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  1. 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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  2. 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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  3. 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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  4. 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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  5. 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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  6. 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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  7. 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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  8. 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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  9. 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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  10. 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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