Are you buried in IRS notices? Maybe an Offer In Compromise is an option for you. With an OIC, the IRS agrees to let the taxpayer pay a fraction of the amount you owe. This settlement allows people that cannot afford to pay the amount they owe to the IRS an opportunity to have their debt reduced significantly. Wondering how to get the Offer in Compromise accepted? Prior to filing for an Offer In Compromise, make sure to:

1. Have all of your tax returns prepared
2. Make all estimated payments required by the IRS
3. Have a tax professional analyze the taxpayer’s situation conforms to the IRS’s rules and regulations for submitting an Offer in Compromise.
4. Have a Tax Attorney, CPA, or Enrolled Agent determine if an Offer in Compromise is the right option.
5. Review forms 433 series and 656, as this option has given many individuals a chance to pay their debt with the IRS for pennies on the dollar and start over.

Questions? Please call us at 877-TAX-TIPS

An IRS can possibly put a lien on your property and assets, seize your home and garnish your wages and more. These are some of the extensive measures the IRS will take, however, this usually occurs when the taxpayer cannot pay what they owe all at once. If this is a situation you as the taxpayer find yourself in, then there are different ways to negotiate with the IRS. One of the ways to negotiate is via an IRS Installment Agreement or even a Partial Pay Installment Agreement. A tax advisor can work out an installment agreement with the IRS on the taxpayer’s behalf to make smaller and more manageable payments that the individual can afford (this is when a Partial Pay Installment Agreement takes place). A tax attorney can negotiate with the IRS on behalf of the taxpayer as well to lower the payments made. The taxpayer needs to be able to afford the payments and make them timely. Whoever the tax professional, they must have adequate negotiating skills to satisfy what the taxpayer needs. If you find yourself in the position of not being able to afford to pay your tax liabilities, please consider an IRS Installment Agreement. This can add a peace of mind to your difficult financial matter.

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One of the most instrumental ways in resolving your tax problems is by filing your tax returns – yes that is correct. Many taxpayers don’t know that by simply filing their unfiled tax returns can lower or even eliminate their tax liability. Doing so offers both a compliance in reaching any agreement with the IRS and in addition, can often reduce the balance that the IRS claims you owe. However, if not done correctly, filing or amending tax returns can create sometimes more problems and an even a higher tax liability. We can review your IRS transcripts and determine which years were not filed and which years were filed by the IRS, meaning which years have a Substitute for Return (an SFR) filed. Our CPAs and tax specialists understand the tax law, as well as financial accounting. We prepare tax returns year round unlike your average tax preparer who may do so an average of a few months per year. Because an average client of ours hasn’t filed a tax return for several years, we’re more familiar with tax laws and regulations than the average accountant or bookkeeper.

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When the IRS determines that they will be garnishing your wages to retrieve the tax debt you owe, this means they are going to take money from all of your income sources, not only your paycheck. There are times when the IRS withholds money directly from your Social Security income or when they send your employer a notice to withhold your wages or tax return refunds, turning this into a public matter. The IRS can also garnish your wages that f receive as a 1099 contractor. The business that contracts out your services is required by law to comply with the rules and must mail any compensation that is owed to you to the IRS instead. The IRS does not do this automatically, they typically will first send you a few notices, and then a final notice called a Final Notice of Intent to Levy. Once you have received this notice, you have a limited time to either enter into some sort of an agreement with the IRS or pay your tax debt in full. If you are not responsive, they will begin to garnish.

Our tax experts can help you lift a wage levy, no matter whether you are in an Automated Collection Process (ACS) or dealing with a Revenue Officer (RO), a collection hold can be placed on your account. While this hold is on your account, our tax professionals will review your situation and determine the best possible option for you.

To Learn About your Options Call, 877-TAX-TIPS

A Notice of Federal Tax Lien (NFTL) or State Lien is when the IRS or State Division of Taxation (or Finance) can claim your property legally for non-payment of your tax debt. The IRS will determine your tax liability, and file a Tax Lien with the County where you reside, making this a Public Record for all to see. Once a year, the IRS can also mail you a notice advising you of what your liabilities broken down by year. If you do not or cannot pay your tax debt in full, the IRS can put a lien on your house, cars, bank accounts, and anything else of value. Creditors including your credit card company are notified of this lien and that the IRS has a claim against your property. This can be damaging to your credit score making it difficult to obtain a new loan (even a home equity loan). There are a number of ways to get rid of a Tax Lien, whether through a Direct Debit Installment Agreement (DDIA), by paying off the year with the Tax Lien liability, and more. If you find that a Tax Lien is being put on your property, contact us immediately and our tax professionals will work diligently to find a solution for you right away.

