What To Do If You Receive a Levy Notice From the IRS
The IRS is not one to mess around with when it comes time for repayment. They are the least forgiving creditor when it comes to collecting what they think is owed to them. The IRS will seize assets including bank accounts and property such as wages or real estate.
Contact a Tax Relief Firm
The IRS is known for tricking people into giving incriminating answers. You should not represent yourself as you may end up in more trouble. Find someone who knows how to help! Finding a reputable tax resolution specialist is your best option since the average tax preparer does not know how to deal with these situations.
The IRS is not your friend. They are the most brutal collection agency on the planet. They exist solely to assess and collect taxes and will do whatever it takes, when they think you have their money. They will also file a notive of federal tax lien. So, if you have a real estate transaction pending any proceeds from the sale of that property, over and above the mortgage amount, will be intercepted by the IRS to go towards your outstanding tax debt. A tax resolution professional will ensure to protect your assets and income from the long arm of the IRS.
Next Steps
The next step you will want to do is gather all of your financial documents and call our firm. We will help put together your case to the IRS and represent you to let them know that a levy will cause hardship for you and your family. We will need documented evidence that the levy will cause financial hardship for you, and if you can prove this, the IRS will release the levy. However, this is just putting a temporary band-aid on the situation, you will still owe the balance to the IRS. Once we get the IRS levy released, it just means the IRS will not garnish your income and will work with you to figure out a game plan to resolve the debt.
Make Payment Arrangements
We can negotiate a payment plan for your back taxes with the IRS. If you are entered into an installment plan, the IRS will release the levy notice.
Get an Offer In Compromise
More often than not, you can get your debt “settled” for less than what you actually owe. Oftentimes, for a lot less. This is what we call an offer in compromise. An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability via payments, or doing so creates a financial hardship. The IRS will look into your ability to pay, your income, your expenses, and your assets to determine if you qualify for an offer in compromise.
The IRS generally approves an offer in compromise when the amount offered showcases the most they can expect to collect within a reasonable period of time. If you do move forward with an offer in compromise, make sure you hire a tax resolution specialist to help you prepare, submit and negotiate an offer, and be sure to check their qualifications before working with them. In these situations, you want the best of the best to represent you before speaking to the IRS.
The IRS is no place for the faint-hearted. It’s hard enough filing your taxes on time every year, but if you ever find yourself in need of tax resolution services that can help permanently resolve problems with the IRS - reach out to our firm today! We will look into your situation and give you the best options for your specific case. Contact one of our tax resolution specialist today.
Do You Owe Money to the IRS But Can’t Pay? Try This.
When you owe back taxes and can’t afford to make any payments, then it may be time for a special tax status known as currently not collectible. This means that your debt is still considered valid even though there's no chance at recovery right now. When you’re approved for currently not collectible status, the IRS can no longer garnish your wages or seize any property.
Now, don't forget about these debts because the IRS is still looking for payment.
What is Currently Not Collectible Status?
The IRS will place your account in currently not collectible status if you can’t pay both back taxes and reasonable living expenses. You may request this by submitting the proper form with documentation that proves how much income you have left over that is available to make a payment, along with any assets that have been sold recently to cover mounting debts - like homes!
To qualify for the currently not collectible status, you will need to put together a case that you will present to the IRS. Gather copies of your bills, proof of your income (pay stubs, bank statements, alimony, etc), and your investments. It is important to document your inability to pay so that if the IRS determines you cannot afford your necessary expenses, it can grant you status.
When dealing with the IRS, it is best to have a professional in your corner. The IRS can be very intimidating and might ask invasive questions that could land you deeper into trouble than before if you do not know how to answer properly. Remember - they are not friends of yours; their job entails collecting what they believe you owe them so make sure any interaction stays as simple and effective as possible. That is why it is crucial to reach out for help from one our tax resolution specialists.
Temporary Solution
If your status is approved, it does not mean you do not have to file your current and future taxes. This status only applies to your back taxes that the IRS is looking to collect. The currently not collectible status is simply a bandaid to help you get back on your feet. That way you can put yourself in a better position to make a payment in the future. The IRS may review your status every year or two if it looks like there is potential for repayment. You will only be able to keep the status active if you still can not make a payment on your back taxes.
