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Author: Mike

Offshore Account Lawyer

Posted on by Mike

Having Issues with Tax Evasion? Trust Legal Tax Defense for the Best Legal Assistance

There are many tricks business owners, and individuals use to evade paying United States taxes. One of the most common is placing assets or money in foreign accounts. These accounts are located in various countries all over the world. The federal government has been cracking on US citizens with offshore accounts through the Foreign Tax Compliance Act (FTCA).  This act makes it mandatory for all financial institutions to disclose all information regarding all United States Foreign account holders.

All those affected by the regulations can avoid being prosecuted and civil penalties invoked by the IRS by joining the Offshore Voluntary Disclosure Program.  At Legal Tax Defense, we can sort all issues you might have with IRS. Before looking at how our tax lawyers can help, let look further into what the Offshore Voluntary Disclosure Program entails.

Offshore Voluntary Disclosure Program

This is a program initiated in 2009, to help the IRS collect more tax from US citizens with offshore accounts.  It was created as a result of many people opening the foreign account to evade paying the taxes.  The program offers mutual benefit to the IRS since it does not have to put a lot of effort or resources collecting taxes from the account holders. On the other hand, it helps those with offshore accounts to avoid the huge penalties involved in violating the terms of the Foreign Tax Compliance Act (FTCA).  Those who fail to comply get penalties ranging from $ 100, 000 to $ 500,000 or prison term going up to ten years.

How Legal Tax Defense Can Assist

Having an offshore account can offer you a myriad of benefits. However, it can also put you into problems with IRS if they detect you are violating some of the regulations set when it comes to matters about taxes. If you are having an issue with the IRS because of your foreign account, Legal Tax Defense offers the perfect solution for you. Our tax lawyers can help you to create a fully compliant offshore account that will not put you in loggerhead with IRS.

Our major interest is to ensure that all our clients are free from all tax and IRS problems.  Our tax attorneys guide you on how to join the Offshore Voluntary Disclosure Program, adhere to its regulations, and avoid potential criminal prosecutions. Despite that we offer the best tax legal assistance, you can always enjoy our competitive pricing and many other benefits we offer to our clients.

How to Get Rid of Tax Debt

Posted on by Mike

Many find themselves in the dark dilemma of how to get rid of tax debt when they tend to get behind on tax money and start owing to the IRS. Dealing with IRS can be frustrating, time-consuming and intimidating. An IRS tax debt on you can give the IRS officials the power to seize your assets, get your wages garnished and even place a lien on your property. All of these threats make it imperative for you to get rid of tax debt.

Best Tips on How to Get Rid Of Tax Debt

The best way to get rid of the tax debt is for you is to hire a tax attorney. There are various ways in which you may be unaware of that can assist you in negotiating and reaching a settlement with the IRS. However, a tax lawyer is well versed with it and can present you with attainable solutions to help you get out of debt. Below, are some helpful tips and solutions to get rid of tax debt.

#1 Get Rid Of Tax Debt with Installment Agreements

The IRS can be quite liberal and co-operative if you know the proper protocol. The IRS gets its power from the federal government which means that they have the right to collect tax from you indefinitely. If your IRS tax debt is $50,000 or less and you do not have sufficient funds to clear the debt, you can take the help of a tax lawyer and get yourself qualified for an installment agreement. This facility is also available online. Here, you pay your taxes in installments that you can comfortably afford. This plan is immensely popular as it is a hassle-free and low-cost method. Its set-up fee is lower than most other ways, and you can effortlessly get rid of your tax debt. Moreover, it frees you from all woes and stress of reminders, emails, checks to be written, missed payments, etc. You also get rid of the IRS trying to take control of your salary, property, etc.

#2 Get Rid Of Tax Debt with Offer in the Compromise Agreement

Sometimes your tax debt is so high that you feel it wouldn’t be possible ever to pay it if you pay the entire amount; you will lose your financial stability. In such a situation, an experienced tax lawyer can help you get a tax debt relief under the offer in the compromise agreement. Under this agreement plan, you can negotiate with the IRS officials and settle your tax debt by paying off a lesser amount than you owed. It is not open to all, and there are several qualifying factors involved. There is an online Compromise Pre-Qualifier tool on IRS.gov which helps you know if your chances of qualifying for this program.

Tip #3 Get Rid Of Tax Debt by Declaring Not Currently Collectible

You might be amidst a financially hard time. If you pay your taxes at this time, your lifestyle might dip below the basic standards of living. If you manage to showcase this fact to the IRS; they defer your debt to a year or two. It gives you time to get financially sound and then repay your tax liabilities.

Tips #4 Get Rid Of Tax Debt by File Bankruptcy under Chapter 7 Or 13

Filing for bankruptcy is another way to get rid of your IRS tax liabilities. This method can be implemented if you’re not finding a solution on how to get rid of tax debt. If you file under chapter 7; you get tax debt relief of your entire amount, i.e., you need not pay a single penny. Under chapter 13, you pay a partial amount, and the rest is discharges for you. Before you file for bankruptcy, it is vital that you consult with a tax attorney specialist.

