Tax Tips - 914 Tax | Ron Friedman, CPA

Recording Artist “Twista” Pleads Guilty to Tax Crimes

July 23, 2026

A Chicago-area rapper is facing prison time after repeatedly refusing to pay the taxes he owed — even after the IRS and his own accountant told him to.

Carl Mitchell of Crete, Illinois, known professionally as “Twista,” pleaded guilty on June 24, 2026, to five counts of willfully failing to pay income tax for 2019 through 2023. During those years he earned income from performances, album sales, streaming, and royalties. The IRS and his accountants repeatedly reminded him of his tax debts. He refused to pay.

Instead, prosecutors say Mitchell took advances on future royalties through a third-party company — knowing the IRS couldn’t levy those funds — and bought at least four luxury vehicles. His unpaid liabilities date back to 2011, totaling more than $440,000.

He’s scheduled to be sentenced on October 22, 2026, and faces up to one year in prison on each of the five counts.

This case is a reminder that willfully ignoring a tax debt is treated very differently than being unable to pay it. The IRS doesn’t bring criminal charges over an honest hardship — it brings them when someone has the money, gets warned, and still chooses not to pay.

If you have back taxes, unpaid liabilities, or IRS letters piling up, don’t wait for it to get worse. Contact Ron Friedman CPA today for a free consultation. We’ll review your situation, explain your options, and help you take the next step toward resolving your tax problem.

Settling Tax Debt for Less: Offer in Compromise Explained

July 16, 2026

An Offer in Compromise (OIC) is one of the most well-known—and most misunderstood—IRS resolution options. While it can allow some taxpayers to settle their tax debt for less than the full amount owed, qualification is far more limited than most advertisements suggest.

At Ron Friedman CPA, we help taxpayers determine whether an Offer in Compromise is realistic and handle the process the right way.

What Is an Offer in Compromise?

An Offer in Compromise is an agreement where the Internal Revenue Service agrees to accept less than the full balance owed when it believes it cannot reasonably collect the full amount.

Approval is based on:

Income and allowable living expenses
Assets and available equity
Ability to pay now and in the future
Compliance with filing and payment requirements

It’s not about how much you owe—it’s about what the IRS believes it can collect.

Example: How an Offer in Compromise Works

Robert owed $126,000 in back taxes after several difficult years in business. Although he was working, his income barely covered basic expenses and he had little usable asset equity.

With professional assistance, Robert submitted a detailed financial analysis showing the IRS was unlikely to collect the full balance. The IRS accepted his Offer in Compromise, allowing him to settle the debt for a fraction of what he owed.

How We Can Help

Offers in Compromise are frequently denied when submitted incorrectly or without proper analysis. Ron Friedman CPA helps by evaluating eligibility, preparing accurate financial disclosures, submitting a strong offer, and communicating with the IRS throughout the process.

If you’re carrying IRS debt and wondering whether a settlement is truly possible, contact Ron Friedman CPA today for a confidential consultation to find out if an Offer in Compromise makes sense for your situation.

I Owe the IRS but Can’t Afford to Pay—What Really Happens Next

July 9, 2026

When someone owes the IRS and can’t afford to pay, the most common response is…doing nothing. Not because they don’t care—but because they’re overwhelmed, scared, or unsure what options exist. Unfortunately, silence doesn’t pause the process. It starts one.

Here’s a plain-English walkthrough of what the Internal Revenue Service typically does when a taxpayer takes no action.

Step 1: The Letters Start (And Slowly Escalate)

The IRS begins with a series of notices explaining the balance due. Early letters are informational and relatively mild. They outline what’s owed, how to pay, and what happens if the balance remains unpaid.

Many taxpayers ignore these notices hoping the issue will resolve itself. It won’t. Each letter moves the account closer to enforced collection—even if months pass between notices.

Step 2: Penalties and Interest Quietly Grow

While nothing seems to be happening, penalties and interest continue to accrue daily. A manageable balance can quietly grow into something far more serious.

This is where many taxpayers lose ground without realizing it. The IRS doesn’t need to act aggressively for the debt to get worse—it grows automatically.