Tax Liens are a Public Record, let us help you avoid this by contacting us at 877-TAX-TIPS

Are you willing to pay what you owe the IRS, but frustrated about having to pay the additional penalties assessed? We can help with a penalty abatement to have them removed. One of the ways to abate a penalty is if the taxpayer can prove a Reasonable Cause for non timely filing and the IRS will lower or eliminate the penalties as well as the interest associated with them. The taxpayer must however prove the reasonable cause of not being able to file or pay their taxes on time. Reasonable Cause is based on all the facts and circumstances pertaining to your situation. The IRS will consider any reason which establishes that you used all ordinary business care and prudence to meet your Federal tax obligations but was nevertheless unable to do so. A few examples of hardships that are accepted by the IRS are:

1. Fire, Casualty, or Natural disaster
2. Death
3. Illness in your immediate family or yourself
4. Being incarcerated
5. Unemployment for a long period of time
6. Divorce or other family issues that you can prove to the IRS
7. Poor advice from a tax advisor

Common types of penalties that can be assessed on a taxpayer’s account:

1. Failure to File Penalty – failing to file from the date a tax return was due (including extensions), to when the taxpayer actually files.
2. Failure to Pay Penalty – this is assessed based on the money that the taxpayer owes the IRS
3. Failure to Pre-Pay Tax Penalty – If the taxpayer does not make their tax payments that they have agreed to make to the IRS, this penalty is assessed.
4. Failure to Deposit Penalty – This penalty is common for businesses for not submitting their payroll deposits on time that are related to the 941 and 940 forms.

There are other hardships that IRS will accept. If you can prove that one or more of these situations are a reason for not being able to file timely or pay your taxes, then the IRS may lower penalties associated with your account. Even if you have already paid your taxes but still want to look into having your penalties removed, the IRS can grant a refund of the penalties and interest that you have already paid.

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If you have IRS tax issues, such as back taxes, debt, an audit, or a bank levy, getting help from a licensed tax professional is a must in defending your assets and income. It is not recommended that you try negotiating your debt alone. While preparing to do so, you can accrue additional penalties and interest. Our network of tax attorneys and team of CPAs and Enrolled Agents, who are licensed to represent taxpayers in front of the IRS, as well as State taxing authorities, can defend your rights and ensure you don’t pay more than you legally owe. A CPA is a certified public accountant and an Enrolled Agent is an authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before an examination, collection, and appeals process of the IRS. If you owe back taxes now or will owe back taxes due to an audit or unfiled tax returns, we will help create distance between you and the taxing authorities, giving you time to gather your options. Allow us to take control of your case and negotiate with the IRS on your behalf.

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If you have ever been audited, then you know it is a situation that should not be taken lightly. An audit is when the IRS reviews and studies your documentation to make sure it matches what you filed. IRS auditors are highly skilled and knowledgeable and take their job seriously in reviewing past tax filings to ensure that you have taken only the appropriate deductions and have reported all sources of income. They use samples based on materiality, randomly, and haphazardly, so there is no telling what items they will take issue with. An IRS audit on one year can also lead to a number of things, including additional tax years being selected for audit. If you have received an IRS audit notice, you will want a tax professional on your side to ensure that you are providing what is asked of you in the notice, including correct documentation. It is not recommended representing yourself ‘pro se‘. Being audited by the IRS can be very intimidating and the auditors know this. If you have a CPA next to you throughout the process, your chances increase a better outcome of the case. Just like with a traffic ticket violation, there will not be slack given for not knowing the law.

If you are audited and believe that the assistance of a professional is needed, there are only three types of professionals that can represent you before the IRS:

1. Attorneys
2. Certified Public Accountants
3. Enrolled Agents

Keep in mind that many attorneys do not represent clients with a normal audit issue, but typically step in when there are criminal charges filed against the taxpayer. Even some CPAs do not handle IRS and state tax audits. We are licensed to deal with the IRS on your behalf. We can collect information from you so that you never have to meet with the tax auditor.