Tips #5 Get Rid Of Tax Debt with  Penalty Abatement

Depending on various factors like your financial condition, kind of debt, etc. you can get a tax lawyer to negotiate with the IRS on your behalf and get your penalties wiped off by offering something else legitimate in return. If done right, this goes a long way in helping you get out of IRS debt.

Tips #6 Get Rid Of Tax Debt Innocent Spouse Relief

Sometimes, a couple has a joint account, and one of the spouses fails to pay their tax. In case you are meeting the IRS guidelines, you can qualify for a tax debt relief under this program.

Tips #7 Get Rid Of Tax Debt by Utilizing the Wage Garnishments Program

Under the wage garnishments program, the IRS takes a portion of your wage directly every month to recover their debts. Wage garnishment usually happens after your accounts were frozen and your assets confiscated by them. In such a situation, you can negotiate with the IRS for tax debt relief. An experienced tax lawyer can get the garnishment lifted for you with ease.

Tips #8 Get Rid Of Tax Debt With an Expired Statute Of Limitations

From the day of your tax assessment, the IRS has a 10-year window during which they have the power to collect all back taxes from you using all legal means and power provided to them. Waiting out this period can be quite harsh and challenging, but an experienced tax attorney might pull it off for you.

Unsure How To Resolve Your Tax Problems? Call Us

You now know how vital a tax attorney can be in helping and advising you on how to get out of IRS debt. Seek our professional help today before the matter gets out of control. CALL US TODAY for a free consultation.

IRS Tax Relief for Employers and Employees

Posted on by Mike

Knowing about IRS tax relief options is the key to saving your time, money and sanity, especially if the IRS is after you for the taxes you owe. If you are not aware of your rights and responsibilities, the IRS will take no time in rolling all over you taking anything that they can take. Our unique tax debt relief services are focused on resolving the tax debt issue through several debt relief options out there.

IRS expects all citizens to pay their taxes owed promptly. Still, many people do not pay their taxes on time and owe IRS billions of dollars in due taxes, interest and also penalties. Since the penalties and the interests can quickly add up and by the time the IRS comes to know about it and sends a notice, the amount is too much for most people. If you are one of them, who are finding themselves in a deep financial hole that you cannot pay your tax debt. You will be asked to enter into an installment payment agreement with the IRS for the past dues and while still paying the current taxes. Most of the time, these taxes will go on for years, and there will be no respite shortly. Another alternative is to hire a tax lawyer to assist you to find a way that is acceptable to both parties.

IRS Tax Relief Options for You to Explore

Many times we go through financial troubles for no fault of our own. For an instant, you are in debt because of medical issues, death in the family, loss of a job or any other situation. When such events take place, it can put us in difficult situations including that of our finances. It makes meeting the monthly obligations a challenge. It can lead to IRS tax problems and can be quite intimidating. Many people think that if they have a massive tax debt, they can talk to the IRS and they can settle it for way less. However, IRS tax relief does not work that way. There are many mechanisms built by the IRS that help you solve your tax problem and also get you back on your feet. Many tax resolution firms will make it seem very easy, but settling with IRS is not that easy, but it is not impossible too. You need to hire a professional tax attorney, like us, to help you resolve your tax problems. We can use the most persuasive techniques there is to get the IRS to behave humanely. You might not know about the different tax debt relief options that you have in front of you. It is crucial for you to explore all the different options you have before you agree with any kind with the IRS.

Contact an IRS Tax Relief Attorney for Advice

Most people think that the IRS is very powerful and no one has the power to negotiate with them. The truth is that the IRS is ready to settle tax debts by making favorable arrangements and many times, it is by reducing the amount that is owed to them. An experienced and professional tax attorney can help you secure a favorable settlement if you qualify for it. Our tax attorneys can help you explore all your options including any special payment plans, offer in compromise or even file for bankruptcy. You need to remember that your tax problems will not just go away if you are not ready to take any action. Without the assistance of an experienced tax attorney, the efforts by IRS to collect taxes owed by you will only become more aggressive. The worst part is that the IRS does not care how you pay your taxes and it means that your savings or retirement accounts are not safe either. If you do not want your livelihood to be ruined by the IRS, it is best to get yourself a tax attorney so that you can understand your tax needs and also prevent any future tax problems.

Contact Us to Know if You Qualify for IRS Tax Relief

If you are looking for a tax attorney, you are in the right place. We aggressively represent our clients before the IRS and the State. If you owe money to the IRS and want help settling your debt or need IRS tax audit relief help, we can help you. Our tax lawyers have working relationships with local IRS agents and other officers giving us a better chance to negotiate on your behalf and get a favorable outcome for you. Our IRS tax relief services are affordable for people of all income groups, so our fees should not be a worry for you.

