Friday, September 18, 2020

HOW LONG DOES AN IRS BACK TAX FEDERAL LIEN LAST ON YOUR PROPERTY?

Federal Tax Liens

Federal tax liens are administered by the IRS. IRS tax liens self-release after their statute of limitations expires; this happens automatically after ten years. This provision is contained directly in the language of the lien:

“For each assessment listed below, unless the lien is refiled by the date given in column (e), this notice shall, on the day following such date, operate as a certificate of release as defined in IRC 6325(a).”

So, all you have to do is wait ten years for the federal tax lien statute of limitations to expire and you’re in the clear, right? Well, not exactly; there’s a reason so few taxpayers opt to wait out the statute of limitations.




If you purchase any property or earn any money through income during that 10-year period, the IRS can — and will — seize it to pay off the outstanding tax debt. An active tax lien can destroy your credit, making it an immense challenge to get a mortgage or any other type of loan.


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ADVANCE TAX RELIEF LLC
www.advancetaxrelief.com
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CALL (713)300-3965

State Tax Lien
As the name suggests, state tax liens are assessed at the state level. Each state has its own rules and procedures regarding lien removal. Many states will offer fewer resolutions than the IRS. In order to know exactly what options you have when placed under a state tax lien, it is highly recommended that you consult with a tax professional.
How to Remove a Tax Lien


File an Appeal
When it comes to the collections process, the law gives taxpayers many rights and protections. One such protection is the entitlement to notices from the IRS and the right to sufficient time to resolve tax problems. Another such right taxpayers have is the right to appeal collection actions by the IRS.

When you first receive a notice of a lien from the IRS, start by giving them a call. While this won’t always be a success, it has the potential to end your headache quickly and easily — if it is successful.

If your initial phone call with the IRS is not successful, you can request an official appeal by filing Form 9423.

The appeals process doesn’t always work, but it is always worth a shot. And if you have a compelling case — and if removing the lien can demonstrably improve the IRS’ chances of receiving the outstanding amount — then appealing the lien may be the quickest and easiest way to get it removed.

Pay Your Back Taxes
If your initial appeals fail, the best way to remove a lien is to pay your back taxes as soon as possible; the longer you owe unpaid taxes, the bigger your tax headache can get.

The first and most straightforward way to pay you back taxes is to pay in full. If paying in full is within the realm of financial possibility, it is strongly recommended as it accrues neither interest nor penalties.

If you can’t afford to pay in full, you may qualify for a payment plan with the Internal Revenue Service. Simply put, a payment plan is an agreement with the IRS to pay the taxes you owe within an extended but defined timeframe. There are two kinds of payment plans: short-term and long-term.

A short-term payment plan, or Full Payment Agreement, is a 120-day extension to pay in full. There are no additional fees for a full payment Agreement, but interest and applicable penalties still accrue until your liability is paid. However, if you are experiencing financial hardship, full payment agreements can still put a strain on your bank account — and your peace of mind.

If a Full Payment Agreement is not financially attainable, you may be eligible for a Long-Term Payment Plan, which entails an Installment Agreement. An Installment Agreement allows you to pay your taxes over an extended period of time while avoiding collection actions from the IRS such as liens, garnishments, and levies.

When utilizing an Installment Agreement to pay your taxes, you will still owe interest and late penalties. However, Installation Agreements allow you to break up the amount you owe into much more affordable chunks.

Additionally, there are a few options for reducing the impact of a lien that the IRS will agree to if it is in the best interest of both the government and the taxpayer:

Discharge of property
A Discharge of Property removes the lien from specific property, such as a home. This allows the taxpayer to, for example, refinance their mortgage to help pay back their tax debt.

Subordination
While Subordination does not remove the lien, it allows other creditors to move ahead of the IRS. This allows the taxpayer to have an easier time getting a loan or mortgage.

