by Fresh Start Tax | Jan 4, 2019 | Tax Help
We are Affordable former IRS agents and managers who have over 95 years of direct IRS work experience in the local, district, and regional tax offices of the IRS.
We can stop the IRS notice of intent to levy and we can settle your case.
We know the system inside and out.
The IRS sends out about 600,000 Bank and Wage Levy Garnishments each and every year. They follow these up with 400,000 Federal Tax Liens.
Let former IRS agents, managers and tax instructors who all know all the IRS protocol stop the IRS.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982.
We have over 206 years of professional tax experience in dealing with the IRS notice of intent to levy.
We not only can stop the IRS levy, we can settle your case at the same time.
The IRS Computer System of Levies and wage garnishments
Make sure you contact IRS by the follow-up date or the CADE2 IRS computer will automatically generate bank levies or wage garnishments. Not a human hand touches your levy they are all systemically generated by IRS’s computer.
The Internal Revenue Service sends their letters out in five-week billing cycles.
If you don’t respond to the last and final notice you can definitively find that a bank levy or wage garnishment or the possibility of a federal tax lien will be issued.
The information you need to know about a federal tax levy or wage garnishment
Where does Internal Revenue Service (IRS) authority to levy originate?
The Internal Revenue Code (IRC) authorizes levies to collect delinquent tax.
See IRC 6331. Any property or right to property that belongs to the taxpayer or on which there is a Federal tax lien can be levied, unless the IRC exempts the property from levy.
What actions must the Internal Revenue Service take before a levy can be issued?
The IRS will usually levy only after these three requirements are met:
• The IRS assessed the tax and sent you a Notice and Demand for Payment (a tax bill);
• You neglected or refused to pay the tax; and
• The IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.
The IRS may give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested.
Please note: if the IRS levies your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.
When will the IRS issue a levy?
If you do not pay your taxes (or make arrangements to settle your debt), and the IRS determines that a levy is the next appropriate action, the IRS may levy any property or right to property you own or have an interest in.
For instance, the IRS could levy property that is yours, but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions). Or, the IRS could seize and sell property that you hold (such as your car, boat or house).
Call us today and we can stop the IRS levy right away. You will never have to speak them.
Whatever you do, be assertive with the Internal Revenue Service in handling your problem because the problem will not go away by itself.
You will have the benefit of:
Our staff has over 205 years of professional IRS tax representation experience collectively
Former IRS Managers, Instructors and Trainers
Highest Rating by the Better Business Bureau “A”plus
Fast, affordable, and economical
Practice in all 50 States
Certified by the Internal Revenue Service
Nationally Recognized Veteran Former IRS Agent
Nationally Recognized Published Tax Expert
How we handle your IRS case to get you immediate tax relief/help and permanently end your IRS Tax Problem
We obtain all the information from our clients and get an accurate description of the problem.
We immediately send a power of attorney to the IRS so you never have to speak to them.
We immediately have the IRS stop all of their enforcement action with that first call.
We make sure the tax liability is correct by pulling tax transcripts and documents from the IRS’ computer.
We file any returns that the IRS needs to get you current. All tax returns must be filed before the IRS will consider any agreements.
We make sure your case is settled for the lowest possible amount allowed by law by going over all the different options that are available to you.
Some frequently Asked Questions
What happens if I don’t pay or contact the IRS?
If you don’t pay the amount due, they may seize (“levy”) any state tax refund to which you’re entitled. This is your notice of intent to levy as required by Internal Revenue Code section 6331(d).
If you still have an outstanding balance after they seize (“levy”) your state tax refund, they may send you a notice giving you a right to a hearing before the IRS Office of Appeals, if you have not already received such a notice. The IRS may then seize (“levy”) or take possession of your other property or your rights to property.
Property includes:
Wages, real estate commissions, and other income
Bank accounts
Business assets
Personal assets (including your car and home)
Social Security benefits
If you don’t pay the amount due or call the IRS to make payment arrangements, they can file a Notice of Federal Tax Lien on your property at any time, if they haven’t already done so.
If the lien is in place, you may find it difficult to sell or borrow against your property. The tax lien would also appear on your credit report ― which may harm your credit rating ― and your creditors would also be publicly notified that the IRS has priority to seize your property.
What if I don’t agree or have already taken corrective action?
If you do not agree with this notice, contact the IRS immediately at the number printed at the top of the notice. They will do our best to help you. If you have already paid this liability or arranged to pay it with an installment agreement, you should still call them at the number printed at the top of the notice to make sure your account reflects this.
