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The Truth About IRS Offers in Compromise
You've seen the advertisements:
“We settled $100,000 in IRS debt for $2,000!”
Can that really happen?
Yes.
But there's a lot those advertisements aren't telling you.
In this episode of How to Win BIG at Business, Joe DiChiara, CPA takes you behind the scenes of the IRS Offer in Compromise program and explains how the IRS actually determines whether someone may qualify to settle a tax debt for less than the full amount owed.
An Offer in Compromise isn't simply a negotiation where you throw out a number and wait for the IRS to counter.
The IRS looks at your financial situation, including your income, allowable living expenses, assets, equity and potential ability to pay.
Joe walks through examples showing why two taxpayers who owe exactly the same amount of money can have completely different outcomes.
You'll learn about:
Most importantly, Joe explains why Offer in Compromise isn't automatically the best option just because it sounds attractive. ep43
If you're dealing with IRS debt, don't start with the television commercial.
Start with the numbers.
Free Resource
Download Joe's Offer in Compromise Qualification Checklist to help determine whether an OIC may be worth investigating.
Need Help With an IRS Problem?
Visit www.timewithjoe.com to schedule a consultation.
If you’re a self-employed professional trying to build a real business, this podcast was created for you.
New episodes break down the systems, strategies, and structures needed to move from solopreneur to sustainable business owner.
Subscribe to our YouTube Channel
https://www.youtube.com/@Bedrock360BusinessSolutions/featured
Thanks for listening!
Thanks for listening!
If you want fewer headaches, fewer IRS surprises, and more smart systems running your business (so YOU don’t have to), let’s talk.
Book a strategy call: www.timewithjoe.com
Because running a business shouldn’t feel like wrestling an octopus… alone.
Also check out:
www.Bedrock360BusinessSolutions.com (Complete Coverage)
www.Bedrock360TaxSolutions.com (Tax Guard 365)
www.Bedrock360BusinessCourses.com (Courses)
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Getting an IRS payment plan can be surprisingly easy.
Getting the RIGHT payment plan is another story.
In Episode 8 of Joe DiChiara CPA's 12-part Tax Problem Resolution Series, Joe breaks down IRS installment agreements and explains why simply asking the IRS for a monthly payment arrangement may not be the smartest way to resolve your tax problem.
Before agreeing to anything, you need to answer a more important question:
Do you actually owe what the IRS says you owe—and is an installment agreement really your best option?
Joe explains why taxpayers should verify their balance before making a deal, especially when unfiled returns, IRS-filed substitute returns, penalties, or processing errors may be involved.
You'll learn about:
• IRS Simple Payment Plans
• Short-term payment arrangements
• Why penalties and interest can continue while you're paying
• Why staying current with future taxes is critical
• What happens when you miss an installment payment
• Why business tax debt can be more complicated than individual debt
• The special danger of unpaid payroll and trust-fund taxes
• Why cash-flow problems need to be fixed before the tax problem can truly be fixed
• When an Offer in Compromise or another resolution strategy may make more sense
• How the IRS collection statute can affect your strategy
Joe also shares his own experience receiving repeated IRS collection notices—including a notice of intent to levy—because an amended payroll tax return had not been processed.
The lesson?
Never assume an IRS notice is correct, never ignore it, and don't choose a resolution strategy simply because it's the easiest one to obtain.
A payment plan should be part of a larger financial strategy—not just a way to make the latest IRS notice disappear.
If you’re a self-employed professional trying to build a real business, this podcast was created for you.
New episodes break down the systems, strategies, and structures needed to move from solopreneur to sustainable business owner.
Subscribe to our YouTube Channel
https://www.youtube.com/@Bedrock360BusinessSolutions/featured
Thanks for listening!
Thanks for listening!
If you want fewer headaches, fewer IRS surprises, and more smart systems running your business (so YOU don’t have to), let’s talk.
Book a strategy call: www.timewithjoe.com
Because running a business shouldn’t feel like wrestling an octopus… alone.
Also check out:
www.Bedrock360BusinessSolutions.com (Complete Coverage)
www.Bedrock360TaxSolutions.com (Tax Guard 365)
www.Bedrock360BusinessCourses.com (Courses)
Send us Fan Mail
You may think you can only afford to pay the IRS $500 a month.
