UNFILED TAX RETURNS HAVE YOU DROWNING?

Overwhelmed With Prior Year Unfiled Tax Returns?

While most Americans finish or have finished their current year taxes, others have stacks of unfiled tax returns from previous years. You may feel swamped with the pressures of work and within a blink of an eye, you wake up to find an IRS notice in the mailbox. Let’s face it, life gets busy.

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Nevertheless, you have forgotten about those prior year tax returns, but the IRS hasn’t. Here are some common questions for those taxpayers who are stuck in the mud with unfiled tax returns:

Should I file my Unfiled tax returns?

Since the IRS has 10 years to request an unfiled tax return, we advise that you file it promptly! With that thought in mind,  here’s what could happen:

Refund: You might receive a refund from the IRS for a prior year.

You have three years to claim your refund.

Tax Liability: You might have a tax due. Consequently, the following could apply to you.

Failure-to-File Penalty: After the filing deadline, there is a 5% penalty applied to your unpaid tax liability each month it is not paid.

IRS Letter: If you receive a CP3219N letter from the IRS, basically it is a 90-day notice. Hence, you have 90 days to file your return. Supposing that the IRS does not receive your return, they will prepare it. Keep in mind, the IRS will give you the standard deduction and not apply any credits which could lead to a higher tax.

Worst Case Scenario: As the IRS nears the ten year limit an unfiled tax return makes it more likely that the IRS will take a closer look at your entire tax situation.


Failure to File Penalty
The penalty is difficult to dispute because it is computed on IRS forms. You may like to review the IRS failure to pay facts page.



Responding to an IRS letter
If you receive a 90-day notice from the IRS, you have 90 days to file your return and you probably should use our website to complete your prior year tax return. In the case that you do not file your tax return within 90 days, the IRS might send you a bill in the mail.

If you disagree with the bill’s tax liability you have the option to dispute it. Either you can speak with the IRS directly or file the return. The IRS could possibly accept that the bill is inaccurate and revise it. Sometimes your financial situation prevents you from paying your tax liability immediately. Depending on the amount due you can set up monthly installment agreement, if you have a significant tax due, you could qualify for an “Offer in Compromise.” The IRS will work with you to help settle your unpaid taxes.

Above all, filing your taxes could result in paying less tax due.

How to get started

To begin, you need your previous year’s income statements. If you don’t have them, you can contact your employer or request an income transcripts directly from the IRS, or call them at 1-800-829-1040. For state income transcripts, contact your state department of revenue. Keep in mind that you will need to paper-file both your federal and state returns.

I have my tax return, now what?
Since the IRS does not offer electronic filing for prior year returns you still need to mail a printed copy of the return to the IRS. When mailing your return be sure to:

Include all of your income statements.
Sign the tax return.
It is advised that when mailing your tax return, you obtain a tracking number to know when the IRS receives it.

What happens after I file?
The IRS does not assess any penalties if your tax return shows a refund. According to IRS statute of limitations, you can only receive a refund within three years of the original due date for prior year returns. For this reason, if you are within the window and have a refund, you should file your tax return.

For instance, in 2017, you can still get a refund for prior year returns going back to the 2014 tax year. Of course, you must file the return by the original due date of the prior year’s return.
The amount due steadily increases per month if your completed tax return has a tax liability. Presumably it makes sense to file all unfiled tax returns.

What about my unfiled state returns?
Similar to the IRS, your state’s department of revenue has limitations for issuing refunds and collecting tax liabilities. That said, you should visit your state’s department of revenue website for specific information and in the meantime use our website to complete your state taxes.

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2017 tax return and past due tax returns or the offer in compromise process, you may want to partner with a reputable tax relief company who can help you get the max refund or resolve your tax balances.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers.

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

If you live in Los Angeles, contact us locally https://www.inglewoodtaxlawyers.com/ and if you live in Houston, TX contact us here www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide.

