Tax Resolution Services
Tax resolution/representation is provided for individual and small business clients with past tax debt problems. I work with non-filers, tax lien/levy clients and payroll tax debt clients. Tax resolution options are based on a financial analysis during consultation which will determine the best resolution solution going forward. Options include Offer-In-Compromise and Installment Agreement as well as determining other tax strategies that may be available to reduce tax debt.
Back Taxes Owed
Have you filed your tax returns every year, but not paid all the tax you owe? Maybe you just didn’t have enough money at the time and planned to pay more later. Unfortunately, the penalties and interest that are added to back taxes greatly increase how much you will ultimately owe the government. If you are delinquent on your taxes and haven’t yet heard from the IRS, you soon will. The IRS may place a lien on your property or a levy on your bank accounts or wages. The potential damage from unpaid back taxes can be financially ruinous, but it is often avoidable. I can help you assess your tax debt options and negotiate a workable payment plan with the IRS. Unpaid back taxes is a problem that rarely goes away on its own. Contact me today and resolve your tax liability issues.
Bank Levy
A bank levy freezes your bank accounts. Any checks you have written will bounce. You will not be able to withdraw any funds or pay any bills. Generally, you have 21 days to respond to the IRS after your financial institution receives a Notice of Levy for your accounts. After that, your accounts are drained and the money is sent to the IRS. If you act immediately, I may be able to get the levy revoked. I can compile and forward the IRS the information they require to release the levy. I will also negotiate the best possible payment arrangement the law and your finances allow.
Collections
Do You Owe the IRS Money That You Can’t Pay?
It can happen by accident. You may not have withheld enough from your paycheck in the past year and wind up with a huge tax bill in April. It could be you came into some money, spent it, and didn’t realize that a big chunk of it was owed to the IRS in taxes.
If your debt has been piling up for a while, it can be overwhelming and extremely stressful. You might feel stuck or frozen, not knowing what you should do or how you are going to get out of your situation. But the worst thing you can do is nothing. The penalties and interest just keep adding up, sinking you further and further into trouble.
The IRS takes their money seriously! They will seek every legal way to collect the money they are owed. They can seize your assets, freeze your bank account, garnish your paycheck, and even restrict your passport. They can file levies and liens on your property. I hope this hasn’t happened to you yet, but it will if you don’t act fast enough.
Failure to Pay Taxes
If you owe money to the IRS but can’t pay, there are several options available to you depending on your circumstances. One of the most important things is to start paying you current taxes first. You must be all caught up with filing your income tax returns and paying your current taxes before most of these remedies are available to you.
Here are some of the options the IRS provides to taxpayers who owe money. Whether these are applicable to you depends on your circumstances.
Installment Plan
This is where you work out a payment arrangement with the IRS. There are several forms of agreements, including regular, partial-pay, and streamlined. Which one you should use is highly dependent upon your current financial situation and the amount you owe.
Offer in Compromise
An offer in compromise is where the IRS agrees to accept less than the full amount owed. The IRS does not have to accept an Offer, but if the Offer is presented so that it meets the IRS guidelines, it increases the chance that the IRS accepts the Offer to resolve the outstanding balance.
Not all tax professionals know the ins and outs of preparing an Offer that has a good chance of getting accepted. It’s important to look for a professional who has an excellent track record of getting Offers accepted by the IRS.
“Currently Not Collectible” Status
This status allows you to defer your debt. The debt does not go away; you still owe the IRS money. But you’ll stop the process of getting your bank accounts levied or other collection efforts if you are granted this status. This often happens when you don’t have enough income to cover your current living expenses. Once your income rises, the IRS will re-evaluate your situation.
Bankruptcy
Bankruptcy can be extremely useful to stop IRS collection efforts, potentially discharge income taxes that are old enough, and force repayment plans on an otherwise unwilling IRS. Tax penalties may also be discharged through the bankruptcy. Since this is such a complex area, your best bet is to consult with several professionals – an accountant, a tax resolution professional, and an attorney that is expert at bankruptcy issues.
Getting Help
A tax resolution professional can help you:
- Respond professionally to any IRS correspondence you receive
- Contact the IRS on your behalf so that you don’t have to face them directly
- Represent your case before the IRS
- Get you caught up on filing back tax returns that are late
- Understand the IRS Collections process and your rights
- Negotiate penalties, interest, and taxes due to lower your debt
- Work out a payment plan on any money you owe to the IRS
- Fight for you on issues that come up, such as innocent spouse situations or positions taken on tax returns
- Help you get levies and liens removed from your assets.
Solutions for Resolving Your IRS Debt
Currently Not Collectible/Hardship Status
If paying your tax debt would cause you undue financial hardship, you may qualify for Currently Not Collectible (CNC) status. If the IRS decides your case is legitimate, they will halt collection for the duration of your CNC status, although you may still be subjected to a lien. Generally, to be accepted as Currently Not Collectible you must demonstrate to the IRS that you cannot pay your tax debt after meeting monthly living expenses or by liquidating certain assets. Applying for hardship status on your own is time-consuming and can ultimately end in failure. My tax professionals are familiar with IRS rules and regulations. If I feel you have a good chance to qualify for hardship status, I will submit the correct paperwork on your behalf and emphasize your suitability to the IRS. Currently Not Collectible is best thought of as a reprieve from collection enforcement that is subject to review. Once your status is confirmed, however, I can recommend options that will bring your tax controversy to a permanent close.