The IRS may look at the exact same financial situation and decide you can afford $2,500.
Why?
Because when the IRS determines your ability to pay, it doesn't simply look at how much money is left in your checking account at the end of the month.
In Episode 6 of our Tax Problem Resolution Series, CPA Joe DiChiara breaks down how the IRS evaluates your financial situation when you're trying to establish an installment agreement or resolve a tax debt.
Joe explains how the IRS examines:
• Your income and current cash flow
• Business revenue and legitimate business expenses
• IRS allowable living expenses
• Housing and transportation costs
• Bank accounts and available cash
• Investments and other assets
• Real estate and available equity
• Credit and borrowing ability
• Special financial circumstances
• Your previous compliance history
• The documentation supporting your numbers
You'll also learn about the Collection Information Statements used in tax resolution, including Forms 433-A, 433-B, and 433-F, and why accurately completing these forms can make an enormous difference in the outcome of your case.
Joe walks through a simple example:
A taxpayer earns $12,000 per month and spends $11,500.
The taxpayer says:
“I only have $500 left. That's all I can afford.”
But what happens when $2,000 of that person's housing expense exceeds what the IRS considers allowable?
Suddenly, the IRS may calculate the taxpayer's ability to pay very differently.
That's why being cash-flow poor doesn't necessarily mean you're IRS poor.
Joe also explains why hiding assets, understating income, inflating expenses, or submitting incomplete financial information can turn a difficult tax problem into an even bigger one.
Before negotiating with the IRS, you need to understand the financial picture the way the IRS will see it — not simply the way you see it.
If you're considering an installment agreement, Offer in Compromise, or another IRS collection alternative, this episode will help you understand what may happen before you ever submit the paperwork.
If you’re a self-employed professional trying to build a real business, this podcast was created for you.
New episodes break down the systems, strategies, and structures needed to move from solopreneur to sustainable business owner.
Subscribe to our YouTube Channel
https://www.youtube.com/@Bedrock360BusinessSolutions/featured
Thanks for listening!
Thanks for listening!
If you want fewer headaches, fewer IRS surprises, and more smart systems running your business (so YOU don’t have to), let’s talk.
Book a strategy call: www.timewithjoe.com
Because running a business shouldn’t feel like wrestling an octopus… alone.
Also check out:
www.Bedrock360BusinessSolutions.com (Complete Coverage)
www.Bedrock360TaxSolutions.com (Tax Guard 365)
www.Bedrock360BusinessCourses.com (Courses)
Send us Fan Mail
Owe the IRS money? Ignoring the problem can eventually turn IRS notices into something much more serious: liens, bank levies, wage garnishments, and even attempts to collect money directly from people who owe your business money.
But a tax lien and a tax levy are not the same thing—and understanding the difference could give you valuable time to act.
In Episode 5 of our 12-part Tax Problem Resolution Series, Joe DiChiara, CPA, explains what happens when an IRS collection case begins moving from letters and notices toward enforced collection.
Joe breaks down:
• What a Federal Tax Lien actually means
• The difference between an IRS lien and an IRS levy
• How a Notice of Federal Tax Lien can affect mortgages, loans, property sales, and other financial transactions
• What the IRS may potentially levy
• How bank levies work
• Why the 21-day bank levy holding period can be extremely important
• Why wage levies are different from bank levies
• How the IRS can potentially reach accounts receivable
• Why self-employed professionals and business owners need to pay special attention
• What happens when customers receive notices directing payments away from you
• Final Notice of Intent to Levy letters
• Collection Due Process hearings
• The importance of the 30-day appeal window
• Installment agreements, Offers in Compromise, and Currently Not Collectible status
• Economic hardship situations
• Why releasing a levy does not necessarily remove a federal tax lien
• Five common myths about IRS liens and levies
• What Joe would immediately investigate if a client called and said, “The IRS just levied my bank account.”
One of the most important lessons in this episode is simple:
Not having enough money to pay the IRS does not mean you should avoid filing your tax returns or ignore IRS notices.
There may still be options available—but deadlines matter.