Step 3: The IRS Files a Tax Lien

If the balance remains unpaid, the IRS may file a Notice of Federal Tax Lien. This publicly secures the government’s interest in your property and future assets.

A lien can:

Complicate refinancing or selling property
Signal that enforcement is escalating

At this stage, the IRS still hasn’t taken your money—but it has positioned itself to do so.

Step 4: Levies and Garnishments Begin

If no action is taken after lien and final notice stages, the IRS may begin levies. This is where things become immediately disruptive.

Levies can include:

Freezing and taking funds from bank accounts
Garnishing wages
Seizing certain assets

Once levies start, financial flexibility shrinks fast—and stopping them becomes harder.

Step 5: The IRS Assumes You’re Choosing Not to Pay

The longer nothing happens, the more the IRS assumes the issue isn’t inability—it’s avoidance. That assumption changes how your case is treated and reduces flexibility.

Ironically, many taxpayers who truly can’t afford to pay qualify for relief—but only if they act before enforcement hardens the IRS’s position.

What Most People Don’t Realize

The IRS actually has options for people who can’t pay—but it rarely offers them proactively. Relief usually requires:

Filing required returns
Demonstrating financial hardship
Requesting protection or structured resolution

Doing nothing guarantees none of that happens.

Final Thought: Inaction Is a Decision—And It’s the Worst One

If you owe the IRS and can’t afford to pay, ignoring the problem doesn’t make it disappear. It simply hands control to the IRS and allows the situation to escalate on its own timeline.

At Ron Friedman CPA, we help taxpayers interrupt this process, understand what the IRS is likely to do next, and take action before enforcement causes real damage.

If you’re overwhelmed by IRS debt and unsure what to do, contact Ron Friedman CPA today for a confidential consultation. Knowing your options early can prevent months—or years—of unnecessary stress.

Business Owner Sentenced for Failing to Pay Employee Payroll Taxes

July 2, 2026

A Jefferson County businessman has been sentenced to 18 months in prison after failing to pay employment taxes for 10 years.

Danny L. Nickelson Jr., owner of General Physiotherapy, was ordered to pay $774,081 in restitution to the IRS, along with a hefty $18,684 fine.

According to prosecutors, Nickelson withheld Social Security, Medicare, and federal income taxes from employees’ paychecks for tax years 2013 through 2022 but failed to send those funds to the IRS. He also failed to pay the employer’s matching share of those taxes.

Prosecutors said Nickelson used the money for business operating expenses and personal spending, including food, travel, retail purchases, and credit card bills.

This case is a serious reminder for business owners: payroll taxes are not optional. When an employer withholds taxes from employees’ wages, that money is considered “trust fund” money held for the government. Using it to cover business expenses or personal bills can lead to severe penalties, IRS collection action, and even criminal prosecution.

If your business has fallen behind on payroll taxes, the worst thing you can do is ignore it. Contact Ron Friedman CPA today for a free consultation. We’ll review your situation, explain your options, and help you create a plan to resolve your tax problem before it gets worse.

Influencer Indicted for Allegedly Underreporting More Than $1.1 Million in Income

June 25, 2026

A social media influencer from Phoenix is facing federal tax charges after prosecutors alleged he failed to report substantial income from his online business.

Charles Lewis Davis, owner of Forever Investments LLC, was indicted by a federal grand jury on two counts of making false statements on his tax returns. According to the indictment, Davis allegedly failed to tell his tax preparer about additional income earned through videos posted on YouTube, Facebook, Instagram, and other platforms.

Prosecutors claim Davis underreported income by:

$807,142 in 2020
$390,566 in 2021

The indictment also alleges the unreported funds were held in personal and business bank accounts, brokerage accounts, and cryptocurrency accounts.

Davis pleaded not guilty at his initial court appearance. If convicted, making a false statement on a tax return carries a maximum penalty of three years in prison and a $250,000 fine.

This case is a reminder that income from social media, side businesses, gig work, investments, and cryptocurrency is still taxable income. Even if funds move through multiple accounts or platforms, the IRS has tools to trace income and compare it against what was reported.

