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 Offer in Compromise |
| An Offer in Compromise is the absolute best possible
resolution for your tax debt. An Offer In Compromise is
an agreement between yourself and the IRS or State that
resolves your tax debt for less than the amount owed. A
tax debt can be legally compromised for one of the
following reasons: |
- There is some doubt as to whether or not the IRS
can collect this debt. This is called “doubt as to
collectibles.”
- There is some doubt as to whether you owe this
tax debt. This is called “doubt as to liability.”
- You have sufficient assets to pay in full but,
due to an unusual situation, payment would create an
economic hardship that would be unfair or
inequitable.
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You can include all types of types
of taxes, penalties, and interest in an Offer in
Compromise. Even payroll taxes can be included.
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Installment Agreement |
If you do not qualify for an Offer
in Compromise, the next best solution is the Installment
Agreement. An Installment Agreement is an agreement
between the IRS and the taxpayer where the taxpayer
agrees to settle his tax debt by making regular monthly
payments until the balance is paid off in full. There
are specific and complicated formulas that the IRS uses
to calculate the amount of the monthly payment. It is
important that you retain the services of a company like
ours to negotiate the amount of the payment. The IRS
wants to make the payment as high as possible – even if
it means putting you in a financial hardship situation.
We will negotiate on your behalf to make the monthly
payment an amount you can comfortably afford.
Once you begin making your monthly payments, it is
important that you never miss a payment. If this ever
happens, the agreement may be revoked and all monies you
paid into it may or may not be credited towards your
account. Be sure to let us know ahead of time if you
know you’ll be late with a payment.
The Installment Agreement is the most common solution
chosen by taxpayers. Call us today and get us working on
resolving your tax problem so you can Worry Less and
Live More! |
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Penalty Abatement |
You may already know that a small
delinquent tax debt can compound into an unmanageable
amount within a short period of time. The reason is
because of Penalties and Interest. Penalty Abatement (or
Reduction) is one of the key services we provide and
also one of the key factors toward helping you to get
your tax debt resolved in as short a period as possible.
To get penalties abated or eliminated, you will have to
show that you had a good reason for not paying your
taxes. Common reasons include: |
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Death of a family member
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Serious health problem
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Bad or erroneous financial advice
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Flood, hurricane, fire or other natural
disaster
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Theft of funds, including embezzlement
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Lost or destroyed records
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Divorce that caused extreme stress and
deteriorated your financial condition
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Unemployed for an extended period of time
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On a fixed income or retired
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Caring for another person and the
financial strain this is placing on you
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There are an infinite number of
reasons, of course. But these are the most common.
Your application for a Penalty Abatement will be
reviewed by a Revenue Officer and it is entirely up to
the discretion of this Officer to make the final
decision. For this reason, it is critically important
that you present a well-prepared and well-documented
application package. Our Tax Professionals are experts
at preparing application packages that look professional
and well-thought out.
Call us today for a free consultation so you can Worry
Less and Live More! |
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Payroll Taxes |
The IRS is particularly aggressive when it comes to collecting on delinquent payroll taxes (form 940 and 941). These are taxes withheld from an employee’s pay by the employer and which are supposed to be submitted to the Federal Government.
If you wait too long, the IRS may take more aggressive steps to collect, including looking to you and your officers to paying the debt.
If the IRS has already taken action against you for back Payroll Taxes, we can still help. In many cases, we may be able to convince the IRS not to touch your personal assets, wages, and bank accounts as long as an acceptable agreement on behalf of your corporation is negotiated quickly.
Regardless of the stage of collection the IRS is in, we
will always work to negotiate on your behalf to get the
IRS to seek recovery of the payroll taxes from your
company and not from your personal assets.
Don’t hesitate for another day. Call our office
immediately and start to Worry Less and Live More!
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Innocent Spouse |
| Couples filing joint returns are
held equally responsible for the tax return and the
payment of appropriate taxes. In some cases, though, one
spouse has underestimated the tax liability and,
unknowingly, the other spouse signed the return. In this
case, the innocent spouse may not be responsible for
paying the additional taxes and penalties. The rules
governing the application of the Innocent Spouse
solution are somewhat convoluted but they can be boiled
down into the following: |
- The innocent spouse did not know there was an
understatement of taxes and would have no reason to
know that there was an understatement of taxes.
- All or some of the understatement was the
responsibility of and can be attributed to the other
spouse.
- It would be unjust to hold the innocent spouse
responsible for the actions of the other spouse.
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| There are numerous techniques that
can help to protect current and former spouses from
liability that was incurred in a prior marriage. Call us
today for a free consultation with a Tax Professional to
see if the Innocent Spouse exception is the best option
for you. Worry Less and Live More! |
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Currently Not Collectable |
In certain circumstances where the
taxpayer is not working, has little or no income, is
sick or seriously ill, is too elderly to reasonably
expect to pay the back taxes, or has no assets of any
liquidation value, the IRS may classify the taxpayers
case “Currently Not Collectable”. This status means that
the IRS will, for the time being, stop any collection
action. This status is temporary and may change at any
time if the taxpayer’s situation improves. The IRS will
continue to monitor the taxpayer’s situation to see if
any changes occur and will then act appropriately to
collect on the debt. For example, if the taxpayer
receives an inheritance, or goes back to work, or
recovers from an illness, and the IRS learns of this new
situation, the IRS will re-classify the case as “Active”
and resume collection activity.
Call our office right away and speak to a Tax
Professional to see if you qualify for this status.
Worry Less and Live More!
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Appeals |
In the event that the outcome of
your case is less than what you believe is fair and
equitable, you have the right to appeal the IRS’s
decision. The IRS has a special department devoted to
appeals called The IRS Appeals Division. The objective
of the IRS Appeals Division is to resolve disputes
between taxpayers and the IRS.
The rules governing the appeals process are precise and
must be adhered to exactly. For this reason, you should
engage the services of a Tax Resolution firm to ensure
that none of the appeals deadlines are missed and that
all of the proper paperwork is filed accurately.
The appeal is your chance to re-state your case and to
explain why you should be given another evaluation. Our
Tax Professionals are highly knowledgeable about the
appeals process and are trained to provide you with all
the necessary support you will need. As always, our
desire is to help you to Worry Less and Live More!
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