5 Secrets IRS Agents Won't Tell You If You Owe Taxes

June 11, 2026

The IRS is the most powerful collection agency in the world, gaining more and more power by the minute.

Tax returns form 1040 on a blue background, with a yellow “Tax Returns” title

The Inflation Reduction Act is funding $45 billion solely allocated to the hiring of 87,000 new enforcement agents. Those enforcement agents are usually just working to collect money, not necessarily working with your best interest at mind.

There’s a few things the IRS does not want you to know when you owe taxes.

1. Before evaluating which collection alternative is best, the taxpayer should confirm that the amount owed is correct by reviewing his/her taxes and transcripts.

If the taxes or penalties can be reduced, the taxpayer should consider requesting the appropriate reduction using one of the following IRS procedures:

File an amended return
Request penalty abatement
Audit Reconsideration

Once the taxpayer is satisfied that the taxpayer owes the balance in question, the taxpayer should then turn to evaluating payment alternatives. The IRS fails to highlight the different alternatives to pay your taxes. Taxpayers should evaluate collection alternatives by understanding each alternative, and then applying the ability to pay by their personal circumstances to find the right alternative.

2. Do you qualify for IRS penalty relief?

Penalty abatement provides relief from IRS tax penalties. Penalties are common when filing taxes, with the IRS issuing almost 40 million penalties in 2018. Most penalties result from late filings, late payment or filing an inaccurate tax return.

The Internal Revenue Service does not want you to know about penalty abatement. Penalty abatement is usually a request for non-assertion of a penalty or removal of a penalty. The type of penalty dictates the available options for relief. There are three penalties most commonly assessed by the IRS: failure to pay, failure to file, and the estimated tax penalty. Accuracy penalties for failing to file an accurate tax return are not common, but an accuracy penalty may be costly in an audit.

Call (225) 439-1022 to see if you may qualify for penalty abatement.

3. An IRS agent usually won’t tell you about innocent spouse relief. How can this type of relief benefit you?

By requesting innocent spouse relief, an innocent spouse can be relieved of responsibility for paying tax, interest and penalties, if your spouse or former spouse improperly reported items or missed items on your tax return. However… if you filed a joint return, you are responsible for any tax interest and penalty that do not qualify for relief. Innocent spouse relief can only apply to individual income and self-employment taxes.

To request innocent spouse relief, contact one of our tax specialists today at (225) 439-1022.

4. Taxpayers are generally unaware that the IRS has four basic categories of collection alternatives. Those four categories include:

I. Extension to Pay: A taxpayer can get an extension up to 120 days to pay an outstanding balance owed.

II. Installment Agreement: Taxpayers can opt into a monthly payment plan with the IRS. There are two types of installments.

a. streamlined installment agreement- qualifying taxpayers can pay the amount owed over a specified period of time without the need to provide detailed financial information to the IRS. This is the most commonly used payment plan, as it’s easy to obtain and reduces the possibility of a federal tax lien.

b. ability-to-pay installment agreements- this agreement requires the taxpayer to provide information and documentation to prove their ability to pay towards their tax balance. Ability-to-pay payment plans are usually for taxpayers who don’t qualify for the terms of the simple installment agreement.

III. ’Currently Not Collectible’ Status: Taxpayers who experience financial hardship, and only have enough income to pay for their necessary living expenses, can qualify and receive a temporary payment deferral. The taxpayer must provide financial information and documentation of proof that they cannot pay.

IV. Offer in Compromise: If you cannot pay the IRS with your assets or by making future installment agreement payments, you may be able to cancel your taxes for less than the amount owed. Taxpayers who qualify can offer their reasonable potential to settle their tax bill.

5. Can I settle my tax debt for less than I owe?

This is not a secret in the sense that the radio and television commercials are saying you can settle for pennies on the dollar. However, although it is possible, you may not qualify. The vast majority of offers in compromise are rejected. Taxpayers may be able to settle their outstanding liability for less than the amount owed if they qualify for an offer in compromise, and are able to pay the offer amount.

There are three types of offer in compromise… with doubt as to collectibility being the most requested type. Taxpayers can qualify for an offer in compromise if they are unable to pay their outstanding balances in full (using net equity in assets and future monthly payments) before the collection statute of limitations expires. If a taxpayer qualifies for an offer in compromise, the taxpayer must compute how much they will need to offer and pay to settle their taxes. Most offer requests take between 6 to 10 months to complete from application through the IRS’s final approval.

In summary…

It may not be obvious for you which alternative is best. For example, many taxpayers who owe small amounts and make substantial income may only need an extension to pay the excess funds necessary. If the taxpayers are under financial distress, the taxpayer will have to evaluate all payment options and even consider settling their taxes with an offer in compromise.