Remember, you can always Appeal your case.
Received IRS Notice of Intent to Levy, Stop the IRS NOW + Former IRS Agents
by Fresh Start Tax | Dec 17, 2018 | Tax Help
As a former IRS agent I was a teaching instructor. I’m a tax expert for the IRS trust fund taxes, appeals, and settlements.
I literally have worked hundreds upon hundreds of IRS trust fund cases. I have been doing this work since 1973 and are familiar with every single angle every single trick every single secret of the IRS trust fund recovery,
Call us today for free initial tax consultation. When you do you’ll speak to a true IRS trust fund recovery expert. I have handled several hundred cases for the Internal Revenue Service and that an outside private practice for over 35 years. We are the true IRS trust fund recovery penalty experts.
IRS goes to some length to determine who was responsible for trust fund taxes.
IRS uses a main form called a 4180 set up fact patterns to find out who is responsible for the trust fund tax. The 4180 can be found on our website on the homepage under forms. This is a critical form that IRS uses to determine the credibility of each person and to ascertain information as to who is responsible for trust fund taxes.
There are many trick questions on the 4180 so I would caution anyone giving those to IRS to be skilled and not only to be truthful but the stay away from the tricky questions.
Besides securing the 4180 which the revenue officer will insist to have a sit down in person interview, IRS will also ask for bank signature cards, copies of resolutions, copies of canceled checks. IRS needs to have proof documents before they can ascertain who is responsible for the trust fund taxes they cannot do it based on the 4180 alone IRS needs proof in case the case goes to Tax Court.
The bottom line for revenue officer seeking who is responsible for trust funds tax is:who has ultimate authority, decision-making, and who had the right to control.
Please keep in mind the revenue officer will be looking at past tax returns for assets, they will be looking at company checks to determine who is receiving extra income and for possible shifting of income or assets to those who would’ve been held responsible. IRS wants to make sure no cash, no income or no assets were placed beyond their reach during the course of business.
IRS has the right to also set up a nominee or an alter ego to responsible persons beside the trust fund tax.
A seasoned revenue officer is very crafty and within a matter of an hour or so easily make a determination as to who is responsible for the trust fund tax. The trust fund tax will always be passed on to those who ultimately were in control.
IRS has the right to assert the trust fund penalty to sometime parties such as secretaries or other persons in the Corporation who had specific rights and duties who really were not in control. These cases are sad but many instances the court rules anyone who was aware that the taxes were not being paid and had the ability to do something about it can and will be held against that person. On those cases you always appeal to the Appellate Division and fight them because ultimately IRS will have a difficult time sustaining those in case the case goes to Tax Court.
If your case goes to the Appellate Division IRS will use what’s called a hazard of litigation to determine if they want to bring the case forward to Tax Court.
The hazard of litigation is IRS making a determination on how much they believe they will win the tax court case. Many times if IRS does not feel they have a clear-cut winner they will settle based on the degree of certainty within the fact pattern of the case they have in front of them.
That is the job of the appellate agent to make that determination.
HINT: I have found in my practice it’s best always to go to appeals because the Appellate Division is a lot more generous than at the local office.
The one thing IRS does not want to lose do is lose in Tax Court because it sets a dangerous precedent for cases going forward.
If you’d like to know more call me for a free initial tax consultation and I will walk you through the exact process based on your situation.
We have over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the IRS. We are an A+ rated BBB company.
Our office has over 200 years of total IRS work experience and we are true experts and how to settle your federal payroll tax debt with Internal Revenue Service.
Why have Fresh Start Tax contact the IRS:
You never have to talk with the Internal Revenue Service on these tax matters;
Fresh Start Tax knows what the IRS is looking for;
Fresh Start Tax knows the exact packaging required;
Fresh Start Tax knows the next steps the IRS will take;
You know your case will be handled and resolved as fast as possible.
Other Factors To Consider:
IRS has the right to sell your complete inventory at public auction;
IRS can seize all your accounts receivables;
IRS can hold you personally responsible for this tax;
IRS has the right to lock the doors of your business.
Steps to take to work out an affordable payment plan with the Internal Revenue Service:
Immediately stay current on all payroll tax deposits to show the IRS good faith;
Be prepared to give the IRS a current financial statement;
Make sure your personal tax liabilities are filed and paid;
Have all documentation on the financial statement prepared for the IRS.
