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IRS Abatement Letter – How It Can Help You to Avoid Penalties

Posted on by Mike

Most people haven’t heard of an IRS abatement letter. So let me explain how it can affect taxpayers. Initially, after a number of steps have been taken, the IRS is empowered by the constitution to issue penalties when taxpayers are found to have defaulted on their required payments.

The IRS has about 150 different penalties to hand out to tax defaulters. These penalties differ depending on the case and how much the liability amount.

The worst part is that the IRS charges interest on the original penalty, therefore, it usually needs to be contested. When contested, the penalties can be abated and in a number of cases, completely reduced to zero. Contesting these penalties or requesting for abatement is done with an IRS abatement letter.

What Is An Abatement Letter?

It’s a letter written to the IRS requesting that penalties imposed on back taxes owed be reduced or removed completely, with reasonable cause. The reasons for which the IRS can agree to abate penalties on taxes include the following:

  • Medical grounds: Illness to self or a loved one whose care stood in the way of making tax payments.
  • Lack of proper understanding of the attendant tax laws.
  • Bad accounting: This is usually a fault of the accountant in charge.
  • Military duty
  • Disasters like fires, floods, hurricanes, and the likes.
  • Death
  • Alcoholism and drug abuse problems.
  • Sometimes an abatement can be requested if advice from the IRS led to default.

Things You Need to Do After Writing the Abatement Letter

First and foremost, it’s vital to be sure that the reasonable cause for which the abatement is sought is actually ‘reasonable’.

The IRS defines reasonable cause as a situation that presents itself and by so doing prevents the taxpayer from being able to meet tax obligations despite taking reasonable steps to ensure that they meet it. A cause is not reason enough if the effort has not been made to pay the back taxes in question.

The next thing to do once the letter with a reasonable cause is established and written is to ensure that all necessary documents are prepared and attached to it. These documents include the IRS notice, filing of tax returns and IRS document 834 which is the abatement or refund request document. Any documented evidence of the reasonable cause on which the abatement request is hinged needs to be included as well. The delinquent taxes may also be sent along with the documents but that is not a compulsory requirement. Tax attorneys have however suggested that it may cause the application to be looked upon more favorably.

Once the decision to file for abatement has been made and run through a tax lawyer for advice; also through the accountant(s) for their input and all entities involved in the whole tax filing process, it is ready to be sent.

It’s crucial to remember that an IRS abatement letter should be filed as soon as possible and once it is concluded that everyone is on the same page. Although it can be filed after payment has been made, it is best to file abatement requests before making penalty payments. A refund, however, can be requested after though if deemed necessary.

The most important reason why an abatement letter has to be filed on time is that the penalties already earn interest, as well as attract more penalties. Therefore, filing the abatement letter early reduces substantially the amount that may be potentially owed.

The Importance of Professional Assistance

The average taxpayer may not know his or her rights, it’s important to understand them. Seeking a professional’s assistance will increase the odds of a successful tax resolution. Let our Tax Attorney and Enrolled Agents boost your chances of getting favorable results.

Taxpayers found to have defaulted can earn abatement for other reasons apart from those listed above, for example

  • Defaulting out of not previously had to file a return
  • Not having had a tax penalty for the preceding 3 tax years
  • Having paid or arranged to pay all back taxes just before the penalty landed.
  • Filing required tax returns or having submitted an extension request before the penalty hit.

These reasons just listed are mostly technicalities and needs to be argued or presented by tax lawyers with good knowledge of tax laws and their applications.

File Extension to Avoid Tax Penalties

As a bonus tip, many people do not realize that the tax penalties they end up having to pay are avoidable by doing minor things, most importantly, filing tax returns on time. Even when the tax payments have not been made, filing tax returns on time protects from a fine of up to 25% – which is the requisite penalty for late filing tax returns. Once the books have been done and it is obvious that paying taxes upfront may be hard, it is best to request an extension or conclude on a payment plan with the IRS in good time. It is, therefore, best to try as much as possible, no matter what is going on to file returns on time when possible.

If these and other prevention steps ever fail due to a good enough reason then a tax abatement letter is the way to go. For cases like this or other tax debt relief issues, the lawyers at Legal Tax Defense always come through for just a fraction of the cost owed.

Make that contact today, reduce the burden!

For broader help from Legal Tax Defense, visit our tax attorney, tax debt relief, and tax defense attorney homepage.

Notice of Intent to Levy – Ways to Resolve the Problem

Posted on by Mike

Notice of intent to levy is a notice issued by the IRS if it intends to seize your assets. This notice will only get issued if you have a seriously delinquent tax debt that hasn’t been resolved. It typically references a tax period for covering the taxes you owe. The IRS will send this notice for every tax you owe, that it intends to take before possessing your property. The IRS usually can’t take control of your property except if it has provided you with notice beforehand.

If the IRS decides to charge you or your business any tax that isn’t fully paid, IRS will ultimately get around to mail you a number of collection notices. IRS will typically issue four collection notices for business entities. You will need the assistance of a tax lawyer to help you handle the issue. Tax lawyers can help you solve the problem by getting you the best tax debt relief options to solve your notice of intent to levy.

Notice of Intent to Levy Process

Under federal law, the IRS is obligated to follow the guidelines before seizing your property.

  • Give you a written or letter notice of intent to levy along with explaining your right to appeal.
  • Deliver the notice in person or via a registered mail to your address.
  • Give an explanation as to why they are issuing the levy (seizure process, and telling you what your options are) is included.