Statute of Limitations
The IRS is an institution that prides itself on being collections-oriented. They will try to collect outstanding taxes for only 10 years from the date they were assessed against you. Once the 10 years is up, the IRS can no longer collect the back taxes. This also applies if you have the currently not collectible status. If you do not have the status, or are in an installment agreement, or have an offer in compromise pending, the IRS can garnish wages and add more penalties to your case making things worse for you as well as your wallet.
In today's tough economic climate, many families are struggling to make ends meet. If you're worried about the IRS garnishing your wages or levying bank accounts, or filing liens against your property for non-payment of taxes you owe - then reaching out may give you some peace of mind.
Our firm will help explain all options available in order to relieve any anxiety associated with these situations because we know how intimidating this can be if nothing has been done before. There is a solution to every IRS problem. Connect with one of our tax resolution specialists to see if you qualify for the currently not collectible status, or any of the other IRS settlement options you may be eligible for and the best next steps for your situation.
The 2022 Inflation Reduction Act: How Will It Impact You If You Owe Money to the IRS
Working with the IRS has never been easy, and tax settlement agreements are always complicated affairs. If you are currently working to pay off your tax debt, you may wonder what the recently passed 'Inflation Reduction Act of 2022' has in store for you.
There has been a lot of back and forth about the Inflation Reduction Act and what it means to you. While the details of the agreement are still up in the air, there are a few concrete details you need to know about how this act could impact you as an American citizen. Here are some essential things to consider moving forward.
The "Army" of IRS Agents Are Not All Soldiers
A lot has been said of the supposed army of IRS agents who will soon be walking throughout the streets of America. There are some pundits and politicians who say, "the IRS will be hiring 87,000 armed agents to hunt down innocent taxpayers, relieving them of their hard-earned money in escalating waves of harassment."
The reality behind the army of IRS agents is much different and far less troubling than what you may be hearing. Most of the new hires will be administrative personnel, IT workers bent on upgrading old hardware, customer service representatives to answer the endlessly ringing phones, and so on. That does not mean there will not be new agents on the job, but the scope of the new hires is not a reason to panic, even if you currently owe money to the IRS.
Enforcement Efforts Will Ramp Up
Even though only a portion of those new IRS hires will be "on-the-ground agents," the overall goal of this bill for the IRS is to increase the amount of revenue they are collecting from taxpayers. There is reason to believe that the IRS will be more aggressive with its collection efforts because of the Inflation Reduction Act.
The nature of this bill has raised concerns that the IRS will have an increase in audits for small business owners and regular taxpaying citizens across the United States. Our government claims the IRS's efforts are geared more toward citizens in higher tax brackets; however, you can never be too sure since it does not clearly state that they will not target the "everyday" taxpayer. If you think you owe money to the IRS, this is the time to take it seriously to avoid any extra fees or, worst-case scenario, the IRS freezing any of your bank accounts and garnishing your wages.
If You Have an Agreement in Place Nothing Should Change
The IRS has been increasing its efforts against taxpayers even before passing the 'Inflation Reduction Act of 2022'. If you have been targeted by one of these actions, they are still looking for a suitable settlement with you and will not stop until the settlement is resolved.
Hopefully, you are working with a professional as you work with the IRS since the settlement process can get pretty complicated and working with a tax relief specialist ensures you can get the lowest settlement possible for your specific situation under the law.
If you are still working through the details of a settlement, you could find the IRS will try to drive a harder bargain. This could be especially true if the amount owed is over $10,000. Either way, working with a tax resolution professional is crucial since ignoring the situation will only worsen it. The longer you wait, the more expensive your situation will become.
Professional Tax Relief Guidance is More Important Than Ever
The recent passage of the Inflation Reduction Act has introduced a great deal of uncertainty among taxpayers, especially those who owe money to the IRS. If you are not currently working with a professional and relying on their guidance, seeking outside help will become even more critical.
That is why it is vital to work with a professional, so do yourself and your wallet a favor by connecting with tax resolution specialists like us. We specialize in helping people get their IRS and State tax problems settled and behind them once and for all!
