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Solving IRS Problems and Reducing Back Taxes

We can help with IRS problems like wage garnishment, an IRS levy, IRS lien, or seizure, plus represent you in an IRS audit.

In reality your tax problems won’t disappear all by themselves.  Once the IRS catches up with you, you will face penalties and interest, and for non-filed taxes, the possibility of jail time!  And the IRS will catch up with you someday.  Once they do, you will be in a very difficult position and want professional guidance from an experienced CPA accounting firm like us.

This is not meant to scare you, but to inform you.  Fortunately, there are ways to reduce the sting of back taxes, by negotiating with Tax Authorities to lower the overall liability, reduce or eliminate penalties, and implement manageable payment plans.  By working with a qualified CPA firm, you will have the advantage of experienced negotiators on your side.  In many cases, our clients never even speak with the IRS.  We’ve seen it all, so we can probably solve your situation, too.

Don’t let your tax problems fester any longer!  If you are experiencing any of the issues shown below please give us a call.  We’ll be glad to hear about your situation and give you a free, confidential consultation.

IRS Audit Representation

Nothing strikes more fear in the hearts of taxpayers than receiving an audit letter from the IRS.  These audits take lots of time, requiring extensive records to substantiate each item reported on your tax return.

The IRS often will recalculate your tax and send you home with a hefty tax bill as your parting gift. However, the recalculation may not be entirely accurate, if the auditor does not understand the entirety of your transactions.

So, although you may want to respond to a letter or notice from the IRS, it’s not always a good idea, without a professional CPA advising you in the matter.  While taxpayers can and do successfully defend themselves in an audit, without an experienced tax professional in their corner, their odds of completing the audit unscathed go down dramatically.

As your representatives in an IRS or state tax audit, we’ll advise you on how to reduce or minimize your tax liability, as well as handle all communications with the IRS or state tax authority.  We’ll also conduct all conversations needed with them and handle the documentation and paperwork they require.

If you are facing a tax audit, you should call us right away.  With us in your corner, you’ll have professional, experienced advice and guidance.  Most of our clients never have to talk with an IRS agent – we do all the work for them.  That allows our clients to go about their business without filling out IRS forms or meeting with anyone but us.

Back Taxes Owed

This is an unfortunate but very common situation in which people can find themselves.  They’ve not paid enough taxes in the past, or no taxes at all, for one or more years, and the IRS-imposed penalties have been piling up.  Before they know it, their account is so far in arrears or the penalties so high, they feel like they will never catch up and start to feel desperate.

Fortunately, we have several ways to help our clients out of this IRS mess.  Once we know their situation, we can recommend and follow through on one of several solutions.  In most cases, we can significantly lower their liability for penalties – and in some cases, correct tax errors that have led to unfair debt.

Here are two of the possible tax relief programs available from the IRS:

Offer in Compromise – For certain situations, the IRS will accept a lower amount than what they believe you owe (with penalties and interest), under the Offer in Compromise program.  Its details are complex, but basically, if you believe the tax assessed is incorrect, or you can show that you could never repay all the IRS wants from you, or that paying all the assessed amount would create an undue financial hardship on you, then you may have a case for an Offer in Compromise.

We are experts on the use of this program and have helped many clients reduce their tax burden significantly through this program.  Our experience tells us how deep a discount you can expect to have approved with this program.  Try to pay too little and you risk getting your offer rejected; offer too much and you risk paying more of your liability than you might need to pay.  Relying on a qualified CPA firm like us is the smart way to approach the IRS with an Offer in Compromise.

Payment Plan – Whether eligible or ineligible for the Offer in Compromise program, we can arrange a payment plan for you with the IRS and the state taxing authorities.  This generally requires a set monthly payment over a certain time period – normally two to seven years.  While not as forgiving as an Offer in Compromise, there are still many ways we can reduce your tax liability with this program.

Non-Filed Tax Returns

We’ve seen this movie before, and it can end very tragically – with taxpayers who can be incarceratedfor up to a year for each year they didn’t file, and have property levied and wages garnished. Working with us, most clients have been able to avoid this unhappy ending – as we can help prepare and file the non-filed returns, negotiate reductions in fines and penalties, and implement payment plans with a promise to file returns regularly in the future.

Payroll Tax Problems

This is one of the most common problems for small businesses, yet it is the most severely punished offense.  That may be because about half of the taxes due are withheld from what employers would otherwise pay employees, so it is considered a misappropriation of employee compensation.  If you owe back payroll taxes, call us right away, so we can represent you in a settlement with the IRS.

IRS Lien

A lien filed by the IRS on your home or other assets can do more harm than you think.  You might not be able to open a checking account, take out a mortgage, or even obtain a credit card – since the lien will show up on your credit reports.  This issue should be handled promptly – before the lien occurs.  If you have received a notice from the IRS threatening to place a lien on your property, please call us right away for representation.