If you do not pay your Payroll Taxes IRS can collect them from you individually
To encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the TFRP.( trust fund recovery penalty )
These payroll taxes are called trust fund taxes because you actually hold the employee’s money in trust until you make a federal tax deposit in that amount.
The TFRP may apply to you if these unpaid trust fund taxes cannot be immediately collected from the business.
The business does not have to have stopped operating in order for the TFRP to be assessed
BE CAREFUL Who can be Responsible for the TFRP
The TFRP may be assessed against any person who:
Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and
Willfully fails to collect or pay them.
A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes. This person may be:
An officer or an employee of a corporation,
A member or employee of a partnership,
A corporate director or shareholder,
A member of a board of trustees of a nonprofit organization,
Another person with authority and control over funds to direct their disbursement,
Another corporation or third-party payer,
Payroll Service Providers (PSP) ore responsible parties within a PSP
Professional Employer Organizations (PEO) or responsible parties within a PEO, or
Responsible parties within the common law employer (client of PSP/PEO).
For wilfulness to exist, the responsible person:
Must have been, or should have been, aware of the outstanding taxes and either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).
Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of willfulness. You will be asked to complete an interview in order to determine the full scope of your duties and responsibilities.
Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business.
An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather than to determine which creditors would or would not be paid.
Figuring the Trust Fund Amount
The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:
The unpaid income taxes withheld, plus
The employee’s portion of the withheld FICA taxes. For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.
Assessing the TFRP. If the IRS determines that you are a responsible person, we will provide you a letter stating that we plan to assess the TFRP against you. You have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal.
The letter will explain your appeal rights. Refer to Publication 5, Your Appeal Rights and How to Prepare a Protest if You Don’t Agree (PDF), for a clear outline of the appeals process.
If you do not respond to our letter, we will assess the penalty against you and send you a Notice and Demand for Payment.
Once we assert the penalty, the IRS can take collection action against your personal assets. For instance, we can file a federal tax lien or take levy or seizure action.
IRS Trust Fund Recovery Penalty EXPERT Representation, Former IRS
by Fresh Start Tax | Nov 30, 2018 | Tax Help
Michael Sullivan Offer Expert, How Do You Know the Offer in Compromise is Right For You To Settle Back Taxes
I am a former IRS agent and teaching instructor with the Internal Revenue Service.
When I was employed by the Internal Revenue Service I work the offer in compromise program.
We are a local South Florida tax firm that had specializing in IRS tax debt settlement since 1982.
Not only did I accept and reject offers in compromise, I was also a teaching instructor at the service center to help qualified revenue officers decide which offers to accept and reject.
Given the above information, I can tell you I am a true expert for the IRS offer in compromise and I wish to explain to you whether an offer in compromise is a viable option for you.
Due to social media, marketing and advertising the assumption by the general public is that IRS can settle tax debt for pennies on the dollar.
Let me first let you know that IRS does accept offers in compromise and as a matter of fact last year approximately 32,000 offers in compromise were accepted out of the 78,000 that were filed.
That number varies from year to year but the percentages usually remain the same of acceptability.
The average settlement was $9500 per case but remember that is just an average in not everybody can settle their tax debt for $9500.
There is much information you need to know before you go off filing an offer of compromise and giving your money to some firm to try to pull off some amazing trick because you have been sold a bill of goods and bought in to some marketing ploy and they’ve convinced you are a settlement candidate.
It first starts with the review of your personal financial statement which is found on the 433 OIC.
When the offer in compromise gets sent in to the Internal Revenue Service it is met with the reviewer that make sure that you are truly qualified candidate for the offer in compromise program.
That reviewer checks the completed form to make sure it is a valid agreement. The offer in compromise is a legal document between you and the Internal Revenue Service. If IRS were to accept the offer and the next day you win the lottery the accepted offer still stands.
Also reviewer make sure that all the documentation is attached so that the revenue officer who will work your offer in compromise can move forward.
Approximately one third of all offers in compromise are sent back to the taxpayer because the offers are not filled out correctly or the appropriate documentation is not attached.
IMPORTANT :IRS will check to make sure all your tax returns are current and filed on the IRS system. It is critically important you know that you must have all tax returns filed before IRS will process your offer.
You should know that the Internal Revenue Service rejects an offer before it accepts an offer. one of the basic rules is that the revenue officer is lazy and is easier to mark rejected then they go through all the work of accepting an offer in compromise.
I should know this is a former instructor of the offer in compromise I see many revenue officers simply send offers back because some of the eyes were not dotted in the T’s were not crossed.