Joe also explains why a bank levy is generally very different from a wage levy. A bank levy can represent a snapshot of funds available when the levy reaches the bank, while a wage levy can continue from paycheck to paycheck.
And for business owners, there's another major danger many people overlook: accounts receivable.
Your money doesn't necessarily have to be sitting in your bank account for IRS collection activity to disrupt your business.
FREE RESOURCE
If you've received an IRS levy or Final Notice, request Joe's:
IRS Levy Emergency Kit
Email:
and request the IRS Levy Emergency Kit.
If you’re a self-employed professional trying to build a real business, this podcast was created for you.
New episodes break down the systems, strategies, and structures needed to move from solopreneur to sustainable business owner.
Subscribe to our YouTube Channel
https://www.youtube.com/@Bedrock360BusinessSolutions/featured
Thanks for listening!
Thanks for listening!
If you want fewer headaches, fewer IRS surprises, and more smart systems running your business (so YOU don’t have to), let’s talk.
Book a strategy call: www.timewithjoe.com
Because running a business shouldn’t feel like wrestling an octopus… alone.
Also check out:
www.Bedrock360BusinessSolutions.com (Complete Coverage)
www.Bedrock360TaxSolutions.com (Tax Guard 365)
www.Bedrock360BusinessCourses.com (Courses)
Send us Fan Mail
Getting a bill from the IRS can be scary—but owing money doesn’t mean the IRS suddenly shows up and takes your bank account.
There is a collection process, and understanding how that process works can give you valuable time to take action.
In Episode 38 of How to Win BIG at Business, Joe DiChiara, CPA breaks down what actually happens after the IRS determines that you owe taxes—and why ignoring IRS notices is one of the worst things you can do.
Joe explains:
Most importantly, Joe explains a principle every taxpayer with an IRS problem needs to understand:
Ignoring the problem doesn't make it disappear. It usually allows the problem to escalate.
If you owe the IRS—or know someone who does—this episode will help you better understand the collection process and the importance of dealing with the situation before it becomes more serious.
Educational purposes only. Individual tax situations vary, and taxpayers should seek professional advice regarding their specific circumstances.
Get The Free Bedrock360 IRS Emergency Levy Kit by requesting it via email at [email protected] Mention the kit in the subject line
If you’re a self-employed professional trying to build a real business, this podcast was created for you.
New episodes break down the systems, strategies, and structures needed to move from solopreneur to sustainable business owner.
Subscribe to our YouTube Channel
https://www.youtube.com/@Bedrock360BusinessSolutions/featured
Thanks for listening!
Thanks for listening!
If you want fewer headaches, fewer IRS surprises, and more smart systems running your business (so YOU don’t have to), let’s talk.
Book a strategy call: www.timewithjoe.com
Because running a business shouldn’t feel like wrestling an octopus… alone.
Also check out:
www.Bedrock360BusinessSolutions.com (Complete Coverage)
www.Bedrock360TaxSolutions.com (Tax Guard 365)
www.Bedrock360BusinessCourses.com (Courses)
Send us Fan Mail
Haven’t filed a tax return in three years? Five years? Maybe even ten?
Ignoring the problem might feel easier today—but it can make the situation far more difficult tomorrow.
In this episode of How to Win BIG at Business, Joe DiChiara, CPA and entrepreneur, explains why unfiled tax returns are often the beginning of much larger IRS problems and, more importantly, what you can do to start fixing them.
For self-employed professionals and small business owners, falling behind can happen surprisingly easily. A financial setback, business failure, missing records, personal hardship, confusion over complicated tax rules—or simple procrastination—can turn one missed return into several years of unfiled taxes.
Joe walks you through how to begin digging out.
In this episode, you’ll learn:
Joe also shares the story of a business owner who fell eight years behind, encountered payroll tax problems, paid thousands of dollars to people who failed to solve the problem, and ultimately had to reconstruct years of financial records.
He also discusses a taxpayer with approximately $25,000 in IRS debt whose circumstances ultimately led to an Offer in Compromise settling the case for approximately $500.
The big lesson?
The IRS isn't going anywhere.
If you have unfiled returns or unresolved tax debt, the answer isn't to keep hiding from the problem. Find out exactly where you stand, get into compliance, understand your options and start working toward a resolution.