What to Do If You Receive a Collection Letter from the IRS
You open up the mailbox, expecting the usual mix of bills and catalogs, but what you find is a collection letter from the IRS. It can feel like you are living in a nightmare that you can’t wake up from when you receive a collection letter from the IRS.
Even worse, that letter includes a demand for payment, which is the last thing you need to deal with. So what do you do now since you have received the collection letter from the IRS? The steps you take could make all the difference, and here are some key things to do next.
Take a Deep Breathe
It is easy to panic when you get a notice from the IRS, but getting scared will not get you anywhere. So slow your racing heart (if you can), take a deep breath, and try to calm your nerves.
You will need to think clearly to take on the IRS, and letting your emotions guide you is the last thing you want to do. You will want to have all your brain cells firing, so stop panicking and carefully think through the following steps.
Read the Notice Carefully
Not every notice from the IRS is terrible news, and some are merely a matter of mismatched paperwork or transposed numbers. Those relatively simple matters should not take much to resolve, and they may not even require you to pay any extra money.
Before you do anything else, take the time to read the notice carefully. Find out precisely what the letter says and what the IRS is proposing. Is the IRS claiming you underreported your income for the past year? Are they saying that you took a deduction you were not entitled to? Is the tax agency challenging your interpretation of a statute? The more you know about what the IRS claims, the easier it will be to defend yourself and, ultimately, save you money and headaches.
Pull Out Your Tax Return and Supporting Documents
As previously stated, some tax notices are merely the result of minor disagreements or inconsequential math errors, but others are more serious. Now that you understand what the IRS is stating, you will want to look at what you claimed when filing your tax return.
You can start by pulling out a copy of the tax return in question, making sure to get the right one based on the contents of the collection letter. Hopefully, you have a copy of the return saved on your computer or in your filing cabinet. If not, you can request one from the IRS or have a professional request it for you.
Now that you have your tax return, you can look it over in comparison to the collection letter, looking for any mismatches or erroneous entries. If the return seems good to you, the next step is to get out all the supporting documents.
Those supporting documents may include 1099 forms from your bank and brokerage accounts, W-2 forms from employers, and anything else you included on your tax return. If you took deductions against your income, you will also want to gather those documents and keep them handy.
Take Prompt Action
One thing is certain when it comes to fighting with the IRS - wasted time is wasted money. The interest and penalty clock starts ticking the moment the supposedly erroneous tax return is filed, and every minute you wait could be more money out of your pocket.
If you wait too long the IRS can, without a court order, garnish 90% of your net pay AND clean out your bank account. They can also seize your home and other assets.
The number one thing to do is act fast, which means finding and reviewing the applicable documents immediately. Once you have everything together, you can take the next and arguably the most critical step.
Find a Suitable Professional
Taking on the IRS is not something you want to do alone. You wouldn’t go to court without a lawyer and you certainly don’t want to go up against the IRS without expert representation. Even if you are confident filing your taxes and handling your finances, arguing with the IRS is not a DIY activity.
If you hope to limit the damage and reduce the amount, or the proposed amount they are demanding, you will want a professional in your corner. Working with a tax relief specialist could save you a lot of money in the end, along with countless hours of grief and stress. The sooner you seek professional help with your tax problem, the better, so do yourself a favor and do not wait.
IRS problems can affect all aspects of your life. The stress of not filing or paying your taxes could make you lose sleep. If you are looking for tax relief, we can help!
To help ease the stress from your situation, we offer a free, no-obligation consultation with one of our tax resolution experts. You don't have to worry about confidentiality or cost because the consultation is free with zero gimmicks or commitments. Schedule an appointment with one of our tax resolution specialists today by clicking this link.
Filing Your Taxes When You Know You'll Owe Money to The IRS
As we wrap up the year the last thing most people are thinking about is their taxes. But planning ahead can have a serious impact on your tax bill next year, especially if you know you’ll owe taxes.
In this article, we’ll talk about some steps you must take if you know you’ll be owing taxes to the IRS or state.
Note: If you already have tax troubles or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief, file years of unfiled tax returns, and sometimes settle their tax debt for a fraction of what’s owed.
