. It will begin by informing you of your tax debt and giving you the opportunity to pay it. When they have sent numerous notices and attempted to collect, but have been unable to or can’t communicate with you regarding a reasonable plan for repaying your debt, it will proceed to file a federal tax lien against you.  The Notice of Federal Tax Lien will alert creditors that the government has a legal right to your property.

Once other methods of collection have been exhausted, the IRS will use its power to seize assets by use of a levy. An IRS levy permits the legal seizure of your property to satisfy a tax debt.

How does the IRS seize a vehicle? A typical IRS seizure usually goes as follows:

  • Local law enforcement accompanies IRS Revenue Officers so they are not interfered with nor attacked.
  • The Revenue Officers will present their credentials to the taxpayer as well as the order (typically from a judge) that states they have a right to take the property.
  • The IRS contractors (e.g. towing companies) will then secure the asset and remove it from the property for storage at a IRS facility.

We scoured the internet for a video showing an actual IRS vehicle seizure in process. This very dated video is all we could come up with. Regardless of how old it is, note how high the tension is!

Despite the video’s title stating that the IRS is violating someones rights, this is actually lawful

What does the IRS do with the seized vehicles? The first thing that happens is that the vehicle gets moved to a storage facility. Next, the taxpayer is usually given one last attempt to settle the debt and reclaim the asset. But simultaneously, the IRS post public notice that the item is available for purchase from the US Government.

Generally speaking, the vehicle will be sold off relatively quickly, usually at an auction that is open to the public. The money raised from the sale is then applied to the tax debt that you owe to the IRS. The goal of seizing assets is to satisfy the debt as quickly as possible since you failed to pay it off yourself. 

The image below shows seized vehicles by the IRS and how they notify the public of an auction. Anyone want to purchase a 2018 Ferrari??

How to avoid seizure. The best way to avoid having your assets seized is to file your taxes and pay what you owe on time each year. However, if you cannot fulfill either of these obligations, you should communicate with the IRS and be honest about your financial situation. 

You could be eligible for a payment arrangement, which would allow you to pay off your debt in monthly payments. The arrangement will take into consideration: 

  • How much money you make
  • Your household size
  • How much you pay in rent, utilities, and other basic expenses
  • The total value of your assets

The IRS will then determine a monthly amount that you should be able to pay toward your debt.  In extraordinary situations, your tax debt could be forgiven. Forgiving a tax debt is a rare occurrence. However, it could be possible if you experience hardships like: 

  • High medical costs
  • Divorce
  • Death of an immediate family member
  • Terminal illness
  • Job loss
  • Slowing down of your business

How a Virtual Assistant Can Help You Survive Covid-19

In early 2020, the Covid-19 pandemic forced many businesses to alter their operations. At best, this meant converting brick and mortar offerings into virtual options. At worst, it meant shutting down until stay-at-home orders were lifted. But now that restrictions are being lifted, some are still finding it hard to get back to “normal” so to speak. Well, an option that might help one achieve that normal could be a virtual assistant.

What is a virtual assistant?

A virtual assistant (VA), as the name implies, is an assistant that helps and supports your business virtually. This does not mean that the person is a robot or some type of computer. It simply means that the person is based at a remote location and not within your office. A VA is trained to assist you, and your business, when called upon.

Advancements in technology, the presence of the internet, along with document-sharing and other business-related software, makes it easier for people to work remotely. Because many businesses no longer “need” people to physically be present at the same location for them to work, VAs could be a good option for some.

What services does a VA offer?

Depending what needs your business has, a VA can assist with almost any and every work-related task. Some of the most common tasks that a business will allocate to a VA include:

  • Operational and administrative tasks
  • Phone management
  • Event management
  • Managing calendars, appointments and emails
  • Preparing reports
  • Personal tasks like booking hotels and restaurants
  • Social media management
  • Content management
  • Simple digital marketing tasks
  • Community management
  • Website design

Take one of our clients for example. Edmond Virtual Assistant Services offers VA services here in the greater Chicagoland area. Their offerings are centered around four areas/groupings:

  • Executive Support
  • Productivity
  • Marketing & Social Media
  • Special Services

In addition to the above, companies can hire role-specific VAs to handle specialized duties as well. In these scenarios, VAs have a specific skill set that only allows them to tackle just one operational area. For example, the person could only work on tasks associated with sales and marketing, public relations, or customer service.

How can a VA help you survive Covid-19?

