You Should Know About These Serious Tax Problems

You don’t want to run into trouble with the IRS. Here’s what will happen if you do.
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There are a number of serious tax problems you can fall victim to out there, and each one has different solutions.The IRS takes these seriously and if you simply ignore them, the consequences get increasingly harsh over time. These consequences include:

• The IRS can take up to 80% of your paychecks until the debt is paid.
• Penalties can grow to 25% and beyond on the original tax.
• Interest will add up every day until paid.
• Tax liens filed against you can stop you from buying a house or borrowing money.
• Your bank accounts, retirement plan accounts can get levied by the IRS.
• Civil penalties can be levied if you are an owner or officer of a business that does not pay their payroll taxes.

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If you don’t take action now, your problems will only get worse.

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Once you get a notice of taxes due, they usually have some penalties and interest already calculated, but this is just the beginning. If you don’t take action now, your problems with the IRS will only get worse! In my next few posts, I will discuss each of the common tax problems and how to deal with them so stay tuned. If you know you have tax problems, you should protect yourself by hiring a qualified tax problem specialist. We have experience in strategies in negotiating with the IRS to get you the lowest amount that you have to pay. If you know someone with a tax problem, don’t hesitate to reach out. You can give me a call or send me an email. I look forward to hearing from you soon.

How Can You Appeal IRS Decisions?

Today we’re talking about the IRS Office of Appeals.
We’ve got some information you need to know.

Many tax disputes are not resolved in favor of the taxpayer. Many times, the IRS is wrong in their conclusions. There are remedies if you feel you have a strong case and can support that case with the IRS.

The IRS Office of Appeals was formed in 1927. Their mission is, “To resolve tax controversies, without litigation, on a basis which is fair and impartial to both the government and the taxpayer in a manner that will enhance voluntary compliance and public confidence in the integrity and efficiency of the service.”

Tax controversies can involve proposed tax assessments, tax collection, or other IRS actions. Once the IRS issues a final notice, taxpayers can generally seek a remedy from the courts. However, the appeals process is less formal and less costly than court proceedings and is not subject to judicial rules of evidence or procedure. Historically, it has been able to settle the majority of the cases that have come before it. In addition, taxpayers do not give up judicial review by coming to the IRS Office of Appeals and can still go to court.

One very important aspect of the Office of Appeals is that the office is independent from IRS compliance functions and this is critical for it to accomplish its mission: to resolve disputes effectively.

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The office is independent from
IRS compliance functions.

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How do you know if the IRS Office of Appeals is the right place for you? To qualify for appeals, ALL of the following items must apply:

• You received a letter from the IRS explaining your right to appeal the IRS’s decision.
• You do not agree with the IRS’s decision.
• You are not signing an agreement form sent to you.

If all of the above are true, then you may be ready to request a conference or hearing.
This course of action is not for you if ANY of the following apply:

• The correspondence you received from the IRS was a bill and there was no mention of appeals.
• You did not provide all information to support your position to the examiner during the audit.
• Your only concern is that you cannot afford to pay the amount you owe.

If you cannot qualify for the IRS Office of Appeals, you should talk again with the person at the IRS you have been dealing with or contact taxpayer services for assistance. You can also contact the taxpayer advocate service if you feel your taxpayer rights have been violated.

If you have tax problems, you should protect yourself by hiring a qualified tax problem specialist. We have experience in strategies in negotiating with the IRS to get you the lowest amount that you have to pay.

If you have a tax problem or know someone with a tax problem, please share this video or contact me by giving me a call or sending me an email. I look forward to hearing from you soon.

The IRS Fresh Start Program

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In April of 2013, the IRS introduced a new program to make it easier for taxpayers to pay back taxes and avoid tax liens. Individuals and small business taxpayers may benefit from the IRS Fresh Start program. There are three important features that you need to know.

First of all, you need to consider the tax liens. The Fresh Start program increased the amount that taxpayers can owe before the IRS generally will file a Notice of Federal Tax Lien. That amount is now $10,000. However, in some cases the IRS may still file a lien notice on amounts less than $10,000.

When a taxpayer meets certain requirements and pays off their tax debt, the IRS may now withdraw a filed Notice of Federal Tax Lien. You must request this in writing using Form 12277, Application for Withdrawal. Some taxpayers may qualify to have their lien notice withdrawn if they are paying their tax debt through a direct debit installment agreement. You also need to request this in writing by using Form 12277.

If you default on a direct debit installment agreement, the IRS may file a new Notice of Federal Tax Lien and resume collection actions. Don’t ever miss a payment.

Next up are installment agreements. The Fresh Start program expanded access to streamlined installment agreements. Now if you owe up to $50,000, you can pay through monthly direct debit payments for up to six years. While the IRS generally will not need a financial statement, they may need some financial information from the taxpayer. The easiest way to apply for a payment plan is to use the online payment agreement tool at IRS.gov. If you don’t have web access, you may file  Form 9465 to apply.

If you are in need of an installment agreement for more than $50,000 in tax debts or for longer than six years, you still need to provide the IRS with a financial statement. In these cases, the IRS may ask for one of two forms: Form 4330A, the collection information statement, or Form 433-F.

Finally, you should be aware of offers in compromise. 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 and ultimately reduces the amount the IRS will accept. This makes the offer program available to a larger group of taxpayers.

Generally, the IRS will accept an offer if it represents the most the agency can expect to collect within a reasonable period of time. The IRS will not accept an offer if it believes that the taxpayer can pay the amount owed in full as a lump sum or through a payment agreement. The IRS looks at several factors, including your income and assets, to make a decision regarding your ability to pay. You can use the offer in compromise pre-qualifier tool on IRS.gov to see if you may be eligible for an OIC.

We can help you negotiate with the IRS to get you the lowest amount you have to pay. If you have any tax problems, please give me a call or send me an email. I would be happy to help you!

Are Your Back Taxes Haunting You?

The stress of knowing that you have not filed your taxes in years can be very haunting. You might be wondering whether the IRS will take your money or your wages. You can end up worrying yourself to death. 

You can quit panicking and contact a qualified tax resolution CPA such as myself. I research directly with the IRS to find out what they have on you, and it can cover up to 20 years of your history.

This allows me to check what the IRS has on you and compare it to what you have. From there we can strategize to form a reasonable solution for your tax problems. 

If you need help with your taxes, please do not hesitate to contact me! Your problem is likely not as difficult as it may seem, you just need the guidance of a professional.

Do You Need an IRS Tax Problem Solver?

Hello, and welcome to my bi-weekly video blog. I want to provide you with a valuable service, so I’m going be sending you two educational videos per month where I will give you expert tax advice.
If you have tax problems, these are just a few of the issues I may be able to resolve for you:

• How to handle a notice from the IRS
• What to do if you haven’t filed your taxes yet
• How to handle debt collection programs

Please contact me if you’re curious about anything or have questions on these things. I might just make a video to respond to your question!