IRS: RE-CREATING RECORDS

RE-CREATING RECORDS

IRS solution florida 2All is not lost if your records are missing, lost or destoryed. We understand what a stress it is to try to come up with information from many years ago so have learned to efficiently recreate them from bank statements and other records.

We can get income transcripts from the IRS and prepare the tax returns with that information.

Currently Not Collectible Status

Currently not collectible status

Currently not collectible (CNC) status is a temporary solution. A taxpayer who can’t afford to pay right now can be put in this status for 6 months to a year. Penalties and interest continue to accrue. In order to get put into this status, the IRS will require substantial financial information such as:

  • Bank statements on all bank accounts
  • Pay stubs
  • Proof of payment of “necessary” living expenses
  • Information on all assets (what you own)
  • Information on liabilities (what you owe)

 

Identity Theft

Identity Theft

Do you suspect you have been the victim of Identity Theft?

It’s one of the fastest growing issues at the IRS. Thousands of people have had tax returns filed with their names and social security numbers by scamming shysters. Or income reported to the IRS that they didn’t receive. It causes horrible headaches and strife. In fact, the IRS has pulled resources from other areas to deal with this overwhelming problem.

Take the case of Albert. He works at Wal-Mart and the IRS captured his tax refund every year because they said he owed them money. He didn’t understand. When a lien was filed, called us to help him.

After researching the issue, we discovered that more than a dozen 1099’s were filed by different companies with the same address under his social security number. The client had received none of this money. The companies filed the false 1099’s so that they could take a tax deduction. It’s blatant fraud!

Fortunately for Albert, we were able to get it all cleared up. He is now doing well and calls us periodically just to say thanks.

So never fear, we can help you too. Call or email our amazing team who will fight to clear things up for you.

Phone (407) 476-9580

Representation With The IRS

Representation with the IRS

Range of various blank USA tax forms

Range of various blank USA tax forms

When you are represented by us, the IRS treats you with much more respect. We know what your rights are and how to get around in their system. Knowing who to talk to and what to say gets much better results with the IRS than an individual calling about their own tax issue.

And when you hire us, it shows that you are serious about clearing up your problem. Really, all the IRS wants is for you to be compliant under the law with filing and paying your taxes. They want you to clear up your old issues and come back into the system so they can start collecting from you again.

The IRS representatives will almost never tell you when you have options other than paying the debt. Time and again we’ve seen taxpayers who cannot afford to pay their tax debt being put into payment arrangements that they can’t afford. No one tells them that they can get into a temporary Currently Not Collectible status or a more permanent solution with the Offer in Compromise program.

They don’t want you to know how to reduce your tax bill but we want you to have every remedy available

IRS: Penalty Abatement

Penalty Abatement

 REMOVING IRS PENALTIES

Abatement-1If you don’t file your returns or pay your tax on time, the IRS will add penalties and interest to what you owe. Sometimes the penalties and interest add up to more than the original tax liability. They continue to accrue or grow until the problem is resolved or the balance is paid.

The good news is that we have been very successful at having penalties removed or abated, especially when there are extenuating circumstances. And the best results have been for people who work in industries that were wiped out by the recession such as real estate, construction or mortgage lending. Others they consider are those who have had bad events happen in their lives like illness, etc. Our opinion is that it can’t hurt to ask for a break! Call us.

A good example is Tom. He worked in construction and made a very large income. When the housing crash hit, he was put out of work so pulled money out of his retirement accounts to survive. This caused very large tax bills to accumulate over several years. When he finally came to us, we were able to get $80,000 in penalties abated. Another happy client!

IRS: Payment Arrangements

IRS: Payment Arrangements
If you don’t qualify for relief under the Offer in Compromise program and can’t afford to pay your balance due in full, you probably need to get into a payment arrangement with the IRS. You can do this yourself but many taxpayers find it an overwhelming process. It involves submitting detailed financial information and following up, following up, following up. If somehow the ball gets dropped and the payment arrangement isn’t finalized, you’re the one who pays the price with levies and garnishments. Ugh!

