The IRS will NOT negotiate with you unless your account is compliant!
What this means is that all the years that have a filing requirement the tax returns need to be filed. The process for this (depending on how many years you have to file for) can be a daunting project to the taxpayer, we make this easy by filing a power of attorney and requesting your IRS wage and income transcripts for said years and we also call the State for withholding information, if applicable, we then guide you step by step to make sure your returns are properly prepared by our licensed professionals and all of your deductions are maximized for all related years, we then make sure to follow through with the IRS so that all returns get fully processed.
There are 3 types of installment agreements that a taxpayer can apply to, below are the three:
1. Streamlined - if you owe 50K or less and can pay within 72 months no financial information is required.
2. Regular Installment - If the taxpayer owes more than 50K or can't full pay within 72 months - you are required to set up and submit financial form 433 and the taxpayer can set up an agreement based on their ability to pay.
3. Partial Pay - if the taxpayer does not have the ability to full pay by the statute date this installment requires full financial disclosure and it can be revised by the IRS every 12 to 18 months to increase the payment plan.
Liens & Garnishments
A federal tax lien is the government's legal claim against your property, including real estate, personal property and financial assets.
A lien is also public information, it can have an adverse effect on your credit, assets, business assets and selling of your home. If you are trying to remove a lien due to the sale of your home your will need to apply for an application for certificate of subordination of a tax lien.
Offer in Compromise
An offer in compromise allows you to settle your tax debt for less than the full amount you owe!
It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship.
To be considered for an offer in compromise there are requirements that you will have to meet. An offer in compromise can be based on one of 3, either: Effective Tax Administration (Typically the taxpayer proves some kind of hardship that warrants a settlement), Doubt as to Collect ability (the taxpayer proves he or she is not capable of repaying the debt in full), and doubt as to Liability (the taxpayer proves that there is some doubt as to whether the taxes should actually be owed). These types of cases can be difficult to get accepted, they are also lengthy, normally they can last anywhere from 9 to 12 months to start negotiations. First and foremost our licensed professionals will need to analyze your current financial situation to be sure to see if you qualify for an offer in compromise before informing you of you settlement options.
If you've incurred a late penalty for filing late returns or making late payments you may or may not qualify for a penalty abatement. In order to qualify for an abatement the IRS requires the taxpayer to have reasonable cause. Some types of reasonable cause can be the following:
Fire casualty, natural disaster or other disturbances. Inability to obtain records, death,serious illness, incapacitation or unavoidable absence of the taxpayer or a member of taxpayer immediate family. Incorrect advice from the IRS personnel and incorrect advice from a competent tax adviser.
An IRS Audit from the IRS can be a nerve wrecking experience.
Audits can be intimidating because they require you to explain the nature of your income and substantiate the expenses and deductions claimed on your tax return. Hiring the right firm to guide your through an audit defense can result in a positive outcome.