Due to the volume of cases the IRS has, which is over 7500 cases waiting in the IRS Q, is far easier for the IRS to say no then to accept because an average of anywhere between 20 and 40 hours are spent on accepting the offer in compromise. If you have an offer in compromise accepted, four signatures are generally required for signature as it goes up and down the chain.
So how do you know if the offer in compromise is right for you. Call for a free initial tax consultation and hear the truth from a true IRS tax debt settlement former agent.
The first place to go is to fill out the IRS pre-qualifier tool for the offer in compromise. Because of so many scrupulous tax companies that have been ripping people off, the IRS wanted to make sure the general public has a tool that they can use to find out if they are prequalified to file the offer in compromise to make sure it is a viable option.
It contains all the necessary information in regard to your income, your expenses and your assets and it predetermined for you whether the offer in compromise is even a viable option for you.
IRS will take a very close look at the liquidity of your assets, your current income, and your monthly expenses before it renders a decision as IRS wants to make sure it collects all the money from you that they can within the 10 year statutory period of time.Even though IRS has a very specific methodology and system new accept the offer in compromise still the judgment of the revenue officer who was seasoned and experience comes into play.
One of the questions the agent will want to consider is, can we collect more money over 10 years than accept the current agreement on the table for the IRS offer in compromise.
As a general rule, you will have to give IRS your total liquidity of all your assets before they will even consider the acceptance of an offer in compromise.
IRS on larger dollar cases is a tremendous amount of due diligence. The IRS has a wealth of information on the various computers they can use to dig and find assets or income.
Why? you may ask is because all offers in compromise are open for public inspections at eight regional offices throughout the United States.
Your offer in compromise must be thoroughly documented which includes all your bank statements for the last six months to a year, all your pay stubs, all your monthly expenses along with certain documentation for assets that have value.
IRS also takes a look at the values of your pensions, your IRA, your business as well.
The offer in compromise is one of the most reviewed documents, it is like going through a mini audit.
Some of the due diligence that IRS will conduct on a larger dollar cases is checking Google, the accurate search engine, Department of Motor Vehicles, real estate records, insurance policies, credit reports, loan applications, insurance policies, and inter-government agency records including those garnered by Homeland security and other such agencies.
Before you contemplate filing the offer in compromise and wasting your money on a company that has promised you they can settle your case for pennies on the dollar, you would be wise to give us a call to have an actual former IRS agent and teaching instructor of the offer in compromise give you the green light.
When you call our office you will speak to true IRS tax experts who knows the system and can tell you what to expect and tell you how to settle for the lowest amount possible.
Call us today for a free initial tax consultation, you will hear nothing but the truth from former IRS agents who know and understand the methodologies of the offer in compromise to make sure it is right for you.
How Do You Know the Offer in Compromise To Settle Back Taxes is Right for You + Former IRS Settlement Agent + + Jacksonville, Tampa, Orlando, Tallahassee
by Fresh Start Tax | Nov 6, 2018 | Tax Help
Follow the simple steps on this blog and you’ll learn how to get IRS to release a bank or wage garnishment levy now.
Usually within 24 hours of reading this information, preparing the documentation you should be able to get your release of a banker wage levy garnishment.
You can do this yourself or call our firm comprised of former IRS agents, managers and teaching instructors.
Call today and we can walk you through the process.
As a former IRS agent I literally issued thousands of IRS bank and wage garnishment levy notices therefore I know the system and the methodologies inside and out to get immediate releases of the wage garnishment and bank levies there is a very specific process.
I have signed so many bank and wage garnishment levies that felt many times like my hand would fall off. Some days I issued 50 notices to levy. However, now I’m on your side and I can stop the process.
Not only can we get your IRS wage garnishment or bank levy release we can settle your case at the same time.
One call to our office and you will understand the process of how to get an immediate release of a wage or bank levy garnishment.
It is all a matter of knowing the system.
As a former IRS agent and teaching instructor many taxpayers receive a nasty gram from Internal Revenue Service, they find out that the IRS has either sent out a tax levy
There is never a good time but it always seems to happen at the worst times, always.
The best thing you could possibly do is talk to a professional tax firm that can go over the various options that you have.
It is important that you understand the system and to know that a bank levy garnishment or a wage garnishment is not going to go away until Internal Revenue Service is contacted.
IRS sent the bank levy or the wage garnishment levy because taxpayers have failed to contact them. Sadly, many taxpayers have never received prior bills or notices because they moved and the notices never found their way to be opened.
