You Have Options. Let us help!

• Penalty Abatement. A request for penalty abatement can partially abrogate a taxpayer’s liability for reasons such as IRS error or delay, erroneous written advice by IRS, or reasonable cause.
• Innocent Spouse Relief. This is a relief method for one spouse of a joint return who is assessed additional tax based on the erroneous filing by the other spouse. There is much more detail that is involved but generally the “innocent” spouse must not have known of the understatement of tax by the other spouse and it would be inequitable to hold the innocent spouse responsible.
• Currently Not Collectible. Also called a temporary delay for hardship, being placed in currently not collectible status is only a temporary solution and is only for taxpayers whose expenses exceed their income. It is not a long-term answer to relieving back taxes.
• Installment Agreement. Installment agreements are monthly payment plans you can use to pay off the IRS. An installment agreement shows the IRS you are serious about dealing with your tax problem. Even if you can’t pay off the entire amount upfront, installment plans can prevent future penalties, keep interest in check, and help stop garnishments, seizures, and levies.

IRS Tax Liens

Federal Tax Liens can really make your life miserable! When your taxes are not paid the IRS establishes a lien against all of your assets (especially real estate). This gives the IRS the legal right to collect taxes from the sale of your assets, which includes just about everything you own.

The lien can be against you, your spouse, or your company. A lien against your company would seize your accounts receivables. At this point everything you own is just one short step away from becoming the property of the United States Government.

Liens filed against you by the IRS also show up on your credit report and often prevent you from opening a checking account or borrowing against any assets, like your home. The banks don’t want the extra work when the IRS comes in to take your money.

IRS Tax Levies

Levies can really do a lot of damage and even ruin your life. A levy is the IRS’s way of getting your immediate attention. What they are saying is, we have tried to communicate with you but you have ignored us. Levies are used to seize your wages and whatever other assets you have. If you own it, they can take it. That includes checking accounts, autos, stocks, bonds, boats, paychecks, and even Social Security checks!  If you are ignoring communications from the IRS, an IRS levy may well be in your future.

Imagine waking up one morning and finding all your bank accounts have been cleaned out. They will take every dime. If this amount did not cover what is owed, they’ll keep taking your money until you cover your tax liability.  Their sole objective is to collect the taxes owed.

As bad as that is, a worse method is a wage levy (or garnishment). That’s when most of your pay check goes to the IRS every week until the debt is paid.

If that doesn’t accomplish what they want, they’ll pull out all the stops. They’ll seize your assets, and sell them at auction. That includes everything you own; home, cars, boats, jewelry, motorcycles, insurance policies, retirement funds, anything of value. Our goal is to get you even with the IRS, with what you can afford, and let you start a new life.

Did you know that you can settle your debt with the IRS for less than you owe with their Offer in Compromise program? The program allows taxpayers to settle with the IRS on tax debt that has been incorrectly assessed or for liabilities they cannot afford to pay.

An Offer in Compromise is an agreement that allows taxpayers to settle their tax debt for less than the full amount. Fresh Start expanded and streamlined the OIC program. The IRS now has more flexibility when analyzing a taxpayer’s ability to pay. This makes the offer program available to a larger group of taxpayers.

The IRS Code states: “We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential…” (Internal Revenue Code section 7122).  Often it is possible reduce the taxes you owe at an enormous discount.

Our experienced Tax Specialists can help you determine if you might qualify for an Offer in Compromise, or if a tax payment plan would be the better route for you to go.

If you cannot pay all that you currently owe for prior year taxes and do not qualify for an offer in compromise, an IRS installment agreement may be your next best option.  A taxpayer agrees to make regular monthly payments to the IRS until the balance is paid in full when they agree to an Installment Agreement (Payment Plan).

Your payment plan calculates the amount of the monthly payment for each person based off of the taxpayer’s income, allowable monthly expenses, and the time remaining in their Statute of Limitations.

There are various Installment Agreement programs available to taxpayers, such as:

• Streamlined Installment Agreement: For taxpayers who have a tax debt under $25,000, a simple Streamlined Installment Agreement can be applied for with IRS Form 9465. Payments for this agreement will be calculated using a 72-month payment plan, or divided by the months left in the Statute of Limitations for the debt, if less than 6 years.
• Fresh Start Streamlined Installment Agreement: An extension of the Streamlined Installment Agreement, this program is for taxpayers who owe between $25,001 and $50,000. Limited financial information may be required due to the higher debt amount involved. Payments are calculated in the same manner as the Streamlined Installment agreement.
• Partial Payment Installment Agreement: This program was introduced in 2005 as a partial settlement/payment plan for taxpayers who owe more than they can pay before their Statute of Limitations expires. Taxpayers will need to provide documented proof of their inability to pay, as well as a letter explaining their current financial situation. The IRS will determine, through a full disclosure of financial documents, the monthly payment amounts. Once the terms of the Partial Payment Agreement are fulfilled, the remainder of the tax debt is forgiven.
• Tiered Installment Agreement: For taxpayers who owe less than $25,000 and have temporary financial difficulty paying their tax debt, a Tiered Installment Agreement is suggested. With this program, the IRS will set low monthly payments for the first year of the agreement, with the payments increasing over time until the agreed pay-off amount is reached.

The IRS cannot levy against your property (1) while your request for a Payment Agreement is under consideration, (2) while your agreement is in effect, (3) for 30 days after your request for an agreement has been rejected, or (4) for any period while an appeal of the rejection is being evaluated by the IRS.  Once the Payment Plan is in place, the IRS Collection Division will not bother you, as long as you are current in your tax filing, and payment of taxes owed.

You can be Released for the Misdeeds of Your Spouse… If You Know What Steps to Take.

Under certain circumstances, you may be resolved of any misdeeds of a spouse or former spouse involving income tax fraud. Under the current tax code, the IRS has the power to release a spouse from direct financial liability for unpaid taxes. This release from responsibility from having to pay tax debts of the other spouse (or estranged spouse) is called innocent spouse relief.

You must request innocent spouse relief or separation of liability relief no later than 2 years after the date the IRS first attempted to collect the tax from you. For equitable relief, you must request relief during the time the IRS has to collect the tax from you.

If you are looking for a refund of tax you paid, then your request must be made within the time period for seeking a refund, which is generally three years after the date the return is filed or two years following the payment of the tax, whichever is later.

We can review your situation and help you determine your options and file for Innocent Spouse Relief when necessary.