If you want a fresh start with your life and you think that you can benefit from one of the tax relief programs, it is best to consult with our tax attorney to know if it is in your best interest. You need to remember that the tax resolution process can be difficult and you will only have one chance to get it right.

Give us a call today, and we can discuss debt relief programs with the IRS so that you can enjoy your freedom. Our team of experts is here to provide you the best tax audit relief for your tax problems.

IRS Back Taxes Help

Posted on by Mike

Experienced tax defense attorneys can offer back taxes help for those feeling emotionally and financially overwhelmed with their back taxes problem. If the IRS is forcing you to pay the entire back taxes amount or agree to their laid out payment plan, it is best not to fall into the trap and seek the services of a professional tax attorney.

IRS often contact taxpayers and make them agree to a payment plan that might seem good on the outside but can create more problems for the taxpayer. When taxpayers speak to IRS employees without any legal representation, they often end up disclosing much more than they had intended. It often results in them seizing or putting liens in place on various assets. IRS officers are not required to provide alternatives to the monthly plans or the other, better programs. A tax attorney can come to the rescue and allow taxpayers to come up with a practical solution to the back tax problems.

Top Reasons Why You Might Have Back Taxes

Back Taxes are the taxes that were not paid over a certain period. The IRS knows everything there is to know about you. They know where you live, the place you work, if you are married or not and to whom, and other facts. Thus, if you fail to pay your taxes on time or are paying less than what you owe, you can face penalties or even jail time if you continue to ignore their notice to pay the penalties. Many times, if you have been filing wrong tax returns, and the IRS detects them, you will need to pay not only what you owe them but additional penalties that might be too much to pay together. You keep receiving the IRS notices and keep them stuffed in your drawers thinking they won’t be able to find you, but eventually, they will. Therefore, it is best to contact the IRS and come to a settlement. However, you do not want to negotiate with the IRS on your own as the IRS might work towards taking most of your assets.

Who You Should Call for IRS Back Tax Help?

There might be different reasons why people fail to file their taxes correctly. It can lead to a feeling of fear or hopelessness. Many are worried that they will not be able to pay the penalties that might have accumulated over the years. Since the IRS believes that people want to honor their obligations, they encourage people to come forward if they have not been paying taxes. They take into consideration voluntary disclosure when determining the penalties or to decide if they should criminally prosecute them or not. No matter what the reason might be of not filing your tax returns, there are ways you can fix your back taxes. Some of the options that you have are installment agreement, partial payment installment agreement, offer in compromise, not currently collectible, lowering the debt with credit card debt settlement, file for bankruptcy, releasing wage garnishments, taking advantage of the statute of limitations and more. All these might be confusing to you. You can avoid the confusion and consequences by hiring a tax attorney for back taxes help.

Our tax lawyer and attorney understand the tax laws and know what should be done to resolve your back taxes.

Do You Need Back Taxes Help? Call Now for a Free Consultation

Our tax experts and tax attorneys can represent you and negotiate with the IRS to get you the best resolution to your back taxes problem. Apart from speaking to the IRS on your behalf, we will also negotiate with them on the next course of action. We will also prevent the IRS from questioning you inappropriately about the taxes that might get you into trouble. Our tax attorneys understand the complexities of the situation and always get the best offer and resolution for taxpayers. We can help save you a lot of time by closing the case quickly since we understand the different approaches to tax debt relief that can greatly save you money. In addition, all the communication between you and our back tax attorneys will be confidential. All of your disclosed information and details related to the case will be safe with us.

Hiring an attorney for back taxes help is best when you have to deal with the IRS. If you are under audit by the IRS, facing investigation for not filing taxes or has a large debt that seems impossible for you to pay; your best solution is to hire an attorney to represent you. Hiring a tax attorney might seem like an added expense, but they are a good bargain considering the alternatives.

Contact Us Now to Get the Right Back Taxes Help

Our tax defense attorneys can put your mind at ease by helping you with late tax filing or correcting your tax mistakes. We can offer prior-year tax filing help, stop the IRS from collecting huge debt from you and resolve your case as quickly as possible. To receive a professional case evaluation, you can contact us as we know how to protect you so that you can get the best possible outcome for your case. Instead of ignoring the IRS and hoping that they go away, it is best to confront them head-on with our back taxes attorney by your side. Give us a call today for your free consultation (800) 804-2769.

Tax Debt Help for Tax Problems

Posted on by Mike

Tax debt help is an option offered by various reputable companies to help you relieve the burden of tax debt. These companies usually offer some of the best qualified and experienced tax attorneys who look into various aspects of your unique situation and provide you sound advice for IRS tax debt relief. Regardless of how complicated your situation is or how staggering the pending tax amount is; there is always a solution that helps with IRS debt.