Before IRS may issue a bank levy is required to send out the following notices. There are absolutely no exceptions.
IRS sends out a series of 4 to 6 letters depending on the case, the dollar amount, the type of delinquency and have formally requested demand for payment on the back taxes.
If the Internal Revenue Service received no correspondence or no call the Internal Revenue Service through their computerized system will issue a bank levy or wage garnishment notice.
IRS cannot levy until it sends out required notices, they are as follows:
Required Notices for IRS :
1. Before property can be levied, the taxpayer must be given a,
• Notice and deman,
• Notice of intent to levy, and
• Notice of a right to a Collection Due Process (CDP) hearing
.
After these notices have been sent out to the IRS computerized system that allows IRS to take the next step to formally issue a bank levy or wage garnishment notice.
The Internal Revenue Service keeps all W-2s, 1099s, and all third-party income sources on a computer in which they draw upon to issue IRS bank levies or wage garnishments. The Internal Revenue Service keeps his income source list for six years.
So, now the ball is put in your court, you are not going to receive another paycheck and IRS has just frozen your bank account for 21 days so what is the next step.
The Internal Revenue Service will be waiting for you to contact them and give them information so they can literally close your case off the IRS enforcement computer.
What IRS is waiting before they can release a bank or wage garnishment:
Please keep in mind that you can get an IRS wage or bank levy garnishment released usually within 24 hours of contact the Internal Revenue Service with all required documentation.
The Internal Revenue Service does not wish to take your money from a bank account work take your wages it only does so because taxpayers have not complied with federal and government regulations. It is used as a last resort and only because taxpayers have failed to contact the IRS because of the tax debt.
The IRS has certain procedures through their internal revenue manual that dictates what the next step will be systems before they will release a bank or wage garnishment notice.
They are as follows:
1.IRS will completely review your current financial statement,
2.IRS knows all your tax returns are filed, and after this is done,
3. IRS is willing to close your case off of the IRS enforcement computer and issue a notice of release of the wage or bank levy garnishment.
What You Should Do NOW:
It is in your best interest to contact a professional tax firm to set up a current tax strategy and exit strategy and to develop a plan to get your levy and wage garnishment immediate released.
The Internal Revenue Service will review your financial statement on form 433 a or 433F before they will make a determination on your case. It is their primary document they use to handle all open IRS collection cases.
The financial statement is the key.
The filling out, the completion, and the sending out to Internal Revenue Service is the key to not only getting an immediate release of a bank levy or wage garnishment notice but settling and closing your case.
The Internal Revenue Service will make sure all documentation is received to make sure the correctness and accuracy of the financial statement.
IRS will also require for verification:
1. The last 3 to 6 months bank statements,
2 copies of pay stubs,
3. copies of all bills for the last 3 to 6 months, and,
4. more importantly they will evaluate your current living expenses to that against the national, regional and local standards.
IRS will evaluate your house and utility expenses, your car expenses, your medical expenses, and any monthly bills that you have.
This is general information IRS will require and depending on your financial statement IRS may add to this list especially if you have a business, or schedule C.
All bills in expenses must be within the IRS current standards to be acceptable to the Internal Revenue Service.
The bottom line, IRS will review your current financial statement and usually make one of three determinations on how they will close your case off the enforcement computer and at the same time issue a release of bank levy or a wage garnishment notice.
How IRS may close Your case:
Upon IRS receiving all the documentation on the financial statement IRS may determine to put you in:
1. a currently non-collectible hardship status,
2. ask you to enter into a monthly installment payment or,
3. maybe encourage you to file an offer in compromise because you meet certain qualifications to settle your tax debt to the offer in compromise program.
Call us today for a free initial tax consultation we will walk you through the process of getting an immediate release on your wage or bank levy garnishment.
As a general within 24 hours of receiving your current financial statement we can get an IRS wage or bank levy garnishment released immediately.
How to Get IRS To Release Bank, Wage Garnishment Levy NOW, Former IRS
by Fresh Start Tax | Oct 25, 2018 | Tax Help
If you have received an IRS tax bill notice on IRS back taxes there are many choices you have to resolve your IRS case.
As former IRS agents we can help you through the process and end your IRS problem. we need we can explain all your options and help remedy your problem immediately.
We have worked thousands of cases since 1982 in our true IRS tax specialty experts on back taxes and on filing tax returns.
We the affordable and experienced team of experts.