For business owners, influencers, contractors, and self-employed taxpayers, accurate reporting is critical. Relying on a tax preparer does not protect you if important information is withheld or records are incomplete.

If you have unfiled returns, unreported income, IRS notices, or concerns about past tax filings, don’t ignore the problem. Contact Ron Friedman CPA today for a free consultation. We’ll review your situation, explain your options, and help you take the next step toward resolving your tax issue.

When IRS Penalties Aren’t Fair: Reasonable Cause Penalty Abatement

June 18, 2026

IRS penalties can add up quickly—often turning a manageable tax balance into an overwhelming problem. In some situations, the IRS may remove penalties entirely through Reasonable Cause Penalty Abatement.

At Ron Friedman CPA, we help taxpayers determine whether their circumstances qualify and present their case clearly and effectively.

What Is Reasonable Cause Penalty Abatement?

Reasonable Cause Penalty Abatement allows the Internal Revenue Service to remove penalties when a taxpayer can show they exercised ordinary care but were unable to comply due to circumstances beyond their control.

This relief commonly applies to penalties for:

Late filing
Late payment
Failure to deposit taxes

Approval depends on facts, documentation, and how the situation is explained.

Example: How Reasonable Cause Works

After a serious medical emergency, Tom fell behind on filing and paying his taxes. By the time he recovered, IRS penalties had significantly increased his balance.

With professional assistance, Tom submitted medical documentation and a written explanation showing the situation was unavoidable. The IRS agreed that reasonable cause existed and removed the penalties, substantially reducing what he owed.

How We Can Help

Reasonable Cause requests are not automatic and are often denied when handled improperly. Ron Friedman CPA helps by evaluating your situation, preparing a strong narrative with supporting documentation, and communicating directly with the IRS.

If IRS penalties are making your tax problem worse, contact Ron Friedman CPA today for a confidential consultation to see if Reasonable Cause Penalty Abatement may be available to you.

How IRS Collection Actions Can Shut Down Your Business Overnight

June 11, 2026

Many business owners assume IRS collection problems move slowly and that there will be plenty of time to address tax issues before anything serious happens. Unfortunately, that assumption can be costly.

The IRS has powerful collection tools that can significantly disrupt business operations without ever filing a lawsuit or appearing before a judge. Once collection activity escalates, access to the cash needed to operate your business can disappear quickly, creating an immediate financial crisis.

When the IRS Freezes Your Bank Account

One of the most damaging collection actions available to the IRS is a bank levy. When a levy is issued, the bank is required to freeze funds in the account and hold them for the IRS.

For many businesses, operating cash is used daily to meet payroll, pay rent, purchase inventory, and cover other essential expenses. Losing access to those funds—even temporarily—can make it impossible to continue normal operations.

A business can be profitable and still find itself in serious trouble if the cash needed to operate becomes inaccessible.

The IRS Can Collect From More Than Your Bank Account

Many business owners are surprised to learn that the IRS is not limited to levying bank accounts. The agency can also pursue funds owed to the business by third parties.

For example, the IRS may issue levies to customers who owe your business money or to payment processors handling transactions on your behalf. Instead of receiving payment for completed work, your customers or payment providers may be required to send those funds directly to the IRS.

For businesses that depend on steady cash flow, the impact can be immediate and severe.

The Domino Effect of Cash Flow Disruption

Once IRS collection actions begin, the consequences often extend far beyond the tax debt itself.

A sudden interruption in cash flow can result in:

Missed payroll obligations
Late rent or loan payments
Strained vendor relationships
Reduced customer confidence
Operational disruptions that threaten the future of the business

In many cases, it is not the amount of the tax debt that causes the greatest damage—it is the loss of access to the cash needed to keep the business running.

Why Waiting Makes Matters Worse

Most IRS enforcement actions do not occur without warning. Businesses typically receive multiple notices before collection activity escalates.

However, ignored notices, unfiled returns, and unresolved payroll tax liabilities significantly increase the likelihood of aggressive enforcement. By the time a Revenue Officer becomes involved, the IRS is often focused on collecting the liability rather than simply requesting compliance.