Report All Your Income
One of the biggest reasons people get in trouble with the IRS is their failure to report income. Oftentimes it’s an honest mistake and they simply forget about income they’ve made throughout the year.
Did you take on a consulting gig? Your client might have filed a 1099 reporting your income.
Did your savings and investments earn interest? You’ll likely need to report that income as well.
The stock market has been on a wild ride, and breaking records despite COVID-19. If you sold stock and cashed on on the gains, these gains are reported to the IRS and it means that a lot of Americans might get an unexpected tax bill.
As the year wraps up, it’s wise to take inventory of where your income came from this year so you can stay on top of any tax forms you might get outside of your normal W2.
Run The Numbers Ahead of Time
Some people like surprises but when it comes to taxes, it’s best to avoid them.
You do not have to wait for tax filing season to estimate how much you might owe. Be proactive about consulting with your tax advisor and estimate your tax liability based on how you did for the year.
They’ll be able to suggest tax strategies before the year ends that can save you thousands of dollars on your tax bill.
Set Money Aside to Pay Your Taxes.
Taxes are inevitable. If you know for certain you’ll owe money to the IRS but don’t have the money to pay all of it up front, it’s best to set at least some money aside early so you can pay as much of your tax bill upfront as possible.
The IRS can be more lenient if they see you’re trying to honor your responsibilities and settle your tax debt.
Learn About Tax Relief Options
The IRS has the authority to levy your bank account, garnish your paycheck and seize your assets if it has to, but they also have many tax relief options to help taxpayers in need.
Things like settling your tax debt for a fraction of what you owe, installment plans, penalty abatements, and more, can all be viable tax relief options depending on your situation.
If you owe money to the IRS and can’t afford to pay, you have options. It’s best to reach out to a tax relief firm like ours to learn more about them.
Don’t talk to the IRS, talk to us first.
If you do get hit with a surprise tax bill and lack the money to pay it, you need to settle your tax problem as soon as possible. The IRS wants their money, and they have unbridled authority to get it, so simply avoiding the tax bill will not make it go away, but make it worse. A lot worse.
However, dealing with the IRS is often intimidating for most taxpayers. Talking to the IRS and trying to resolve your own tax problem is like going to court without a lawyer, you’ll most likely get crushed.
A tax resolution firm like ours has years of experience helping taxpayers just like you resolve IRS and State tax problems and negotiating the best deal on your behalf. If you owe the IRS money either for 2019 or prior years, contact us now for a consultation to learn about your options.
The good news is the IRS has several debt settlement options including their Fresh Start Initiative and is generally willing to settle with taxpayers who have been blindsided by a surprise tax bill and can’t pay it off in full.
Hopefully, tax filing season will bring the big fat refund you are expecting, but it is important to be prepared for the unexpected. The new tax bill has unleashed a host of unintended consequences, including smaller refunds and surprise tax bills. By being prepared, you can reduce the pain of a surprise tax bill, so you can get on with the rest of your life.
Do You Need A Tax Attorney if You Owe Back Taxes?
If you owe back taxes you might think you need a tax attorney, but that’s not necessarily always the case. Just like hiring a traditional accountant to try to resolve your tax debt might not be the best choice, hiring a tax attorney, who doesn’t specialize in tax resolution might be the same thing.
When you owe the IRS back taxes, it’s best to have the right tax relief firm representing you so you can get the best result possible. Don’t try to face the most brutal collection agency on the planet alone. You’ll be sorry you did.
In this article we talk about some of the differences between a tax attorney and someone who specializes in tax relief and IRS negotiation.
Note: If you already have a tax problem and owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief, file years of unfiled tax returns, and sometimes settle their tax debt for a fraction of what’s owed.
What Do Tax Attorneys Do?
Tax lawyers help businesses and taxpayers with a number of tax related issues such as;
- Legal issues pertaining to taxes
- Corporate tax matters
- Starting up a business and entity formation
- Taxable estate matters
- Tax controversy and tax negotiation (only if a tax resolution specialist too)
Tax attorneys work on both the state level and the federal level. Though some tax attorneys might be able to negotiate with the IRS to settle your tax debt, not all tax attorneys specialize in tax controversy and resolution, nor do they have the experience to do so.