If you’re a self-employed professional trying to build a real business, this podcast was created for you.
New episodes break down the systems, strategies, and structures needed to move from solopreneur to sustainable business owner.
Subscribe to our YouTube Channel
https://www.youtube.com/@Bedrock360BusinessSolutions/featured
Thanks for listening!
Thanks for listening!
If you want fewer headaches, fewer IRS surprises, and more smart systems running your business (so YOU don’t have to), let’s talk.
Book a strategy call: www.timewithjoe.com
Because running a business shouldn’t feel like wrestling an octopus… alone.
Also check out:
www.Bedrock360BusinessSolutions.com (Complete Coverage)
www.Bedrock360TaxSolutions.com (Tax Guard 365)
www.Bedrock360BusinessCourses.com (Courses)
Send us Fan Mail
That IRS notice isn't junk mail — and being afraid to open it can turn a manageable problem into a much bigger one.
For many taxpayers and business owners, just seeing an envelope from the IRS is enough to cause panic.
But an IRS notice does not automatically mean you're in serious trouble.
Some notices are informational. Some request additional information. Others involve missing tax returns, proposed changes, unpaid balances, identity verification, audits, or collection activity.
The first step is figuring out exactly what the IRS is trying to tell you.
In Episode 2 of the How to Win BIG at Business Tax Problem Resolution Series, CPA and entrepreneur Joe DiChiara explains how IRS notices work and what taxpayers should do when one arrives.
Joe also shares the story of receiving his own frightening tax notice more than four decades ago, shortly after starting his career as an accountant. What initially looked like a major tax problem turned out to be something that could be resolved simply by filing a missing sales tax return.
That experience taught Joe an important lesson:
Don't assume the worst. Find out what the government actually wants.
In this episode, you'll learn:
1. Why the IRS sends notices
Not every IRS letter is a collection letter. Some notices simply provide information or request clarification.
2. How to identify the type of IRS notice you've received
Understanding the notice or CP number can help you determine what the IRS is contacting you about.
3. Why different notices require different responses
A mismatch notice is very different from an audit notice, collection notice, identity-verification request, or notice of intent to levy.
4. Why IRS deadlines matter
Ignoring deadlines can reduce your options and allow collection activity to escalate.
5. What balance-due notices mean
The amount shown on an IRS notice isn't necessarily the final answer.
6. What to do about a missing-return notice
Sometimes the return wasn't filed. Other times, it may have been filed but not properly processed.
7. How proposed assessments work
The IRS may propose additional tax based on information that doesn't match your return — but a proposed assessment does not necessarily mean the IRS is correct.
Joe shares a real example where a client received a proposed tax bill exceeding $90,000 including penalties and interest, but after the documentation was provided, the client ultimately owed nothing.
8. Why collection and levy notices require immediate attention
Ignoring multiple collection notices can eventually lead to much more serious enforcement activity.
9. How to determine whether an IRS notice is legitimate
Joe discusses the importance of independently verifying notices and being extremely cautious about unusual payment requests, links, websites, attachments, or devices sent through the mail.
10. When an IRS notice becomes urgent
The longer a legitimate tax notice goes unanswered, the fewer options you may have.
Even if you can't afford to pay the IRS immediately, communication matters. Depending on the circumstances, options may include payment arrangements or temporary collection relief.
The bottom line:
Open the letter. Read the first page. Identify the notice. Check the deadline. Verify that it's legitimate. Then decide what action needs to be taken.
Fear doesn't resolve tax problems.
Action does.
This is Episode 2 of Joe's 12-part Tax Problem Resolution Series designed to educate business owners, self-employed professionals, and taxpayers about how tax problems develop — and how they can potentially be resolved.
If you’re a self-employed professional trying to build a real business, this podcast was created for you.
New episodes break down the systems, strategies, and structures needed to move from solopreneur to sustainable business owner.
Subscribe to our YouTube Channel
https://www.youtube.com/@Bedrock360BusinessSolutions/featured
Thanks for listening!
Thanks for listening!
If you want fewer headaches, fewer IRS surprises, and more smart systems running your business (so YOU don’t have to), let’s talk.
Book a strategy call: www.timewithjoe.com
Because running a business shouldn’t feel like wrestling an octopus… alone.