Many businesses have had to try and retool their operations in the wake of Covid-19. If you’ve had to close your brick-and-mortar location, but still have the ability to sell your goods virtually, a VA could be a key addition. Even if you are still operating a physical location offering something like curbside pickup, a VA could function remotely to help take customer calls, schedule pickups and coordinate orders. With that said, here are some additional ways that a VA might be able to help you weather this storm.

Reduce operational costs. Since VAs work on their own from a remote location, businesses can save money related to their own location and equipment costs. Furthermore, since the concept of a VA states that the person would be providing their services on a contract basis, VAs have an unsaid understanding with companies to not expect payment unless they are actually working or producing deliverables. 

Access to needed skills. One of the foremost reasons why small businesses and solopreneurs hire VAs is to get easy access to skills and expertise, which otherwise would either be too costly to hire for or too time-consuming to do by ones self. Remember, most entrepreneurs are good at what they trained or went to school for. Administrative tasks don’t always fall within their wheelhouse.

Imagine you’re an entrepreneur running a small restaurant that only offered in-person dining pre-Covid-19. Now you are going to offer carry-out as well as curbside pickup, but you don’t have the technology structure in place to make that happen quickly nor seamlessly.

While you can choose to do so by going the long route of hiring a person or technology firm, the option of hiring a hit-the-ground-running “tech” VA could be the more beneficial route. This enables you to quickly get things in place in no time in a much more cost-effective manner.

Maintain Quality service. The simplest reason for most companies to hire VA is to have efficient business operations in place. Hiring a VA enables businesses to employ reasonable resources to fulfill tasks that internal employees either don’t have the time for or aren’t qualified enough to tackle.

Let’s say that your business has had to reduce staff levels to try and survive financially. You’re operating with a limited skeleton crew or worse, you simply had to let people go. Some of those people, might have been really talented workers or those with years of expertise. Now your stuck trying to “limp along” until things get better. This might even mean the business owner doing things they don’t really know how to, nor want to do. Furthermore, they could find themselves simply doing too much, which leads to increased production times, order fulfillment or decreased customer satisfaction.

Having a VA in place to assist with some of the mission critical operations at this time could be just what is needed.

Decreasing the owners workload. Have you found yourself in a situation lately where you missed your kid’s activity (e.g. school e-learning Zoom) because you were either too busy handling “things” or because “something came up” at work?

Saving time and decreasing your workload go hand-in-hand when it comes to outlining the benefits of hiring a VA. Having a VA who can handle those “things” or tackle that “something at work” can help you find more time and therefore reduce your increased workload.

Time management. Hiring VAs empowers businesses to utilize their time more efficiently. For example, would you rather waste four hours a day doing tasks like cleaning out your inbox or spend those four hours conceptualizing innovative strategies to help your business survive?

That’s a no-brainer, right? Having a VA working for you to handle such tasks that could potentially eat up your time, helps you regain lost time that you can invest in working  on your business rather than in it.

Promote your ability to service customers during Covid-19. There are many businesses that are NOT open for “business as usual” as a result of this pandemic. Getting a VA on board can help a business focus on multiple advertising tasks at the same time to let customers know that you ARE open and ready to accept customers business.

This may include promoting availability on social media, running online campaigns, or submitting stories to newspapers. Having someone dedicated to keeping consumers up to date on a businesses’ sometimes “ever changing” Covid-19 operations, could just be the difference between staying open in the long run or turning out the lights for good!

Real Estate Agent Tax Deductions

The key to paying less in taxes is ensuring no deduction is missed!

Maximizing your tax deductions as a real estate broker or agent is not solely about finding things to deduct. While that is a large part of it, also involved is being knowledgeable about what is deductible AND then tracking said deductions. I mean, if you fail to track what you can deduct, then how can you actually deduct it? Sure, you can estimate or even make it up. But guess what? That is a sure-fire way to have the IRS disallow the expense if they decide to audit your return.

To ensure that you don’t miss any business related expenses paid for during the tax year, it’s recommended that one use a tax organizer. Feel free to use our handy dandy tax organizer (checklist) as a starting point.