The biggest and most important difference between a regular tax attorney and someone who is a tax resolution specialist, (who’s a CPA, Enrolled Agent or attorney), is regular tax attorneys specialize in transactional tax planning. Their work generally includes minimizing taxes on a go-forward basis. A tax resolution specialist is someone who can help resolve your back tax issues on amounts already owed, or will be owing, to the IRS/State.
It’s important to ask what type of tax matters they handle before engaging a tax attorney to solve your tax debt. Most CPAs and Enrolled Agents, who are tax resolution specialists too, can be just as effective as an attorney that has experience in tax resolution matters.
Are tax attorneys accountants?
The short answer is no.
They both work with taxes, yes, and they both have a background education in accounting, but tax attorneys focus on the legalities of taxes, and their goal is to help you understand and navigate legal matters as they relate to taxes.
They do not generally help you to prepare your tax returns unless they specialize in tax relief and specifically help you catch up on years of unfiled tax returns.
Additionally, while tax lawyers are always legally bound by confidentiality policies, accountants and CPAs are not bound by the same rules because they are not all subject under the same laws.
Common Reasons for Hiring a Tax Attorney
Common reasons why people seek out the assistance of these professionals include when:
- They need legal tax advice for business purposes
- They are faced with complex or criminal IRS matters.
- They are dealing with estate-related issues.
- They need to file a suit against the IRS.
You can consult a tax attorney either before you run into any problems in order to avoid any potential problems in the future, after a problem has already arisen, in which case they will help you to sort things out and get you back on the right track and where you need to be.
OWE BACK TAXES?
It’s important to note that only experienced firms like ours are able to handle tax debt cases since negotiating with the IRS requires specialized skills that often fall outside of the scope of most conventional firms.
Our firm specializes in tax problem resolution. We have CPAs, EAs and attorneys who can represent you before the IRS. We serve clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.
Think Tax Filing Season is Over? Why You May Need to File an Amended Return
Few people look forward to tax filing season. Unless you are an accountant who loves tax season, you probably dread this time of year, and you are thrilled when your return is in and your refund is on the way or your tax debt is all paid off.
When you sign your tax return and send it in, you may think that tax filing season is finally over, and that the IRS will not be bugging you for another year. That’s unfortunately not the case. Millions of Americans get letters from the IRS stating they owe more money or asking for more information. So there are times when you may need to revisit your old return and file an amended one.
NOTE: If you have back tax debt, are under audit, or have multiple years of unfiled tax returns, we highly recommend readers to reach out to our firm first. Our clients never have to talk to the IRS, and tax resolution through our firm can save you money and time in the long run. You might also be eligible for other IRS relief programs or get your penalties reduced or removed. Reach out to our firm today for a consultation.
So when should you file an amended return, and how do you go about it? Here are some key things you need to know.
You Forgot to Report All Your Income
If you neglected to report all of your income, it is only a matter of time until the IRS finds out, and when they do you could be on the wrong side of a big bill. So instead of waiting for the IRS to catch up, fess up by filing an amended return.
Be sure to gather up all of your documents and compare the income you reported to the new total you have now calculated. If you owe any additional tax, you will want to pay it right away to avoid interest and penalties.
Brokerage Forms are Sometimes Late
If you have stock market holdings and own mutual funds, you will be receiving forms from the brokerage firms that hold those accounts. Those forms will provide details of the dividend income and capital gains you received, so you can provide accurate filings to the IRS.
What you may not know is that those brokerage and mutual fund statements are sometimes sent out late. Worse yet, the numbers are often updated after the fact, meaning the information you filed on your original return may no longer be accurate.
If you receive an updated 1099 from your brokerage firm or mutual fund company, you may need to file an amended return to account for the discrepancy. If you fail to update your own numbers, the IRS could come after you for additional taxes and penalties.
You Got a Tax Bill But You Know You Don’t Owe
This can be tricky and it’s best to have representation from a tax resolution firm like ours. If the IRS is sending you letters claiming you owe money, but you’re certain you don’t owe, then filing an amended return can sometimes do the trick.
Another thing to note is that the IRS makes mistakes. So having an IRS Relief firm like ours on your side can help clear these mistakes and settle your tax debt.