Note, there are several exceptions to the regular 30-day rule regarding notice of intent to levy. With the following exceptions including state tax refunds, disqualified employment tax levies, if the IRS deems the tax collection to be in jeopardy, and national contractor dues.

What Assets Can the IRS Take When They Sent out a Notice of Intent to Levy?

Here is a list of assets that the IRS can levy:

  • Property (vehicles, homes, and personal property)
  • Right to property
  • Money in bank accounts
  • Wages and commission from your employer
  • Social Security benefits
  • Vendor or contractor payments
  • Employee travel advances
  • Retirement benefits
  • Government retirement benefits from the OPM (Office of Personnel Management).

Apart from that, the IRS is also positioned to take nearly anything you own even beyond the bare essentials. The IRS can take everything you own and leave you with almost nothing or very little until all your tax debts are paid off. However, the IRS will let you know how much of your total income can be exempted from the levy. This applies to wages, commissions, salary, and other forms of payment. It considers your pay frequency, filing status, and the number of recent tax return exemptions you took.

What Should You Do If You Receive the Intent to Levy Notice?

The easiest or fastest way to deal with the intent to levy notice is to pay the tax debt. The moment you make the tax payment, the IRS will stop all collection activities. If on the other hand, you don’t have the whole tax balance to pay, there are other options that you can consider.

The IRS is always open to working with you for the most optimal options to resolve your tax debt. In particular, you will be able to apply for an agreement where you can make the payment in installments, or you make an offer in compromise. In most cases, you will find the best option to resolve your tax debt when you work with an Enrolled Agent, tax attorney, or a licensed tax professional.

Common Ways to Resolve an Intent to Levy Notice

#1 Innocent Spouse Relief

In a situation where you believe that your former spouse or spouse is the person who is solely responsible for your tax debt, you have the option to file for ISR (Innocent Spouse Relief) with the IRS. To carry out this option, you will need to meet all the IRS requirements as listed below:

  • You filed a joint return that has an understatement of tax (deficiency) that’s solely attributable to your spouse’s erroneous item. An erroneous item includes income received by your spouse but omitted from the joint return. Deductions, credits, and property basis are also erroneous items if they’re incorrectly reported on the joint return
  • You establish that at the time you signed the joint return you didn’t know, and had no reason to know, that there was an understatement of tax and
  • Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understatement of tax.

#2 Offer in Compromise

In a situation where the IRS chooses to settle your debt for less than what you owe for taxes then an Offer in Compromise will have to be reached. Because of the unique circumstances surrounding this option, the IRS rarely uses this option. They usually only offer this type of arrangement with tax debtors sparingly. In fact, back in 2016, only 43 percent of all Offers in Compromise was accepted by the IRS. Once the IRS decides to approve an offer in compromise, once the taxpayer makes the payment, all kinds of collection activity will stop. However, applying for this option can be a bit complicated so you might want to seek professional help.

#3 Installment Agreement

An AI or installment agreement is when you agree to make monthly payments to cover your debt. An installment agreement typically reduces the penalty for failure-to-pay by at least 50 percent, although the IRS will keep gathering interest. Note that the only way to avoid a situation were the IRS will seize your assets or carry on with other collection actions is if you keep up with your payment as agreed.

#4 CNC Status

Your CNC Status which can also be referred to as (currently not collectible status) hardship status can help you in this situation. With this type of agreement with the IRS, you will have to provide a collection data statement to the IRS as proof that if they (the IRS) forced you into paying the taxes, it would put you in financial hardship.

Still Not Sure What to Do?

Talk to our tax professionals today. We can stop the notice of intent to levy and get you the best option to save your assets.

For broader help from Legal Tax Defense, visit our tax attorney, tax debt relief, and tax defense attorney homepage.

How to Successfully File Previous Year Taxes – Step By Step Guide

Posted on by Mike

It is an offense under federal law if you fail to pay or file previous year taxes. Most times, you get fined and you could end up in prison. If you owe taxes or skipped filing your taxes, make sure you get this done. To accomplish this you need to gather the relevant information as well as paperwork. Complete the necessary forms and forward them to the IRS. More so, consult with a tax attorney if you need professional advice and help file the previous tax year.

Why Do You Need To File Your Previous Year Taxes?

There are many benefits that come with filing your back taxes. You will reduce charges on interest, penalties, and fees if file your taxes early. The truth is; when you do this you save yourself from the hand of the law. Remember, you could end up owing more if you fail to file your taxes. More so, you save yourself from losing your tax debt relief options.

Step-By-Step Guide on How to File Previous Year Taxes

The first step towards filling your previous unfiled years is to find out what documents are necessary. You can consult with one of our tax lawyers if you don’t know what to do.

1) Find out the exact number of years you are unfiled for.

This is important to avoid over or under filing previous year taxes. Thus, you need to look at your records. Take a look at copies of your previous tax filings, refunds, and receipts. This is one of the best ways to determine the exact number of years you have unfiled. If you cannot determine the exact number of years, contact the IRS for clarification. We offer a Tax Investigation; this will obtain records for 10 years and IRS transcripts. We will then go back through your history to see exactly what needs to be accomplished to get you back on track with IRS.

2) Gather Income documents

To file past year’s taxes, take a look at your old documentation like W-2s, 1099 or 1098. These documents will help you with your income information. If you cannot find them, contact your employer although there is no guarantee they will help.

Usually, when you are employed, you will receive a W-2 form at the end of every working year. This document has information about your wage, salary, and amount paid in tax.

If you have student loans or other loans, you are given form 1098 if you paid school fees and.