Reasons to get Tax Debt Help

Each person’s situation is unique. For most, common reasons which push a person to seek IRS tax debt help are:

1.     Failure To File A Tax Return

This is the most common reason for anyone requiring tax debt help. Once your income passes a certain specified limit; it is illegal not to file your tax returns. In case you do not file your returns, the IRS files a Substitute for Return (SFR). The issue with it is that it lists only your income and not your allowable deductions. Consequently, you find yourself with a massive tax liability as well as penalties and interest.

In other instances, you might file your federal tax return but forgot to complete your state tax return. Here again, the IRS files an estimated tax return which again skips on allowable deductions. This implies that you get placed in a higher tax bracket and are informed of a tax debt which is way higher.

2.     Incorrect Tax Return Preparation

Due to numerous reasons, there can be an error in the tax returns that you had filed. The mistake could also have been made by a Certified Public Accountant (CPA) or tax preparer who you hired, who are not as well versed as a tax lawyer and thus made mistakes. These errors can cost you as accuracy penalties can be even 75% of your tax debt.

3.     Not Making Timely Estimated Tax Payments

It is not uncommon for people to forget to pay their quarterly Estimated Tax Payments (ETP’s). Consequently, the tax debt gets accumulated in the following year and soon you find yourself in a situation where you seek tax debt help.

4.     Under-Withholding

Opting for less withholding than advisable for you will lead you to a higher payable tax amount at the end of the year.

5.     Early Withdrawal From Retirement Funds

Any unqualified withdrawal from your retirement fund before the age of 59 attracts a 10% penalty from the IRS. Most are taken by surprise with it and are burdened with an extra penalty at the end of the year.

6.     High Deductions Claim

Your returns might attract an audit from the IRS, which might end up with higher tax liabilities as a result of penalties, disallowed deductions or any other reasons.

7.     Errors From Another CPA Or Tax Company

The entire tax code is highly complex and constitutes over 70, 000 pages. A CPA or any other random company often lack the desired skills, knowledge and expertise on tax intricacies. Even a slight error from them would land you with substantial tax liabilities. Your only way out would be to seek tax debt help from an experienced and expert tax lawyer.

8.     Miscellaneous issues

Apart from the issues mentioned above; there can be various other reasons like gambling winnings, unpaid payroll; claiming an un-rightful dependent, etc. These reasons can make your tax debt go so high that you would be in dire need of some tax debt relief.

Professional Assistance for Tax Debt Help

The IRS grants you the right to represent yourself. However,  you might be unaware of the various loopholes and exit doors available that can smoothly help with IRS debt. This situation is absent from an experienced tax attorney, who is well versed with the latest IRS rules and regulations and can easily exploit them to your benefit.

There are plenty of rules and regulations present that can bring you tax debt relief. Based on your unique situation which will be microscopically examined by the tax lawyer; you would be presented with the best possible tax debt help. Few solutions that can be taken up for an IRS tax debt relief are:

  • Offer in Compromise
  • Penalty Abatement
  • Installment Agreement
  • Not Currently Collectible
  • Innocent Spouse Relief
  • Release Wage Garnishments
  • Filing for Bankruptcy
  • Bank Account Levy Release
  • Lump-Sum Payment
  • Expired Statute of Limitations

All these are some terrific ways of tax debt help. But each has its own stipulations and clauses and is not a one-fit for all. You must fulfill the criteria and qualify for a particular solution. This can be achieved with the help of an experienced tax lawyer. Tax lawyers’ skills and knowledge can easily negotiate with the IRS to get you the best IRS tax debt relief.

Our tax professionals can get you to help reduced tax liability, lump-sum payment or freedom from liability to pay pending taxes. Call us today for the best legal representation.

Tax Audit Attorney for Tax Penalties

Posted on by Mike

We are tax audit attorneys. We provide help to resolve all of your tax problems and audits. Call us today and put your tax problem to bed.

Many people think that they have their taxes sorted and that they won’t face any issues with the IRS so they don’t have to pay any tax penalties. People believe that it is only the rich who might face any enforcement actions. Even though it might be true to some extent, a tax audit can affect everyone as IRS does not discriminate.

The IRS often takes several years to detect any mistakes you might have made. When the IRS detects any oversights or the wrong deductions, the taxpayer will already have many penalties and interests accumulated. It can significantly increase the amount of unpaid tax due and through time it’ll be impossible to disburse. If you have a massive tax debt, one option might be tax debt relief. It is where our tax audit attorneys can come to the rescue. It is not always easy to deal with the IRS, and if you have a busy life, it can make things even worse. Our Tax audit attorneys can offer multiple benefits and ensure the best outcome while saving you money. Therefore, instead of working with a CPA, it is best to hire our tax audit attorney to resolve and negotiate to get you out of the audit.

Our tax audit attorney provides legal help to resolve your tax debt. We will take the time to analyze your current situation with the IRS and develop strategies to rapidly improve the situation. We can help explore the different favorable arrangements depending on the unique situation. If you are having tax problems, call us today so our tax debt attorney can resolve the problem for you.