Many clients have come to us after trying to do it themselves. Take Phil, for instance. He has assets and income enough to pay the debt so an Offer in Compromise wouldn’t work for him. The IRS was insisting on a very large monthly payment that he felt he couldn’t afford. After working with an attorney as well as the Taxpayer Advocate, neither of which helped him, we got him into a much smaller payment.

So don’t worry, there’s hope. We can handle this for you. Call or email our efficient team and we’ll help you through it.

Offers In Compromise

Offers In Compromise

We are regularly successful at pushing through Offers in Compromise to reduce the amounts that our clients owe.  This is the IRS “Fresh Start” Program that can help you reduce or eliminate your tax debt. An Offer in Compromise amount is based on what you can afford to pay, not on how much you owe.

It’s a very, very long process, sometimes up to a year or more. The Offer in Compromise department is severely backed up and the IRS will not devote more of their resources to helping you get out of your tax debt.

The good news about the long wait is that once an Offer is filed, the IRS is prohibited from taking any collection action, so you won’t be subject to any levies or garnishments during that time.

 

What is a lien?

What is a lien?

When the IRS perceives you owe them money, they will file a lien with the County Clerk of Court in your county of residence and any counties where you own property. This prohibits you from selling any real property you own like a house or piece of vacant land. It is used as security for the tax debt. It also hits your credit report and causes the score to plummet. Once a lien is issued, a levy might not be far behind. Not a great place to be! However, there is help available.

Release of lien

Several potential ways to get a lien released include:

  • Filing any delinquent tax returns. When you don’t file a return and the IRS files one for you (a substitute for return), giving you no benefit for any deductions or exemptions. Many times just filing the original return wipes out the balances due.
  • Get into a direct debit installment agreement where your balance owed is less than $25,000. You must make 3 payments under the agreement before you request lien release.
  • Pay the balance in full. If you do this, first make sure that you actually owe the money. We see many instances when taxpayers have paid balances that they didn’t owe because they were so intimidated. When you have funds for the final payment, go to your local IRS office and make the payment there with a certified check. Ask for the lien release right then. If you don’t, it could take months for it to be processed. Do make sure it gets filed with any counties the original lien was filed in.
  • If there is a lien on a house you own, your mortgage is greater than the value of the house and you want to do a short sale on the home, we can petition the IRS to release the lien. This requires a large amount of documentation and about 30 days.
  • Offer in Compromise

 

Levies And Releases Of Levies

Levies (Garnishments) And Releases Of Levies

What is a levy?

A levy is a legal seizure of your property to satisfy a tax debt. The IRS has the power to levy just about anything of value but the most common levies we see are bank and wage levies.

A bank levy is a one day levy. The IRS contacts your bank, freezes your funds and requires the bank to hold them for 21 days before being forwarded to the Service. Any funds going into your account after the levy day are available to you until a new levy is issued. Once the funds are sent to the IRS, it is very hard to get them back in any timely manner.

A wage levy or garnishment is an ongoing levy. The IRS contacts your employer and requires them to send a portion of your wages every pay period to the IRS to apply against your tax debt. Once wages are seized, there is no getting them back without going through the proper, very long and drawn out channels.

Release of levy

It is possible to get a levy released although usually much easier to keep it from being issued than to get it released. This means that the problem should be dealt with sooner rather than later.

 

Many times the levy is issued to force the taxpayer into dealing with the tax issue. The IRS can send out blizzards of letters that get ignored but when someone’s money is snatched, it gets attention! Here are some release options:

Financial hardship – If a levy causes undue financial hardship, the IRS must be called and financial information given before it is released.

Complying with information requests – If a taxpayer has been asked repeatedly for tax returns or financial information and has not been forthcoming, the Service will issue a levy. Many times it will be released when the taxpayer becomes more cooperative.

Filing an Offer in Compromise – Once an offer is filed, the IRS is prohibited from taking any collection action against the taxpayer.

Filing Bankruptcy – The bankruptcy laws are very clear that when a person is in bankruptcy, no creditors can contact or harass them. At filing, any levies will be immediately lifted. However, in order to be discharged in bankruptcy, tax debt must meet very specific requirements and most tax debt is not dischargeable.

Negotiate an acceptable payment arrangement. Pay the debt in full.