IRS Issues & Representation
We help taxpayers whose issues are causing financial difficulty and hardship. Let our tax experts help save you money and your business.
You received a notice of Intent to Levy 30 days ago and you forgot or ignored it. Now it’s Payday. Expecting a check, you open the envelope and find that the IRS has taken most of your money. What’s left is not enough to pay the rent, make your car payment, buy groceries, or pay the rest of your bills.
If you have unpaid taxes and the IRS fails to get a response, they may implement a wage levy and garnish your wages to get their money. This means they can take a significant portion of each paycheck you earn and they don’t need a court order to do so.
This action will continue on every check due you, until the tax owed is paid in full. Now you’re in big financial trouble. No matter how hard you plead with your employer they can not give you your money. Because once a wage garnishment is filed with your employer, your employer is required by law to collect a large percentage of each of your paychecks.
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.
With a Federal Tax lien on your record you can’t get a reasonable loan to purchase a car. Think about paying 18-22% interest on a car that is already too expensive. You definitely cannot buy or sell any Real Estate. The list is endless.
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.
We are often able to get those levies released and help you get out of this terrible situation. Our goal is to get you even with the IRS, with what you can afford, and let you start life anew.
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.
If done correctly your debt may be settled for only 5-15% of what you presently owe. The key is to determine the least amount that the IRS will accept from you before you make the offer.
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).
The IRS 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.
The IRS makes various Installment Agreement programs available to taxpayers, such as:
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.
The IRS understands that there are some unique situations in which a spouse cannot be held responsible for mistakes solely attributable to the other spouse. To ensure yourself the best possible outcome, it is best to take action as soon as you realize there is a problem.
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.
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