Top benefits you can enjoy when working with our tax audit attorney!

Tax Attorneys are Exempted from Testifying

If you work with a CPA on your tax problems, they can be called by the IRS to testify against you if the case goes to court. But, tax attorneys are exempt from testifying against you in court as you have attorney-client privilege protecting you. All the communication between you and our tax audit attorney will be confidential, and they cannot disclose any information shared o anyone.

Tax Audit Attorneys Give Better Tax Relief Compared To CPA

A professional tax audit defense attorney would be better suited to offer advice on the tax problem rather than a CPA.  A CPA can calculate the amount you owe to the IRS with certain deductions. Our tax audit lawyers, on the other hand, can help file bankruptcy correctly and deal with the complicated tax problems that a CPA will find near impossible to do.

Tax Audit Attorney Offers Professional Representation

Our tax audit attorney is qualified to act on behalf of the clients and represent you in front of the IRS. We will also handle all types of interactions with the IRS such as the meetings and answers to letters. In case the case goes to court, we will also represent you professionally to get the best possible result, and it is something that a CPA will not be able to provide you.

Tax Audit Attorney Can Help Negotiate to Reduce Your Taxes Penalties

Tax laws are complex, and there is no single formula to come to a conclusion. Tax audit attorneys are better at negotiating with the IRS and help you provide better tax relief. It is apparently a skill that a CPA does not have. We have done it for years, and you can benefit from our combined experience of over 50 years.

Tax Audit Attorneys Can Guide You To Make The Right Decision

A CPA might know about some of the tax settlement programs, but tax audit attorneys know all of the ins and outs of the different tax relief programs out there. Since the laws change yearly, tax audit attorneys keep themselves updated on the latest changes to help their clients make the right decision.

What Our Tax Audit Attorney Can Do for You

When you feel the need to hire a tax audit attorney, you need to make sure that you pick the right tax defense firm. They can make the problem go away or they can make the situation much worse. Our tax audit attorney will help you determine if you can request tax debt relief. We can also help you understand how the IRS calculated your amount due and look for any errant calculation mistakes that can work in your way. These are just some of the debt relief options that we can help you explore. If you are facing a serious problem with penalties and interests, we can work towards reducing that burden of debt. Our tax audit attorneys are certified and have years of experience in resolving tax penalties for varied clients.

Call Now to Talk to a Tax Audit Attorney Today

If you want to save yourself or your business from IRS penalties or even jail time, you need to have the best tax audit defense attorney by your side. We have extensive experience and provide strong legal defense for your tax problem. In most cases, our clients pay only a small amount of taxes and fees.  Contact us today and enjoy the best resolution for your tax problems.

Benefits of Hiring an IRS Tax Lawyer

Posted on by Mike

Hire an IRS tax lawyer is the best way to file your taxes correctly. Most taxpayers don’t realize that tax law is changing and so are the IRS rules and regulations. While you do have the right to represent yourself before the IRS; navigating is tricky, frustrating and full of hurdles. It is far more likely that you would end up paying less than the amount you would have paid when hiring a tax attorney.

Still, many choose to hire a local Tax Prepares or experienced certified public accountant (CPA) instead of a tax lawyer. Many are under the impression that they are all of the same expertise levels. However, there is a considerable gap between them. First, you need to understand precisely who an IRS tax lawyer is and what are the benefits of hiring one.

Who Is An IRS Tax Lawyer?

In layman’s terms, an IRS tax lawyer is a lawyer who has the education as well as the expertise of all tax laws and all matters concerning it. They get qualified as tax attorneys after rigorous studies and years of internships under experts. Not only do they acquire a qualification in tax law but they also pass a rigorous state exam, popularly known as the bar exam. The exam is so tough that only about fifty percent or fewer candidates manage to pass in the first go. This would give you an insight into the amount of hard work and dedication that goes in before one actually works as a professional tax lawyer.

Reasons to Hire an IRS Tax Lawyer

The few compelling benefits and advantages when you hire an IRS Tax Lawyer are listed below:

1.     Access to Tax Code Knowledge

The current IRS tax code constitutes of over 1700 pages. It has many rules, regulations, rights, etc. that you are simply not aware of. For instance, very few citizens actually know about the right to representation. Using this right, you become free of any obligation to answer any condescending or harsh queries of any IRS officer who pounces on you at your home or office. You can just ask them to leave their contact details, and your tax lawyer would get in touch with them to resolve the matter. Thus, you can easily avail of his expertise and skills to get yourself out of any possible muck.

Another thing to keep in mind is that the tax codes at both federal and state-level keep changing. A tax lawyer would always be updated with all this knowledge. He would always use them to your advantage. Thus, you would continually have the best route for all your taxation issues.

2.     Ability to Take Right Tax Decisions

By taking advantage of hiring an IRS tax attorney, you can dispute your tax debt and even procure a tax debt relief for yourself. You would be surprised to know how many loopholes exist in the tax laws using which you can minimize your tax amount significantly. A tax lawyer can analyze the entire situation and help put together a plan of action aiming at paying the minimum amount possible.