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IRS Letters: Don't Ignore Them—Here's What to Do Next

September 10, 2026

Receiving a letter from the IRS can be stressful, especially if you're unsure why it was sent or what action you need to take. Many Louisiana taxpayers immediately assume the worst, but the reality is that IRS notices cover a wide range of issues—from simple requests for additional information to audits, tax balances, or corrections to a filed return. Acting quickly and appropriately can often prevent a relatively minor issue from becoming a much larger financial problem. One of the biggest mistakes taxpayers make is ignoring IRS correspondence. Interest and penalties continue to accrue on unpaid balances, and failing to respond can eventually result in liens, wage garnishments, or levies. Even if you disagree with the notice, responding within the timeframe provided preserves your rights and often leads to a more favorable outcome. Understanding exactly what the IRS is requesting is the first step toward resolving the matter. At Losavio & Dejean Elder Law Firm, our attorneys understand that tax issues often overlap with retirement planning , estate planning, business ownership, and elder law concerns. We work with clients to review IRS notices, explain their options, communicate with the IRS when appropriate, and develop practical solutions that minimize financial consequences whenever possible. Every situation is different, and having experienced legal guidance can provide peace of mind during an otherwise overwhelming process. If you've received an IRS notice, don't wait until deadlines pass. Early intervention often creates the greatest number of resolution options. Whether your concern involves unpaid taxes, an audit, retirement distributions , or estate-related tax questions, our team is prepared to help you understand your rights and determine the best path forward.

Understanding VA Benefits in Louisiana: What Every Veteran Should Know

September 8, 2026

For many Louisiana veterans and their families, Veterans Affairs (VA) benefits can provide critical financial assistance, healthcare access, and long-term care support. Unfortunately, many eligible veterans never receive the benefits they have earned simply because they are unaware of the programs available or find the application process overwhelming. Understanding your options is the first step toward securing the financial security and peace of mind you deserve. The U.S. Department of Veterans Affairs offers several different benefit programs, including disability compensation, VA pensions, healthcare, education assistance, survivor benefits, and long-term care assistance. One of the most valuable programs for aging veterans is the VA Pension with Aid and Attendance benefit, which can help qualifying veterans and surviving spouses pay for in-home care, assisted living, or nursing home expenses. Because eligibility depends on military service, income, assets, and medical needs, determining qualification often requires careful legal and financial planning. Many families mistakenly believe they must spend all of their assets before qualifying for VA benefits. In reality, strategic planning may help veterans preserve a significant portion of their estate while still meeting eligibility requirements. Coordinating VA benefits with Medicaid planning, estate planning , trusts , and powers of attorney can also help families prepare for future healthcare needs while protecting assets for loved ones. At Losavio & DeJean , our elder law attorneys help Louisiana veterans understand every available benefit while developing comprehensive plans that support long-term financial stability. Whether you are applying for benefits for the first time, planning for long-term care, or helping an aging parent navigate the VA system, our team is here to guide you through every step of the process. Contact us today to schedule a consultation and learn how your military service may qualify you for valuable benefits.

Medicaid Qualifying in Louisiana: What Every Family Should Know Before Long-Term Care Is Needed

September 4, 2026

One of the biggest misconceptions about Medicaid is that it is only available to individuals with little or no assets. In reality, qualifying for Medicaid in Louisiana is often a matter of careful legal planning rather than simply spending everything you own. For families facing the possibility of nursing home care or other long-term care needs, understanding the Medicaid qualification process early can protect both financial security and peace of mind. The cost of long-term care continues to rise, making Medicaid one of the most important government benefit programs available to seniors. However, Medicaid eligibility involves strict income and asset requirements that many families find confusing. Certain assets may be exempt, while others could affect eligibility. Additionally, transferring property or giving away assets without proper legal guidance can trigger significant penalties that delay benefits. Planning ahead allows families to preserve more of what they have worked a lifetime to build while still obtaining the care they need. At Losavio & DeJean , The Louisiana Elder Law Firm, Medicaid planning is about much more than filling out paperwork. The firm's attorneys work closely with clients to evaluate their financial situation, explain available planning strategies, and develop customized legal solutions designed to protect assets while pursuing Medicaid eligibility. Every family's circumstances are different, which is why individualized legal advice is essential. If you or a loved one may require nursing home care now or in the future, don't wait until a crisis occurs. Early Medicaid planning provides more options and greater flexibility. Contact Losavio & DeJean to learn how proactive planning can help preserve your family's legacy while ensuring access to quality long-term care throughout Louisiana . The firm's experienced elder law team helps families navigate the complexities of Medicaid planning with confidence and compassion.