The longer a business waits to address the problem, the fewer options are generally available.

Early Action Can Protect Your Business

The good news is that many IRS collection actions can be prevented or resolved before they threaten business operations.

Early intervention may allow a business to:

Prevent or release levies
Protect operating accounts
Establish payment arrangements
Preserve payroll and vendor relationships
Create time to stabilize operations

The key is acting before enforcement reaches a crisis point.

Final Thoughts

The IRS possesses broad collection authority, and those powers can affect a business much faster than many owners realize. If your business has unresolved tax liabilities, payroll tax issues, or has begun receiving collection notices, now is the time to act.

Protecting cash flow is critical. Once collection actions begin disrupting operations, recovery becomes significantly more difficult. Addressing the problem early can help preserve your business while creating a path toward resolving the underlying tax debt.

At Ron Friedman, CPA, we help business owners stop IRS collection actions, protect cash flow, and build strategies that keep operations alive while resolving tax debt.

Contact Ron Friedman, CPA today for a confidential consultation—before the IRS decides when your business stops running.

Payroll Tax Relief 101 for Small Business Owners

July 18, 2022

Unpaid payroll taxes are a serious matter to the IRS and are some of the worst kinds of back taxes you can owe. If you’re a small business owner with a payroll tax problem, read on to learn what you can do to avoid the IRS crippling your business or worse, shut your business down completely.

Already in payroll tax trouble? Contact us to schedule a free, no-obligation consultation and let’s get your payroll tax issue resolved. Get help from Ron Friedman, CPA.

Why Small Business Owners Get into Payroll Tax Trouble in The First Place

It’s hard being a small business owner today, trying to pay your employees their paychecks every week, and pay the IRS all those payroll taxes!

A lot of times when money is short, you pay the employees first. It’s a natural thing to do—you need to take care of your employees, even if you have to skip paying yourself! Besides, if you don’t pay them, they’ll quit and you will have to hire new people all the time.

It can seem easy to “just pay the 941 taxes next pay period” and give yourself a little cash flow cushion, but skipping paying your employees payroll tax deposits is never a good idea.

What happens too often is 1 pay period turns into 2, and 3, and 4, and eventually you’re so deep in payroll tax debt that the only thing you want to do is completely ignore your problem.

Except the IRS doesn’t care about your financial problems. They just want you to pay your payroll taxes!

The IRS doesn’t care if you can’t pay your employees. They don’t care if they put your employees out on the street. They don’t care if you can’t collect your receivables. They don’t care if one of your largest and best customers just went “belly-up”. All they care about is you have money that belongs to them and they will do whatever they have to, even put you out of business, to collect it. They don’t care who you are, or even what business you are in.

Penalties are The “Kiss of Death” When it Comes to Back Payroll Taxes

Penalties for failing to file and pay your payroll taxes are the “kiss of death” for any small business owner. They tack on penalties totaling 33% in just the first 16 days! And it doesn’t stop there. The IRS adds interest on top of the penalties too. It is not uncommon that a payroll tax liability doubles in short order. And if you don’t pay them or work something out, they will shut you down! It’s much less work for the Revenue Officer, as most are lazy, to simply close you down than work out an arrangement with you.

They IRS Will Collect or They Will Shut You Down!

It’s as simple as that. The IRS is the most brutal collection agency on the planet. They have more authority than the President of the United States! And they have all the ways and means to do whatever it takes to collect what’s owed to them. You didn’t wake up in the morning, go to work, and say to yourself, I’m not paying my payroll taxes because you didn’t want to. The money simply wasn’t there. It’s not your fault. One week you’re short of cash. It was a slow week, a customer’s check bounced, or any number of legitimate reasons that just prevent you from paying the IRS. You’re a good person. You figure you will make it up the next week. But then next week comes and goes, and you realize you still don’t have enough money to make that payroll tax deposit. And then the entire situation starts “snow-balling” into an avalanche.

Should You Call the IRS To Get Your Payroll Issue Fixed?

