- FREEDOM OF INFORMATION REQUESTS
(You Need To Know)
You must know what type of information is in
your IRS file without drawing a lot of attention to
yourself. Congress passed legislation (FREEDOM OF
INFORMATION ACT) that requires government agencies,
including the IRS, to disclose such information when
requested.
Freedom of information documents can also be used
to explain why, how, when and where your IRS problems
started. You need this information to see how the
IRS assessed taxes, penalties and interest against
you.
If you
are having difficulty in sorting out what the IRS
is doing to you, please consider using the FREEDOM
OF INFORMATION ACT to obtain your IRS files. This
information is invaluable.
The IRS encodes your tax transcripts with a mixture
of numeric and alpha codes. Let
us help you decipher your transcripts.
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- PAYMENT PLANS (More Time to
Pay)
The IRS usually accepts payment arrangements
for past due taxes. To qualify, you must provide the
IRS with proof that:
- You have filed all tax returns, even if you
have not paid taxes due.
- You disclosed all assets you own.
- You cannot pay the amount owed.
- You cannot borrow the amount owed.
- You do not have a retirement account that can
be tapped to pay.
If you comply, the negotiations with the IRS will
either take place over the phone with ACS (Automated
Collection System), or in person with an IRS Revenue
Officer.
The IRS will ask you to complete a personal financial
statement and sometime a business financial statement.
The IRS has pre-determined caps on allowable monthly
expenses. The IRS calculates the difference between
your actual monthly income and these pre-determined
caps on allowable monthly expenses. This difference
will be what the IRS will require you to pay on
a monthly basis.
These monthly payments will continue until your
outstanding tax liabilities are paid in full. WARNING!
The IRS continues to add penalties and interest
while you are making monthly payments.
You may pay a large monthly payment to the IRS and
your outstanding balance may in fact be increasing
due to additional penalties and interest.
The IRS will not explain this to you! Be careful!
You could pay for several years and still owe. Worse
yet, your payments may be wasted if you actually
qualified for a settlement. Let
us help you figure out your finances.
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PENALTY
ABATEMENT (Remove Some or All Penalties)
The IRS hands out billions of dollars in penalties
every year.
There is hope. You can request an abatement to
completely or partially remove penalties. Between
40%-50% of the time, the IRS abates penalties. The
compound daily interest on the abated penalty also
disappears.
You must have a good reason to request penalty
abatement. Do you know what the IRS will accept?
Neither do they. It depends on your circumstances
and how to explain it.
The IRS procedures seem to differ in each case.
The best thing you can do is to provide the circumstances
of your situation. Let
us help you present your case.
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OFFERS IN COMPROMISE (Let's Make a Deal)
The IRS Offers in Compromise program provides
a chance to settle up with the IRS for a much smaller
amount of money.
The Offer in Compromise program allows you to
get a fresh start. All back tax liabilities are
settled with the amount of the offer. All federal
tax liens are released upon IRS acceptance of the
Offer and payment.
An offer can be filed based on your current inability
to pay and your current lack of sufficient equity
in assets. Based on complicated formulas using these
factors, an Offer amount is determined.
You can compromise all types of IRS taxes, penalties
and interest. Even payroll taxes can be compromised.
The IRS accepts approximately 50% of all Offers
filed with the average settlement accepted being
14 cents on every dollar owed. If you qualify for
this program, you can save thousands of dollars
in taxes, penalties and interest.
BEWARE! These settlements can take nine months to
a year and require meeting a half-dozen new deadlines
from the IRS. Let
us help you shepherd your Offer through the IRS.
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COLLECTION APPEALS (Don't Do
That To Me)
The Collection Appeal is your Appeal of the
threat of an IRS Levy or Seizure. This threat could
have been received either verbally or in writing.
The IRS allows you to file a Collection Appeal
in these situations before they follow through on
their levy or seizure. The Collection Appeal is
filed on a one-page form where you are given the
opportunity to explain how you think the situation
could be solved without the IRS levy or seizure.
Your Appeal is assigned to an Appeals Officer,
who is now required to make a decision on your Appeal.
Let
us help you present your alternative solution.
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APPEALS
(You Protest)
An Appeal is a request by you that does not
agree with an IRS decision. The action of filing
an appeal puts the IRS on notice that you disagree
with the IRS and demand a meeting to change the
IRS decision.
The goal of the IRS Appeal Division is to "settle"
your dispute with the IRS.
One common IRS decision, which is appealed, is
an increase in your tax liability due to audit.
Often this increase includes additional penalties
and interest. You must file an Appeals request within
certain time frames and follow the IRS guidelines
for a valid Appeal's request. If you don't file
correctly and on time, you may lose your opportunity
to have an Appeals officer listen to your side of
the story. Let
us help you file your appeal and settle.
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EXPIRATION OF STATUTE (Game
Over For IRS)
The IRS has ten years from the date of assessment
(sometimes close to the filing date and sometimes
years later) to collect all taxes, penalties and
interest from you. You do not owe anything after
the ten-year date has passed.
As with all IRS rules, there are exceptions to
this rule. Some examples are, if you agreed in writing
to allow the IRS more time to collect or if you
file bankruptcy during the ten-year period.
If you think you are approaching this ten-year
date, we can request copies of your IRS transcripts
to verify the assessment date, so you can accurately
compute when the ten-year statute to collect will
expire.
If the IRS is attempting to collect an expired
tax liability, then you must inform the IRS in writing
that they no longer have the right to collect this
tax liability. The IRS will write off the tax liabilities
that have expired. Let
us help you decipher your assessment expiration
dates.
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INNOCENT
SPOUSE (You Didn't Know About It)
If you have trouble with the IRS because of your
spouse or Ex-spouse's actions, call us immediately.
If you signed a joint return and didn't know about
the truth, you may qualify.
If you can prove you fit in the IRS guidelines
for being an innocent spouse, you may not be subject
to the taxes caused by your spouse or ex-spouse.
The rules are complex. Let
us help you through this complicated matter.
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BANKRUPTCY (Start New Game)
Many IRS taxes, penalties and interest do qualify
for complete discharge in Bankruptcy.
In order for you to use the Bankruptcy laws to
avoid paying income taxes, your income tax liabilities
MUST QUALIFY. Many taxpayers file bankruptcy without
first understanding the rules and this often results
in not discharging income taxes that could have
been discharged. Don't let this happen to you. Call
us first.
The most common types of taxes eligible for discharge
in bankruptcy are old individual income taxes. Taxes
which are not eligible for discharge in bankruptcy
are Civil Penalties for payroll taxes (The Trust
Fund Penalty). The IRS will generally honor what
would predictably happen in a bankruptcy without
making you go through one. Let
us help you settle with the IRS first.
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AUDIT RECONSIDERATION (That's
Not Fair)
The IRS has this little used program to handle
situations where you didn't get a fair deal in the
original audit. Such as, if you never attended the
original audit or you never received the audit letter
or you didn't understand what was going on and failed
to provide the IRS information they requested.
If you feel you didn't get a fair deal in your
original audit, we can make a request for audit
reconsideration.
Sometimes, many years have gone by before you realize
how much you owe the IRS for an old audit. Even
in these cases where time limits to appeal or file
a tax court petition have long since expired, we
can still request audit reconsideration for you.
Let
us help you get your fair deal.
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