What Is Interdiction in Louisiana? Understanding When It May Be Necessary

September 1, 2026

Interdiction is one of the most important legal tools available to families who need to protect a loved one who can no longer make safe or informed decisions. While many people have heard the term, few understand exactly what it means or when it becomes necessary. In Louisiana , interdiction is a court-supervised legal process that allows a qualified individual to make decisions on behalf of someone who has lost the ability to care for themselves or manage their affairs due to illness, injury, cognitive decline, or disability. Families often seek guidance on interdiction after a loved one has developed dementia, suffered a traumatic brain injury, or experienced another condition that significantly affects decision-making. Losavio & DeJean helps Louisiana families understand this complex process while focusing on preserving dignity and protecting vulnerable individuals. Unlike a Power of Attorney , which must generally be signed while someone still has legal capacity, interdiction is typically pursued after an individual has already lost the ability to execute legal documents. During the process, the court reviews medical evidence, hears testimony, and determines whether the individual requires a full or limited interdiction. If granted, the court appoints a curator to manage financial, legal, and sometimes personal decisions in the individual's best interest. Interdiction should never be viewed as taking away someone's rights unnecessarily. Instead, Louisiana courts strive to preserve as much independence as possible while providing protections that help prevent financial exploitation, unsafe living situations, or harmful medical decisions. In many cases, limited interdiction allows individuals to retain certain rights while receiving assistance only in areas where they truly need support. If your family is questioning whether interdiction is appropriate, consulting an experienced Louisiana elder law attorney early can help you understand all available options. At Losavio & DeJean, our team guides families through every step of the interdiction process with compassion, experience, and a commitment to protecting your loved one's future.

Avoid These Common 401(k) and Roth IRA Estate Planning Mistakes

August 25, 2026

Retirement accounts often represent years of disciplined saving and careful financial planning, yet many families unknowingly make mistakes that can complicate the transfer of these assets. While investment performance receives much of the attention, proper legal planning is equally important. Without coordinating your 401(k) and Roth IRA with your overall estate plan, your loved ones may encounter avoidable tax issues , probate concerns, or beneficiary disputes. One of the most frequent mistakes is failing to update beneficiary designations. Another common oversight is assuming a will automatically controls retirement accounts. In most cases, beneficiary forms determine who inherits these assets regardless of what your will says. Families also overlook the importance of naming contingent beneficiaries, reviewing retirement accounts after significant life changes, and ensuring powers of attorney include authority to manage retirement assets if incapacity occurs. Comprehensive estate planning addresses these issues before they become problems. At Losavio & DeJean , clients receive guidance that extends beyond preparing legal documents. The firm's elder law attorneys evaluate retirement accounts alongside trusts, wills , powers of attorney , tax planning strategies, Medicaid planning , and long-term asset preservation to help clients protect both themselves and future generations. Their integrated approach is designed to create clarity while reducing the risk of costly mistakes. Retirement planning should never be viewed as a separate process from estate planning. As tax laws evolve and family circumstances change, periodic reviews help ensure your retirement accounts continue supporting your long-term goals. Working with experienced estate planning professionals provides confidence that your hard-earned savings will be distributed according to your wishes while helping your family avoid unnecessary legal and financial challenges.

Can an Attorney Help Resolve IRS Tax Debt?

August 20, 2026

Many taxpayers believe they have no options once they owe money to the IRS . In reality, there are often several potential solutions depending on the amount owed, your financial circumstances, and the reason the debt exists. The key is understanding which options are available before collection efforts become more aggressive. IRS tax debt can lead to liens, levies, wage garnishments, bank account seizures, and ongoing penalties if left unresolved. However, taxpayers may qualify for installment agreements, penalty relief, payment negotiations, or other resolution strategies depending on their individual situation. The earlier these options are explored, the more flexibility generally exists. At Losavio & Dejean Elder Law Firm , we recognize that tax debt frequently intersects with estate planning , business ownership , retirement planning , and asset protection. Our attorneys help clients evaluate available resolution strategies while considering their broader financial picture. Rather than focusing solely on the immediate tax issue, we work toward protecting long-term financial security whenever possible. No one should feel intimidated by IRS correspondence or collection activity. Seeking legal guidance early allows you to better understand your rights, evaluate your available options, and make informed decisions before problems become significantly more expensive.

Can You Receive Both Medicaid and VA Benefits?