WHAT IS AN IRS TAX SETTLEMENT (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, or doing so creates a financial hardship. The IRS will consider your unique set of facts and circumstances:

• Ability to pay;
• Income;
• Expenses; and
• Asset equity.

The IRS generally approves an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.

The Offer in Compromise program is not for everyone. If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.

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If you need help with the offer in compromise process, feel free to contact our office. We have settled over 25 millions for our clients

Make sure you are eligible

Before we can consider your offer, you must be current with all filing and payment requirements. You are not eligible if you are in an open bankruptcy proceeding.

Submit your offer

You'll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF).  Your completed offer package will include:

• Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
• Form 656(s) - individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
• $186 application fee (non-refundable); and
• Initial payment (non-refundable) for each Form 656.

Select a payment option

Your initial payment will vary based on your offer and the payment option you choose:

• Lump Sum Cash: Submit an initial payment of 20 percent of the total offer amount with your application. If your offer is accepted, you will receive written confirmation. Any remaining balance due on the offer is paid in five or fewer payments.
• Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.

If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer. See your application package for details.

Understand the process

While your offer is being evaluated:

• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.

If your offer is accepted

• You must meet all the Offer Terms listed in Section 8 of Form 656, including filing all required tax returns and making all payments;
• Any refunds due within the calendar year in which your offer is accepted will be applied to your tax debt;
• Federal tax liens are not released until your offer terms are satisfied; and

If your offer is rejected

• You may appeal a rejection within 30 days using Request for Appeal of Offer in Compromise, Form 13711

Filing your tax return is very important. Even if you can’t pay, you should always file. If you can’t file on time, you can get a six-month extension easily. Note that the tax extension is just on the tax return filing.

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2017 tax return and past due tax returns or the offer in compromise process, you may want to partner with a reputable tax relief company who can help you get the max refund or resolve your tax balances.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers.

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

If you live in Los Angeles, contact us locally https://www.inglewoodtaxlawyers.com/ and if you live in Houston, TX contact us here www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide.

OWE THE IRS? EXPERT TIPS ON GETTING YOUR TAX SETTLEMENT APPROVED BY IRS!

If you have tax debt that you feel you cannot afford to pay, then you may qualify for an Internal Revenue Service (IRS) program that requires you to pay less than the full amount due.  This is done through an Offer in Compromise.

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An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS that allows the taxpayer to pay less than the full amount owed.  The IRS generally approves up to 40% of OIC applications each year.  The biggest factor to consider when it comes to an OIC is that you must prove that you are not in a position to pay your full tax bill. There are many people who want a clean slate when it comes to their taxes. Ask yourself: “How should you make your case?”

Tips for Getting Your Offer in Compromise Application Accepted

Be thorough: The IRS will not grant an OIC to a taxpayer who does not show the need. You will be asked to provide detailed financial records, bank statements, paystubs and additional paperwork.  The more information that you can provide to strengthen your case, the better.

Stay current on your tax returns: You cannot qualify for an OIC if you have not submitted previous tax returns.

Deciding how much to offer: To submit an OIC, you will need to carefully follow the instructions on the IRS Form 433.  This worksheet will help you determine the amount you want to offer. This calculation is based on the net value of your assets plus your excess monthly income after you subtract all of your monthly expenses.

Special circumstances: The IRS is known to give consideration to taxpayers with any special circumstances including physical or psychological hardship or those who are of advanced age.  The IRS will even take into account the mental illness of a close family member if it has impacted you financially, for example.

Re-submit if necessary: If the IRS rejects your first application, consider applying again. The IRS will notify you of their decision in writing and will list a reason that the offer was rejected.  If you are told that the offer is too low (this is one of the most common reasons for rejection), submit a new IRS Form 656 if your financial situation changes dramatically, or simply attach a letter to your original form if you simply want to increase your offer.