You Forgot to Claim a Legitimate Credit or Deduction
Sometimes an amended return can reduce the amount you owe if you forgot to claim a legitimate tax credit or deduction.
Even if you have already filed your return, you can still go back and claim any credits or deductions you may have missed.
File Your Amended Return Within Three Years
You only have a limited amount of time to file an amended return, so you need to act quickly. In most cases you will need to file your amended return within three years, and if you miss the deadline you could be out of luck.
If you think you need to file an amended return, check out your tax records for the last three years. If you identify any potential issues, or overlooked credits and deductions, it is time to file your amended return.
Tax filing season may be over, but you can always file an amended return. As long as you are within the allowable time period, you can adjust your already filed returns to reflect previous omissions, or take advantage of overlooked deductions.
OWE BACK TAXES?
Our firm specializes in tax problem resolution. We serve clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.
When DIY Won't Do: 3 Instances, When Hiring a Tax Relief Professional is the Only Way to Go
When it comes to your money, there’s only one person that truly has your best interests at heart - and that person is looking back at you in the mirror. Handling your own finances and making your own decisions can give you peace of mind and help you avoid a costly mistake.
There is a lot to be said for the do-it-yourself approach to your money, yet the go it alone path does have its limitations, especially when it comes to the IRS and back taxes.
We see clients that have tried to handle their taxes on their own, sometimes raising red flags with the IRS, resulting in audits, or getting hit with a big tax bill they can’t pay. They might set up an installment agreement on their own, but oftentimes, the DIY approach just makes the penalties and interest keep stacking up, placing you in an endless loop of compounding interest, penalties and your tax debt growing every month despite making monthly payments. Many of our clients started out by trying to do this on their own or with their current tax preparer and didn’t get the results they were hoping for.
Dealing with the IRS takes a very specialized skill set that most tax preparers and even CPA’s don’t possess. Make sure you have a tax resolution specialist on your side.
So, before you end up in that horror story, here are 3 times when hiring a tax pro or a tax relief firm like ours is the only way to go.
#1 You Just Received a Major Windfall
Even if you know how to handle your finances, receiving a major windfall can throw your plans for a loop. Whether you are the lucky holder of a winning lottery ticket or the recipient of a major inheritance, it pays to seek outside advice.
If you choose the DIY approach and make a mistake, you could end up paying more in taxes than you should, but a high tax bill is not the only danger. Handling your windfall the wrong way could throw off your asset allocation, impact financial aid for your college-bound children and create additional problems down the road.
#2 You Have Existings Tax Problems with the IRS
When you have issues with the IRS, you absolutely cannot afford to go it alone. Attempting to resolve tax issues on your own is unwise in the extreme, and a single slipup could leave you on the hook for even more. I mean, ask yourself if you would go before a judge in court without a lawyer representing you? Probably not. It’s the same here. Representing yourself before the IRS is generally not a good idea. Don’t do it. You most likely will get “creamed”!
If you receive a notice from the IRS, time is of the essence, but you should not let the desire for fast action override the need for professional help and guidance. If you want to resolve your issues fairly without going broke, do yourself a favor and find the right tax resolution firm. Hiring an enrolled agent, CPA or an attorney that is trained in tax relief is the best way to preserve your rights, and you do not want to go it alone.
#3 When You Have Assets You Need to Protect
When you owe taxes, the IRS only cares about one thing, and that is to get paid what they think you owe them.
They’ll levy your bank account, emptying everything you have in there. If you run a business, that means you won't be able to pay your employees, pay your office rent or keep your lights on, ultimately putting you out of business.
They’ll also garnish your paycheck leaving you about 10% to 25% of your net pay to live on. Good luck with that.
They can also put a lien on your assets, including real estate, personal property and financial assets. This puts in jeopardy everything you’ve worked so hard to attain.
Hiring the right tax relief professional can help you avoid such extreme measures taken by the IRS. They’ll communicate with the IRS on your behalf and can often remove a lien or levy. If you have assets you can’t afford to lose, then hiring a tax relief pro is the only way to go.
