IRS AND STATE TAX NOTICES
Receiving unexpected notices from federal or state tax authorities can be stressful for even the most diligent taxpayers. If you owe back taxes, have not filed income tax returns, or have received an IRS audit notice, you may be unsure what your options are, how to respond, or who to turn to for advice on how best to resolve your issues.
Our firm is experienced in providing effective tax solutions and representation for reducing tax debt, negotiating IRS payments, and resolving tax disputes. We specialize in IRS problem resolution, offering the guidance and support you need to navigate tax-related issues efficiently and discreetly. This includes representing you in front of the IRS in the event you are audited. We will walk you through the audit process every step of the way, from reviewing and preparing your financial records to helping negotiate the lowest settlement possible.
IRS AND STATE LIENS & LEVIES
In the event your taxes are not paid, federal and state tax authorities can establish a lien or a levy against your assets. A lien is a legal claim against property to secure payment of a tax debt, while a levy is a legal seizure of your property to satisfy the tax debt.
A lien can be against you, your spouse, or your business, which would include your accounts receivable. Liens filed against you by the IRS appear on your credit report and often prevent you from opening a checking account, getting a car loan, or borrowing against assets such as your home. The IRS may levy any property you own or property that is yours but held by someone else, such as your wages, retirement accounts, bank accounts, rental income, accounts receivables, or the cash value of your life insurance.
If there is currently an IRS or state lien or levy on your business or personal property, we will help settle your tax debt in an affordable and timely manner to prevent any seizure of assets. We are often able to get levies released and negotiate payments to the IRS based on what you can reasonably afford.
NON-FILED TAX RETURNS
Failing to file income tax returns is not only unwise, it is a criminal offense. Under federal law, a taxpayer can face up to a year in jail and up to $25,000 in fines for not filing a return.
We advise our clients to file a tax return on time each year, even if they are not able to pay all taxes owed by the due date. A failure-to-file penalty may apply if you did not file by the tax filing deadline, and it is generally more than the failure-to-pay penalty. You can reduce additional interest and penalties by paying as much as you can with your tax return, and we can work with the IRS on your behalf to explore other payment options such as getting a loan or negotiating an installment agreement to make payments.
We will also help you file delinquent tax returns; pay any taxes, interest, and penalties owed after the returns are filed; and avoid future problems by staying in compliance with federal and state tax laws.
BACK TAXES OWED
If you filed your tax return, owed money to the IRS, but did not have the funds to pay what you owed, you may have decided to pay back the debt as money became available to do so. However, many taxpayers realize too late that this is easier said than done. Tax penalties and interest add up over time, and you may suddenly find that you are months or even years in arrears and owe the IRS three or four times the original amount.
Ignoring the problem will not make it go away. We work with individuals and businesses to identify their tax settlement options and pay off any outstanding debts. We start by reviewing your unique situation and filing any delinquent tax returns in an effort to minimize IRS penalties and tax debt. Once your back taxes are filed and compliant, we offer advice and counsel oj how best to resolve your unpaid taxes.
The IRS has the power to garnish or legally seize any income you make to satisfy federal tax debt or taxes owed. Garnishments can apply to your hourly wages, salary, commissions, and bonuses. Your employer is required by law to comply with the IRS wage garnishment, typically within one full pay period of receiving the IRS notice, and deduct the requested amount from your paycheck. Unfortunately, a wage garnishment can amount to 70 percent or more of your income, which can have serious implications for your finances.
There are a number of different ways to reduce or stop a wage garnishment, including paying your balance in full or entering into a tax payment plan. We can work on your behalf to file past tax returns and compile a financial statement so that you can become IRS compliant. We will negotiate the release of IRS wage garnishments and arrange favorable repayment terms that will put an end to your paycheck deductions.
OFFERS IN COMPROMISE
In some cases, taxpayers can settle tax liabilities for less than the full amount they currently owe. The IRS Offer in Compromise (OIC) agreement allows taxpayers to settle on tax debt that has been incorrectly assessed, or if there is doubt that the amount owed is fully collectible. This would apply in the event the taxpayer's assets and income are less than the full amount of the tax liability.
To qualify, you must have filed all tax returns, made all required estimated tax payments for the current year, and made all required federal tax deposits for the current quarter if you are a business owner with employees.
Typically, the IRS won't accept an OIC unless the amount offered by a taxpayer is equal to or greater than the reasonable collection potential. Our firm is often retained to help clients determine the appropriate amount the IRS will accept prior to making the offer. If done correctly, we may be able to eliminate your tax debt, including penalties and interest, for only 5 to 15% of what you presently owe.