LarryWe specialize in issues relating to unfiled tax returns, unpaid taxes, liens, levies, foreign bank account reporting, audit representation, and any other type of tax controversy.

IRS and State tax problem resolution is a special area of our professional practice involving unfiled tax returns, unpaid taxes, liens, levies, foreign bank account reporting, audit representation, and any other type of tax controversy.

We are founding members of the American Society of Tax Problem Solvers, the only non-profit professional organization dedicated to tax problem resolution. We have earned recognition as Certified Tax Resolution Specialists demonstrating that we are uniquely qualified to represent taxpayers before the IRS and other tax authorities.

Some of the specialized services we provide
in this area include the following:
[accordion] [acc_item title=”Offer in Compromise (OIC)”]

Offer in Compromise is the government’s “Let’s Make A Deal” program that allows you to pay an amount you can afford to satisfy your entire tax liability. It even includes the penalties and interest. Yes, the amount you pay is based on what you can afford, not the amount you owe! The program allows an eligible taxpayer to pay what they can afford to pay regardless of the amount they owe.

The OIC is the essence of fresh start; once an offer is accepted and paid the taxpayer is then current with all their tax liabilities. We are able to determine your eligibility for the Offer program and advise you on how to become qualified when appropriate.

The IRS Code states: “We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential…” (Internal Revenue Code §7122).

It is possible to eliminate all the taxes you owe – including all penalties and interest – at an enormous discount. There is no minimum that the IRS may accept to settle your debt especially if your offer is done “right.” If you qualify, your debt will be settled for a fraction of what you owe. Planning is often the key to qualifying and securing the lowest Offer the IRS will accept. As Certified Tax Resolution Specialists, we are uniquely qualified to assist you in preparing an acceptable Offer. [/acc_item] [acc_item title=”Foreign Bank Account Issues”]Over the last few years, the Internal Revenue Service has commenced aggressive enforcement in the area of foreign bank account reporting. Amnesty programs allow taxpayers to become compliant in reporting and paying the tax due. The programs afford taxpayers an opportunity to avoid criminal prosecution. However, the tax cost is burdensome and the rules are complex. This has resulted in confusion and uncertainty for many taxpayers with foreign accounts. Professional representation is highly recommended in this area.[/acc_item] [acc_item title=”Installment Agreement”]We can secure an agreement with the IRS to allow monthly payments on your tax liability. The agreement keeps IRS or the State from levying as long as the payments are paid as agreed. Without an agreement, the IRS or State may take all but a small amount of your paycheck. They could also levy bank accounts and file liens on all of your assets including your home. We may be able to combine an Installment Agreement with Penalty Abatement to save money and get time to pay the rest.

If you do not qualify for the Offer In Compromise program, a Payment Plan may be the way to resolve your problem. Setting up a payment plan with the IRS allows time to pay your tax debt.

Unfortunately, IRS or the State continues to add penalties and interest to any unpaid balance. A major benefit of a well-negotiated plan is the level of payment takes into account your living expenses and provides protection from enforced actions. Additionally, they will release levies they have filed once your payment plan is approved. They will not file any new levies as long as you make the agreed upon payments.[/acc_item] [acc_item title=”Penalty Abatement”]The IRS and State both increase the amount a taxpayer owes by adding penalties and interest to the unpaid tax. In many cases, a taxpayer could pay the tax, but thanks to the penalties and interest, the ballooning balance quickly becomes unmanageable. Penalties and interest might be reduced or eliminated if you can demonstrate reasonable cause and prudent action. Further, we may be able to couple Penalty Abatement with an Installment Agreement.[/acc_item] [acc_item title=”Audit Representation”]

Nothing strikes fear in the hearts of people more than receiving an IRS or State Audit letter in the mail. Audits take significant time away from your business and family, requiring you to gather mounds of records substantiating each and every item reported on your tax return and develop a comprehensive understanding of tax law.

You should not go before the IRS without representation any more than you should go to court without a lawyer. You see, IRS trains Auditors to extract more information from you than you have a legal obligation to provide. IRS Auditors know that most people fear them and are ignorant of their rights. As a result, they know they can use that fear and ignorance to their advantage. We know the right way to represent taxpayers under audit. We understand the implication of those “friendly inquiries” from auditors. There are red flags that may not be apparent to a taxpayer representing himself.

The IRS leaves no stone unturned in its mission to determine the accuracy of your tax return. If you don’t comply with the Auditors’ wishes, the IRS will recalculate your tax and send you home with a hefty tax bill as your parting gift. We generally can close audits quickly, which helps to avoid the taxing agency seeking to expand of the scope of the audit. Generally, the cost of representation is far less than the savings gained through qualified representation.