Free Yourself Of Tax Debt Starting Today

Advance Tax Relief is a full-service tax firm that can help taxpayers just like you apply for programs such as an Offer in Compromise or even an installment agreement. If you would like assistance, guidance, and help communicating directly with the IRS, call our team of experts today at 800-790-8574 or contact us online. 

We will sit down with you to discuss the questions you have and help you decide the best path toward being free and clear of your tax debt, once and for all!

GET TAX RELIEF HELP TODAY


If you think that you may need help filing your 2017 tax return and past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund.


Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers.
Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.


If you live in Los Angeles, contact us locally https://www.inglewoodtaxlawyers.com/ and if you live in Houston, TX contact us here www.advancetaxrelief.com.


However, it doesn’t matter where you live, we service taxpayers nationwide.

THE NEW TAX LAW AND HOW IT AFFECTS YOUR PAYCHECK

So now that the new tax reform bill has finally moved past the debate stage and it’s actually been written into the law, it’s time to start asking the
important questions.

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And to be sure, there are a lot of questions. How will it affect the housing market? How will it affect large corporations, as well as small businesses? Will the rich really get richer? Will the middle class really see any tax relief? Will the new standard deduction amounts wipe out itemized deductions for the large majority of taxpayers? The questions go on and on and the answers often depend on whom you ask.





Expect to See an Increase

So what about the most important question to the majority of taxpayers? You know the one: “What will the new tax law mean for my paycheck?” or “How will the new tax law affect my take-home pay?” The easy answer, in most cases, is that by February at the latest, you should start to see a little more in your take-home pay.

There are, of course, many changes in the new law, which represents the largest overhaul of the tax system in decades. Some of the biggest changes include an increased standard deductions, altered tax withholding tables, reduced state and local income tax deductions, and lower individual income tax rates.

It’s a lot to take in. But again, most taxpayers will start to notice at least some increase in take-home pay by February.

How Much Will Can You Expect to See

The next question is how much of a difference will you see? What’s your paycheck really going to look like? It will depend on several factors, including your current salary, your filing status, how often you are paid and the current allowances you claim on your W-4. Everyone’s numbers are going to be different, but here is one possible scenario. A single filer with two allowances making $50,000 a year and currently paying about $265 in taxes from each bi-weekly paycheck, could expect to see an increase of roughly $100 in each paycheck.

Calculate the Numbers Yourself

If you want to know specific numbers for your paycheck you will need three things: your gross pay from your most recent pay stub, a copy of your W-4 and access to the new withholding tables. Take a look at how much was withheld from your gross income.

To determine your new withholding amount, subtract your allowances from your W-4 from the appropriate payroll-frequency factor, i.e. weekly, bi-weekly, etc. You will use that number to calculate your new withholding amount by using the number that corresponds to your payroll frequency and filing status.
Lastly, deduct this number from the current withholding from your check, which was the first number you looked at. This is how much of an increase you could see in your check.

Reexamine Your Withholding Status

So, the good news is most people can expect to see an increase, but there’s another important factor to consider. You need to take a close look at your W-4 withholding amount. The last thing you want to do is have the wrong amount taken out, whether it’s too much or not enough. Because of the new tax laws, you could end up paying too much if your withholding is incorrect.

That means you would get more back when you file your return next year, but it also means your take-home pay would not be as high as it could be throughout the entire year. That extra money could come in handy from month to month. On the flip side, if you don’t have enough withheld then you could end up owing money to the IRS come tax time, which no one ever wants.

Bigger Checks Coming Soon

The long-term effects of the new tax reform remain to be seen, but at the very least most taxpayers should a nice boost very soon. In fact, according to the Treasury Department, about 90 percent of all taxpayers should see an increase.

And by law, companies have to implement the new withholding standards by February 15. So, if you don’t want to take the time to try to calculate the change yourself, you won’t have to wait long to see the changes on your paystub.

So, if you have IRS Problems and unfiled tax returns – Take action today! You should work with a local tax relief firm. Call Advance Tax Relief (800) 790-8574

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your current year tax return and past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers.