If you were to call the IRS, and were able to get through after waiting on “hold” for an hour or two, and try to explain your situation—you might as well have a conversation with the wall—because they don’t care. The IRS representative that you’re talking to probably makes less than $20 an hour, and is poorly trained. Do you think they ever had to make a payroll in their life? Do you think they know what it’s like running a small business? Do you really think they will have any sympathy for you?

Not only is the answer “NO” but they can also dictate the fate of your case. What they will try to get, while you’re on the phone, is all your personal and financial information. They want to know where you bank; they’ll want to know all about your customers who owe you money, they’ll want to know about the value of all your assets, like your home, cars, motorcycles, etc. Why? Because, now they have all the information they need to levy your bank accounts, take your receivables and seize your property.

Now that you know you shouldn’t be talking to the IRS because they are not going to help you, you might be wondering what you should do? Where should you turn for help? They smartest thing you can do to protect your business and family is to have someone represent you—someone who deals with the IRS for a living. You need to get help—but not just from anyone—you need help from someone who is an experienced competent professional, and deals with the IRS every day, helping small business owners keep their businesses and settle IRS payroll tax problems.

If you were charged with a serious misdemeanor or felony, would you go to court without a lawyer? You don’t want to represent yourself before the IRS either. You need professional, expert representation.

Reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem Get help from Ron Friedman, CPA. Our expert tax resolution professionals know how to navigate the IRS maze.

Once you decide to retain us, we step into your shoes and protect you from the IRS’s abusive tactics. We take over all communications from the IRS on your behalf. You don’t have to speak with the IRS anymore. We do. Not only that—they are not allowed to talk to you once you’ve signed our Power of Attorney! Once they realize you have someone on your side protecting you, who knows their tricks as well as they do, they have to step back and follow the law. Not only can we protect you from the IRS harassing you, calling you, and showing up at your front door, we can get those penalties reduced, and in some cases, completely removed!

Do You Owe Money to the IRS? Possible Tax Resolution Strategies to Set Your Mind at Ease

Even for honest taxpayers, the IRS an be extremely frightening. Unlike most other government agencies, the IRS has unbridled power to attach your wages, freeze your bank account and even confiscate your property, and that is enough to send a chill up the spine of any taxpayer.

If you receive a letter from the IRS saying that you owe additional taxes, it is important not to panic. It may be a frightening situation, but there are things you can do to settle your tax debt and get back on the good side of the IRS.

Taxpayers do have options when resolving tax disputes and paying additional taxes due, and simply knowing what those options are can set your mind at ease.

As an expert Tax Resolution Firm, we encourage all readers facing a tax problem, whether it’s the feds or the state, to contact us for a free consultation. Get help from Ron Friedman, CPA.

Here are three strategies you can use to resolve your tax debt and get on with the rest of your life. Not all of these options will be right for everyone, but it is important to be an informed taxpayer.

Review the Amount Owed And Your Tax Return In Question

If the IRS says you owe money, you should not simply assume they are right. The tax agency does make mistakes (a lot), as do tax preparers and ordinary taxpayers.

Whether you filed your taxes on your own or hired someone else to do it for you, it is important to examine your return and compare what you find with what the IRS is claiming. It pays to seek professional help for this tax review, even if you originally filed your own taxes. A professional with IRS experience may be able to uncover errors and inconsistencies you would have missed on your own, and that could end up saving you money.

There is no guarantee this review will eliminate the extra taxes the IRS says you owe, but it never hurts to be sure. There have been many cases in which taxpayers who thought they owed money to the IRS ended up owing nothing – or even being due a refund from the IRS.

Set Up a Payment Plan

Getting a notice of additional tax due from the IRS is frightening, especially if you cannot afford to pay what the agency says you owe. Keep in mind, however, that you do not necessarily have to pay the bill all at once.

The IRS is often willing to set up payment plans with taxpayers, and those payment plans could make paying what you owe easier and less stressful. Once again, it is a good idea to seek professional help and guidance here – the IRS can drive a hard bargain, and you do not want to end up with a payment plan you cannot afford and wind up defaulting on it.

