Offers in Compromise:
It is possible to reduce your tax debt to a fraction of what you owe, if qualified. The Offer in Compromise (OIC) program is an Internal Revenue Service (IRS) program allowing individuals owing tax debt to negotiate with the IRS for less than the full amount owed. The process of submitting an OIC is complicated and requires a great deal of skill, detail and compliance with the many IRS procedures, guidelines and regulations. It is essential to hire a knowledgeable, experienced tax professional to submit an OIC .
There are three different types of Offers in Compromise. To obtain tax relief, your case must come under at least one of these types to qualify for an OIC settlement:
- Doubt as to Collectability.A taxpayer must show doubt as to whether the tax debt owed will ever be collectable by the IRS in full. The taxpayer must not be able to pay the tax debt by either liquidating assets or by following the guidelines for setting up a payment plan with the IRS . The IRS then determines the settlement amount by the following formula: (monthly disposable income x a number of months) + (the net realizable equity in taxpayer assets). This analysis takes into consideration certain cost of living standards set by the IRS for each taxpayer, according to family size and location. The amount of an OIC must be equal to the “realizable value” of your assets plus the amount of money that the IRS can collect from your future income. This is the most common way to settle your tax debt with the IRS .
- Doubt as to Liability.A taxpayer must show doubt that the assessed tax is correct. This method has nothing to do with being unable to pay the tax. It applies when you think you do not owe the tax and you can prove that the IRS was wrong in assessing the tax against you.
- Effective Tax Administration (ETA)/Exceptional Circumstances.A taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable. There is no contest to liability or collectability. This OIC is used for the elderly, disabled or for people that have special extenuating circumstances. This is the least common approach for tax relief.
For taxpayers that qualify, an Offer in Compromise is the best result you can expect from the IRS in resolving your tax debt. It is crucial that your OIC is submitted properly by an experienced, knowledgeable tax professional or the result could mean a rejection of your offer or even worse, you may be required to pay more than necessary. If you are experiencing tax problems with the IRS , please contact TAXSOLUTIONS4U for a free consultation for tax resolution. You can do so by either completing our online form or by calling TAXSOLUTIONS4U at 706-546-9755 or 404.840.1112.
If you do not qualify for the Offer in Compromise (OIC) program or if your OIC was rejected, the alternative is for your tax relief professional to negotiate a traditional Installment Agreement (IPA) or a Partial Payment Installment Agreement (PPIA). An IA is a payment arrangement with the IRS permitting a taxpayer to pay their tax debt over time. The IA is the most widely used method in resolving unpaid tax debt and under the new Fresh Start program; the IRS has made it easier to obtain an IA. To be eligible, you must be current on all tax returns.
An additional option to obtaining tax relief is to negotiate a Partial Payment Installment Agreement. A tax professional will negotiate with the IRS for an affordable payment plan based on what you can afford. A PPIA is a viable tax solution for those taxpayers who cannot afford the minimum monthly payments under a traditional IA nor qualify to settle their debt through the OIC program because their income is too high.
In order to submit an appropriate and acceptable Installment Agreement, it is essential to hire a knowledgeable tax relief professional. A tax professional at TAXSOLUTIONS4U will assist you in preparing the OIC , file all required unfiled tax returns, assess your tax debt and negotiate the lowest possible payment plan on your behalf. If you are experiencing tax problems with the IRS , please contact TAXSOLUTIONS4U for a free consultation for tax resolution. You can do so by either completing our online form or by calling TAXSOLUTIONS4U at 706-546-9755 or 404.840.1112
Wage Garnishment Release:
Once the IRS has assessed tax against you, sent a Final Notice of Intent to Levy and the tax debt has not been paid within the time prescribed in the notice, the IRS may legally garnish a taxpayer’s wages. The IRS will continue to garnish wages until the tax debt is paid in full including penalties and interest. It is important to move quickly so that TAXSOLUTIONS4U can release your wage garnishment and resolve your tax debt. There are three options in releasing a wage garnishment: 1. negotiation of financial hardship status, 2. negotiation of currently non-collectable (CNC) status or 3. negotiation of a payment plan. In order to avoid garnishment of your wages by the IRS , a tax relief Professional from TAXSOLUTIONS4U will access your financial situation and find the best tax resolution to settle your tax debt. It is critical that your wage garnishment is properly released by an experienced Tax Professional at TAXSOLUTIONS4U .
Please contact TAXSOLUTIONS4U at 706-546-9755 or 404.840.1112
Bank Levy Release:
If you do not respond or refuse to pay your tax debt, the IRS can freeze all or part of the funds in your bank account and seize your money to pay off the tax debt. A bank levy by the IRS is a one-time levy of funds in the account at the time the bank is notified. At the time of levy, the bank is instructed to freeze the account funds for 21 days, the funds are then sent to the IRS . It is important to act fast within this 21 day time period to avoid seizure of your funds. Additionally, under a taxpayer’s Collection Due Process Rights, you have the right to keep any and all funds necessary to pay for basic living expenses.