Withdrawal
A withdrawal removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property. However, you are still liable for the amount due.
As part of the IRS’ revamped Fresh Start initiative, are two options that withdraw your Notice of Federal Tax Lien after the lien’s release. In order to be eligible:

Your tax liability has been satisfied and your lien has been released; and also:

You are in compliance for the past three years in filing for all individual returns, business returns, and information returns
You are current on your estimated tax payments and federal tax deposits, as applicable


The other option may allow withdrawal of your Notice of Federal Tax Lien if you have entered in or converted your regular installment agreement to a Direct Debit installment agreement. In order to be eligible:
You are a qualifying taxpayer (individuals, businesses with income tax liability only, and out-of-business entity with any type of tax debt)


You owe $25,000 or less (If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting withdrawal of the Notice of Federal Tax Lien)
Your Direct Debit Installment Agreement must fully pay the amount you owe within 60 months or before the Collection Statute expires — whichever comes first
You are in full compliance with other filing and payment requirements
You have made three consecutive direct debit payments
You have not defaulted on your current — or any previous — Direct Debit Installment agreement.

GET TAX RELIEF HELP TODAY
If you think that you may need help filing your 2018/2019 tax return or past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund and reduce your chances for an IRS AUDIT.
Advance Tax Relief is headquartered in Houston, TX with a branch office in Los Angeles, CA. We help many individuals just like you solve a wide variety of IRS and State tax issues, including penalty waivers, wage garnishments, bank levy, tax audit representation, back tax return preparation, small business form 941 tax issues, the IRS Fresh Start Initiative, Offer In Compromise and much more. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back tax problems.
Advance Tax Relief is rated one of the best tax relief companies nationwide.
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IRS TAX DEBT RELIEF PROGRAMS TO HELP YOU

The IRS is a fair creditor and has provided several routes that taxpayers can utilize to assist with paying back taxes.


The IRS recognizes that each and every tax situation is different. In order to cast a wide net, the IRS has put several additional tax relief programs into place to assist taxpayers with paying their dues.

 

IRS FRESH START PROGRAMS 

If you are struggling to pay your taxes, the IRS Fresh Start program for individual taxpayers and small businesses might be able to provide the help you need. Since 2011, the Fresh Start Program has helped thousands of taxpayers pay their outstanding amounts. 


Now, in order to help a greater number of taxpayers, the IRS has expanded the program by adopting more flexible terms for Offer-in-Compromise (OIC) agreements. This expansion will allow some of the most financially distressed taxpayers to clear up their tax problems much more quickly than before.




NEED HELP WITH IRS BACK TAXES, FORM 941’S BACK TAX ISSUES, AUDIT REPRESENTATION OR SMALL BUSINESS TAX PREPARATION?

 

ADVANCE TAX RELIEF LLC

www.advancetaxrelief.com

BBB A+ RATED

CALL (713)300-3965

 

Here are a few of the changes: 

 

Higher Tax Lien Thresholds.

Generally, the IRS will not issue a tax lien on a taxpayer’s home or other assets unless the total debt owed is $25,000 or more. Before the change, the threshold was set at $5,000 or more. Since the change, taxpayers may request the IRS to remove the lien from their property if the amount of tax due is $25,000 or less and they have a Direct Debit Installment Agreement (DDIA) in place. To request the withdrawal, the taxpayer must also agree to pay the entire amount due within sixty months or before the Collection Statute expires, whichever is earlier. Once a taxpayer meets all the requirements of a direct debit payment plan, the taxpayer may complete and submit to the IRS Form 12277, Application for Withdrawal Notice of Federal Tax Lien.

 

Tax Penalty Relief.

The IRS Fresh Start program opened the door to more relief from tax penalties. IRS penalties can sometimes be staggering and can make some tax debt seem impossible to pay. Having more opportunities for taxpayers to reduce or eliminate the penalties accrued on tax due may save taxpayers hundreds — if not thousands — of dollars.

 

Expansion of the IRS’s Offer in Compromise Program.

Generally, the IRS will accept an OIC when the amount offered represents the most the IRS can reasonably expect to collect within the Collection Expiration date. With the Fresh Start program, the IRS streamlined the complicated process of submitting an offer, making it easier for taxpayers to qualify.

 

Why is the IRS making this change?

The IRS recognizes that many taxpayers are still struggling to pay their bills. To help ease the process, they have put in place common-sense improvements to the OIC program that more closely reflect real-world situations.

 

This expansion focuses on the financial analysis used to determine which taxpayers qualify for an OIC. These changes can also enable some to resolve their tax problems in as little as two years— in the past, the process could take as long as four to five years.