From there, make sure that you aren’t forgetting any of the expenses typically deducted by those in your profession. What are those? While this list is not entirely inclusive or comprehensive, it does cover most of the major items:

Advertising

  • Billboards
  • Brochures/Flyers
  • Business Cards
  • Copy Editor Fees
  • Direct Mail
  • Email Marketing and Newsletters
  • Internet Ads (Google, Facebook, etc.)
  • Leads/Mailing Lists
  • Post Cards
  • Print Ads (Newspapers and Magazines)
  • Promotional Materials
  • Signage/Banners
  • Web Hosting and Domain Fees

Auto Expenses

  • Car Washes
  • Gas
  • Insurance
  • Interest
  • License/Registration
  • Maintenance
  • Repairs
  • Tires

Business Travel

  • Airfare
  • Car Rental
  • Lodging
  • Meals
  • Parking/Tolls
  • Taxi, Train, Subway, Bus

Communication

  • Answering Services
  • Cell Phone Service
  • Fax Expenses/eFax
  • Internet Service
  • Office Telephone/VOIP

Equipment

  • Camera/Lenses
  • Cellphone/Smartphone
  • Cleaning Equipment
  • Computer
  • Hard Drives/Thumb Drives
  • iPad/Tablet PC/Android
  • Laptop
  • Lock Boxes/Locksmiths/Keys
  • Printer
  • Scanner

Employee Wages

  • Clerical Support
  • Family Wages (e.g. kids/spouses)
  • Payroll/Unemployment Taxes
  • Sales Assistant
  • Virtual Assistant

Office Expenses

  • Desk Fees
  • Client Refreshments (Coffee, Water, etc.)
  • Copier Fees
  • Janitorial Services
  • Office Furniture
  • Office Supplies
  • Office Rent
  • Online Storage of Business Files
  • Software

Professional Fees

  • Association Dues/Fees
  • Chamber of Commerce
  • Bookkeeping Fees
  • Business Licenses
  • E & O Insurance
  • Franchise/Affiliation Fees
  • Legal Fees
  • MLS Fees
  • Tax Prep Fees

Retirement

  • Defined Benefit Plan
  • Simplified Employee Pension (SEP)
  • Simple IRA
  • Solo 401k

Training & Improvement

  • Books (Sales Books, Real Estate Books, etc.)
  • Continuing Education
  • Newsletter Subscriptions
  • Sales Training/Coaching
  • Seminars

Looking for more ways to save on taxes?

Jared’s latest book, The Real Estate Brokers Little Black Tax Book is chock full of tips and strategies to help you cut your tax bill. Sure, you can buy it by clicking the book image at the top of this page, BUT, if you head over to this super secret page, you can get some free goodies. Like see a video where Jared discusses the book and get the free white paper, The 10 Tax Issues Broker Face. So what are you waiting for? The sooner you take action, the sooner you can keep more of your hard earned commissions in YOUR pocket and out of the hands of Uncle Sam!

By |2020-06-07T17:48:59-06:00June 7, 2020|Categories: Tax Talk|Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |0 Comments

A Bike, A Storm, A Reminder About Life

After a storm, the sun always shines bright!

As I write this, the world is at a standstill due to Covid-19. Riding my bike during a recent rain storm reminded me of an important life lesson. What was the lesson? That the sun always shines brightest after a rain storm!

Anyone who knows me is aware of the fact that I love cycling. Not only do I ride bikes, I race them at the amateur level. It’s this racing aspect that requires me to do tons of training, especially during the summer. So today, even though there was the threat of rain, I decided to go for a decent ride (40 miles). It was my hope, that I would at least be able to make it to the halfway point without getting soaked.

I was fortunate enough to make it to mile 20 with zero precipitation. But when I turned North to head back home, I could see the storms clouds off in the distance. What was “worse” was that I could hear tons of thunder. While it sounds super cool, typically where there’s thunder there’s lightning. By the way the storm was tracking, I could tell that I was going to miss the brunt of it. But there was a chance that I would get caught by the edge, if I didn’t high tail it back home.

Head down and pushing hard, I told myself if I could get 5 miles North, I might be okay. But about 3 miles up the road, the clouds opened up and started to pour big drops of rain. Not a problem for me. I like being in the rain, and always have since I was a kid. While others sought shelter during storms, I was the weirdo out splashing in puddles just soaking it up. Thunder, lightning, wind and all. Blame the Aquarian in me; it’s the sign of the water bearer! Heck, I did’t even own an umbrella until I started my professional career.

So I kept pushing on, getting wet and marveling at the thunder and how loud it was. However, there was lightning. At first it wasn’t a big deal and the strikes were intermittent. But then there was one strike that was super bright and a little too close to home for me. The one thing that all cyclist are trained is that if there is lightning, it’s best to seek shelter. I mean, it’s not a great idea to be rolling around on a tiny piece of metal when there is a bunch of electricity in the air! So I saw a archway at a building and decided to wait it out. Maybe it was a church? Maybe it was a school? Maybe it was a Catholic school which is why I thought it was a church? Who knows.