If you collect a pension as well as dividend income or have a contract job, you will get 1099 forms.

3) Contact the IRS or Form 4506T for Missing Income Documents

Chances are that you might not find all the necessary documents you need to file the previous year’s taxes. If this happens, call the IRS or use form 4506T. With this form, you can request for relevant information found on the forms in step 3.

Understand that the IRS will not send you duplicated copies of this document. Rather, you will get the necessary information that will help you in filing your back taxes.

We also conduct a service called a Tax Investigation that wills 1. Get you protected and 2. Find out exactly what you owe and for what years. We are also able to obtain IRS transcripts giving our firm detailed information about the last 10 years’ history.

Things You Should Know Before Filing Previous Years Taxes

Once you have all the relevant documents and information, you can start to file your back taxes. Here are a few things you should know before filing your previous year’s taxes.

#1 Understand the Different Methods You Can Use To Prepare Your Previous Year Taxes

To prepare your back taxes, you can either do it by yourself or seek professional help.

If you want to do it yourself, you can pay per year through different internet services or use the previous year tax filing forms on the IRS website, all you need to do is follow the step by step instructions. If you use online services to prepare your previous year taxes, you have the option to e-file them otherwise you will have to mail it to the IRS.

In the case that you mail your tax form to the IRS make sure you mail the forms to the address that the IRS provided. If you are confused go to the IRS website for specific instructions.

In a situation where you cannot do it yourself, call us for professional help. We have tax lawyers, and enrolled agents that can help you file complex previous year taxes.

Benefits of filing previous year taxes with professionals: Usually, preparing your previous year taxes with a professional, he/she will file directly with the IRS and have your tax problem resolve faster.

#2 Decide On  Payment Options and a Plan That Is Precise For You

If you owe taxes that you cannot clear at once, request for a grace period of 60 to 120 days. You will need to call the toll-free number 800-829-1040. If you cannot pay within the grace period, request a payment plan with the IRS. With this plan, you can clear your tax debt with installment payment till you clear your debt with the IRS. You can only do this if you have filed your back taxes. You can work with a tax lawyer to come up with a plan. Your plan should focus on payment by monthly installment.

In the case, when your debt exceeds $50,000, you need to complete and submit forms like the 9465 and 433-F. It’s best to have a tax lawyer help you with this complex process because it requires legal knowledge of tax law. Furthermore, tax lawyers can help you reduce tax debt.

#3 Benefits of paying the principal amount

Paying the principal amount can help to reduce the interest rate. To do this, you can either write a check or do an electronic transfer. More so, you can make payment via your debit or credit card. Doing this will help you reduce your tax penalty and interest on the money you owed.

#4 reduce Your Penalty and Fees by negotiating with the IRS

You can negotiate with the IRS to pay less than you owe. This is known as an Offer in Compromise. To start the process you will need to fill the pre-qualifier form to find out if you qualify for the Offer in Compromise. There are other programs that we exercise for taxpayers like the fresh start program or abating the penalties.

Make sure you list all your expenses for each month such as obligations like insurance, food, gasoline, clothing, rent, mortgage payments, and other expenses. You will also be required to pay an application fee of $168 (price may vary by filing year). The IRS will only review your application if you meet their criteria.

#5 Work with Tax Professionals to File Previous Year Taxes

If you want to successfully file previous year taxes you will need some legal knowledge and legal knowledge in filing back taxes. To file the previous year’s taxes, you will need to use the correct form from the IRS. So, it is best to seek help from a tax relief company that has certified enrolled agents and tax attorneys to help you go through the process quickly so you do not have to pay penalty and interest for owing money to the IRS.

For immediate help in filing previous year taxes, call us now for a free case evaluation.

For broader help from Legal Tax Defense, visit our tax attorney, tax debt relief, and tax defense attorney homepage.

Get the Best IRS Back Tax Help Today

Posted on by Mike

With the help of a tax attorney that offers IRS back tax help, you can easily resolve your tax problem a lot quicker than trying to tackle the matter on your own.  It can be an awful experience when faced with the adversity of back taxes. The good news is, it’s better late than never to file your IRS back tax returns. Sometimes, you might not notice your back taxes until the IRS levies your bank account or garnishes your paycheck.  No matter the circumstance, there is always the possibility of IRS back tax help through reaching out to a Tax Attorney who understands the tax law. Don’t live in fear of the IRS connect with a tax pro for help.

When faced with the issue of back taxes, it’s essential to take action quickly and efficiently. The consequences of negligence can be severe, so it’s very important to consult with a Tax Lawyer. Tax lawyers understand your situation and can help you. With a tax lawyer’s help, you are guaranteed peace of mind and security in avoiding further consequences that could affect the Tax Debt Relief.

Consequences of Not Filing Your Back Taxes

The consequences for not paying your taxes vary from case to case depending on the amount you owe. One of the immediate consequences of back taxes is that you will be hit with penalties and interest. Importantly, you can lose your Tax Debt Relief options if you fail to file your back taxes.

Failing to file your back taxes will cause you to be hit with the failure-to-file penalty. This penalty involves a penalty of 5% of your total due tax, which can potentially go as high as 25% if you continue failing to file your back taxes. More so, you face the loss of a refund, as well as any other tax benefits. In this situation, it’s your best bet to seek the professional help of a Tax Attorney. This way, you will get exceptional and responsive help.

Usually, the IRS will be open to give taxpayers a second chance to fix their back taxes if they fail to do so. Usually, this condition is unfavorable and looked down upon from the IRS.  It is very important to meet the deadlines in filing your taxes.

IRS Back Tax Help

There are various solutions offered by the IRS to solve your unpaid IRS back taxes. These solutions will help you to avoid the consequences of your unpaid back tax. When in this situation, it’s essential to respond immediately to the IRS. This is necessary whether or not you can make the full payment. The truth is to do the best you can when it comes to payments.  After, you can explore these following tax relief options:

1. The Option of Payment by Installment

This is a payment method that involves paying a certain amount monthly to the IRS. Using the United States Tax Code, victims of Ponzi schemes can recoup 30% – 40% of their losses. So, if you fall into this category, you can involve a Tax Attorney. The attorney will help to navigate you through this complex process. Although this process is very technical, it can reduce the taxes you paid in the past. Thus, this entails that the IRS will refund a certain amount of money to you with interest or Tax Debt Relief. There are different types of installment payments and you can choose the option that best suits your financial status. This is a choice that your Tax Lawyer will help you make with ease.

2. The Option of Provisional Postponement of Action

This is not a payment plan for paying your unpaid back taxes; this is a delay tactic or diversion in paying the immediate amount due for payment to the IRS. In this situation, the IRS hits your account with a ‘not collectible’ tag. You can withhold payment until there are improvements in your financial status. This option does not reduce the amount you owe in unpaid taxes. During the period of delay, it could result in a certain amount of interest payable to the IRS.

3. The Option of an Offer in Compromise

Offer-in-compromise is a payment option that enables you to pay less of what you owe the IRS. In this option, you work hand-in-hand with your tax attorney to propose an offer to the IRS. The IRS forgives your debt once you are able to pay the agreed amount of unpaid taxes. Anyone can apply for the offer in compromise, however, not everyone is eligible. The IRS does not offer this payment option for everyone. To be eligible for an offer in compromise, you must meet the criteria set by the IRS. Once you opt for payment by installment, your eligibility chances are very slim when doing it on your own.

IRS Back Tax Help Attorneys – Free Consultation

Back Tax can be very complex to resolve if you don’t have the experience and legal knowledge in tax law. Our IRS back tax attorneys have helped over thousands of taxpayers to resolve tax issues daily and we can do the same for you. We will guide you step by step and make sure every decision that you made is right.

To speak to a back tax attorney, call us now.

For broader help from Legal Tax Defense, visit our tax attorney, tax debt relief, and tax defense attorney homepage.

Tax Debt Relief Company

Posted on by Mike

When looking for the best tax debt relief company and deciding which company is good and legitimate will require research. If it’s your first time looking for tax relief help, then you can always trust Legal Tax Defense. We are the nation’s leading tax experts with tax attorneys and enrolled agents that can help you resolve any tax problems.

Currently, taxpayers are in need of tax relief help companies are growing at a very fast phase for the past 5 years. With the increase in the number of tax resolution firms comes an equivalent increase in the number of companies who leave their clients with higher tax debt and rather than solving the problem. We strive to give our clients the one on one treatment they deserve leaving them with a fresh clean start with IRS.

Steps To Find the Best Tax Relief Company

Here are a few tips on finding the best tax relief company and deciding which tax relief firms can offer you the best tax relief services?

#1 Understand the Different Types of Tax Relief Firms

There are mainly 3 main types of firms that handle IRS tax issues. They are Natural Resolution Firms, Software-based firms, and certified public accounting firms.

  • National tax resolution companies: These types of firms are a big alternative to certified public accounting firms as they have cheaper services that are very affordable. You deal with the junior partners while the main tax lawyer or attorney works in the backstage. You will typically never speak with a tax professional.
  • Software-based tax relief firms: this is the cheapest tax relief help you can possibly get, it is recommended to people who do not have a seriously complicated situation. They are automated by software just like filing current tax year returns. The software has been designed to take you step by step from the start to the finish. These companies don’t Taylor fit tax resolution services to your specific needs.
  • Certified public accounting firms (CPA): these companies are the most expensive and most times dependable and efficient tax relief help you’d find available. A lot of times CPAs do not negotiate with the taxing authorities, they simply do accounting, bookkeeping and tax filings.
  • Legal Tax Defense – We are a tax relief company that has the most affordable rates and best taxation experience firm. You’ll get the best results for any tax problems. We have both tax attorneys and certified enrolled agents working parallel to solve extremely complex situations. Our staff and tax professionals are trained to specialize in tax debt relief.

#2 Find Out How Long The Tax Relief Company Has Been In Business

Research the tax relief company and be sure of it is established. Check the secretary of state website of your state, e.g. sos.ca.gov for California for a more precise and accurate data of the tax relief company establishing date. Remember, the older the firms the better chance that you will get the best tax relief option for your tax debt problem.

Be aware that many tax relief companies lie about how long they have been in the tax relief industry. And most of the time they will claim that their tax resolution firms have been in existence for a decade or even longer when in truth, they only exist just for a few years.

#3 Ask About the Proprietors of the Tax Relief Company

Make sure to ask about the partners of the firms, and qualifications of their tax pros. Any unwillingness by the respondent is a sure sign that there’s something fishy about the firm. He or she does not want you to know the owners and who will be handling your case.

#4 Review The Tax Relief Company Success Rate and Complaints

Research about how successful the tax relief company has been with their case. You can do this by checking the better business bureau website for the number of complaints they have, the ranking of the tax relief firm and all other necessary information. The success rate will give you a quick insight of the tax relief company.

Usually, when a tax relief help company tells you “NO” when you ask about the guarantee of them fixing your tax debt issues, it is most times a sign of honesty and good ethics.

#5 Tax Relief Company Say They Have a Relationship or Connection with the IRS

Ethics and character of a good tax relief company show the true image and culture of the firm. If tax relief companies tell you that they have a relationship or connection with the IRS, it is very likely that the tax relief company is lying to you.

#6 Tax Relief Company Ask You to Pay In Full at the Start

Any tax relief companies that ask for a full payment upfront are very likely that they are trying to scam you. It takes time to resolve tax problems and no tax relief company can resolve your matter in a snap. An ethical tax relief firm usually charges you as needed based on performance.

#7 Make Sure the Tax Relief Company Have Licensed Tax Attorneys

You should always research the tax relief company attorneys. Are the attorneys qualified enough? Does the attorney have enough experience? These are questions you should ask. Any tax relief company telling you they have a licensed tax attorney is not always the truth. You should always ask for proof to make sure the tax lawyer or tax attorney is licensed before the hire.

Not Sure Which Tax Relief Company to Hire? We Can Help

At Legal Tax Defense, you don’t have to go through all the stress to resolve your tax problem. We have excellent records and outstanding reviews with an A+ rating on the BBB. We are a well-established tax relief company with senior tax debt attorneys and Enrolled Agents who are well trained and specialize in solving tax debt or any tax-related issues. Call us today for a free case evaluation!

Tax Debt Problems and the Consequences of Not Having Them Resolved

Posted on by Mike

The majority of people face tax debt problems are taxpayers who made financial mistakes and don’t know the tax law very well. The results are that they end up owing the IRS money and end up not being able to pay.

Many people overextend themselves and even evade going to jail because of their tax debt problems. The consequences are real but a lot of people think this only happens in film and television. The average person who owes money to the Internal Revenue Service will not go to jail. They can face long years of debt and financial struggle due to mistakes that they made.

The IRS is the largest collection agency in the world. The legal rights granted to the IRS include garnishment of your income from all sources, placing a lien on any property or credit that you own or are paying for, and outright seizure of any property that you own.

The amount of tax that you owe acclimates interest and penalties on daily biases. You may be subject to penalties for late payment as well. The idea here is not to intimidate taxpayers but to make the taxpayer take steps to resolve the tax debt problems as quickly as possible.

Many people who owe a substantial amount of money to the IRS think that they can handle the problem on their own. Don’t try and tackle your tax matter alone, reach out to a tax pro. The goal is to avoid increasing tax debt that could have been avoided if the person had looked for tax debt relief to deal with their tax debt problems.

A licensed tax attorney is your best source for advice and direction for tax debt relief. They can present you with the tax relief options that apply to your specific situation. A tax attorney can protect your assets from the IRS. This gives you time to make the best decision possible that costs you the least. And if you want to lower your debt or eliminate your debt, an experienced tax lawyer is your best resource for negotiating a reasonable tax debt relief with the IRS.

Common Relief for Tax Debt Problems

The following are some of the tax relief options that a tax attorney can help a person with who has tax debt issues. The majority of people would never know about these alternatives without the advice of an experienced tax lawyer.

Apply for Form 433A or 433B

The IRS has developed programs to resolve tax debt problems for taxpayers who can’t afford to pay their tax debt. Form 433A or 433B makes the tax collection process stop. The requirement is that a person or a business proves to the IRS that they only make enough money to meet living expenses. The taxpayer account is frozen and all collection efforts cease until the taxpayer can afford to start making payments.

Negotiate and Compromise with the IRS

The IRS will compromise. The basis for the compromise is the taxpayer’s ability to pay. Health factors, disability, and age are taken into account. You pay what you can. Another compromise allows you to pay less if paying the full amount would take away your home.

The IRS is willing to negotiate for a release of the garnishment of your income in part or in total. You and the tax attorneys must prove that the garnishment produces an unnecessary hardship on you and your family. An example would be the inability to provide proper nutrition for your children.

You are also allowed to negotiate the release of some bank accounts from control through an IRS levy. This procedure is complicated because it involves a bank and the IRS. The bank wants to protect itself more than you.

Separate and Joint Accounts

The IRS may attempt to levy a spouse’s account that is held only by the spouse. If the spouse is not a part of the business that the IRS is seeking taxes from or the couple files separate tax returns then, the IRS acted illegally.

Installment Repayment Plans

The IRS will arrange for a taxpayer to pay their tax debt over time. The amount of the monthly payment is based on income and living expenses. This arrangement reduces or can completely eliminate interest payments and penalties.

File Bankruptcy

The IRS sees bankruptcy as the chance for a person or a business to start new. There are some restrictions that prevent the use of credit for a period of time. You may qualify for complete relief of all debts or a partial release from some tax debt. This step should be taken with sound advice.

Tax debt problems can be a source of anxiety, emotional upset, and paranoia. A letter from the IRS can make your life spin out of control. Fear of losing everything that you have worked for all of your life threatens you every minute of the day.

Not Sure How to Handle Your Tax Debt Problems? Call Us

It takes years to master the taxation law. Getting advice and direction from a tax specialist is very important when dealing with tax debt problems. Our tax lawyers help to create a plan of action to solve tax debt problems with the IRS. We will take the time to evaluate your situation. Our goal is to give you the best tax relief advice that fits your circumstances and ultimately give you a fresh debt-free life again.

For broader help from Legal Tax Defense, visit our tax attorney, tax debt relief, and tax defense attorney homepage.

Do I Owe the IRS? How to Find Out

Posted on by Mike

If you are wondering, do i owe the IRS? Here are the few ways you can do check to see if you are in the clear with IRS.

Contact IRS Tax Support

The IRS offers a variety of resources to help you determine if you owe money. The IRS tax tables provide information that shows the percentage of taxes that the government collects for certain things, such as rent, real estate profits or benefits obtained from investments. If you had obtained income or profits from a sale, you could consult the tax tables to determine the amount of money you will have to pay to the government. Note that the tables do not consider compensation deductions.

The IRS website contains detailed information, including IRS publications that provide instructions on how to contact the right department or submit the necessary forms. Some publications cover the percentage of your tax on specific sales. You can also find out what to do if you owe money to the IRS.

Wait for a Letter from the IRS

One of the easiest ways to know if you owe money to the IRS is to wait for a tax bill from the agency. If you had recently moved or paid taxes from a different address than your home address, the times in which the post office sends you a letter, which will include the amount owed and the payment methods available, could be delayed. Sometimes, you will receive a “Notice of Payment” letter from the IRS, which is essentially an invoice.

Receiving an invoice or letter from the IRS does not always mean you owe money. In some cases, the IRS may have misinformation in the registry. To correct this problem, you may need to visit the local IRS office or contact the office that appears on the bill or letter and finds out what documentation you must provide to resolve the situation. In some cases, you may have to hire a tax attorney or request an audit to resolve your tax debt.

Get Help from a Public Accountant (CPA)

Another way to get help to determine if you owe money to the IRS is to work with a certified public accountant (CPA). Most people use the services of an accountant to present their income taxes, and although many people expect a refund, the CPA can also inform you of any outstanding debt. Software programs designed for filing income tax returns can also notify you of possible balances owed to the IRS. If you think there is an error, get a second opinion.

Use the IRS Online Tool

With the IRS online tool, you can calculate the taxes you owe, since it will show you the balance of each fiscal year with the amount of the capital, the interest or the penalty. It will also show you the payments you made during the last year and a half and what is the amount of payment you have made.

You can trust the result because the tool can update interests and fines every 24 hours, although for the payments to be published there is a delay of one to three weeks. Therefore, if you do not notice that they were published immediately, do not worry.

Require Items to use the IRS Online Service Tool

If you plan to use the IRS online tool, you need to have the following information:

  1. Your social security number.
  2. Your date of birth.
  3. You must verify your identity.
  4. The IRS needs to know your marital status.
  5. It also needs your postal address.
  6. Your last tax return
  7. Your email address.
  8. Your mobile phone number in conjunction with your name on the account.
  9. The account number of a home equity loan, a mortgage account number, a credit card in your name or a car loan.

You can use the online tool to know the amount of your payment, the balance of each fiscal year you owe; up to a year and half of your payment history if you are an individual taxpayer.

Then, once you’ve confirmed the information is correct, you can select an option to use electronic payment. Once you have paid, you must wait for one to three weeks for payments to appear in the payment history.

If I Owed The IRS, What is The Consequence?

If you owed money to the IRS and did not pay the debt, the IRS could turn your account over to a collection agency. This usually does not happen until the IRS has done everything possible to contact you. But, if you had changed your phone number, you had moved several times, and you had changed jobs in a short period, it is possible that there is an invoice that you have not been receiving.

When this happens, you can start receiving calls and letters or emails from the agency. This can happen even in cases where you would not have known that you owed money to the IRS. In some cases, a representative may initiate family and friends contacts, which could embarrass you. If an agency does not contact you, contact the IRS to verify that the account is collected. Always ensure to contact a  tax lawyer to resolve tax problems because the IRS can garnish your assets.

How to Reduce Tax Debt if You Owed the IRS?

If you owe the IRS, with the help from our tax attorneys, you do not have to pay what the IRS asked for. We can help to reduce your tax debt. For the best tax debt relief options, consult with one of our tax attorneys. The consultation is FREE!

Federal Tax Lien and the Necessary Steps to Eliminate a Tax Lien.

Posted on by Mike

A federal tax lien is the legal claim of the Internal Revenue Service (IRS) on your property and assets due to delinquent tax liability. When you do not pay your taxes, the IRS can file a lien to file a claim against everything you own. A tax lien not only adheres to your current property and assets, but also to everything that may come into your estate in the future. A federal tax lien is a way the government protects its interest in your assets. If you must sell your possession, the IRS is entitled to the proceeds of your sale, up to the amount you are owed.

Understanding the Federal Tax Lien

Initially, the IRS sends notifications to the taxpayer about the non-payment of tax, informing why they incurred the debt and steps to pay it. Then, the IRS sends a final notice for payment of back taxes. When a final notice is sent to the defaulting taxpayer the intent to collect and a hearing is established. A federal tax lien is enforced if the taxpayer does not acknowledge the notices.

What Does A Tax Lien Mean For A Taxpayer?

A federal tax lien on property or assets means that the IRS has a legal claim. If the assets or properties are sold, the IRS has the initial claim over the proceeds.

Tax liens can do a lot of personal harm. The IRS files a public document called the Federal tax lien Notice (NFTL) at your local or county courthouse. This document is a public record, accessible to anyone interested in obtaining it. When a tax lien is filed, three credit bureaus are notified so the tax liens will appear on your credit report.

Since the inclusion of tax liens on your credit history are obviously considered as negative elements, it presents you as a risky borrower. This tax lien will lead to a significant reduction of your credit score and make it very challenging for you to obtain any type of financing. Increasingly, employers review the credit scores of potential applicants before hiring them.

Common Ways to Prevent a Federal Tax Liens

When taxes are paid in full, the IRS will not file a tax lien against the taxpayer. The issuance of a federal tax lien can be prevented by establishing a payment agreement in installments that satisfies the requirements of the IRS to avoid a federal tax lien filing. Also working payment options out with IRS can avoid this lien process.

A federal tax lien will not be filed by the IRS if the taxpayer makes an agreement or a simplified installment payment agreement. The installment contract of this form requires that the first-rate stability be at least $10,000 in the case of assured installment agreements or $ 25,000 or less within the case of optimized installment agreements.

The Best Way to Eliminate a Federal Tax Lien

A tax lien can be eliminated immediately if you pay your tax debt in full. Qualifying for a tax debt relief program can also help eliminate a federal tax lien. The IRS will remove a tax lien once a taxpayer meets the conditions for payment of back taxes in installments. Tax Liens can be very difficult to eliminate and it is advisable to consult a tax lawyer to resolve the tax debt and try to get the tax lien removed.

How to Handle a Federal Tax Lien If you think it’s issued by Mistake

A federal tax lien can be filed in mistake; you should promptly contact a tax professional. An agent will evaluate your tax payment history to verify that you do not have back taxes and put steps in place to remove the lien.

The release of a federal tax lien implies that the lien does not impact your house. Upon the release of a lien, county documents shall be up-to-date to mirror that the lien has been removed. Nonetheless, a federal tax withholding will stay on your credit score report for up to ten years. The liens are released within 30 days of the complete cost of exceptional tax duties or with the aid of establishing an assured or optimized cost agreement. According to the new IRS application, taxpayers are also eligible for the removal or unencumber of liens if their incredible steadiness is less than $ 25,000.

Less often, the IRS can issue a lien on federal tax if it accelerates tax collection or if it serves the best interest of government and taxpayers. The IRS automatically releases federal tax liens after the tax payment in full. The IRS usually gives out a copy of a lien release for the updates of credit scores with credit bureaus.

How a Federal Tax Lien Affects Your Credit

The filing of a tax lien negatively affects the taxpayers’ credit. Your credit ranking will doubtless undergo a strain, and you can have difficulties getting new credit score or to refinance existing credit.

Still Not Sure How to Resolve Your Federal Tax Lien?  Call Us for Immediate Help

Taxpayers who need assistance dealing with tax liens and tax collections can contact us for immediate tax debt relief. Our certified tax professionals and tax attorneys can easily remove your federal tax lien and solve all your tax problems. The consultation is FREE!

For broader help from Legal Tax Defense, visit our tax attorney, tax debt relief, and tax defense attorney homepage.

Possible Ways to Get IRS Tax Debt Relief

Posted on by Mike

Seeking for the best IRS tax debt relief is very important. Tax Debt can put your bank accounts, assets, and paychecks at jeopardy. Once the IRS collection process starts, the clock begins to tick and the agency begins to look for ways to collect what is owed. If you do not want your wages garnished, your assets froze, your bank wiped out clean then you must take immediate action to resolve your tax debts.

Our tax attorneys can negotiate to get you the best IRS tax debt relief if you are dealing with any of the following tax debt situations:

  • If you owe back taxes to the IRS or a state government
  • If your salary is being garnished
  • If you need help to face a tax lien
  • If you have tax penalties on your credit report and you want to resolve or negotiate

Common Consequence of Not Paying Your Taxes

If you do not pay your taxes, even if you file an extension, you will still be hooked by the application of additional interest on your tax debt. You may also be subject to severe penalties that can increase your total tax debt by up to 25 percent. However, a tax lawyer can help you reduce and minimize what you owe.

Comprehensive IRS Tax Debt Relief Plans

There are no two equal tax situations, so it is not surprising that there is a range of solutions (detailed below) that you can use to solve your problems. Depending on your income, employment status and nature of your debt, you will want to use a certain solution or combination of solutions. Fortunately, you do not have to solve it on your own. You can get the help of a tax lawyer to go through a comprehensive tax debt relief plan:

  • Review your financials and talk about the problems you have with your taxes.
  • Taylor fit the solutions you need to minimize fines and interest while helping you settle your debts as quickly as possible.
  • Installment agreements (IA): a tax payment plan
  • Build a tax repayment plan

If you owe money to the IRS for back taxes, you do not necessarily have to repay everything you owe at once. Learn how you can set up a monthly payment plan with the IRS that allows you to pay your tax debt over time. With the right plan, you can develop a working strategy to pay your tax debt, so you can regain control. A Tax Attorney can even set up partial payments to the IRS in lieu of the full amount.

IRS Tax debt relief Options and Solutions

The IRS usually accepts payment concessions for back taxes. Here are some useful tips for creating payment plans, requesting payments in installments that you can afford, which gives you total through a compromise offer or discharge through the bankruptcy of your tax debt.

Applying for a Payment plan

The structuring of a monthly payment plan with the IRS is pretty straight forward. A tax debt attorney can establish a payment agreement on a tax payer’s behalf. This is typically accomplished either by phone or by filling out some paperwork. Note: The IRS will always refer to a “monthly payment plan” by calling it a payment agreement.

Here are some tips that will help you save time when applying for a payment plan with the state and IRS:

  • Before applying for a payment plan, you must file all your tax returns.
  • You must declare all your fixed and liquid assets to the IRS.
  • You mustn’t have enough good credit rating to apply for loans that will suffice for the payment of your IRS tax debt.