3.     Correct Filing under the Guidance of the IRS Tax Lawyer

We all know about the potential risks involved with the IRS collection process. A small error could cost you a lot. You can easily avoid all these hassles if you let your tax lawyer file your tax returns. He or she will know all the necessary forms that need to be filled out and also be able to analyze them to ensure that they are filled out correctly at the right time and the manner.

4.     IRS Tax Lawyer-Client Confidentiality Privilege

The lawyer-client confidentiality privilege is a legal privilege that no CPA can provide you with. Under it, you can freely disclose all your sensitive and relevant information to your tax lawyer. He would then offer you the best advice and act most effectively on your behalf. He would, under no circumstances disclose any of the information to any other person without your permission. He or she will exercise the tax law boundaries to your advantage with the right tax strategies.

5.     Representation and tax negotiation ability of an IRS tax lawyer

In spite of you being extremely cautious and careful, it is possible that you find yourself in a tax jam. The IRS officer might be demanding a large sum of money for your past and present tax liability. Don’t panic contact a tax lawyer. He or she can negotiate with the IRS officer and come to a resolution that you and the IRS can live with.

Get the best Legal Representation for Tax Problems Today

Our IRS tax lawyers know the complexity of the taxation laws which can help you resolve any daunting tax-related problems. Give us a call today for a free consultation. There is no cost or obligation to determine if we can help you. Call us today.

IRS Penalty Abatement Letter – How to Qualify

Posted on by Mike

An IRS penalty abatement letter is put in place to regulate the issue of tax debt relief.

Twelve years back, the IRS created an administrative waiver known as an FTA (first-time penalty abatement administrative waiver), which serves the purpose of mitigating taxpayers’ tax penalties. Primarily, the purpose of the FTA also called the IRS penalty abatement letter, is to permit businesses and individual taxpayers to request abatement of certain penalties (which has been assessed by the IRS against taxpayers for the very first time). In reality, the IRS rewards taxpayers that comply with this policy with thousands of dollars. Although the IRS penalty abatement letter is an administrative waiver, it does not apply to other types of penalties. Although there are numerous advantages of this IRS penalty abatement letter, only a few taxpayers are aware of its benefits, and only these few request FTA according to data collected from the office of the Treasury Inspector General for Tax Administration (TIGTA) in 2012. According to this report, the problem is two-fold: firstly, many taxpayers and tax professionals are unaware of FTA, and secondly, the representative of the IRS frequently falsely disallows the issuance of FTA when using the IRS’s faulty automated decision tool to create penalty determinations. These problems make FTA hidden to most taxpayers and tax professionals that are presumably not aware of how it works or know whether it even exists and how to request it.

The collection letter that leaves the IRS office to business and individual taxpayers varies depending on the tax issue to be addressed. An example of such a letter includes Delinquent Return Refund Hold (CP 88), Reminder Notice – Balance Due (CP 501), Second Request Notice – Balance Due (503), Final Notice & IRS Intends to Levy – Balance Due (CP 504) and so on. Most of these letters contain specific instructions to help in the completion of a tax return. Keep in mind; it is very important that the letter received must be reviewed to compare the information on the letter and that of the taxpayers provided during the questioning period. Another important thing to note is that each time taxpayers are submitting any information to the IRS or any other organization that deals with tax matters; it is advisable to keep copies of each document for record purposes.

 The Penalties that FTA Covers

  1. The first-time penalty abatement administrative waiver (IRS penalty abatement letter) erases taxpayers’ failure to file penalties, which could either be late filing or stiff penalty for failing to file. This penalty is usually 5% deduction of taxpayers’ balance per month.
  2. Another benefit of an IRS penalty abatement letter (FTA) is that it wipes off penalties related to taxpayers’ failure to deposit (941s) as touching payroll taxes. This failure would include a late deposit for the correct amount, or in the format or manner.
  3. Finally, the FTA also wipes out taxpayers’ failure to pay the penalty. This penalty is usually 0.5% of taxpayers’ undischarged tax debt per month.

This administrative relief or waiver granted by the IRS to individual and business taxpayers is only applicable to taxpayers that fail to file a tax return, pay on time, and/or to deposit taxes when due under the IRS first-time penalty abatement administrative waiver (FTA) Policy.

First-Time Penalty Abatement Administrative Waiver (FTA) Eligibility

To qualify for the FTA waiver, individual and business taxpayers must meet the following requirements:

  1. Taxpayers must have a clean tax history except for an estimated tax penalty for the previous three years. A taxpayer may be eligible for FTA if the taxpayer receives a reasonable relief in the past.
  2. A taxpayer must have complied with payment, that is; there won’t be any record of outstanding payment, or arranged to pay all due tax (which can be paid in an installment agreement as far as the payments are current).
  3. Taxpayers must have filed an extension of time file or filed all currently required returns

How Do Taxpayers Apply For First Time Penalty Abatement?