As I stood under the archway I was wet, but out of the rain and hopefully clear of getting stuck by lightning. I checked the radar and it looked like the rain was going to 100% stop in about 20 minutes. I text my wife so she would know that I was waiting it out and was safe. Once the worst part of the storm passed, I got back on the bike and resumed my ride. As I was riding, the sun came out as if the almighty themselves had parted the clouds to say hello. It was in that moment that I was reminded of the life lesson I mentioned above. It was also when I decided to take that picture around Wolf Lake!

When we humans are faced with adversity, challenge, struggle and the like, we often go through several phases. In honor of the letter “R” (like my last name) I have named these phases:

  • Reject
  • Resolve
  • Reset
  • Resume
  • Rejoice

You may not have noticed these phases above, but if you go back you can see them all. I rejected the fact that I was about to get caught in a thunderstorm. I resolved that it would happen and sought shelter. During this time, I reset and prepared to ride home wet and in the rain. Once the worst was past, I resumed my ride. Lastly, when the sun came out, I rejoiced and almost forgot about the dangerous lightning that I had been riding through.

While things seem bad and scary around the world right now, it’s good to keep the cycle above in mind. At some point in time, this too will pass. It will be behind us and a long way down the road, it will feel like a distant memory. Right now we may be in the reset phase. All of the Summer sporting activities I love, the lakefront trail, vacations and gatherings with friends are put on hold. I’ve resolved myself to believe that we won’t be able to “resume” until we get to 2021. Hopefully at that time, I can head to the track and “go fast and turn left” with all of my friends as the 2020 season has pretty much been shelved.

Until then, let’s all try to keep one another safe. Practice good hygiene, make sure you social distance, protect the most vulnerable around you and remember to tell those you care about, that you love them on a frequent basis. But never forget, after a storm, the sun always shines bright!

How To Sell or Refinance A Home With an IRS Lien

Good luck selling a home when the IRS get’s their padlock on it!

When a homeowner wants to sell their home, but it is encumbered with an Federal tax lien (i.e. IRS Form 668(Y)), they might feel as if all hope is lost. But alas, it isn’t. In this post we’ll outline what to do if you are facing this situation and the exact steps to take.

The first thing to note is that if there is a federal tax lien on your home, you must satisfy the lien before you can sell or refinance it. Yet, there are a number of options to satisfy the tax lien. For some, if you have equity in your property, the tax lien can be paid (in part or in whole depending on the equity) out of the sales proceeds at the time of closing. For others, if the home is being sold for less than the lien amount, the taxpayer can request the IRS discharge the lien to allow for the completion of the sale. Additionally, taxpayers or lenders also can ask that a federal tax lien be made secondary to the lending institution’s lien to allow for the refinancing or restructuring of a mortgage. Let’s now look at what happens under each scenario.

Proceeds Satisfy The Debt – Get A Tax Lien Payoff

If the amount received from the sale will satisfy the amount of IRS debt owed, then one simply needs to obtain tax lien payoff amount.

An updated lien payoff or balance due amount may be requested from the IRS Collections Advisory Group. This unit will issue a payoff letter to taxpayers or to third parties such as taxpayer representatives, lenders, and escrow or title companies. The letter will indicate the current amount that must be paid before the IRS releases the lien.

Third parties must submit their request in writing accompanied by a properly completed Form 8821, Tax Information Authorization, signed by the taxpayer. Without a Form 8821, the IRS cannot disclose
taxpayer information to third parties. The Form 8821 must address each tax period on the notice of lien and be received by the IRS within 60 days after the taxpayer signs and dates it.

Payoff requests can be made by phone (1-800-913-6050), fax (1-855-753-8177) or by mail sent to:

Internal Revenue Service
Centralized Lien Operation
P.O. Box 145595, Stop 8420G
Cincinnati, OH 45250-5595

Payoff computations may take up to 14 calendar days to process. Two copies of all payoff letters are mailed to the requester. One copy of the payoff letter must be returned with the payment to ensure proper application and timely release of the lien. To ensure expedited processing the payment must be sent to the address identified on the payoff letter. Payments should be made payable to the United States Treasury.