The Bottom Line
Even if you are confident in your Do It Yourself (DIY) approach or feel your tax problem isn’t so serious, it never hurts to get a second opinion. If you are doing everything right, that tax resolution specialist’s advice will give you peace of mind. If there are deficiencies in your actions, the advice you get could stop you from making a devastating, and possibly irreversible, mistake. Plus, you may find out that you can settle your back tax liabilities for less than what you owe. Oftentimes, for a fraction of what’s owed!
Small Business Owner: Owe Payroll Taxes? Here’s What To Do.
Unpaid payroll taxes are a serious matter to the IRS and are some of the worst kind of back taxes you can owe. If you’re a small business owner with a payroll tax problem, read on to learn what you can do to avoid the IRS crippling your business or worse, shut your business down completely.
Already in payroll tax trouble? Contact us to schedule a free, no-obligation consultation and let’s get your payroll tax issue resolved.
Why Small Business Owners Get Into Payroll Tax Trouble In The First Place
It’s hard being a small business owner today, trying to pay your employees their paychecks every week, and pay the IRS all those payroll taxes!
A lot of times when money is short, you pay the employees first. It’s a natural thing to do—you need to take care of your employees, even if you have to skip paying yourself! Besides, if you don’t pay them, they’ll quit and you will have to hire new people all the time.
It can seem easy to “just pay the 941 taxes next pay period” and give yourself a little cash flow cushion, but skipping paying your employees payroll tax deposits is never a good idea.
What happens too often is 1 pay period turns into 2, and 3, and 4, and eventually you’re so deep in payroll tax debt that the only thing you want to do is completely ignore your problem.
Except the IRS doesn’t care about your financial problems. They just want you to pay your payroll taxes!
The IRS doesn’t care if you can’t pay your employees. They don’t care if they put your employees out on the street. They don’t care if you can’t collect your receivables. They don’t care if one of your largest and best customers just went “belly-up”. All they care about is you have money that belongs to them and they will do whatever they have to, even put you out of business, to collect it. They don’t care who you are, or even what business you are in.
Penalties are The Kiss Of Death When It Comes To Back Payroll Taxes
Penalties for failing to file and pay your payroll taxes are the “kiss of death” for any small business owner. They tack on penalties totaling 33% in just the first 16 days! And it doesn’t stop there. The IRS adds interest on top of the penalties too. It is not uncommon that a payroll tax liability doubles in short order. And if you don’t pay them or work something out, they will shut you down! It’s much less work for the Revenue Officer, as most are lazy, to simply close you down than work out an arrangement with you.
They IRS Will Collect Or They Will Shut You Down
It’s as simple as that. The IRS is the most brutal collection agency on the planet. They have more authority than the President of the United States! And they have all the ways and means to do whatever it takes to collect what’s owed to them. You didn’t wake up in the morning, go to work, and say to yourself, I’m not paying my payroll taxes because you didn’t want to. The money simply wasn’t there. It’s not your fault. One week you’re short of cash. It was a slow week, a customer’s check bounced, or any number of legitimate reasons that just prevent you from paying the IRS. You’re a good person. You figure you will make it up the next week. But then next week comes and goes, and you realize you still don’t have enough money to make that payroll tax deposit. And then the entire situation starts “snow-balling” into an avalanche.
Should You Call The IRS To Get Your Payroll Issue Fixed?
If you were to call the IRS, and were able to get through after waiting on “hold” for an hour or two, and try to explain your situation—you might as well have a conversation with the wall—because they don’t care. The IRS representative that you’re talking to probably makes less than $20 an hour, and is poorly trained. Do you think they ever had to make a payroll in their life? Do you think they know what it’s like running a small business? Do you really think they will have any sympathy for you?
Not only is the answer “NO” but they can also dictate the fate of your case. What they will try to get, while you’re on the phone, is all your personal and financial information. They want to know where you bank; they’ll want to know all about your customers who owe you money, they’ll want to know about the value of all your assets, like your home, cars, motorcycles, etc. Why? Because now they have all the information they need to levy your bank accounts, take your receivables and seize your property.
Now that you know you shouldn’t be talking to the IRS because they are not going to help you, you might be wondering what you should do? Where should you turn for help? They smartest thing you can do to protect your business and family is to have someone represent you—someone who deals with the IRS for a living. You need to get help—but not just from anyone—you need help from someone who is an experienced competent professional, and deals with the IRS every day, helping small business owners keep their businesses and settle IRS payroll tax problems.