Also check out:
www.Bedrock360BusinessSolutions.com (Complete Coverage)
www.Bedrock360TaxSolutions.com (Tax Guard 365)
www.Bedrock360BusinessCourses.com (Courses)
Send us Fan Mail
Owe the IRS money? The worst thing you can do is ignore it.
Whether your tax debt is $5,000, $50,000, $100,000 or more, fear and embarrassment can cause you to freeze. But ignoring IRS notices, unfiled returns, unpaid balances, liens, or potential levies can allow a manageable tax problem to turn into a much bigger one.
In this episode of How to Win BIG at Business, CPA and entrepreneur Joe DiChiara begins a special series devoted to IRS and tax problem resolution.
After more than 40 years as a CPA and working with thousands of tax situations, Joe explains what someone should do when they discover they owe the IRS money.
You'll learn how to start taking control of the situation by determining what you actually owe, checking whether your tax returns have truly been processed, reviewing IRS transcripts, understanding where you are in the collection process, and determining what financial resources you have available.
Joe also breaks down several potential resolutions, including:
Most importantly, Joe explains something many taxpayers don't realize:
Just because the IRS says you owe a certain amount doesn't necessarily mean that amount is correct.
Unfiled returns, IRS-prepared substitute returns, penalties, processing problems, and missing information can dramatically affect what appears on your account.
This episode is about replacing fear with facts.
Before you panic, before you hire a large tax-resolution company, and before you assume you're out of options, understand exactly what problem you're dealing with.
In this episode:
Step 1: Don't panic.
Step 2: Determine exactly how much you owe.
Step 3: Review your IRS transcripts and account information.
Step 4: Make sure all required returns were both filed and processed.
Step 5: Determine where you are in the IRS collection process.
Step 6: Evaluate your financial resources and the resolution options available to you.
This is the first installment in Joe's upcoming series devoted to helping taxpayers and business owners understand and resolve serious federal and state tax problems.
Coming in future episodes: IRS notices, collections, installment agreements, Offers in Compromise, penalty abatements, unfiled returns, levies, liens, the Taxpayer Advocate Service, and more.
If you’re a self-employed professional trying to build a real business, this podcast was created for you.
New episodes break down the systems, strategies, and structures needed to move from solopreneur to sustainable business owner.
Subscribe to our YouTube Channel
https://www.youtube.com/@Bedrock360BusinessSolutions/featured
Thanks for listening!
Thanks for listening!
If you want fewer headaches, fewer IRS surprises, and more smart systems running your business (so YOU don’t have to), let’s talk.
Book a strategy call: www.timewithjoe.com
Because running a business shouldn’t feel like wrestling an octopus… alone.
Also check out:
www.Bedrock360BusinessSolutions.com (Complete Coverage)
www.Bedrock360TaxSolutions.com (Tax Guard 365)
www.Bedrock360BusinessCourses.com (Courses)
Send us Fan Mail
In this episode of How to Win Big at Business, Joe DiChiara explains one of the most dangerous mistakes small business owners make: running the business by looking at the bank balance.
Joe breaks down why cash flow is not simply “what’s left over” after paying bills. Cash flow should be a system — one that tells you where the money is going, what needs to be set aside, what belongs to the owner, what must be reserved for taxes, and what should be protected for future stability.
As a CPA with over 40 years of experience and a lifelong entrepreneur, Joe explains why every viable business needs two things: sales and positive cash flow. Sales prove people are willing to buy what you offer. Positive cash flow proves the business can survive after expenses, taxes, owner pay, operations, and reserves.
Joe introduces a practical “bucket” approach to cash flow, including money set aside for:
He also explains why revenue is not the same as cash, why QuickBooks is software — not a system — and why every business needs real accounting, reconciliations, budgets, and cash flow monitoring.
Joe shares two real-world examples: one business with plenty of cash but terrible financial management, and another profitable contractor who had strong sales but no cash because customers were paying too slowly and suppliers were being paid too quickly.
The message is simple: your bank balance is not your financial system.
If you want to build a real business, you need a cash flow system that helps you make decisions before the crisis hits.
If you’re a self-employed professional trying to build a real business, this podcast was created for you.