Proceeds Don’t Satisfy The Debt – Obtain Lien Subordination or Discharge

What is a discharge or subordination and how can it help you sell or refinance your property?  A discharge removes an entire asset (collateral) from being covered by the tax lien so that it may transfer to the new owner free of the lien. To apply for a Lien Discharge, one completes IRS Form 14135. A subordination is used to put the IRS’ position in 2nd priority.  It is used to “unlock” an asset so that another creditor can be paid before the tax lien is paid (e.g. bank loan refinancing). To apply for a Lien Subordination, one completes IRS Form 14134.

Now let’s look at the specific steps on how to complete each application.  To help you with the application process, you might want to review IRS Publication 783 or IRS Publication 784, which contain instructions on filling out the forms, have the application forms themselves, along with FAQ’s.

The first item of note is that the application for discharge or subordination is handled on a first come, first served basis.  As such, one needs to get either application to the IRS at least 45 days before the sale or loan settlement meeting.  If the Notice of Federal Tax Lien is discovered late, or the application isn’t submitted in time, the sale or loan could be delayed.  If you’re trying to avoid foreclosure, be sure to indicate this on your application and the IRS will do its best to expedite your request.

  • Sections 1, 2, and 3 of either the discharge Form 14135 or the subordination Form 14134 are self-explanatory. 
  • If you are using a representative, fill in Section 4, and be sure to indicate who is being represented.  While having a representative is not required, if you hired someone to represent and speak on your behalf, attach IRS Form 2848.  Both of you must sign this form. If you want the IRS to share your information with someone else, you would attach IRS Form 8821.  If you are attaching one or both of these forms, check the “yes” box in Section 4.
  • In Section 5, you would fill in the contact information for your finance company.
  • The information in Section 6 will vary depending on the type of transaction.  If you are selling, use Form 14135 and enter the sales price.  If you are refinancing or getting a loan, use Form 14134 and enter both your existing and new loan amounts.
  • Section 7 asks for your basis for discharge or subordination. Basically, you need to check the box that best addresses what you would like the IRS to consider as the reason why they should approve your application.
  • Section 8 for either application form asks for a description of your property, which could be either real estate or personal property such as art work, a boat, a plane, or your business receivables.  Don’t forget to provide the property address.
  • For Section 9 of Form 14135, when you are selling property, the IRS requires a professional appraisal, which is generally part of the closing package and a second type of value estimate.  Form 14134 Section 9 does not call for a professional appraisal for your refinance or loan.  Check the box for the type of value estimate you are including.
  • Sections 10 through 14 are a checklist of the attachments which you must include with either the discharge or subordination application form.
  • These next two sections only pertain to Discharge Form 14135. 
    • If your property will be sold in an escrow sale, with creditors paid from the escrow, the IRS needs your draft escrow agreement with your Form 14135.  Be sure to check the “attached” box in Section 15. 
    • Section 16 of Form 14135 is if you bought property with a lien attached where you are not the taxpayer and you checked 6325(b)(2)(A) or (B) as your basis for discharge in Section 7.
  • The final section on both forms is the Declaration.  Here is where you must sign and date your application under penalties of perjury.

At this point, your form should be complete.  Attach all your supporting paperwork and send your application package to one of the IRS Advisory Offices.  The correct mailing address of the IRS Advisory Office will be found in IRS Publication 4235.  It will be the one for the state that the Notice of Federal Tax Lien was filed in.

The IRS Advisory approves or denies your request based on your application and comparison with federal and state property rules.  If the IRS approves your application, they will send you your discharge or subordination certificate, based on what box you checked, or best applies to you in Section 7.  If, however, the IRS denies your request, or you disagree with the IRS valuation in a commitment letter, you can request an appeal through the Advisory office using IRS Form 9423, Collection Appeal RequestIRS Publication 1660, Collection Appeal Rights, explains your appeal rights.

Need Help Removing A Tax Lien So A Property Can Sell?

We know that having a notice of federal tax lien a property raises many complex financial issues.  Our in-depth coverage of the subordination and discharge application forms was designed to give you insight into what is needed to be able to successfully navigate through the application process.  However, as this article should not be construed as advice, one is advised to check IRS publications, talk to the IRS Collections Advisory Group or contact a tax advisor for more details.

Don’t feel like doing any of the above? We don’t blame you! So, if you are trying to sell your home, are a real estate agent or title company that just found out that a deal has a tax lien on it, or are concerned with a deal closing on time, contact us NOW.

We can work with the IRS (so you don’t have to) so that the deal can close. Nothing feels better then a homeowner selling their home and getting the IRS debt monkey off their back or a real estate agent getting a commission check from a deal that was in jeopardy!

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