If you fall behind on the payment plan you agreed to, you could be subject to additional enforcement action, including the tax agency garnering your paycheck or seizing funds from your bank accounts. Getting the help of a tax resolution professional up front can help you avoid these serious consequences.

Explore an Offer in Compromise Settlement

If you are truly unable to pay the money the IRS claims you owe, you may be able to work out a (much) smaller lump sum payment. The IRS may not advertise this program, but they are often willing to work with taxpayers by accepting lesser amounts, especially if those taxpayers have little in the way of equity in assets and a limited income. Sometimes these settlements can be for a fraction of what’s owed, if you qualify. We offer a free no obligation consultation to find out if you qualify. Get help from Ron Friedman, CPA.

If you plan to explore this last option, it is critical that you work with a tax resolution expert. An offer in compromise can be extremely complicated, with legalese and language that can be difficult to understand. You do not want to make a misstep here, and you want to ensure that you are only paying the lowest amount, allowed by law, in settlement of your tax bill.

Few things are as frightening as getting a letter from the IRS. That official-looking letterhead is bad enough, but what the letter says is even worse. If you receive such a letter, you need to take positive steps right away. Ignoring the situation will make it worse and it won’t go away, and the sooner you start exploring your tax resolution options the better off you will be.

If you want the help of an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain all your options to permanently resolve your tax problem Get help from Ron Friedman, CPA.

If You Don’t Have Money to Pay Your Taxes, You Have Legitimate Options

June 22, 2022

If you don’t have money to pay what you owe the IRS, you have a few options to work with. Whatever you do, don’t ignore the letters from the IRS and don’t let your back tax problem go unattended. The IRS has a great deal of power when it comes to recovering money, they think is theirs.

When you owe the IRS money, they can garnish your wages, levy your bank accounts, put a lien on your home and seize other assets.

Here’s what you can do if you find yourself not being able to pay your taxes. Note, we always recommend getting in touch with a tax resolution professional to help avoid the harsh penalties and interest that accrued on your back taxes. It’s far easier to navigate towards tax resolution, if you have a professional working on your behalf. If you’d like to schedule a no-cost confidential tax relief consultation, contact us here. Get help from Ron Friedman, CPA.

First, make sure that you file your returns

Even if you have no hope of being able to pay your taxes, you must at least file your income tax returns. Whatever the penalties are for not paying your taxes, the penalties for not filing are much larger and non-filers can be subject to a criminal investigation. . The IRS will remove penalties for not filing and not paying but you have to have a good reason. We can request to have your penalties removed or reduced. It’s also important to remember that when you file for an extension, it only gives you more time to file. Your payment date remains unchanged.

Revisit your W-4 withholdings

If your employer withholds money from your salary to pay your taxes with, you shouldn’t have to worry about paying anything extra from that income source. If you do owe more, it’s a sign that your withholding exemptions are incorrectly reported on your W-4 form. To make sure that you don’t get into tax trouble repeatedly, you should make sure your W-4 form is correct and get advice from a tax professional about the kind of withholdings necessary for exemptions.

Make a partial payment

If you can’t afford to pay all that you owe, you should pay whatever you can. While you will still be hit with interest and penalty charges, they will be smaller than they would be if you paid nothing. These charges are proportional to what you owe the IRS.

Try to work with the IRS

If you can’t pay, there are resolution options available to you if you qualify for them. They include a payment plan or an offer in compromise to name a few. You need to first step up and admit to your inability to pay, though.

An offer in compromise is an agreement between the IRS and the taxpayer that allows the taxpayer to settle their debt for less than the amount owed. Sometimes, for a fraction of the amount owed. There are strict eligibility requirements and you should consult with a tax resolution specialist first.

An installment agreement, aka payment plan, is an agreement between the IRS and the taxpayer that permits the taxpayer to pay back their debt over time, generally in 60-72 months. Depending upon the amount owed, and ability to make monthly payments, determines the type of installment agreement the IRS will allow, as there are several variations of these payment plans. An experienced tax resolution specialist will guide you through the maze and myriad of these different options.

If you need an expert tax resolution provider who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. Get help from Ron Friedman, CPA.