If your tax debt situation with the IRS (either through dealing with them yourself or with other representation) has resulted in an outcome you believe is less than fair and equitable, you have the right to appeal the IRS’s decision. The IRS has a special department devoted to this called the IRS Appeals Division. Expert representation before the IRS Appeals Division is critical in order for you to have the best opportunity for a satisfactory resolution in your favor.
Back Payroll Tax Debt
The IRS is particularly aggressive when it comes to collecting on delinquent payroll taxes (IRS forms 940 and 941). Failure to properly pay the IRS for taxes withheld from employees’ wages is considered stealing from the employees. If you have failed to withhold or pay payroll taxes, you can incur huge IRS penalties as well as face potential civil or criminal sanctions. The IRS feels that this is plain stealing the money they are owed. Your assets could be seized and the IRS may hold you personally responsible.
Penalties and interest
IRS penalties and interest can cause a small delinquent tax debt to compound into an unmanageable amount within a very short period of time. Penalties alone can make up 25% of the amount you owe.
Tax Audit
We never advise any taxpayer to represent themselves in an IRS audit, no matter how simple it may seem. Even if you really believe you filled your entire tax return correctly, meeting with the IRS can be a very scary experience. Just knowing the IRS wants to take a closer look at your tax returns can be a very heart-wrenching experience, especially if you have a face-to-face audit.
Wage Garnishment
If you owe the IRS and have ignored repeated letters and warnings, the IRS will likely use one of their most aggressive tax collection methods – wage levy, also known as wage garnishment. It is a legal way for the IRS to collect without you paying them directly. Your employer will be contacted and by law, must take a portion of your pay and send it to the IRS. How much? Based on some guidelines, the IRS can garnish upwards of 80% of your wages until your balance is paid, which often leaves little to live on. Wage garnishment is not to be taken lightly
IRS Tax Lien/Levy
Nothing can be more financially or emotionally devastating than having your accounts receivable or bank accounts frozen due by the government with a levy. If you fail to respond to IRS notices to pay a tax debt, the IRS can file a federal tax lien against you, making your life miserable. Federal tax liens are filed with the County Clerk where you live or where your business operates, and because they show up on your credit report, make it difficult or impossible to obtain any type of financing for any purpose. You cannot sell or transfer your property while a tax lien is filed against it, and since you won’t be able to borrow against it, you will not be able to use it to obtain a loan to pay off the back taxes you owe.
Another action the IRS will take to collect back taxes is to levy your bank accounts and your sources of income. For example, the IRS can seize the cash you have in all your savings and checking accounts by issuing a bank levy, and file a levy with your employer that garnishes up to 80% of your wages, commissions, bonuses, etc., until your debt is paid in full. If you have received notice of a lien or levy, don’t panic, we can help.
KNOW YOUR RIGHTS!!!
Realize that you do not have to accept what the Government is doing to you. Even if it was your fault, there are Loopholes and Programs available to you that you are not even aware of. If you have any of the tax problems listed below, let our experienced staff and Tax Attorneys handle your IRS/State tax issues.
Resolutions
Appeals of IRS Collection
You have the right to appeal to the IRS Office of Appeals when you receive notice or threat of IRS collection actions. These collection actions include:
Federal tax lien
Seizure and sale of property
Intent to levy (wages, retirement accounts, bank accounts, accounts receivable, etc.)
Rejection, termination, or proposed termination of an installment agreement
You also have the right to professional representation to guide you through this complex process and ensure that you get the best possible outcome. (read more)
Innocent Spouse
Couples filing joint returns are held equally responsible for the tax return and the payment of appropriate taxes. In some cases, however, a spouse can be relieved of all IRS tax, interest, and penalties on a joint return. In essence, three types of relief are potentially available for people who believe the tax debt is not their responsibility: innocent spouse relief, separation of liability, and equitable relief. Each has different requirements.
Offer In Compromise
An agreement between you, the taxpayer, and the IRS that settles your tax debt for less than the full amount owed is called an Offer In Compromise. The IRS offers this leniency program for people who cannot pay their tax debt in full, have exhausted all payment options available, and the IRS has doubt about whether you could ever pay the full amount owed, or there is legitimate doubt that the liability is correct.
Penalty Abatement
Our experienced tax attorneys are expert at penalty abatement – getting the IRS to either completely or partially remove your penalty, to reduce the amount you owe and help you get your tax debt resolved quickly.
Settle Back Tax Debt
Our tax attorneys and resolution professionals have been successfully representing taxpayers in connection with their Federal/State tax problems for over 15 years. Tax Relief Agency regularly represents taxpayers with disputes in all 50 states, and with the California Franchise Tax Board (FTB).
IRS Tax Lien/Levy - Wage Garnishment Release
We understand that all of these are scary issues, but we have programs that can allow our Tax Attorneys to make the government stop taking you money even if you owe the IRS and have ignored repeated letters and warnings, Wage garnishment and levys can be stopped in less than 72 hours. We also put in place a strategy to protect our clients from being levied in the future.
Audit Defense
Traditionally, the majority of IRS audits are done via correspondence. In other words, most IRS audits are in the form of letters asking for explanations of various tax items on a tax return or requesting supporting documentation. The fact of the matter is that on average only about one-third of all IRS audits are done on a face-to-face basis with a revenue agent, tax compliance officer, or tax examiner. More than likely, an IRS audit will result in changes to the original filled tax returns. These changes may be positive or negative for the taxpayer, but depends on the individual’s situation.
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