When the IRS tries to collect back taxes unsuccessfully, it will demand payment through phone calls, field visits and letters. Then, not opening or returning these calls or letters will only make matters worse making the IRS follow to the next step. The IRS is allowed by law to withhold a significant percentage of the employee’s pay, seize bank accounts, and demand payment from accounts receivable, among others. It’s important to negotiate with the IRS by giving a temporary solution. But, it is also essential to develop a long-term strategy for dealing with your tax debt.

As you might know, if your company has employees, you are required to payroll taxes. If you owe these taxes you will need to resolve your tax debt soon. If they are neglected long enough, the business can even be closed. Regardless this situation, the IRS is authorized not only to seize all assets to satisfy the debt, but also to collect the tax debt from the business or people who are responsible for withholding and paying these payroll taxes. As each case is different, you will need an experienced tax attorney to give you the right advice on which would be the best path to follow for your situation.

If circumstances out of your control have occurred and stopped you from paying your tax debt or led to delinquency, there are a many ways to seek solutions. Demonstrating that you meet a reasonable cause standard as for example death, serious illness or divorce; or that an unreasonable error or delay occurred in IRS resolution based upon mistakes created by the IRS itself, you are likely to get all of your penalties or interest removed from your tax debt.

Generally, a Lien is set up when the IRS could not collect a tax debt from a taxpayer successfully. A Lien gives the IRS a legal claim to your home or property, preventing you from your ability to sell your assets without proper authorization or a signed release by the tax authorities. So, a tax lien on your property can be crippling when you want to buy, sell or refinance. If you are a qualifying candidate, we might negotiate a lift of the tax lien, which would allow you to refinance or sell.

If you receive a letter notifying that you have been selected for an audit, even if you do not believe that you have done anything wrong or do not know why you are being audited, you should not attempt to represent yourself. Before they take computers, records, and even enter your place, you should know your rights. We can handle your case with the IRS so it becomes a worry-free experience for you.

Unfortunately, thousands of taxpayers do not file the required tax return legally due to many reasons. However, this may be construed as a criminal act by the IRS and is likely to contribute to more issues in the future for them.

This kind of criminal act has a punishment of a year in jail and $10,000 for each year that is not filed. But, don’t panic! Never mind what you are told, you always have the right to file your original tax return.

If you have lost all or most of your investment for being a victim of a fraudulent investment scheme, you may be eligible for the United States Tax Code and get back 30% to 40% of your losses.

Through this process, which is highly technical and complex, you can convert your capital stock losses into “ordinary” losses and offset them against prior, current and future ordinary taxable income, thereby reducing the taxes paid in those years, and receiving a refund with interest.

If you are unable to pay the full amount you owe to the IRS, an Installment Agreement can be a reasonable option for you. With this option, you will be able to pay your full tax debt in more manageable amounts.

Firstly to be eligible, all returns that are due must be filed. Secondly, the IRS does not get involved in this kind of payment agreements when the amount owed is less than $25.000.

Be aware of the additional penalties and interest, and get expert advice before choosing this alternative.

Many IRS taxes, penalties and interest qualify for 100% discharge in bankruptcy. Generally, this option can help you solve your tax problems and stop IRS collections immediately.

With the filing of a bankruptcy case, IRS suspends bank account levies and wage garnishments automatically, and you can either receive a discharge or a reorganization of your tax debt. Call us and know the rules you need to fulfill to discharge income taxes!

AUDIT

The IRS has 3 years to Audit a return, from the date the return is filed. However, if the IRS determines that you have a 25% understatement of income in a year under exam, they can also audit the last 6 years.

Furthermore, if the IRS claims fraud or other criminal activity, the statute will be open for an indefinite period and the IRS can go back as far as they want.

COLLECTION

The IRS has a 10 year period starting the date of assessment to collect taxes, penalties and interest. Thus, you will not owe the IRS anything after that 10 year period has expired. You should verify the assessment date, so you can compute when this period passed.

If the IRS is attempting to collect a tax liability expired, then you must inform the IRS in writing that they no longer have the right to collect this tax liability. If this is correct, the IRS will cancel the tax debt which has expired.

When you file a tax return jointly, either you or your spouse is responsible for the entire tax liability. Do not sign a joint tax return if you think that there is something incorrect on it. If you file an incorrect joint return, you might end up paying more taxes in the future. You still can file separately.

However, if you find yourself in trouble with the IRS due to your spouse or ex-spouse's actions, you may qualify as an Innocent Spouse and apply for tax relief. There are three kinds of tax relief for married people who filed jointly: Innocent spouse relief, separation of liability and equitable relief. Find the right option for you and do not be subject to the taxes caused by your spouse or ex-spouse.

An Appeal puts the Internal Revenue Service on notice that you do not agree with an IRS decision and you are seeking an appeals conference or meeting to change it.

All intrusive type actions such as Audits Determinations, Offers in Compromise, Installment Payment Plans, penalties, interest, liens, innocent spouse decisions, among others can be appealed. Here, you must file an Appeals request within a certain legal time frame, keep the records and documentation to support your position.

If you have been threatened with an IRS Levy or Seizure or the termination or rejection of an installment agreement, the IRS allows you to file a Collection Appeal.

The Collection Appeal Program (CAP) is a request by taxpayers that do not agree with an IRS decision and can be received either verbally or in writing. It is filed on a form where you have the right to explain how you believe the situation could be solved without the IRS levy or seizure.

If you want to know what type of information is in your IRS files, you should consider using the Freedom of Information Act (FOIA) which provides public access to agency records unless these are protected from disclosure.

This IRS information could be helpful as it discloses the data that it is analyzed to set your taxes, penalties and/or interests. Freedom of Information documents can explain the reason, the way, the moment and the place where your IRS problems have begun. Keep in mind these requests are received and processed within timeframes set by law.