Injured Spouse Relief
You may qualify for Injured Spouse Relief if the IRS uses the refund from your joint return to offset certain past-due debts that are the sole responsibility of your spouse or former spouse, such as taxes, child support, or student loans. Injured Spouse Relief should not be confused with Innocent Spouse Relief. You may be classified as an Injured Spouse if you do not receive your portion of a refund because of your spouse’s debt, whereas Innocent Spouse Relief applies to debt for which you are technically co-responsible, but not liable because of circumstances. Whatever the cause, I can help you rectify an unfair tax liability and get you your money. As a tax expert, I will closely examine your case to see if you qualify for Injured Spouse Relief and/or any other IRS Relief programs.
IRS Audit Representation
Have you received a Notice of Audit and Examination Scheduled from the IRS? An IRS audit is a review of an organization’s or individual’s accounts to ensure information is being reported correctly. Ignoring an audit usually means the IRS files your return for you and you end up paying much more. An IRS audit is a serious situation, but with experienced help most tax difficulties can be resolved. You don’t have to face an audit alone. I am qualified to represent you before the examination division of the IRS. Oftentimes I can save taxpayers many times the cost of representation and quickly bring the audit to a close.
Levies and Seizures
Levies and liens are often confused, but they are actually quite different. A lien secures the government’s interest in your property when you don’t pay your tax debt. A levy actually takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax liability the IRS can levy, seize and sell any type of personal property that you own or have an interest in. Even your retirement accounts and home are fair game. If you have received a Notice of Intent to Levy please contact me immediately. There is a brief time period where I may be able to appeal the process and negotiate a workable payment plan before the levy even begins. Levies are best understood by examining their primary asset targets.
Non-Filers
Are You a Year or More Behind in Filing Your Income Tax Returns?
Sometimes life just gets in the way. You feel too busy or have experienced a divorce, illness, job loss, or death in your family that sidetracked you from filing your tax return on time. Or you could just be overwhelmed with the whole process of filing your taxes. Perhaps you don’t have the money to pay your taxes and thought you should wait to file (this is NOT a good idea).
You may also have a special situation with your spouse if they promised to file and didn’t or they don’t file correctly or they don’t pay. In some cases, you can claim that you were the “innocent spouse” and get your account corrected.
Whatever your situation, I am here for you when you are ready to get caught up, and the sooner, the better. I can help you relieve that huge psychological burden so you feel lighter and free from all that stress.
Failure to File Your Tax Return(s)
The IRS is very aggressive about coming after non-filers and non-payers. So even if you don’t owe that much, you’ll want to file right away to stop the penalties and interest from adding up.
IRS debt can add up fast. There’s a failure to file penalty, interest on the taxes that are late, and the taxes themselves. The failure to file penalty can be as much as 25 percent, so that’s a debt you don’t want to have pile up on you.
The most important thing about filing back taxes is to get them filed as soon as possible whether you can pay them or not. Filing back tax returns will stop the failure to file penalty and is the first step on the road back to compliance for you.
It’s never a good idea to have the IRS estimate and complete your return for you. You are better off hiring a tax professional to get you caught up and to represent your case before the IRS to work out a way to pay your back taxes that won’t leave you bankrupt or suffering financially.
I know there are many national chains out there that would like to help you with your tax problems, but all of the clients I have worked with say they prefer to hire a local tax professional in their own neighborhood.
A tax professional can help you:
- Respond professionally to IRS correspondence
- Help you collect records and receipts and get your bookkeeping caught up so you can file accurate returns
- Prepare and file any delinquent income tax returns
- Explain the next steps you need to take to continue getting back into compliance with the IRS.
Solutions for Your Delinquent Income Tax Return Filings
Obtain Your IRS File (Freedom of Information Act)
The Freedom of Information Act, or FOIA, gives any person the right to access their IRS file. Knowing what the IRS has in your file is a great place to start when resolving a tax issue. Furthermore, it is probably as important to find out what the IRS does not know about you as it is to see what they do have in your file. I will make a discreet request for your information from the IRS so as not to draw undue attention to any tax liability. After I acquire your IRS file, I will explain it to you in layman’s terms, as well as recommend a course of action that will set you on the road to ending your tax controversy.
Offer in Compromise
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or if doing so would create a financial hardship. The IRS will generally approve an offer in compromise when the amount offered represents the most it can expect to collect within a reasonable period of time. But the Offer in Compromise program is not for everyone. I will analyze your financial situation to see if you are eligible. If you do not qualify for an offer in compromise, I can recommend other payment options that will resolve your tax debt.