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.If you live in Los Angeles, contact us locally https://www.inglewoodtaxlawyers.com/ and if you live in Houston, TX contact us here www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide.

WHEN CAN THE IRS LEVY YOUR ASSETS?

IRS LETTER LT 11 VS CP 504 (KNOW THE DIFFERENCE)

Yes, on the surface, IRS collection letters look the same, and those looks can often be very misleading.


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One of the biggest offenders is the IRS Notice of Intent to Levy.

As part of its collection process, the IRS sends two different letters, each called a Notice of Intent to Levy.  On their surface, these two letters are indistinguishable to a layperson, and look the same. But they are very different in what they permit the IRS to do.

A little background on a Notice of Intent to Levy:  Before the IRS can levy you, they have to send the Notice of Intent to Levy.  This is law under Internal Revenue Code Section 6330 – the IRS must notify you in writing before levying, and tell you about your rights to file an appeal within 30 days in response.  If an appeal is filed, the IRS cannot levy until it is resolved.

In other words, in most situations, the IRS is not permitted to levy by surprise.  But the letters they send to permit you to prevent it are camouflaged.

Needless to say, it is extremely important to be able to distinguish between the real Notice of Intent to Levy and the wannabe.  Your rights to protect your property can depend on it.

An easy way to tell the difference is to find the identifier that the IRS places in the upper-right hand corner of the letters.

The wannabe Notice of Intent to Levy is identified as a CP504; the real one is identified by the IRS as an LT11 (sometimes it will be a L1058).

Only the Notice of Intent to Levy identified as an LT11 actually permits the IRS to do so; the other (CP504) is, well, a dummy letter.

Let’s take a look at a sample CP504 that the IRS recently sent to my client, and put it through some truth serum.

Here is what the CP504 (aka the pretend Notice of Intent to Levy), states on its face:

“Notice of Intent to Levy”

“Amount Due Immediately $85,793.50”

“This is a notice of intent to seize (“levy”) your state tax refund or other property. As we notified you before, our records show you have unpaid taxes for the tax year ending December 31, 2012.  If you don’t call us immediately or pay the amount due, we may seize ((“levy”) your property or rights to property (including any state tax refunds) and apply it to the $85,793.50 you owe.”

The CP504 goes on to state the property to be levied includes wages, commissions, bank accounts, and personal assets (including your car and home.

Sounds like the IRS is about to get you, right?  Take your stuff, wipe you out.  Not so fast.

All IRS appearances aside, this is not the letter under Internal Revenue Code 6330 that permits the IRS to take levy action.

Here’s why:

The CP504 Notice of Intent to Levy does not notify you of appeal rights.

Remember, the Internal Revenue Code requires the IRS to clearly state rights to appeal a notice of intent to levy.  Without such notification, the IRS cannot levy. There are no such notifications in the CP504.

The CP504 is not what it appears to be.  Standing alone, it does not permit the IRS to levy you.

Will the real Notice of Intent to Levy please stand up?

The LT11 Notice of Intent to Levy follows the law and notifies you of the right to file an appeal action to stop the levy.

Only the LT11 provides notification of the rights to file a Collection Due Process action.  It even includes enclosures and forms to file the Collection Due Process Appeal.  No such forms are included with the CP504 because, well, it is not what it appears to be.  It provides no appeal rights, and as a result, does not standing alone permit the IRS to levy.

Only the LT11 permits the IRS to levy your wages, commissions, bank accounts, car, and home.

In most cases, expect the IRS to send the CP504 immediately before the LT11.  To be sure the IRS has not sent the LT11/L1058 out of order, I recommend that the IRS be contacted to confirm.  An IRS account transcript will state if a real Final Notice has been sent, and when.

Even if the IRS cannot levy after sending the CP504, one thing is for sure:  Your case is active in the IRS collection system.  That means the IRS is coming.