It is critical to hire an experienced tax professional quickly to release a bank levy by the IRS to avoid seizure of your bank account. After assisting with release of your bank levy, we can negotiate a payment plan or Offer In Compromise. Please contact TAXSOLUTIONS4U for a free consultation for tax resolution. You can do so either by completing our online form or by calling TAXSOLUTIONS4U at 706-546-9755 or 404.840.1112.
Tax Lien Release:
When back taxes are owed, the IRS may place a lien on your property to secure the payment of the tax debt due. In fact the IRS may place a lien on all of your property, including real estate, personal property and financial assets. A federal tax lien is filed with the County Clerk where you live or where your business operates and can show up on credit reports. This will, in turn, make it difficult to get financing for any purpose. It is crucial that you act quickly and a tax relief professional at TAXSOLUTIONS4U in order to keep the IRS from placing a lien on your property and to assist you in negotiating a settlement.
To avoid a tax lien being placed on your property, it is critical that you hire a tax professional to prevent this type of aggressive collection action from damaging your credit, income and bank accounts. If a lien is placed on your property, TAXSOLUTIONS4U will negotiate with the IRS to work out a release of the lien. Once the tax debt is satisfied, the IRS will issue a Certificate of Release of Federal Tax Lien generally within 30 days of final payment. Please contact TAXSOLUTIONS4U for a free consultation for tax resolution. You can do so either by completing our online form or by calling 706-546-9755 or 404-840-1112.
Trust Fund Recovery Penalty:
If Withholding Taxes, also commonly called “Trust Fund Taxes” or as sometimes referred to as “941 Liabilities,” remain unpaid by a business entity, the IRS will aggressively pursue collection from responsible individuals involved in operating the business or who are otherwise involved in making business and financial decisions for the business. The IRS is authorized to “pierce the corporate veil” by assessing the unpaid Withholding Tax liabilities of a business directly against the individuals that are responsible for the company’s failure to properly withhold and pay the Trust Fund Taxes. This individual assessment is called the Trust Fund Recovery Penalty (TFRP ).
In general, the IRS is authorized to assess the TFRP against individuals involved in the business who have control over the use and disposition of a company’s assets, or otherwise have decision making authority in connection with the payment of the company’s liabilities, and who also “willfully” fail to pay the company’s Trust Fund Taxes. The right of the IRS to assess the Trust Fund Recovery Penalty is a legal issue dependent on applicable law and the individual facts and circumstances of a case.
Although the TFRP is generally applicable to the owners and principal officers of small or closely held business enterprises, many IRS Revenue Officers paint the penalty with a very broad a brush. IRS Revenue Officers often assert Trust Fund Recovery Penalty – even when legitimate defenses exist. In addition to owners and principal officers, IRS Revenue Officers will also often assert the TFRP against all individuals involved in the accounting aspects of the business, or who otherwise have check signing authority (even if they have never signed a payroll check). Many times, Revenue Officers, unsupported by the facts and applicable law, will assess the TFRP against company bookkeepers and accountants; other individuals who have been named as officers for “convenience,” but who have no actual authority or control over the business; the spouses or other relatives of principal owners; and key company employees who have no control over the financial aspects of the business.
Unfortunately, assessment of the Trust Fund Recovery Penalty can create a difficult problem. The TFRP is often a very large amount and cannot be discharged in a bankruptcy. Once the penalty has been assessed against you, it can jeopardize your home or other property, ruin your credit rating, and interfere in your family life. If you are the potential target of an IRS assessment of the TFRP , or have been notified by the IRS that you will be interviewed in connection with the TFRP , the time to act is now. Experienced legal counsel can often make the difference. TAXSOLUTIONS4U has successfully defended many individuals against IRS imposition of the Trust Fund Recovery Penalty.
Our firm is often retained to solve a Trust Fund Recovery Penalty problem months, or even years, after it has been assessed. This generally happens after the IRS has commenced enforced collection activity for an “old”
TRFP liability, or a taxpayer is prevented from selling or refinancing his or her house due to a federal tax lien filed in connection with the original TFRP assessment. The potential solutions are varied and complex, and require skilled representation. At times, an offer in compromise, or a request for lien discharge or subordination will be the answer. Sometimes the solution requires payment of the withholding tax for one employee, followed by a claim for refund. Sometimes the problem can be resolved through IRS administrative appeal procedures; sometimes the solution lies in federal court litigation.
If you are experiencing IRS collection activity for an old penalty, or are threatened by the prospect of a new Trust Fund Recover Penalty, please contact TAXSOLUTIONS4U for a free consultation. You can do so by either completing our online form or by calling 706-546-9755 or 404-840-1112..