 

In certain circumstances, the changes include:

 

Revising the calculation for the taxpayer’s future income.

Allowing taxpayers to repay their student loans.

Allowing taxpayers to pay state and local delinquent taxes.

Expanding the Allowable Living Expense allowance category and amount.

Other changes to the program include narrowed parameters and clarification of when a dissipated asset will be included in the calculation of reasonable collection potential. In addition, equity in income-producing assets generally will not be included in the calculation of reasonable collection potential for on-going businesses.

 

When the IRS calculates a taxpayer’s reasonable collection potential, it will now look at only one year of future income for offers paid in five or fewer months — this is down from four years. For offers paid in six to 24 months, they will look at two years, down from five years. It is important to note that all offers must be fully paid within 24 months of the date the offer is accepted.

 

Information about the OIC program, including applicant qualifications, how to apply, and steps to complete the application process, Form 656-B, Offer in Compromise Booklet, and Form 656, Offer in Compromise, is available on IRS.gov. 

 

What is an Offer in Compromise? 

An Offer in Compromise, or OIC, is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. When entering an OIC, there are three options: a Lump Sum Payment, a Short-Term Periodic Payment, and a Deferred Periodic Payment. With a Lump Sum Payment, the agreed-upon amount of debt must be paid in five or fewer installments. With a Short-Term Periodic Payment, the agreed-upon debt must be paid within 24 months. And with a Deferred Periodic Payment, the agreed-upon debt must be paid within the 10-year statutory period in which the IRS can collect the debt.

 

Generally, the IRS does not accept an OIC if they believe the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination of the taxpayer’s reasonable collection potential. OICs are subject to acceptance based on legal requirements. 

 

If you are interested in obtaining an OIC with the IRS, take a look at the Offer in Compromise Pre-Qualifier. Then, you will need to use a Form 656 Booklet and Form 433-A. There is a non-refundable application fee of $205 unless you qualify as a low-income taxpayer as defined earlier. 

 

Unfortunately, taxpayers undergoing open bankruptcy proceedings cannot enter an OIC. Additionally, if you are currently in an OIC, not filing a tax return can jeopardize the process — and the penalties for not filing a return are higher than those for not paying your taxes. 

 

If applying for an Offer in Compromise agreement seems overwhelming, it may be best to enroll the help of tax professionals. 

 

Partial Payment Tax Agreement

If your tax debt is just not affordable for you, potentially qualify for a partial payment installment agreement. While it can be fairly difficult to qualify for one, there is no set tax debt.

 

The IRS may allow you to pay part of your debt if you show you can’t afford the minimum payment for a Guaranteed or Streamlined Installment Agreement Payment Plan. A Partial Payment Agreement allows you to take longer to repay, — and the IRS will evaluate your financial position every two years to see if you are better off. They will include your equity in assets in their calculations.

 

Unfortunately, the IRS will also file a federal tax lien to guarantee debt collection and protect their interests. It’s possible you will have to sell your property in order to pay off your tax debt

 

Tax Resolution Services for Debt Relief

If you’re already busy juggling all of your other personal and financial responsibilities. The last thing you want is making time to interpret complex IRS tax code and processes to resolve your tax problems. And if your situation is uniquely complicated, you could be up against a brutal battle with the IRS. However, not taking action can result in much graver consequences, such as aggressive interest, collections measures, and even criminal charges.

 

With more than 2000 clients and over $15 million in tax debt resolved, the experts at Advance Tax are here to help:

 

Our team quickly identifies the best tax relief option for you, eliminating the need for hours of self-directed research and considering the pros and cons.

We resolve your tax issues in a timely manner without making you stay on hold with federal and state tax bureaus.

Together, we can expedite the process by helping you gather the documents you need to apply for the appropriate tax relief solution for your needs.

Thanks to our experience negotiating with the IRS, we’re confident in our ability to secure the best possible outcome for your situation.

Whether you need tax relief advice while preparing your taxes or need support finding the best tax debt relief solution for your needs, our team is well-equipped to apply the best strategy for your situation. Get your free consultation today.