If you have been sent the CP504, the good news is that we can confirm that we are on protected ground and the IRS cannot levy, giving us precious time to prepare before the LT11 letter is sent.  An once we receive the LT11, an appeal would be filed with the IRS, stopping the levy while we negotiate alternatives, like an offer in compromise, installment agreement, or currently uncollectible status.

So, if you have IRS Problems and unfiled tax returns – Take action today! You should work with a local tax relief firm. Call Advance Tax Relief (800) 790-8574

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2017 tax return and past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers.

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

If you live in Los Angeles, contact us locally https://www.inglewoodtaxlawyers.com/ and if you live in Houston, TX contact us here www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide.

8 THINGS YOU DIDN’T KNOW WERE TAX DEDUCTIBLE

1. Sales Taxes

You have the option of deducting sales taxes or state income taxes off your federal income tax. In a state that doesn’t have its own income tax, this can be a big money saver. Even if you paid state taxes, the sales tax break might be a better deal if you made a big purchase like an engagement ring or a car. 

You have to itemize to take the deduction, but the IRS provides tables to use as a guide.

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2. Health insurance premiums

Medical expenses can blow any budget, and the IRS is sympathetic to the cost of insurance premiums—at least in some cases. Deductible medical expenses have to exceed 7.5 percent of your adjusted gross income to be claimed as an itemized deduction for tax years 2017 and 2018. However, if you’re self-employed and responsible for your own health insurance coverage, you might be able to deduct 100 percent of your premium cost. That gets taken off your adjusted gross income rather than as an itemized deduction.

3. Tax savings for teacher

It’s the rare teacher who doesn’t have to reach into her own pocket every now and then to purchase items needed for the classroom. While it may sometimes seem like nobody appreciates that largesse, the IRS does. It allows qualified K-12 educators to deduct up to $250 for materials. That gets subtracted from your income, so you can take advantage of it even if you don’t itemize.

4. Charitable gifts

Most taxpayers know they can deduct money or goods given to charitable organizations—but are you making the most of this benefit? Out-of-pocket expenses for charitable work also qualify. For example, if you make cupcakes for a charity fundraiser, you can deduct the cost of the ingredients you used to bake them. It helps to save the receipts or itemize the costs in case of an audit.

5. Paying the babysitter

You might be able to deduct the cost of a babysitter if you’re paying her to watch the kids while you volunteer to work for no pay for a recognized charity. The federal Tax Court has ruled that it’s OK to list the cost of a babysitter as a charitable contribution on your return, if you can document that while she was performing her duties, you were volunteering.

6. Lifetime learning 

The tax code offers a number of deductions geared toward college students, but that doesn’t mean those who have already graduated don’t get a tax break as well. The Lifetime Learning credit can provide up to $2,000 per year, taking off 20 percent of the first $10,000 you spend for education after high school in an effort to increase your education. This phases out at higher income levels, but doesn’t discriminate based on age.

7. Unusual business expenses 

If something is used to benefit your business and you can document the reasons for it, you generally can deduct it off your business income. A junkyard owner, for example, might be able to deduct the cost of cat food that encourages stray cats to hang around and keep the mice and rats away. A bodybuilder got approved to deduct the body oil he used in competition.

 

8. Looking for work

Losing your job is traumatic, and the cost of finding a new one can be high. But if you’re looking for a job in the same field, you itemize your deductions, and these expenses exceed 2 percent of your adjusted gross income, any qualifying expenses over that threshold can be deducted. It may seem like a high bar, but those costs add up quickly—consider deducting the mileage you put on your car driving to interviews and the cost of printing resumes.

So, if you have unfiled tax returns – Take action today! You should work with a local tax relief firm. Call Advance Tax Relief (800) 790-8574

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2017 tax return and past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers.

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

If you live in Los Angeles, contact us locally https://www.inglewoodtaxlawyers.com/ and if you live in Houston, TX contact us here www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide.