When dealing with Tax Relief Advocates you will always have access to a Tax Professional even if you have not signed up for our services yet.
All Tax Professionals are held by a strict code of conduct where if we do not abide we will lose our license and incur hefty fees. On top of that we started in this industry to truly help as many individuals as we can. So losing our license is not an option.
We have resolved tax issues for thousands of clients. TR Advocates has the experience to resolve the most difficult IRS problem. You will receive customized care and personalized solutions crafted to fit your specific issue.
If you need your taxes filed for you business or personal, or facing the possibility of an IRS collection action, a tax consultation from Tax Relief Advocates could be the best possible decisions you could make – and we are ready to assist you. By making the decision to get a tax consultation from us, you can expect the expert advice, guidance and representation needed to get you through the various IRS collection processes as quickly, cost effective and painlessly as possible. Your tax consultation doesn’t just end with your first call to one of our specialists, as we have an entire team of consultants, attorneys, enrolled agents and CPAs ready and willing to stand with you. What’s more is the fact that our entire team has a proven track record of results in helping people just like you, in the same situation and in the same state of mind – you are not alone. By getting a tax consultation with Tax Relief Advocates you’ll receive the numerous benefits of years of experience from some of the top tax professionals in America.
How do you negotiate with the IRS? If the thought terrifies you, relax. There are licensed professionals out there that specialize in helping residents just like you resolve your tax headaches. Depending on your financial circumstances and how much you owe, you may be able to make payments over time, or pay a reduced amount, either in a lump sum or in payments. In some cases you won’t have to pay the back taxes at all, at least for now. In some cases, you can have your back tax obligations permanently wiped clean.
There are times where you agree with the IRS that you owe taxes, but you can’t pay due to your current financial situation. If the IRS agrees that you can’t both pay your taxes and your reasonable living expenses, it may place your account in Currently Not Collectible (CNC) (hardship) status. While your account is in CNC status, the IRS will not generally engage in collection activity (for example, it won’t levy on your assets and income). However, the IRS will still charge interest and penalties to your account, and may keep your refunds and apply them to your debt. Before the IRS will place your account in CNC status, it may ask you to file any delinquent tax returns. If you request CNC status, the IRS may ask you to provide financial information, including your income and expenses, and whether you can sell any assets or get a loan. If your account is placed in CNC status, during the time it can collect the debt the IRS may review your income annually to see if your situation has improved . Generally, the IRS can attempt to collect your taxes up to 10 years from the date they were assessed, though the 10-year period is suspended in certain cases. The time the suspension is in effect will extend the time the IRS has to collect the tax.
The IRS may provide administrative relief from a penalty that would otherwise be applicable under its First Time Penalty Abatement policy. You may qualify for administrative relief from penalties for failing to file a tax return, pay on time, and/or to deposit taxes when due under the Service's First Time Penalty Abatement policy if the following are true:
The failure-to-pay penalty will continue to accrue, until the tax is paid in full. It may be to your advantage to wait until you fully pay the tax due prior to requesting penalty relief under the Service's first time penalty abatement policy. Other administrative relief: If you received incorrect oral advice from the IRS, you may qualify for administrative relief.
If you're financially unable to pay your tax debt immediately, you can make monthly payments through an installment agreement. As long as you pay your tax debt in full, you can reduce or eliminate your payment of penalties or interest, and avoid the fee associated with setting up the agreement. Before applying for any payment agreement, you must file all required tax returns.
If you don't receive your statement, send your payment to the address listed in your agreement. There may be a reinstatement fee if your agreement goes into default. Penalties and interest continue to accrue until your balance is paid in full. If you are in danger of defaulting on your payment agreement for any reason, contact us immediately. We will generally not take enforced collection actions:
The Offer-in-Compromise can be a life-saving form of tax resolution for those who truly need it. On average people who settle their debt using an Offer-in-Compromise end up paying less than 20% of the actual amount they owed to the IRS. Approved by Congress to aid taxpayers, an Offer in Compromise (OIC) can be the ideal solution for resolving your tax problem as it can result in significant savings. In some cases, your financial situation may make it nearly impossible for you to pay off all your tax debt, even when utilizing tax resolution over the long term via an installment plan. In such situations the IRS may be willing to accept an “Offer-in-Compromise” and significantly lower your tax bill.
The acceptance rate on OIC’s is fairly low due to errors or omissions on submissions. In order to have a better chance of approval, one should utilize professional assistance for this complex process. Our highly qualified, trained and experienced staff will work very hard to see if this is the best solution for your IRS tax debt. A tax debt can be legally compromised for one of the following reasons:
Regardless of the reason, to be eligible for an Offer in Compromise the taxpayer must demonstrate that collection of the tax would create an economic hardship or would be unfair and inequitable. For the best chances in successfully negotiating an offer in compromise, you’ll want a professional on your side. Tax Relief Advocates' expert tax accountants and attorneys are highly experienced in preparing, submitting and settling these cases. By calling one of our Tax Consultants we will answer any questions you may have and provide you with a better assessment of your options.
The IRS can sometimes saddle you with a tax debt that is actually the responsibility of your spouse or ex-spouse. If the actions of your spouse caused the tax problem and you were unaware of or had no part in those actions, you can use the IRS Form 8857 to request tax resolution called “innocent spouse relief” and have the tax debt and penalties removed.
Can you afford to live on 50% of your paycheck? Probably not. When the IRS or a State has failed to collect back taxes, they will begin to seize assets. If phone calls and letters are not returned, they will take the next step. This process is called a “levy”. The taxing authorities are legally allowed to seize bank accounts, demand payment from accounts receivable, take control of property for auction, and assume title on vehicles. Virtually anything of value can be seized to satisfy the outstanding debt. Wage garnishments are another form of tax levy, though the seizure of assets from your paycheck is an ongoing process. If the levy on your wages is removed through tax resolution, the wage garnishments will be stopped. Since wage garnishments function as a basic form of a forced, involuntary installment plan, they can sometimes be removed through tax resolution by setting up a regular and approved installment plan. Besides removing the burden from your employer and giving you the power to handle the payments yourself, an installment plan can often be set up with payments that are considerably less than the wage garnishment amounts. That is why this form of tax resolution is very common. Levies and wage garnishment can be the most stressful and humiliating of all collection tactics. They do this to force taxpayers into willful compliance. We may be able to release your wages from garnishment and/or possibly stop the levy. Tax Relief Advocates has been successful in getting levies lifted and garnishments stopped in a timely manner. We know your rights as a taxpayer and we are here to help.
When the IRS issues a notice that it intends to levy and seize your assets you have 30 days to challenge the tax levy to attempt tax resolution or pay the amount due. If you cannot pay the tax debt in full before the IRS is scheduled to seize your assets, you may be able to remove the tax levy anyway with proper tax resolution by setting up an installment plan with the IRS or by making other arrangements. But the best course of action is to work out a mutually agreeable solution with the IRS – and avoid the levy altogether.
The IRS is far from perfect, and does make mistakes. There are a few perfectly legitimate ways to remove a tax lien if you know where to start.
You can get the IRS to remove Notice of Federal Tax Lien if you can show that the IRS was in the wrong. A lien can be removed with tax resolution on appeal if:
On the notice of the lien, you are given the option to request a Collection Due Process hearing with the Office of Appeals. The request for an appeal must be made within 30 days after fifth day of the lien being filed, or by the date indicated on the notice. We can deal with the IRS and provide assistance with filing an appeal, or requesting a lien withdrawal.
A new tax lien policy allowing for “withdrawal” gives hope to many struggling taxpayers. Withdrawal removes the lien as if it was never there, and occurs when the taxpayer’s lien is paid off, or it’s proven that the lien was filed falsely. Withdrawal is also possible if you qualify for the Fresh Start Initiative, have entered a direct debit agreement, and your balance is lower than $25,000. In order to complete an official withdrawal of a lien, the taxpayer must make a formal request to the IRS (using IRS Form 12277, also known as Application for Withdrawal of Filed Form 668(y), Notice of Federal Lien). Once this request is filed, the IRS will return a form 10916(c), which is the magic word to open the door to cleared credit. It is important to note that this new policy does not include tax liens held at the state levels. Those liens will still be evident on your credit reports. Also not subject to complete withdrawal are tax settlements. Such settlements, commonly called “Offers in Compromise,” are present when a taxpayer and the IRS settle on terms of a lien where less than what is actually owed is considered adequate payment. Due to this not being an exact repayment in full, the IRS grants what they call a “release” rather than an actual withdrawal.
The same as with a withdrawal, if you qualify for FSI and your balance is below $25,000, you can request that the lien be released. Otherwise, once your debt has been paid in full, or you’ve arranged a streamlined installment agreement, your lien will be released after 30 days. A lien that’s been “released” means that it’s no longer attached to your property and assets, and public records will reflect the change. But unlike a withdrawal, a release will remain on your credit report for up to ten years after the debt has been paid. Once you receive a copy of the lien release, you can use it to update your credit report with the credit reporting bureaus.
Another common term in lien removal is subordination, which allows another creditor to “subordinate” the IRS’ interest in a property and move ahead of the line. The IRS will only permit this if it’ll help them get paid more or sooner. For example: if you’re trying to refinance your home, the IRS will allow a lender to go above the lien and refinance in exchange for a cut of the proceeds. This process is complicated, though, and professional assistance is always recommended.
Once you have the tax lien removed, either through withdrawal or release, it’s time to contact the three credit agencies to make sure they’ve updated your reports.
Tax liens can slash your credit score, and will tarnish your credit history for years to come. Ensure that any liens are updated or removed from your credit report as soon as possible.
Pay your taxes in full and on time! File your taxes before the IRS has the time, or the reason, to send an IRS rep out to file a tax lien against you at your local courthouse. The damage a lien could do to your credit report is serious, so it’s best to avoid having one filed in the first place. Easier said than done, right? Well, there are a few ways you can prevent a tax lien if you can’t pay your taxes on time.
Tax Relief Advocates can help. If you owe IRS tax debt, have already received a Notice of Federal Tax Lien, or feel that a lien was filed against you wrongly, our tax attorneys will work to have your tax issues resolved once and for all.
We find that taxpayers do not file tax returns for one or more years for various reasons and the problem can become overwhelming. Missing all or a portion of their records, personal hardship and/or neglect are one of many reasons people fall behind in filing their taxes. Fortunately, there are ways to approach the problem of unfiled returns. The IRS maintains a file going back numerous years of all W2′s, 1099′s and 1098′s (mortgage interest paid) filed in the name of individual taxpayers. Tax Relief Advocates can determine certain facts from Master File Transcripts, available for those years where the IRS has prepared a Substitute Return. These ‘records of account’ provide Adjusted Gross Income, Taxable Income, Tax, Number of Exemptions, Filing Status and Self Employment Tax. When we take on this kind of case, we will assist in re-filing your returns and our negotiations will be based on our more favorable returns for your benefit. Tax Relief Advocates can prepare past returns using various substitute sources when there are missing records. Those returns should be filed as soon as possible in order to avoid accumulated compounding interest. Also, it should be noted that if returns have not been filed in the most recent three tax years, those returns should be prepared immediately in order to claim any refunds that may be due.