Do You Need to Repay Everything You Owed?

Depending on how much you owe and your financial situation, it may not be realistic to think that you can repay everything you owe. If you are facing serious problems with the tax debt, then ask a tax lawyer to make an offer in compromise (OIC), could help you settle your debt with the IRS for a small amount so you can resolve your debt for less. Our goal is to set up something you and the IRS can live with.

Qualifying for the Currently Not Collectible (CNC)

If you are facing a difficult financial situation with your tax debt it can put your other financial obligations in a major financial hardship i.e paying your mortgage, rent or just flat out putting food on the table. If you are already facing financial difficulties and are living from paycheck to paycheck, a situation of Currently Not Collectible (CNC) could help you postpone the refund to the IRS until you can pay what you owe.  Our experienced tax professionals will help guide you through tax relief options. Call us today don’t wait any longer.

For broader help from Legal Tax Defense, visit our tax attorney, tax debt relief, and tax defense attorney homepage.

State Tax Levy – Everything You Need to Know to Stop a Tax Levy

Posted on by Mike

A state tax levy is a collection method that tax authorities use. A tax levy itself is a legal means of seizing taxpayer assets in lieu of previous taxes owed. A tax levy is not the same as a tax lien. A tax lien is a claim on what you own but a levy goes a step further to seize these assets. The tax levy can be placed on your bank accounts, wages, social security, investment accounts, and your physical properties.

State Tax Levy Process

The state authorities and the IRS are required to go through some appropriate steps before implementing a levy. This ensures that a taxpayer is properly informed of his tax debts and the levy that will be implemented if it is not paid.

For starters, the IRS will assess the tax amount you owe. This is done when you file a tax return stating the money you owe or the IRS will do so for you. This is called a substitute for return (SFR).

The next step is the sending of a tax bill to your most recent address. The bill will demand the payment for the taxes you owe.

If you don’t pay the tax bill or make an arrangement to pay with time then the IRS will send a Final Notice of Intent to Levy and Notice of Your Right to A Hearing. 30 days after notifying the taxpayer of intent to levy, the IRS or state authorities can then go ahead and begin the seizure of assets.

Types of State Tax Levy

There are various types of tax levies that apply to different taxpayers. The state authorities usually go for the method that’s easiest to seize your assets.

  • State Tax Levy on Bank Account (Bank Levy): The IRS will get in touch with your bank and ask them to freeze funds in your bank account for the time being. 21 days after this they will remove the amount you owe from your bank account funds if they are enough to cover. If your funds are not enough to cover your debt the IRS will be entitled to future funds you put into that bank account and will deduct them as they enter.
  • State Property Tax Levy: This involves the seizure of your property and physical assets so the IRS can sell them to cover your tax debt. They are entitled to seize and sell anything from your cars to your house(s), boats, furniture and more.
  • State Tax Levy on Wages: In wage garnishment, the IRS will reach an agreement with your employer to put a tax levy on your wages to deduct a certain amount or percentage from your wages to pay your tax debt. Employers can be held liable for the debt if they refuse to heed to the IRS demands. The levy will continue until the tax and other fees are paid in full or the statute of limitations on the debt expires.
  • State Tax Levy 1099: This is a form of state levy that is issued in some states that entitled the IRS to levy your 1099 payments. The state authorities can levy every amount you are owed currently but cannot touch any future payments you will get.
  • Passport seizures: If you owe $50,000 or more, the IRS can ask the state department to revoke your passport. This is, however, a rare type of levy.
  • Seizure of other assets: The IRS is also entitled to seize assets like life insurance, dividends, retirement accounts, commissions, and more.

How to Stop a State Tax Levy?

A state tax levy is the last course of action the IRS or state authorities will take but it is the harshest. To stop a state tax levy, you will need to act quickly. The first step is to get a tax attorney or a tax lawyer to arrange a tax debt relief for you. Don’t try to handle a tax levy on your own. Tax professionals have a higher success rate to negotiate with the IRS and make an arrangement to stop the tax levy. Some possible arrangement options include:

  • Starting a payment plan: there are payment plans state taxing authorities offer. You can choose a plan to suit your current financial situation. Once you start a payment plan, the IRS will stop the levy.
  • Submit a counteroffer: Your tax lawyer can submit an offer in compromise to the IRS. This offer will request that you pay less than the amount you owe in taxes. This option is available only to individuals that are financially challenged. Get in touch with a tax professional to determine if you qualify for this option.
  • Provide evidence of financial difficulties: If you can prove to the IRS that you are truly financially incapable of paying your taxes, the levy could be halted temporarily. This is especially applicable to wage garnishment. If your tax attorney can provide evidence of financial difficulties to the IRS, the amount can be lowered or canceled. Eventually, however, you will have to find a way to resolve the taxes you owe.
  • File an appeal: You can file an appeal on a levy for several reasons:
    • You applied for bankruptcy before the levy was issued.
    • The statute of limitations on the debt is expired.
    • You paid all your tax debt before the notice was sent.
    • There were errors in the procedure during the assessment of your taxes.
    • You did not get the chance to discuss your liability.
    • Other reasons include spousal defense and discussing other collection methods.

Not Sure What to Do to Stop Your State Tax Levy? Call Us Now!

Talk to our state tax levy attorneys today and explore the best option for your tax levy. Call now to resolve your state tax levy. The consultation is FREE!

 

For broader help from Legal Tax Defense, visit our tax attorney, tax debt relief, and tax defense attorney homepage.