Monday, June 17, 2019

WHAT REALLY HAPPENS WHEN YOU FILE BACK TAXES

Back Taxes, Tax Attorney, Tax Relief

what happens when you don't file taxes

If you somehow missed all the clues that Tax Day was April 15 (every year), or all the specials from tax preparers running up to this year’s Tax Day, you may be wondering what to do now.

Should you just ignore it and swear to do better next year? (Answer: No)

Should you panic? (Answer: No)

The world won’t end if you don’t file on time, but there can be financial consequences involved, depending on your circumstances. Read on to find out what REALLY happens if you don’t file your taxes.

NEED HELP WITH IRS BACK TAXES, AUDIT REPRESENTATION OR SMALL BUSINESS TAX PREPARATION?

ADVANCE TAX RELIEF LLC
www.advancetaxrelief.com
BBB A+ RATED
CALL (713)300-3965


To Open with Good News…
There is one situation where not filing on time isn’t completely bad news. If you owe $0 (that’s zero dollars) in taxes or if you are owed a refund, you are not required to file your taxes. If you do file late, there is no penalty.

Isn’t that great? Except, if you are owed a refund and don’t file within three years of the associated tax date, the IRS gets to keep it. So you don’t have to rush, but if you want your refund, you might as well do it. At least you have three years, but you won’t get paid any interest.

Important Distinction
There is a difference between failure-to-file and failure-to-pay. And, oddly enough, it will cost you more in penalties for failure to file.

Still, it’s important to understand that filing on time is the most important thing you can do. You either need to file your income tax forms on Tax Day before midnight or you need to file for an extension.

However, if you file for an extension, that’s only for filing your tax forms. You’re still expected to pay on time. Sorry, no extensions for that.



FAILURE TO FILE

If you fail to file your tax return on time, the IRS can and will penalize you a late filing fee. This year the fee is 5% of the taxes you owe for each month past tax day that you fail to file. The penalty maxes out at 25% of the taxes you owe.

However, if you don’t file within 60 days of the April due date, the minimum penalty is $210 or 100% of your unpaid tax, whichever is less. Therefore, if you owed $210 in taxes and you waited 60 days to file, you wind up paying $420 total.

There are extenuating circumstances under which the IRS will waive late filing penalties. Some disaster victims, military service members and eligible support personnel in combat zones, and U.S. citizens and resident aliens who live and work outside the U.S. and Puerto Rico, have more time to file and pay.

FAILURE TO PAY

Penalties for failing to pay your taxes on time are actually lower than for filing late. For each month past the payment date you will be assessed 0.5% of your total tax bill as a penalty. This fee also maxes out at 25% of your tax bill. However, interest still accrues on the unpaid taxes over and above the penalty for failing to pay on time.

Interest begins to accrue on unpaid taxes one day after the bill was due. Interest compounds daily until the bill is paid in full. The rate charged is the Federal short-term interest rate plus 3%. Be aware the Federal short-term rate is set every three months; currently the interest rate is 5% (short-term rates are 2% plus the mandatory 3%). If the short-term rate goes up before you pay in full, your interest rate goes up, too.

You can reduce the penalty and interest by paying as much as possible on time. The less you owe, the less you will have to pay extra.

If you fail to file as well as fail to pay on time, the failure-to-pay penalty is waived and you only pay for failing to file.

FIRST TIME PENALTY ABATEMENT

If you meet the eligibility requirements, you may be able to have your first penalty waived.

If you were not required to file a return before you did not receive a penalty for the previous 3 years, and
You filed any required returns or filed an extension for all previous years, and
You paid or set up a payment plan for any tax due. Also, if you have a payment plan, you must be current.
If you do not qualify for the abatement, you will get lower penalties for late payment than for late filing. But don’t forget that interest begins to accrue the day after the due date and compounds daily, so it may not be worth it to follow that path.

THE 90% RULE

Most years, if you have paid 90% of your balance due on Tax Day, the IRS will not penalize you for failing to pay proper estimated taxes. (The rule doesn’t apply to tax withholding by your employer.) However, for this year, if you paid at least 80% of your tax liability through paycheck withholdings, quarterly estimated tax payments, or a combination of the two, you will not face any IRS penalties.