August 18, 2026

One of the most common questions elder law attorneys receive is whether veterans can receive both Medicaid and VA benefits . The answer is often yes—but understanding how the two programs interact is critical. Without proper planning, families may unintentionally jeopardize eligibility for one program while applying for another. VA benefits and Medicaid each have their own eligibility requirements regarding income, assets, and medical need. While certain VA pension payments may affect Medicaid calculations, there are many situations where veterans can receive valuable assistance from both programs. This is particularly important for individuals facing significant long-term care expenses in nursing homes or assisted living facilities. Because these programs overlap in complex ways, attempting to navigate them without professional guidance can lead to unnecessary delays or costly mistakes. Proper planning often involves reviewing assets, creating estate planning documents, evaluating trusts , and ensuring all financial decisions support both immediate and future eligibility. At Losavio & DeJean , our attorneys routinely help Louisiana families coordinate Medicaid qualifying with Veterans Benefits planning. By taking a comprehensive approach, we help clients preserve assets, protect spouses, and maximize every benefit available under the law. Planning ahead often provides families with greater financial flexibility and significantly less stress during an already challenging time.

Why You Should Never Wait Until a Medical Crisis to Start Medicaid Planning

August 13, 2026

One of the most common situations elder law attorneys encounter is the family who waits until a loved one has already entered a nursing home before seeking legal advice. While emergency Medicaid planning is often possible, waiting until a crisis occurs typically limits the number of planning options available. Beginning Medicaid planning before care becomes necessary provides families with significantly greater flexibility and control over financial decisions. Long-term care needs frequently arise unexpectedly following a stroke, serious illness, fall, or hospitalization. During these stressful moments, families are forced to make complex legal and financial decisions while also caring for a loved one's health. Having an established Medicaid strategy before a crisis occurs can reduce anxiety, protect assets, and streamline the application process when time is critical. At Losavio & DeJean , the goal is to help Louisiana families prepare before emergencies happen whenever possible. Through comprehensive Medicaid planning, estate planning , powers of attorney , trusts , and asset protection strategies, clients receive a coordinated legal plan designed to support both immediate and future needs. Even if long-term care becomes necessary unexpectedly, experienced legal guidance can help identify available options and avoid common pitfalls. Planning ahead isn't about expecting the worst—it's about protecting your family from unnecessary financial hardship if the unexpected occurs. Whether you're planning for yourself, a spouse, or aging parents, consulting an experienced elder law attorney today can make all the difference tomorrow. Losavio & DeJean is committed to helping Louisiana families preserve dignity, independence, and financial security through proactive Medicaid planning and compassionate legal counsel.

Signs It May Be Time to Consider Interdiction

August 11, 2026

Watching a loved one's mental or physical abilities decline can be emotionally overwhelming. Many families struggle to determine when occasional forgetfulness becomes something more serious. While every situation is unique, certain warning signs may indicate that legal intervention is necessary to protect both the individual and their assets. Common indicators include unpaid bills, repeated financial mistakes, susceptibility to scams, unsafe driving, wandering, inability to manage medications, poor personal hygiene, or difficulty understanding medical treatment. Individuals suffering from Alzheimer's disease, dementia, stroke-related cognitive impairment, traumatic brain injuries, or severe mental illness may eventually lose the capacity to safely make important decisions. When these problems begin placing someone's health, finances, or safety at risk, families should consider speaking with an elder law attorney . Interdiction is often viewed as a last resort because Louisiana law seeks to preserve individual rights whenever possible. Before recommending interdiction, experienced attorneys evaluate whether less restrictive alternatives—such as trusts , Powers of Attorney , or supported decision-making arrangements—may adequately address the situation. Every family's circumstances are different, making individualized legal guidance especially important. At Losavio & DeJean , we understand that pursuing interdiction can be one of the most difficult decisions a family ever makes. Our goal is to provide compassionate counsel while helping families protect vulnerable loved ones with the least restrictive legal solution available. Early consultation often allows families to explore options before emergencies arise.

Who Should You Choose as Your Power of Attorney?

August 7, 2026

One of the most important decisions you'll make when preparing a Power of Attorney is selecting the individual who will serve as your agent. This person should be someone you trust completely, as they may one day make significant financial or legal decisions on your behalf. While many people immediately choose a spouse or adult child, the best choice depends on each family's unique circumstances. A good agent is honest, organized, financially responsible, and capable of handling potentially stressful situations. They should also understand your values and be willing to act solely in your best interests. Geography may also play a role, especially if your agent may need to assist with banking, property management, or meetings with professionals in Louisiana . Unfortunately, choosing the wrong individual can create family conflict or even expose vulnerable adults to financial exploitation. That's why it's equally important to name alternate agents if your first choice becomes unable or unwilling to serve. A thoughtfully drafted Power of Attorney provides flexibility while minimizing uncertainty during challenging times. At Losavio & DeJean Elder Law Firm , we guide clients through these important decisions every day. We discuss family dynamics, potential concerns, and practical considerations to help ensure your estate plan functions exactly as intended when your loved ones need it most.