IRS Levy

Having the IRS take money out of your bank account is no fun at all.  An IRS levy should not be allowed to occur or continue, if you take the right steps to avoid it.  We’ve often steered clients out of these bad situations and lowered their tax liability along the way. By working with the IRS, we can often get levies released and once again put clients in good stead with the IRS.

IRS Seizure

When the IRS seizes someone’s home or car, they generally seize other assets, as well, such as boats and motorcycles.  That’s because they immediately sell these assets for much less than their market value, in order to collect that person’s tax liability.  IRS seizures usually happen only after repeated attempts to collect the tax, penalties, and interest which they have assessed and believe are owed by that person.

Don’t let this happen to you!  Contact us before you get that dreaded letter stating the IRS is about to seize your home, car, and other assets, including your retirement savings.

IRS Wage Garnishment

Another awful outcome of non- or under-payment of tax liabilities is an IRS wage garnishment.  If the IRS so chooses, it can levy money from your bank account, but if your bank balance isn’t that large, they can start taking money from your paycheck. Under wage garnishment, your employer is legally obligated to deduct a substantial amount of your pay and send it to the IRS.

Once this starts, you lose much of your income until the tax liability has been paid – UNLESS you take action with the IRS and know what to do.  We are experts with handling this situation and work with the IRS almost every day to reduce our clients’ tax liabilities.  Most often, we can change this onerous wage-shrinking tactic into a reasonable payment plan that you can handle, and that is not nearly as burdensome on your income flow.

If your wages have been garnished by the IRS, or if the IRS is threatening to garnish your wages, please call us right away to represent you in negotiations.

Innocent Spouse Relief

Once in a while, a client is the victim of tax or other type of fraud, committed by his or her spouse or ex-spouse.  In those cases, the IRS has a provision to keep the victim from being prosecuted or penalized.  If this has happened to you, we can help make sure you are protected with this law.

Are you having one of these tax problems?  Then contact us, and we’ll give you a free consultation to see how we can help.

FAQs

These are the most frequently asked questions about this topic.  If you can’t find your answer here, please contact us for more information.

What happens if I didn’t file my taxes on time?

If you missed this year’s filing deadline, it is important to file your taxes as soon as possible to avoid trouble with the IRS, especially a mounting late-filing penalty.

What if I can’t pay my business payroll taxes?

Failure to pay business payroll taxes spells serious trouble with the IRS, so it is critical that you learn about the options and remedies available to you as soon as possible.

What if I can’t pay all my taxes right now?

There are some options available to you if you owe taxes, but cannot pay on time. The IRS offers alternate solutions, including a payment plan, for most people who cannot pay all their taxes when filed. We assist clients negotiate payment plans with the IRS.

Can I settle my tax liability for less than the full amount owed?

Maybe. In some cases, the IRS will negotiate a settlement amount that is less that the full tax liability, if the taxpayer meets certain requirements. We can help you determine if you qualify for an Offer in Compromise, and if so, we will represent you in negotiations with the IRS.

What if I receive a letter from the IRS?

Many times the IRS contacts taxpayers to clarify or correct a tax return or the documentation supporting it. So there may not be a big issue, and your response depends on the content of the correspondence you receive. If you receive a letter, we recommend you consult with us to learn the steps you should follow to clear up the issue.

What is a Notice of Intent to Levy letter from the IRS, and what should I do about it?

It means that the IRS is prepared to take assets away from you to satisfy your tax liability. They could take your funds from bank accounts, wages and commissions from your employer, personal property, and several other types of assets. Taxpayers usually get this notice only if they have seriously delinquent tax liabilities and haven’t taken the satisfactory steps to resolve the debt. This 30-day notice to levy is definitely not good, but if you receive one from the IRS, it can still be resolved without serious harm if you act right away. We highly recommend an immediate consultation with one of our qualified tax professionals.

What should I do if I received a Notice of Federal Tax Lien?

A Notice of Federal Tax Lien from the IRS means they will or have placed a lien on your property, such as your house or financial assets, in order to secure payment of your tax liability. You should consult one of our qualified tax professionals to learn how to get an IRS lien released.

What happens if I get an audit letter from the IRS?

One of the most feared events for any taxpayer is the IRS audit, meaning the IRS is questioning something in a tax return or its support documents. This fear is a healthy one, since the IRS is not “looking out for you,” like a hired tax professional would. Many times a tax return is flagged randomly for audit, yet nothing is found to be incorrect. However, when the taxpayer gets an audit notice, the notice is something that needs to be addressed, preferably with the help of a tax professional. We highly recommend that you don’t try to defend yourself in an audit session.

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