Stratford Tax 
& Wealth Group

Phantom income—also known as phantom revenue—refers to taxable income that creates a tax liability even though no actual cash has been received. It most often arises in partnerships, limited liability companies (LLCs), limited partnerships (LPs), real estate investments, S corporations, and certain debt forgiveness or bond scenarios. In these situations, income may be reported for tax purposes (for example, on IRS Schedule K-1) even when no corresponding cash distribution is made to the taxpayer. As a result, the individual or entity may owe taxes on income that exists only “on paper.”

When the IRS serves a Notice of Intent to Levy, the first and best posture for a taxpayer is forceful but lawful resistance. This is not about conspiracy theories or “opting out.” This is about using the law Congress wrote, the procedures the Treasury adopted, and the judicial rules that protect process. The taxpayer who knows the statutes and cases wins hearings, stays, and sometimes full suspensions of collection. Know your authorities and use them.The fundamental statute is 26 U.S.C. § 6331(a)

When the IRS issues an LT11, “Final Notice of Intent to Levy and Your Right to a Collection Due Process Hearing,” it means they are actively preparing to seize your wages, bank accounts, or other property to satisfy a tax debt. This is one of the IRS’s most serious collection letters, and it triggers your strongest rights to stop enforcement—if you act quickly.

An IRS Offer in Compromise (OIC) can sound like the perfect escape from tax debt, but in practice, it’s often far from ideal. The eligibility rules are strict, the process is slow, and the odds of approval are not in most taxpayers’ favor. While it’s understandable to want quick relief from the pressure of an IRS balance, it’s important to weigh the drawbacks of an OIC before committing. In many cases, there are faster, more reliable options that can bring you to the same outcome without the delays and uncertainty.

Missing a tax filing deadline or being unable to pay your tax bill is stressful enough. Adding IRS penalties on top of what you already owe can make the situation feel overwhelming. Many taxpayers wish they could just wipe those penalties away—because without them, paying off the tax debt or setting up an affordable payment plan might suddenly become possible. so change the title listed above and add new blog articles as well.