Our clients rarely have to talk with the IRS. We handle it all for you so that you need not take time off from your business or job to handle the bureaucracy, paperwork, and pressure of the IRS. No lost wages or lost business. You simply forward notification of an audit to us and we will contact you to discuss an appropriate plan deal with the IRS or State on your behalf.[/acc_item] [acc_item title=”Your IRS File”]Did you know you can obtain a copy of your IRS file? Most people are surprised to learn what the IRS knows about them. Reviewing this information is critical to constructing the best approach to resolving your tax problem.

Your IRS file includes information that third parties have sent to the IRS about your income from various sources. It includes a record of your IRS filings and a record of actions IRS has taken related to you and much more.

We will secure your IRS file without raising any red flags. Under the Freedom of Information Act, we can secure, review, and interpret the IRS transcripts for you. This record reveals your history with the IRS (according to them.) We may also anticipate their coming actions based on the information posted to your account.[/acc_item] [acc_item title=”Unfiled Returns”]

Every day the massive computer center at the IRS is getting more sophisticated, it’s just a matter of time before they catch up with you. Of course, if the IRS computer has not found you yet, the State may discover the missing returns. They will start to pursue you and then inform the IRS as well.

This is not a situation to take lightly; failing to file your tax returns is a criminal offense. If you do not file, you can be prosecuted and punished, possibly with jail time. The guidelines are one year for each year not filed. Why risk potentially losing your freedom for failing to file your tax returns!

Let us give you peace of mind by helping you get into compliance with the filing requirements. If you voluntarily file your delinquent returns, you’ll likely avoid further problems other than having to pay the interest and penalties.

If you wait for the IRS or State to file your returns for you, they will be prepared in the best interest of the government. IRS will not include exemptions, deductions, or credits that could reduce the tax amount.

Before anything can be done to extract you from this predicament, all the returns must be filed. You must be current. In most cases, you will likely owe taxes, interest, and penalties after the returns are filed. Once we see how much is owed, we’ll design a plan of action to resolve that too.

Generally, we can prepare and file delinquent returns avoiding exposure to such harsh penalties. In some cases, the IRS has prepared a return for you and assessed the tax based on that return. These IRS-prepared returns will all the income items IRS knows about, will not include deductions, exemptions, or credits you are entitled to claim. Therefore, the tax assessed based on the IRS-prepared return will generally be higher than the amount we determine considering appropriate deductions, exemptions, and credits.

We will assist you in filing the return with the lower liability and having your IRS record amended. If there is a balance due after correcting the IRS records, we will represent you before the IRS to resolve that in the least intrusive manner available.[/acc_item] [acc_item title=”Statutes of Limitations”]The IRS only has so long to assess taxes they want to collect from you. Once assessed, there is a limitation on how long they have to collect tax. As part of our engagement, we review the statutes for all open years to see if any have expired, or are about to expire. If we find this to be the case, we will advise the IRS to cease and desist in their enforced collection actions.[/acc_item] [acc_item title=”Liens”]

The IRS or State may take money from your paycheck or bank account by garnishee or levy. We can often prevent this or have these removed so you can pay your bills. They may also place liens on your home and all other assets you own. If you are presently dealing with or concerned about a levy, garnishee, or lien we can help.

Tax Liens can really make your life miserable! When your taxes are unpaid the IRS and/or the State files a lien against all of your assets. This gives them the legal right to collect taxes from the sale of your assets, which includes literally everything you own.

The liens may be filed against you, your spouse, or your company depending on how the tax liability was incurred. Everything you own is in jeopardy of becoming property of the government.

Liens filed against you show up on your credit report and often prevent you from opening a checking account or borrowing against any assets, like your home. If a lender is willing to approve a loan for you, the interest rate will be higher when a lien appears on your credit report. Think about paying 18-22% interest on a car that is already too expensive. Buying or selling real estate is likely out of reach as well.

Liens can be removed once the government is satisfied that you are compliant. Federal liens can even be erased from your credit report once certain criteria are met.[/acc_item] [acc_item title=”Levies & Garnishees”]Levies do serious damage to a taxpayer. A levy is the IRS’s way of getting your money and your immediate attention. What they are saying is, “We have tried to communicate with you, but you have ignored us. If you own it, we can take it.” That includes bank accounts, autos, stocks, bonds, boats, pension checks, paychecks, and even Social Security checks!

Imagine waking up one morning and finding your bank accounts have been cleaned out. If this amount did not cover what is owed, they will keep filing levies until they have collected every dollar you owe. They know that levying your bank account will cause checks to bounce, alerting many people that you have tax problems. They do not care! Their sole objective is to collect the taxes owed. Period.