Payroll Taxes
Are You Behind in Your Payroll Tax Filings or Payments?
You have a good business, but sometimes your cash flow gets a little low and the payroll tax deposit doesn’t get made on time. Or maybe you just got busy and missed your quarterly payroll tax return filings.
Whatever the reason, you’re now behind in your payroll tax filings or payments or both.
You might feel like you’re temporarily borrowing the money from the IRS until your business gets back on track, but the IRS doesn’t see it that way at all. The IRS needs that money to make Social Security payments among other things and takes late payroll tax payments more seriously than just about any other tax problem.
Being Late on Paying Payroll Taxes Is Serious
To the IRS, a late payroll tax payment is considered stealing money from the government, and they have really put some teeth behind enforcement. The most important thing you can do is to get help from a tax representation professional as soon as possible.
Penalties can add up fast. There’s a failure to file penalty, a Trust Fund Recovery Penalty, interest on the taxes that are late, and the taxes themselves. It can be easy to get into a hole really fast with back payroll taxes due. Plus, it’s taxing on your peace of mind to have this kind of burden weighing you down.
The Internal Revenue Service, state tax agencies, and local entities will send a letter if one of the following happens:
- You miss a payment deadline for payroll taxes due.
- You miss a deadline for filing payroll tax reports.
- An amount paid is short or over what the IRS or another tax agency calculates as due.
- The agency notices a discrepancy on your payroll tax returns and needs an explanation.
- You have been selected for an audit.
- You fail to respond to previous correspondence.
Please note: The IRS will never send you an email about any of the above situations. They always send physical letters. If you get an email, it’s a scam.
If you don’t respond to the initial IRS letters, the IRS and other tax agencies can apply liens, levies, garnishments, and seizures in an attempt to collect payment. You don’t want it to escalate to this level.
It’s a great idea to get a tax professional working on your payroll tax problem. They can help you:
- Respond professionally to IRS correspondence
- Get you caught up on filing back tax returns that are late
- Understand the IRS Collections process and your rights
- Negotiate penalties, interest, and taxes due to lower your debt
- Work out a payment plan on any money you owe to the IRS
- Fight for you on issues that come up, such as a “responsible persons” situation
- Help you get levies and liens removed from your assets
Responsible Person
If you worked for a company that did not file their payroll tax returns or pay their payroll taxes on time, the IRS may have designated you as a “responsible person.” Do NOT ignore this correspondence!
The IRS aggressively goes after anyone they can when it comes to payroll taxes, even if you’re not the owner of the business. If you have a relationship with the business that is of a particular status, duty, and authority, the IRS can blame you for not paying payroll taxes. And in this case, you are guilty before proven innocent.
It’s best to contact a tax representation professional who can argue your case and get your “responsible person” status dropped.
Solutions for Your Payroll Tax Challenges
Penalty/Interest Abatement
One of the worst things about IRS tax controversies are the penalties and interest tacked on to your original bill. There are penalties for late filing, late payment, and negligence, to name but a few–and the interest on unpaid taxes can rapidly increase your total tax liability. If you are struggling with unpaid taxes plus additional penalties and interest, I can help. The IRS may abate certain penalties if there is reasonable cause and the failure was not due to willful neglect. Many taxpayers who have not previously had major issues with the IRS can qualify for a first time penalty waiver. Generally, the IRS does not revoke interest charges, but some established interest suspension provisions do apply–especially where the IRS has made an error. I understand if you are overwhelmed by penalties and interest. They often appear arbitrary and unfair. I will carefully scrutinize your tax situation to see where penalties and/or interest may be waived.
Seizures
A Seizure is a levy on your property. The IRS can take your car, boat, jewelry, etc.–sometimes even your home–and then auction off your possessions to pay your taxes, interest, and penalties. If the IRS has notified you that they are going to seize your assets, you still have some legal rights concerning your property. I will walk you through all the available options. You may qualify for an Offer in Compromise, Innocent Spouse Relief, or, if you are under severe financial duress, Currently Not Collectable. If the IRS has already taken your property, I can request an Asset Levy Release–it may be possible to get your possessions back. Please contact me today for more information.
Tax Representation and Resolution
There are many issues that can arise between taxpayers and the IRS. If you are facing an audit, lien, or wage garnishment your future and reputation are at stake and you should take immediate action. But going it alone can be a time-consuming nightmare and sometimes result in a worse outcome. I am uniquely qualified to resolve your tax problems and represent your best interests before the IRS and other tax authorities.
Wage Levy (Wage Garnishment)
A Wage Levy occurs when the IRS sends a Notice of Levyto your employer demanding that he or she send a portion of your paycheck to the IRS. If your employer fails to comply, they could be held responsible for your tax debt. A wage levy is extremely unpleasant. The IRS usually gets the bulk of your paycheck until your taxes are paid off and your relationship with your employer is put under a great deal of stress. If your wages are being garnished, you need help now. I will work with you to arrange a payment plan with the IRS that is far more tolerable than having your regular paycheck docked.