Do You Have an Audit or Need Representation? Call 877-TAX-TIPS

If your monthly expenses exceed your income and you cannot pay the tax debt owed to the IRS, your account could be placed in Currently Not Collectible (CNC) status. In such case, the taxpayer will need to prove to the IRS that they are going through a financial hardship and cannot make full or partial payments and have no assets to liquidate, such as a house or a car. The IRS will typically ask to review form 433 and backup documentation submitted by the taxpayer. If the IRS has agreed that the taxpayer does not have the funds to pay the back taxes owed, the account will be put in Currently Not Collectible (CNC) status. In such case, collection action will stop until the taxpayer’s situation is improved, which can occur when a taxpayer files the following year’s tax return or many years from now. If the taxpayer is put in CNC status, the IRS can also lift levies and stop wage garnishments. While in CNC status, an Annual statement of liabilities will be sent to the taxpayer showing the individual what they owe – this is a notice, and clearly marked ‘not a bill’. While the taxpayer’s account is in CNC status, the 10-year statute of limitations is running, so if the IRS cannot collect their money within the allotted statute, the tax debt expires. While in CNC status, another option available is to make voluntary payments on your terms, for the years you choose to pay, to bring the overall liability down.

For questions about Form 433, call us at 877-TAX-TIPS

If you are a business owner and run into Business Tax Problems, especially Payroll Tax Problems, you must note that the IRS takes this very seriously and will collect their money by any means necessary. The IRS will always fight for the rights of the employee and this can mean that they will do what’s necessary to collect the debt associated with non-filings and non-payments of 941 and 940 forms. If you find yourself in this unfortunate situation, you will want to seek the advice of a tax professional. They will be able to negotiate on your behalf with the IRS so you can focus on managing your business. If you own a business, then you should know that you are responsible for filing quarterly 941 and annual 940 taxes and remitting various types of payroll taxes, be it monthly, quarterly and annually. These taxes can include employer’s portion of Medicare, Social Security, FUTA, and more. The IRS has the legal right to retrieve the money you owe them and they can seize your business accounts, cars other business assets. This can be very taxing on the business owner who is worried about what’s most important to them, running a business and making a living. The IRS even has the power to put a lien on the business owner personally via something called a Trust Fund Recovery Penalty (TFRP), by reassigning the business tax liabilities in the owner’s personal name. This is why you must have a tax attorney, a CPA or an Enrolled Agent on your side.

Let Us Take Care of Your Business Tax Problems by Calling 877-TAX-TIPS

Tax-filing extensions are available to all taxpayers who need more time to finish their returns. Extension deadlines vary on the type of filer you are. While individual taxpayer extensions allow filing as late as October 15^th of the following year (6 months after the April 15^thfiling due date), company extensions vary with some as early as September and others as late as October. Please keep in mind, you are granted an extension of time to file, not an extension of time to pay. If you will ultimately have a balance due, then penalties and interest will continue to accrue while you have not filed. However, taxpayers who are having trouble paying what they owe may qualify for payment plans, either informal (if they can pay within 6 months) or formal (in case they need more than 6 months to pay). Taxpayers can avoid stiff penalties if they file either a regular income tax return or a request for an extension to file by April 15^th of the following year. The IRS recommends that taxpayers file, even if they cannot pay the full amount due.

For Filing Questions and Tax Preparation, Call Us 877-TAX-TIPS

Not filing taxes can be significantly worse than filing your taxes and not being able to pay what you owe. Not only will you be charged with a Failure to File Penalty, but you should know that if you do not file a tax return it is considered a punishable crime. The IRS has a three-year look back statute for refunds, meaning if you are three years behind, you can file taxes now and still claim a refund that is owed to you. There are a number of reasons why people fall behind on filing their taxes. Not having all of the required documentation, hardships, including reasonable cause, or thinking that if they do not file they will not have to pay taxes. If you think that by not filing taxes you are not going to owe anything, you are wrong. At some point, the IRS will file what’s called a Substitute For Return (SFR) on your behalf where they will not allow any deductions and you will ultimately owe more that you would have owed by filing on your own. Our tax experts are here to answer any questions you may have and to assist in finding a tax solution that is best suited for your tax situation.

