Dealing with any type of tax issue is a stressful and time
consuming ordeal. Add to that, the powers of IRS Collections enforcement, the confusing forms, notices, levys and procedures;
the ordeal can be outright frightening. This is why you need this professional office to work on your side! We want to help
you bring balance back into your life! A CPA will be assigned to your account immediately. Interested in learning more
about Offers in Compromise, Installment Agreements, Innocent Spouse regulations, Unfiled Tax Returns, State Taxes
Liens, and Tax Audits, then read more below and make an appointment now. There is no obligation.
OFFER IN COMPROMISE & PENALTY ABATEMENT
An IRS Offer in Compromise it is an excellent
way to resolve back taxes and to get a fresh start with the IRS or other tax agency. The IRS sets
guidelines for accepting an Offer in Compromise. The IRS looks at a taxpayer’s past, current and future financial situation
when evaluating whether an Offer in Compromise should be accepted. It is important to know what aspects of a taxpayer’s
situation the IRS is looking at when filing an Offer in Compromise. Not everyone qualifies for an IRS Offer in Compromise,
as each person’s financial situation is different. Additionally, the length of time varies but the average generally
is 8 to 12 months. Therefore, pre-qualifying for an Offer in Compromise is an important first step to take prior to attempting
an Offer in Compromise with the IRS.
The IRS Offer in Compromise process includes having
the necessary records on hand and being compliant with the IRS tax regulations. Unfortunately, many taxpayers who attempt
to file an IRS Offer in Compromise themselves get it returned due to procedural deficiencies and never make it to a point
of final review. Thus, satisfying the many procedural requirements is necessary if an Offer in Compromise is to be reviewed
by the IRS and is one of the benefits in hiring an experienced tax professional for filing an IRS tax settlement.
The most common offer in compromise is the Doubt as to Collectability Offer in Compromise, i.e., even over time the
taxpayer cannot pay their tax debt in full. This type of Offer in Compromise is an agreement that we negotiate on your
behalf to settle your IRS tax debt for an amount equal to your reasonable collection potential. Preparing your IRS Collection
Information Statements and negotiating with the IRS for the lowest possible Offer in Compromise is our role. Beware
of companies promising a “pennies on the dollar” settlement. The Offer in Compromise is not for everyone
and many requirements must be met before the IRS accepts an Offer In Compromise tax debt settlement.
No, an Offer in Compromise will not appear on your credit report. The Offer in Compromise has none of the negative
ramifications of filing bankruptcy. Although the Offer in Compromise does not appear on your credit report the IRS Tax
Lien may already be filed which will definitely damage your credit score. Once the Offer in Compromise negotiation is
complete and the tax settlement is paid in full the IRS tax lien will be released and listed as paid in full.
Besides the Offer in Compromise, there is another, very effective program for reduction of an outstanding tax debt
called Penalty Abatement. If there were circumstances beyond your control that prevented you from paying your tax debt and
led to delinquency, the office can challenge the penalties and interest that have built up and negotiate them down.
Because tax relief from accrued penalties and interest is based more on stated representations
rather than financial hardship, terms for a successful penalty relief are very specific. More so than any other, this
program involves a great deal of skill to successfully navigate the IRS protocol and bring resolution. If applied for correctly
and effectively, results are substantial; savings are usually thousands of dollars for the average taxpayer. This office has years
of experience of this program.
INSTALLMENT AGREEMENT
An Installment Agreement with the IRS allows taxpayers that cannot afford to full pay their back tax liability the
option to pay their back taxes through monthly payments. There are guidelines regarding how the IRS determines the payment
amount and time frame for the agreement. Additionally, a taxpayer must be compliant with all past tax filings before establishing
the agreement. Depending on the circumstances and the amount of time that the IRS has left to collect the tax debt, the Installment
Agreement may pay all or part of the back tax liability.
Often, when a taxpayer attempts to establish an Installment
Agreement with the IRS, they encounter competing interests. The IRS wants to collect the entire amount of the taxes as quickly
as possible, while the taxpayer wants a payment that is manageable and affordable for their financial situation. Unfortunately
for many taxpayers, they end up with monthly payments greater than they can reasonably afford causing them a financial hardship.