New episodes break down the systems, strategies, and structures needed to move from solopreneur to sustainable business owner.
Subscribe to our YouTube Channel
https://www.youtube.com/@Bedrock360BusinessSolutions/featured
Thanks for listening!
Thanks for listening!
If you want fewer headaches, fewer IRS surprises, and more smart systems running your business (so YOU don’t have to), let’s talk.
Book a strategy call: www.timewithjoe.com
Because running a business shouldn’t feel like wrestling an octopus… alone.
Also check out:
www.Bedrock360BusinessSolutions.com (Complete Coverage)
www.Bedrock360TaxSolutions.com (Tax Guard 365)
www.Bedrock360BusinessCourses.com (Courses)
Send us Fan Mail
Do you ever finish a long workday completely exhausted… but still wonder what you actually accomplished?
You’re not alone.
For many self-employed professionals and small business owners, the real problem isn’t a lack of time.
It’s a lack of focus.
When you're answering emails, taking client calls, checking your phone, working on proposals, managing employees, thinking about marketing, and trying to grow your business at the same time, your attention is constantly being pulled in different directions.
And when everything becomes a priority, nothing is really a priority.
In this episode of How to Win BIG at Business, Joe DiChiara breaks down practical ways to regain control of your time, attention, and business.
You’ll discover:
Joe also shares the lesson he learned after years of being a workaholic:
Your business should support your life. Your life shouldn’t exist to support your business.
One of the biggest differences between struggling entrepreneurs and successful business owners is the ability to decide what matters most—and then stay focused on it long enough to produce a result.
Try the 90-Day Focus Exercise from this episode:
Choose one important business result you want to accomplish over the next 90 days.
Identify the weekly activities that will produce that result.
Eliminate or reduce activities that compete with it.
Then put the focused work on your calendar.
Stop trying to become a better taskmaster.
Become a focus master.
If you’re a self-employed professional trying to build a real business, this podcast was created for you.
New episodes break down the systems, strategies, and structures needed to move from solopreneur to sustainable business owner.
Subscribe to our YouTube Channel
https://www.youtube.com/@Bedrock360BusinessSolutions/featured
Thanks for listening!
Thanks for listening!
If you want fewer headaches, fewer IRS surprises, and more smart systems running your business (so YOU don’t have to), let’s talk.
Book a strategy call: www.timewithjoe.com
Because running a business shouldn’t feel like wrestling an octopus… alone.
Also check out:
www.Bedrock360BusinessSolutions.com (Complete Coverage)
www.Bedrock360TaxSolutions.com (Tax Guard 365)
www.Bedrock360BusinessCourses.com (Courses)
From the publisher's feed
How to Win Big at Business and Taxes is the podcast for self-employed professionals, entrepreneurs, and small business owners who want to make more money, keep more of what they earn, pay…
Hosted by Joe DiChiara, CPA and entrepreneur, each episode delivers practical, straight-talking strategies for navigating both sides of entrepreneurship: building a better business and making smarter tax decisions.
We tackle the issues that can make or break a small business—from profitability, cash flow, pricing, systems, marketing, and growth to tax planning, IRS problems, tax debt, compliance, deductions, entity structure, and avoiding expensive tax mistakes.
You'll learn how to:
You'll also hear from entrepreneurs and professionals who share the lessons, mistakes, strategies, and experiences that helped them build successful businesses.
Because winning big isn't just about how much your business makes. It's about how much you keep, how well you protect it, and the freedom your business creates.
If you’re a self-employed professional trying to build a real business, this podcast was created for you.
New episodes break down the systems, strategies, tax strategies, and structures needed to move from solopreneur to sustainable business owner.
Subscribe to our YouTube Channel
https://www.youtube.com/@Bedrock360BusinessSolutions/featured
Thanks for listening!
If you want fewer headaches, fewer IRS surprises, and more smart systems running your business (so YOU don’t have to), let’s talk.
Book a strategy call: www.timewithjoe.com
Because running a business shouldn’t feel like wrestling an octopus… alone.
Also check out:
www.Bedrock360BusinessSolutions.com (Complete Coverage)
www.Bedrock360TaxSolutions.com (Tax Guard 365)
www.Bedrock360BusinessCourses.com (Courses)