There are various means of paying back taxes to IRS. As former IRS agents we will explain your options. A tax settlement may be in your future.
As a former IRS agent and teaching instructor with IRS you should know as a general rule someone with more experience will work your IRS collection case.
That person will have a lot of experience looking for assets and more carefully evaluating your current financial statement.
Your current financial statement holds the key to tax negotiation with the Internal Revenue Service.
Success comes by knowing the system and understanding what it takes to close an IRS case.
IRS takes a closer look at all cases large dollar especially the financial statements, the IRS is looking for the ability of the taxpayer to pay the back tax. As a former IRS agent this was part of my job.
One of the first tasks of IRS is to make sure all back tax returns are filed and current in the system.
IRS will not close out any open taxpayer inventory case unless all back tax returns are filed and the taxpayer is current on estimated tax payments or their withholding is up-to-date.
IRS is a stickler on this because they don’t want the problem of the back tax debt recurring.
So, how will IRS work your case? I Owe The IRS, What Is The Next Step
The Internal Revenue Service will ask the taxpayer to fill out an IRS form 433A.
You can find that on our site or on the government site. IRS will expect that form to be fully completed fully documented along with copies of the last six months bank statements, copies of all monthly expenditures, bills and a copy of pay stubs.
IRS will conduct a thorough review on that financial statement.
The internal revenue service can go through great lengths to do due diligence on your case. They have many search engines at their disposal. They will check Department of motor vehicle, records public records, credit reports, insurance policies and a plethora of other information found on internal systems used by different federal and state government agencies.
IRS knows much more about you than you can possibly imagine. You must make sure you still out your financial statement truthfully and accurately. That’s why it is best a true tax professional provide the necessary tax help to resolve your problem.
After this review of the financial statement the Internal Revenue Service generally has various buckets of closing programs that the taxpayer can be put into as a result of their current financial statement.
The importance of filling out your financial statement and giving it to IRS is the key to success and failure. I could never tell you how important the financial statement as it will determine the outcome with Internal Revenue Service.
Bucket One.
Currently uncollectible or hardship cases
If the Internal Revenue Service looks at your current financial statement and determines that your expenses exceed your income and you fall within the necessary means test, IRS can place your case in this non-collectible status.
There is good news and bad news within the status.
The good news is IRS will probably suspend your case between one and three years and kick it out for review a couple of years later, the bad news is the penalties and interest still run and the debt gets larger.
Bucket Two.
Installment agreements or monthly payments
If after the Internal Revenue Service looks at your current financial statement and they determine that you have more income than the necessary standards of meeting tests, IRS will ask for a monthly payment based on that financial statement. Hiring a tax professional can assure that IRS does not grab more money than necessary on or review of your financial statement. There are different monthly installment agreements and we will review with you your options upon your free consultation.
Bucket Three.
Offer in Compromise
This is called the pennies on a dollar program that you see advertised on TV however the offer in compromise is not for everyone.
I am a former IRS agent and teacher of the offer in compromise.
Approximately 32,000 taxpayers a year can settle their debt for pennies on the dollar, the average settlement is $9500 a year and I caution and warn taxpayers who submit offers in compromise to go through the IRS pre-qualifier tool to find out if they can truly settle their tax debt.
As a former IRS agent I carefully will walk through your financial statement and if you have any chance of being accepted for the offer I will walk you through the program and submit the offer in compromise.
Bucket Four.
Statute of limitations
IRS has 10 years to collect on their back tax debt, the period starts from the date of the assessment. The date of the assessment is the time that IRS had to put your case on the computer at the start the billing process. Various factors will extend the statute such as bankruptcy, the filing of the CDP, or the filing of offer but as a general rule after the 10 year date of assessment date your case goes away by federal statute,
Bucket Five
Bankruptcy.
Yes, Bankruptcy, many taxpayers are unaware that you could file a bankruptcy, a chapter 7 the discharge debt.
As a general rule the taxes have to be three years or older, assessed for more than 240 days and the tax returns have to be filed for at least two years. there are also different chapters in bankruptcy such as an 11 and 13 that a taxpayer can be qualified by speaking to a true bankruptcy expert.
When you call our office we will walk you through the various programs after review of your current financial statement. when calling our office you do speak to true IRS tax experts. So, if you know IRS will walk through the process with you step-by-step.
Call us for a free initial tax consultation and we will walk you through the process of dealing with the Internal Revenue Service.
IRS Tax Bill Notice on Back Taxes, What Are My Choices + Former IRS Agent Explain