If you were charged with a serious misdemeanor or felony, would you go to court without a lawyer? You don’t want to represent yourself before the IRS either. You need professional, expert representation.
Reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. Our expert tax resolution professionals know how to navigate the IRS maze.
Once you decide to retain us, we step into your shoes and protect you from the IRS’s abusive tactics. We take over all communications from the IRS on your behalf. You don’t have to speak with the IRS anymore. We do. Not only that—they are not allowed to talk to you once you’ve signed our Power of Attorney! Once they realize you have someone on your side protecting you, who knows their tricks as well as they do, they have to step back and follow the law. Not only can we protect you from the IRS harassing you, calling you, and showing up at your front door, we can get those penalties reduced and in some cases completely removed!
Contact us now and lets get your payroll tax issue resolved!
Do You Owe Money to the IRS? Possible Tax Resolution Strategies to Set Your Mind at Ease
Even for honest taxpayers, the IRS can be extremely frightening. Unlike most other government agencies, the IRS has unbridled power to attach your wages, freeze your bank account and even confiscate your property, and that is enough to send a chill up the spine of any taxpayer.
If you receive a letter from the IRS saying that you owe additional taxes, it is important not to panic. It may be a frightening situation, but there are things you can do to settle your tax debt and get back on the good side of the IRS.
Taxpayers do have options when resolving tax disputes and paying additional taxes due, and simply knowing what those options are can set your mind at ease.
Here are three strategies you can use to resolve your tax debt and get on with the rest of your life. Not all of these options will be right for everyone, but it is important to be an informed taxpayer.
Review the Amount Owed And Your Tax Return In Question
If the IRS says you owe money, you should not simply assume they are right. The tax agency does make mistakes (a lot), as do tax preparers and ordinary taxpayers.
Whether you filed your taxes on your own or hired someone else to do it for you, it is important to examine your return and compare what you find with what the IRS is claiming. It pays to seek professional help for this tax review, even if you originally filed your own taxes. A professional with IRS experience may be able to uncover errors and inconsistencies you would have missed on your own, and that could end up saving you money.
There is no guarantee this review will eliminate the extra taxes the IRS says you owe, but it never hurts to be sure. There have been many cases in which taxpayers who thought they owed money to the IRS ended up owing nothing - or even being due a refund from the IRS.
Set Up a Payment Plan
Getting a notice of additional tax due from the IRS is frightening, especially if you cannot afford to pay what the agency says you owe. Keep in mind, however, that you do not necessarily have to pay the bill all at once.
The IRS is often willing to set up payment plans with taxpayers, and those payment plans could make paying what you owe easier and less stressful. Once again, it is a good idea to seek professional help and guidance here - the IRS can drive a hard bargain, and you do not want to end up with a payment plan you cannot afford and wind up defaulting on it.
If you fall behind on the payment plan you agreed to, you could be subject to additional enforcement action, including the tax agency garnering your paycheck or seizing funds from your bank accounts. Getting the help of a tax resolution professional up front can help you avoid these serious consequences.
Explore an Offer in Compromise Settlement
If you are truly unable to pay the money the IRS claims you owe, you may be able to work out a (much) smaller lump sum payment. The IRS may not advertise this program, but they are often willing to work with taxpayers by accepting lesser amounts, especially if those taxpayers have little in the way of equity in assets and a limited income. Sometimes these settlements can be for a fraction of what’s owed, if you qualify. We offer a free no obligation consultation to find out if you qualify.
If you plan to explore this last option, it is critical that you work with a tax resolution expert. An offer in compromise can be extremely complicated, with legalese and language that can be difficult to understand. You do not want to make a misstep here, and you want to ensure that you are only paying the lowest amount, allowed by law, in settlement of your tax bill.
Few things are as frightening as getting a letter from the IRS. That official-looking letterhead is bad enough, but what the letter says is even worse. If you receive such a letter, you need to take positive steps right away. Ignoring the situation will make it worse and it won’t go away, and the sooner you start exploring your tax resolution options the better off you will be.