For Questions on Unfiled Tax Returns, Amended Returns, and Substitute For Returns (SFR), call 877-TAX-TIPS

If you believe that the tax debt the IRS is attempting to collect from you is your spouse’s responsibility, you may qualify for Innocent Spouse Relief. If one of the spouses owes money to the IRS and does not pay, the IRS has the legal right to go after both individuals, and it is not always fair to the spouse to owe what their partner owes. If you qualify, you will no longer be liable for the tax debt. Instead, your spouse or former partner will be responsible for satisfying the debt with the IRS. This relief provided from the IRS can relieve the spouse or ex partner from owing back taxes, interest or penalties related to a joint file tax return. Some things to consider in filing for this type of relief are:

1. You must have filed jointly with your spouse or former spouse for the tax year(s) in question
2. The debt must be the result of an error on the tax return
3. You must file within two years of the IRS notifying you of the debt

For More Details on this Topic, Call us Now at 877-TAX-TIPS

Similar to wage garnishments, the IRS has the power to levy bank accounts. Usually, a levy is initiated by a Revenue Officer (RO) assigned to your case. The IRS does this, not only to get their money from you but also to get your attention and remind you that they have not forgotten about the money you owe them. There are different methods the IRS uses when retrieving their money from your bank accounts. They can take it directly from your paycheck (a wage garnishment) or freeze your accounts (a lien) and take any money they can up to the amount that is owed (a levy). The IRS will usually send you multiple notices before doing this, including a Notice of Intent to Levy.

A bank levy is not an automated process and can be lifted by negotiating for example with a Revenue Officer. However, a taxpayer must act fast to make an arrangement with the IRS to pay the taxes that they owe because the IRS can issue a new bank levy. Let our team of tax professional study your IRS notices and determine what stage in the collection process you are currently in. Let us further determine your options.

Do you Have Tax Problems?
We Have Solutions. Call 877-TAX-TIPS

If the IRS has a lien against your property (for example, a house or a car), then a Lien Discharge is one option that can be pursued to eliminate it. A tax lien is a public record issued by the IRS and filed in the courthouse of the County where you reside, making it a public records for all to see. By doing so, the IRS as a secured creditor makes sure they will get paid one way or another. By arranging a payment plan with the IRS or by paying down a certain year’s tax liability, you could qualify for a Lien Discharge, which can result in a permanent removal of the tax lien. In some cases, the process does not have to involve sale of the property. If you are considering this option, the following factors will impact the outcome:

1. Can you sell the property for more than the amount of the lien?
2. What are the total liabilities and claims against the property?
3. Are there creditors that have first priority claims ahead of the IRS (for example: in a process called Subordination)?

Did You Know that a Tax Lien can be Discharged even if Your Debt Has Not Been Fully Paid Down? Call 877-TAX-TIPS to Learn More About This.

Are you buried in debt and can’t find a way out? Are your creditors threatening to garnish your wages and intending on suing you?

If you’re falling apart from uncontrollable debt, then bankruptcy may be a solution to resolve your tax problems. If considering bankruptcy you should speak with a bankruptcy attorney, not just any general practitioner.

Bankruptcy can allow you to:

1. Quickly get out of debt
2. Prevent wage garnishments
3. Bring a halt to legal action
4. Stop collection action
5. In certain cases, it can even eliminate some types of IRS debt

There are different types of bankruptcy options available to individual taxpayers:

1. Chapter 7 – involves discharging qualifying debts so that you no longer have to be burdened with payments. A discharge typically eliminates unsecured debts like credit cards, medical bills, personal loans and lines of credit, collections and repossessions, certain student debts, and some tax debts. Whereas non-dischargeable debts include child support, most student loans, and most tax debts.
2. Chapter 13 – involves restructuring qualifying debts and making an affordable monthly payment to a Trustee, typically for 3 to 5 years. The debts are not discharged in Chapter 13 and the amount paid is determined by taking income and subtracting reasonable living expenses, so that the payments can be affordable.

If you feel that you’d like to find out more about Bankruptcy options, then we will be happy to have our network of attorneys help you or provide a free consultation to go over all of your options.