As bad as a bank levy is, a worse problem is a wage levy (or garnishment). That is when most of your paycheck goes to the IRS or State, they do not leave you enough to pay the bills, and most of your check goes to the IRS each week until the debt is paid.

If that doesn’t accomplish what they want, they’ll pull out all the stops. They can seize and sell your assets. We are often able to get those levies released and help you get out of this terrible situation. Our goal is to get you even with the IRS, with what you can afford, and let you get a fresh start. Remember, the earlier we address the problem the more successful we are likely to be. Ignoring a tax problem is a guaranteed path to a bigger problem.[/acc_item] [acc_item title=”Seizures”]Unlike a levy, which involves liquid assets such as your bank account, a seizure is the taking of physical assets, such as your home or car. Seizures happen in aggravated cases when someone ignores repeated requests by the IRS over a long period.

Do not take seizure threats lightly. If you fail to address your tax issues IRS will ultimately pursue seizure of your physical assets. Do not think they will not. Many a newspaper or television show has reported on citizens forced out of their homes after the home is sold at an IRS auction, often for far less than its true value.

When the IRS seizes your assets, they want to liquidate them quickly to get the cash to reduce your debt with them. They sell seized assets at auction, which means they often get less than half of what the asset is worth. You can be sure you are losing much of your equity in the asset.[/acc_item] [acc_item title=”Innocent Spouse”]Did you know that you could get out of the tax debt due to the misdeeds or fraud committed by your spouse? Innocent Spouse Relief exists to alleviate unjust situations where one spouse is clearly not responsible for the tax liability created by their spouse or former spouse.

This tax problem solution is based on a three-part set of rules encompassing Innocent Spouse, Separation of Liability, and Equitable Relief. The appropriate portion of the solution depends on each taxpayer’s situation. Considerations include whether the spouses are still together, whether there is understatement or underpayment on the joint tax returns filed, and other factors that can effect mitigation.

These special rules exist to protect an innocent spouse from exposure to IRS collection actions related to a spouse’s tax liability. If the IRS is trying to collect taxes related to the income of a (current or former) spouse that you believe you should not be forced to pay, call us for a free consultation. If their actions seem unfair, this program may be exactly what you need.[/acc_item] [acc_item title=”Credit Repair”]Special procedures are available to remove all indications of federal tax problems from your credit reports. When properly handled and required conditions are met, these procedures allow the all references to federal tax problems to be literally erased from your credit record even before they are fully satisfied. Taxpayers have seen dramatic improvement in their credit scores. Improved credit scores result in lower borrowing costs through reduced interest rates and enhancement of overall creditworthiness.[/acc_item] [acc_item title=”Bankruptcy”]

Although most taxpayers wish to avoid ever filing a bankruptcy, there are times when it may be the best alternative to deal with taxes and other debts that have become overwhelming. Sometimes the bankruptcy decision must consider who the taxpayer must be most concerned about, his family versus the tax liability.

Contrary to what you may have heard, taxes are often dischargeable in bankruptcy. Back taxes, interest, and penalties may be wiped out by filing bankruptcy. If the tax balances meet the criteria for discharge in bankruptcy, it may be the best solution to resolve your crushing tax problems.

Unfortunately, not everyone qualifies to eliminate tax debts in bankruptcy. If you file bankruptcy and do not meet the criteria for discharge of the back taxes, the government will still be in hot pursuit after your bankruptcy is over. Pre-bankruptcy planning is key to determining if bankruptcy is or can be a viable solution.

Unfortunately, not everyone qualifies to eliminate tax debts in bankruptcy. If you file bankruptcy and do not meet the criteria for discharge of the back taxes, the government will still be in hot pursuit after your bankruptcy is over. Pre-bankruptcy planning is key to determining if bankruptcy is or can be a viable solution.

We can examine your history of tax filing and prepare an analysis that provides the information a bankruptcy attorney requires to assure filing is done in the most beneficial way and at the most beneficial time.

We will work with an attorney you select or we will recommend one if you wish. Upon completion of a bankruptcy case, we will assist you in resolving any tax matters that were not resolved through the bankruptcy action.[/acc_item] [acc_item title=”Payroll Tax Problem”]The most serious of tax problems is the failure collect, account for, and pay to the government any taxes that were, or should have been, withheld from employees. These are referred to as “trust funds” and are vigorously collected using the most aggressive tools available to the government. Employers who pay their employees the amount of the employees’ net payroll and fail to remit the taxes related thereto are the classic case of employment tax problems.

When the government detects “pyramiding” of trust fund taxes through continued payment of net wages and continuing failure to remit the related payroll taxes, they will not hesitate to seize assets and effectively close the business down. If you are delinquent in the payment of trust fund tax it is imperative that you address the issue at the earliest possible time. Professional assistance is highly recommended in this area.[/acc_item]

 

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