For every taxpayer, applications for first-time penalty abatement may be accessed through either of these means; online, over the phone or in writing. In most cases, the IRS grants eligible applicant tax debt relief on the spot. While in other cases, the IRS agrees to wipe out the penalties, but not until the tax debt is paid in full.

Keep in mind, the IRS may decide not to remove penalties on the spot, it simply means, taxpayers will continue to see the growth of the penalties. The penalties will be removed later as long as the taxpayers’ are qualified for the abatement. The IRS only grants tax debt relief to taxpayers with penalties incurred in a year. The penalties to be removed have a monetary limit; although it is yet to be published, it appears to be up to $10,000. For taxpayers with tax penalties for more than a year, the IRS will only remove penalties if taxpayers proof that they have reasonable cause for not meeting up with payment or filing of taxes.

It is beneficial for taxpayers to seek consultation from a tax attorney and or tax lawyer for the instant qualification of the first-time penalty abatement policy from the IRS. Our tax relief professionals are experienced in getting taxpayers out of their tax penalties. For instant tax relief, call us today.

4 Tax Relief Programs That Benefit Taxpayers

Posted on by Mike

To make tax payments easier for US citizens the government has four major tax relief programs executed by the IRS. You will be able to understand the tax relief programs and consider their pros and cons and then opt for the one you think is most suitable for you once you completed reading this article.

Listed below, are the tax debt relief options.

#1 IRS Installment Agreement

As beneficial as this tax debt relief program is, for some reason it is the least chosen option. IRS installment agreement is a great option for people who find it difficult to pay up their tax debt at once. In a nutshell, the option will allow them to pay monthly until they eventually offset the debt completely.  This option also reduces the number of phone calls IRS officers have to make on the taxpayer, as well as the number letters they will write in the long run. Besides, going for this option is a sign of willingness to pay. This is why the IRS particularly likes this tax relief option. In a case where a large amount is owed and the taxpayer can only afford a very small fraction, this may not be the best option. It could be used as an interim option before you decide on the best option to go for.

The Advantages IRS Installment Agreement

It offers more flexibility than other options, as you get to decide how much you can conveniently pay every month. Since it is a preferred option for IRS, they often agree to this option easily. It also prevents frequent IRS action.

The Disadvantages IRS Installment Agreement

For this option, taxpayers usually have to keep track of the payments and it may take a longer period to pay off the debt. However, the worst disadvantage is that your interest will keep on accumulating and you will end up paying much more than you should have paid.

#2 File/Amend Past Tax Returns

Another option to get tax debt relief is to file an amended past tax return. This option is the best for some taxpayers whose liabilities were erroneously overstated in the past. All the difference can be deducted from the tax owed. If a taxpayer has not been able to file his tax returns, an IRS officer can help to file it and also provide minimal deductions. This option is the best for any taxpayer that requires a reduction in liability. This could be because the tax preparer made mistakes and overstated the taxpayer’s liabilities. Another situation where this tax relief option is very helpful is when a taxpayer gets a tax refund that was withheld throughout the previous year or probably because of certain credit. However, you must remember that there is a 3-year ultimatum to claim the refund or forfeit it. So, the tax refund will be reconciled with the current tax balance. This will reduce taxpayers’ liability further.

The Advantages of Amend Past Tax Returns

The main advantage is the reduction in tax liability. It does not only reduce the liability, but it also reduces interest and potential penalty.

The Disadvantages Amend Past Tax Returns

Any taxpayer that goes for this tax relief option will have to cope with the issues of the statute limitations as well as the acquisition of the tax code information.

#3 Offer in Compromise

This is actually the most publicized option and that is why it is the most popular tax debt relief option. Unfortunately, it is not for every taxpayer because its suitability depends on the circumstances surrounding the tax debt. For this option, taxpayers’ tax liability is weighed against their assets, equity, income, and expenses. While there is no fixed rule for this, it has been beneficial for taxpayers with very low income. Even if your income is low, to be eligible for this option, you must be free from any fraudulent or felonious tax returns, all of your estimated tax deposits should be prepared, and most importantly, you should not be bankrupt.

The Advantages of Offer in Compromise

This option also helps to lower taxpayers’ tax liability. It also retains certain assets and lastly, it will get collection actions suspended.

The Disadvantages Offer in Compromise

This will take many years to finish and for this option, you have to deposit higher initial payments. You may need to liquidate your assets. You also need to understand that this option attracts strict penalties for noncompliance.

#4 Taxpayers Can File and Pay Their Tax Late

This simply means that this option can allow you to pay your tax later. IRS has a window of just ten years after which they may not be able to make legal claims towards back taxes. Sounds great right? Thinking of how to weasel your way around for ten years so that you can escape completely right? Here is the other side of the story. Even if the 10-year window shuts down, IRS can still explore other avenues to recover the back taxes. Tax lien and tax levy are common options.