In many situations like this, the taxpayers end up defaulting on their Installment Agreement causing the IRS to begin collection
activity all over again. Therefore, it is important to have an affordable Installment Agreement established properly the first
time.
Once an Installment Agreement has been established the IRS suspends their collection efforts and refrains
from issuing wage garnishments, bank levies, sending notices and making harassing phone calls. Consideration for being on
an Installment Agreement is that penalties and interest continue to accrue on the unpaid portion of back tax liability throughout
the duration of an Installment Agreement. Additionally, depending on the circumstances, the IRS may file a Notice of Federal
Tax Lien to protect their interest until the liability is paid in full.
INNOCENT SPOUSE
If your spouse or ex-spouse understated the tax on a jointly filed return, you are eligible to be released from the
obligation for the tax liability and the related interest and penalties. Your only obligations to be released from the liabilities
are to show that the understatement of tax is attributable to your spouse and that you had no reason to know of the understatement.
When you hire our services, we assume limited tax power of attorney, thus enabling this office to negotiate directly
with the IRS on your behalf. All necessary forms and procedures will be filed accordingly, leveraging your rights as an innocent
spouse to be exonerated of this liability.
UNFILED
TAX RETURNS
If a taxpayer fails to file a return, the IRS submits what is termed an SFR (Substitute
for Return). This is submitted by the IRS for the taxpayer using bank deposits as the taxpayer's gross income. This is the
worst form of taxation as it allows for zero deductions and grossly exaggerates a taxpayer's liability. Example: If you are
in business and have gross receipts of $300,000 you will be taxed on the $300.000 with no allowance for expenses even if your
business made no money that year. You would owe over $100,000 in taxes plus interest and penalties. Additionally, the Statute
of Limitations does not begin to run when the SFR is computed by the IRS. Instead, we take control of your tax return filing
for the business reflecting proper expenses and other deductions. The IRS processes this return, cancels the SFR and reduces
the owner's tax debt.
Note: The statute of limitations does not begin to run
until the return is actually filed. Returns that are filed on time are generally subject to a three year statute, wherein
the IRS has 3 years to audit, assess additional taxes and bring a court proceeding against the taxpayer.
STATE TAXES
Many people who owe the IRS debt, in turn, end
up owing state tax as well. While not as broad in scope as the IRS, State collection authorities (even local authorities)
nevertheless have tremendous reach and are generally more forceful in their collection efforts. While their tactics may be
more stringent, they are nonetheless bound by tax law to offer relief to those who qualify. Most state and local agencies offer
similar versions of the Offer in Compromise program, and will offer Payment Plan and amnesty from penalties and interest if
successfully approached. Rest assured. This professional office is prepared to challenge any and all State collection
efforts and procedures.
TAX AUDITS
An
IRS audit can be a very frightening and stressful situation. Knowing the IRS wants to take a second, closer look at your tax
return, whether it is the entire return or just a portion of it, such as expenses claimed for meals, entertainment or travel,
can be a very nerve-racking experience.
This office never advises any taxpayer to represent themselves
in an IRS audit, no matter how simple it may seem. Even if you honestly believe you filled your entire tax return out correctly,
meeting with the IRS can be a very intimidating experience. This is especially true if you have
to experience a face-to-face audit. Traditionally, however, 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. In fact, according to the IRS’ 2007 Data Book,
during fiscal year 2007 (Oct. 1, 2006 through Sept. 30, 2007), only 22.49 percent of all tax return audits were conducted
in person, while 77.51 percent were what are called correspondence audits.
More often than not,
an IRS audit of a tax return will result in changes to the return. Whether these changes are good or bad for the taxpayer
depends on the situation. The no-change rate, or the number of returns accepted as filed after examination for fiscal year
2007 was 16 percent for correspondence audits and 12 percent for those returns audited by revenue agents, tax compliance officers
or tax examiners.
This office advises that you hire a professional to represent you. When
you hire this office, you can be comforted by knowing that this office has experienced CPAs and access to the
most experienced tax attorneys dealing with the IRS audits. You can face an audit with confidence when you know you have our team
on your side.