 

Having the IRS file a lien against you or your property can make a stressful situation turn downright miserable. But if you keep your head up and work with the IRS towards a common solution, your future tax situation will only get better.

 

 While each and every tax situation is unique, many taxpayers go through the same processes and procedures. You are not alone in your fight to regain good standing with the IRS and the experts at Advance Tax Relief are here to help.

GET TAX RELIEF HELP TODAY

 

If you think that you may need help filing your 2018/2019 tax return or past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund and reduce your chances for an IRS AUDIT.

 

Advance Tax Relief is headquartered in Houston, TX with a branch office in Los Angeles, CA. We help many individuals just like you solve a wide variety of IRS and State tax issues, including penalty waivers, wage garnishments, bank levy, tax audit representation, back tax return preparation, small business form 941 tax issues, the IRS Fresh Start Initiative, Offer In Compromise and much more. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back tax problems.

 

Advance Tax Relief is rated one of the best tax relief companies nationwide.

 

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#TaxAttorneysNearMe #IRSLawyer #TaxReliefFirms #OfferInCompromise #TaxResolution #LocalTaxAttorney #HelpFilingBackTaxes #TaxDebtSettlement #TaxReliefAttorneys #IRSHelp #TaxRELIEF #TaxAttorneys #AuditHelp #BackTaxes #OfferInCompromise #WageGarnishmentHelp #AuditReliefHelp #SmallBusinessTAXES


Tuesday, September 15, 2020

HAVING BACK TAX DEBTS AND TRYING TO BUY HOME

If you’re looking for your dream home, it can get complicated if you owe back taxes to the IRS. While it’s still possible to get approved for a mortgage with a federal tax debt hanging over you, you immediately become a riskier borrower because of it. 

In order to be approved by a home lender, you’ll need to take certain steps to prove that you’re in good standing with your tax debt and show that you’re not in serious danger of defaulting on your home loan payments.

Do Unpaid Taxes Affect Mortgage Payments?

Your unpaid taxes, whatever form they take, may affect your mortgage payments. When lenders evaluate your creditworthiness, they look at your risk as a borrower overall. If you have a large amount of unpaid taxes, you’ll likely be faced with a steeper interest rate.

These higher interest fees act to mitigate the risk of a borrower who presents a higher risk for defaulting based on their financial background.


Every lender has different models and methods to assess the risk a given home loan applicant poses. One lending company may view your financial situation as a medium risk, with a fairly low risk of default. But another company could find fault in your high debt-to-income ratio despite your high credit score. Or, perhaps another lender emphasizes a large down payment over other factors.


This is why it’s critical to shop and compare when you look for mortgage lenders; you might be able to find a lender who offers more favorable terms despite your unpaid taxes. A lender who can offer you a lower interest rate, for instance, means you’ll have lower monthly mortgage payments and pay less over the lifetime of your home loan.




NEED HELP WITH IRS BACK TAXES, FORM 941’S BACK TAX ISSUES, AUDIT REPRESENTATION OR SMALL BUSINESS TAX PREPARATION?

 

ADVANCE TAX RELIEF LLC

www.advancetaxrelief.com

BBB A+ RATED

CALL (713)300-3965



HOW TO RESOLVE YOUR TAX DEBT

When you owe a tax debt, paying it all at once might not be possible. Plus, it can negatively impact your chances of being approved for a mortgage if you must divert cash away from your intended down payment to pay all of your back taxes.

If the amount is too big to pay off immediately, it’s in your best interest to pay it off in installments or settle with the IRS for a smaller amount. If you’re worried about your tax debt negatively influencing your ability to secure your dream home, it’s a good idea to seek out professionals who can handle the IRS on your behalf.

A professional tax expert can help you set up an IRS tax payment plan or make an Offer in Compromise to settle your debt for a more manageable amount. Tax resolution services with Advance Tax Relief can help take out all the hassle involved with dealing with the IRS. Whether you need help paying your delinquent taxes or assistance with unfiled returns, Advance Tax Relief gives you something priceless: your peace-of-mind, no matter how much you owe. Whether you want the answer to, “Can I buy a house if I owe back taxes?” or another question, Advance Tax Relief is here to give you the information you need.



Advance Tax Relief is rated as one of the best tax relief companies nationwide.