The Advantage of Paying Tax Late

Has the potential to possibly wipe out your back taxes totally

The Disadvantage of Paying Tax Late

The IRS could attach a levy and lien on any of your assets.

In addition, due to potential complexities that may be involved in the implementation of any of the tax relief programs, it is better to hire an experienced tax attorney that will offer a professional guide on how to get rid of tax debt easier.

How our Tax Lawyers Can Help You

There are several ways by which a tax lawyer can help you in your quest for tax debt relief. The issues of tax are usually complex and only experienced tax lawyers that can navigate such waters easily. Tax relief Lawyers will also help to handle disputes before the IRS because they are always looking for opportunities to tax you more. When you apply for tax relief, they often try to pick holes in your application to be able to thwart your efforts. Most importantly, our tax attorneys can guide you to get the best tax relief option.

Tax Relief Services To Remove Tax Debts

Posted on by Mike

Tax relief services are essential to relief tax debt. Even though there are charges for these services, in most cases the benefits outweigh the expenses. Tax relief services permit you to get rid of tax debt, reduce your tax bill or get the IRS collection radar. Tax relief services can also prevent wage garnishments and prevent the seizure of assets.

Tax debt relief companies work directly with the IRS to analyze your case and to discover where your tax debt is originating from. This determines which negotiations and applications you’re eligible for. Most all tax relief service companies charge for their services during the stipulated period, most of these services are rolled into their flat charges, even as others charge a separate investigative fee for preliminary discovery services.

In terms of resolving taxpayer’s problems, it is strongly advocated that you consult with an organization that specializes in tax relief services, similar to our firm. Our tax relief firm has a team of professionals that are distinctly skilled and experienced in all aspects of tax law. We can have the ability to investigate your entire situation and provide a proper plan of action to get a positive result from the IRS or state taxing authority.

How to Identify a Legitimate Company that Offer Tax Relief Services

On the first call, if a tax debt relief organization “promised guarantee” assurance on a particular avenue of tax debt relief, they are likely not legitimate. You may alternatively pay the taxes and establish an installment agreement, whereby your outstanding debt will be reduced into smaller payments. Legitimate tax relief firms will usually investigate if you qualify for other tax relief options before charging you a retainer fee for the services. The outcome is based upon how our firm negotiates with the IRS for you to decide a lesser amount than what you owe. We usually try to understand the taxpayer’s financial situation and the ability to pay before we do the negotiating.

A Tax relief organization is entrusted with the responsibility to provide negotiations for recently accumulated debts (which indicates that you can’t make payments because of financial setback), as well as a penalty, interest suspension, and levy garnishment release. In these negotiations, the debt relief corporation works with the IRS to prevent your tax interest and penalties from accruing and fights to avoid any levies on your wages, assets and various belongings. Despite your situation, your tax attorney must advocate for your eligibility and provide adequate assistance.

The Primary Service of Tax Relief Organization

The primary motive of tax relief professionals is to assist the client to resolve an outstanding tax debt that they’ve accumulated with the IRS or the State. Many taxpayers also need representation for a tax audit, where taxpayers no longer need to meet with the IRS because they are well represented with the aid of a powerful tax lawyer. Tax relief organizations have professionals on their team that have the expertise, experience, and knowledge in tax resolution and other specialties that are designed to assist their clients.

#1 Tax Relief Services – IRS Clean Start Initiative

The IRS clean start Initiative is a government program that permits the taxpayer to work with the IRS if you’re going through economic difficulty and have an outstanding tax debt. This application permits an installment agreement that allows you to pay your tax debt via smaller payments over a prolonged time frame, as opposed to massive payment upfront. This initiative also allows you to work with the IRS to reach an offer in compromise (OIC). An offer in compromise provides an avenue for a decreased tax rate in contrast to the accumulated sum. You must be able to prove that you cannot pay the entire amount. The IRS can accept a lesser amount if you can show that the amount you are trying to accept is the highest amount your tax relief organization might be able to acquire from you.

#2 Tax Relief Services – Taxpayer Advocate Service

The Taxpayer Advocate Service is part of the IRS that works on your behalf. In case you’ve attempted to work things out with IRS unsuccessfully, you can send an application for the free taxpayer services obtainable. Tax alleviation services permit you to get rid of tax debt, reduce your tax bill or get the IRS off your case with regards to enforced tax collection. Tax experts can also prevent wage garnishments and prevent the seizure of assets.

Conclusively, while you are seeking relief from tax debt, it is vital to remember all of your alternatives. Professional tax attorneys can help you explore the IRS options which might minimize your time debt amount. In case you prefer to work with the IRS directly, always go with the IRS clean start Initiative. However, to successfully reach an agreement with the IRS you will need some taxation knowledge.

You can also acquire advice and representation from our tax attorneys for the best tax relief services.

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