Currently Non-Collectable Status:
If you do not qualify under other types of IRS tax relief programs, such as an Offer in Compromise, and you are unable to afford a monthly Installment Agreement, TAXSOLUTIONS4U can request that the IRS place your account on a “Currently Non Collectable” (CNC) status. To be put on a CNC status, you must suffer from financial hardship and have no disposable income left at the end of each month. Once your account is classified as CNC, all collection activity will stop, including issue of levies and garnishments. Your CNC status will continue as long as you are experiencing financial hardship.
In order to obtain CNC status, it is crucial to consult with a tax relief professional to negotiate on your behalf. A tax professional will provide the IRS proof of your financial situation and show the IRS that you cannot meet your basic monthly living expenses. If you are experiencing tax problems with the IRS and need a tax solution, please contact TAXSOLUTIONS4U for a free consultation. You can do so by either completing our online form or by calling 706-546-9755 or 404-840-1112.
Under the IRS tax code, employers have a legal obligation to pay payroll taxes on behalf of their employees. There are two-types of taxes employers are subject to: (1) pay as you earn (withholdings from the employee) or (2) pay as you go (withholding from employer for each employee). The IRS takes payroll tax debt very seriously. Employers who fail to properly withhold taxes for employees will experience aggressive IRS collection activities by assigning a Revenue Officer who specializes in the collection of these liabilities. If you have unpaid payroll tax, and the Revenue Officer is unable to collect, he or she will seek to close down your business, garnish your business accounts, file liens against your assets and liquidate. Additionally, the IRS can assess payroll taxes against you personally, even if your business was a corporation.
To avoid this outcome and assure continuity of your business, it is critical that you hire a tax professional to resolve your business tax debt by negotiating an affordable payment plan, Offer in Compromise or other solution to your tax problem. Please contact TAXSOLUTIONS4U for a free consultation for tax resolution. You can do so either by completing our online form or by calling 706-546-9755 or 404-840-1112.
For a more detailed discussion of this subject please read the section entitled: Trust Fund Recovery Penalty
Unfiled Tax Returns:
If you have not filed your taxes, the IRS identifies you as a “non-filer.” The continuing failure to comply with a tax return filing can result in severe consequences. Delinquent returns are more closely examined by the IRS , therefore, filing these returns require an extra degree of care and accuracy that a tax professional can provide. If you do not file, the IRS will file those taxes on your behalf by preparing a Substitute for Return (SFR). In preparation, the IRS will assess taxes without giving you the benefit of proper deductions, resulting in a much higher tax.
It is important to move quickly and file all tax returns so that your tax problem can be resolved successfully. Once your tax returns are properly filed by TAXSOLUTIONS4U , we can either settle your tax debt through the IRS Offer in Compromise Program or negotiate an affordable payment plan. Please contact TAXSOLUTIONS4U for a free consultation for tax resolution. You can do so either by completing our online form or by calling TAXSOLUTIONS4U 706-546-9755 or 404-840-1112.
If there is a legitimate reason why you did not pay your taxes on time, the IRS may remove interest and penalties and allow you to pay only the principal amount of your tax debt. When determining eligibility, the IRS must find reasonable cause for forgiveness of these penalties. Some of these reasons include, a disaster that was out of your control (tornado, hurricane, flooding), a major illness, bad tax expert advice, lengthy unemployment, major family problems (divorce), or theft or destruction of your records.
It is essential to seek out the assistance of a knowledgeable tax relief professional when requesting IRS penalty abatement. TAXSOLUTIONS4U can help you appeal to the IRS with a convincing case of why you deserve penalty abatement. If you are experiencing tax problems with the IRS and need a tax solution, please contact TAXSOLUTIONS4U for a free consultation. You can do so by either completing our online form or by calling TAXSOLUTIONS4U at 706-546-9755 or 404-840-1112.
Innocent Spouse Relief:
You can be relieved of your tax debt plus interest and penalties if your spouse (or former spouse) improperly reported items or omitted items on your tax return. In order to qualify, you must have filed a joint return and that at the time of signing, you did not know, nor had reason to know that there was an understatement of tax. The IRS takes into account all facts and circumstances and determines that it would be unfair to hold a spouse liable and declares he or she “innocent.”
If you are experiencing tax problems because of your spouse,” a tax relief lawyer will assess the facts” to read “one of our tax relief professionals will assess the facts. It is critical that your innocent spouse request be submitted by an experienced tax professional to avoid payment of the tax debt, interest and penalties. Please contact TAXSOLUTIONS4U for a free consultation for tax resolution. You can do so either by completing our online form or by calling TAXSOLUTIONS4U at 706-546-9755 or 404-840-1112.