The reason for the change is because 2018 was the first year many of the new provisions of the Tax Cuts and Jobs Act of 2017 became effective. Taxpayers may not have had the correct amount of taxes taken out of their wages or made the correct estimated payments.

The new federal tax withholding tables weren’t issued until early last year, so employers didn’t have a chance to calculate the correct amount of withholding from the beginning of 2018. Also, the new tables didn’t completely factor in other changes, including the suspension of dependency exemptions and reduced itemized deductions that were part of the tax law change.

WHAT’S THE WORST THAT CAN HAPPEN?

If you don’t file your taxes or file for an extension, you will accrue penalties that can be up to 25% of the taxes you owe. If you owe $5,000, your penalty will be $1,250.

If you don’t file for more than 60 days, the penalty could be double your tax bill. The penalty compounds monthly until you file. If you completely neglect to pay your taxes and ignore the IRS, the government can start garnishing your wages, placing liens on your property, and start talking about jail time.

And that is what REALLY happens if you don’t file your taxes.

The best thing you can do is to file and pay as soon as possible to avoid building up penalties and interest. Then plan better for next Tax Day by putting a process in place right now to keep up with all your documentation. Check to make sure your withholdings are correct and that you are paying the appropriate amount of estimated taxes.

And, next year, keep an eye on the calendar.

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2018/2019 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 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.

#TaxDebtProblems #FilingBackTaxes #TaxReliefPrograms #IRSDebtForgivenes #TaxAttorneysNearMe #IRSLawyer #TaxReliefFirms #OfferInCompromise #TaxResolution #LocalTaxAttorney #HelpFilingBackTaxes #TaxDebtSettlement #TaxReliefAttorneys #IRSHelp #TaxRELIEF #TaxAttorneys #AuditHelp #BackTaxes

#OfferInCompromise #WageGarnishmentHelp #AuditReliefHelp #SmallBusinessTAXES

Thursday, June 13, 2019

HOW OWING THE IRS BACK TAXES CAN DERAIL YOUR TRAVEL PLANS

CP508 PASSPORT DENIED IRS

Are you planning to travel out of the country this summer? We hope you are not in tax debt because that could put a damper on things. Did you know that starting in February 2018, the IRS directed the State Department to deny or revoke passports of those owing $51,000 or more in back taxes?

Well, it did. The official rule is called IRC Section 7345F and lays out all the details.

Losing your passport, not being allowed to renew it, or having your first passport denied for owing taxes can keep you from the beaches at Cancun to the beaches in the French Riviera.

Owing back taxes is already threatens your financial picture. Add in the stress of knowing you owe Uncle Sam money won’t make your vacation any happier. But having no passport is the worst.

NEED HELP WITH IRS BACK TAXES, AUDIT REPRESENTATION OR SMALL BUSINESS TAX PREPARATION?

ADVANCE TAX RELIEF LLC
www.advancetaxrelief.com
BBB A+ RATED
CALL (713)300-3965


IRC Section 7345F - An Overview
In a nutshell, here is what the new rule says.

If you owe legally-enforceable, unpaid back taxes to the tune of $51,000 plus interest and penalties, and
A notice of federal tax lien has been filed, and
All administrative remedies have been exhausted or lapsed
The IRS will certify that debt to the State Department. The State Department will not issue you a passport after that, with some exceptions. By the way, the amount listed above is indexed to inflation, meaning it can change every year.

Also, the IRS can take a different step, issue a levy, and notify the State Department with the same result for you.

On a good note (relatively speaking), the delinquent tax is limited to Title 26 liabilities under the U.S. Tax Code. Any debt collected by the IRS like the FBAR Penalty and Child Support debt is not included in this rule.

Here are a couple of documents you need to know about.

Taxpayer Notification - Notice CP 508C is the written notification the IRS is required to send when it certifies a seriously delinquent tax debt to the State Department. It is posted by regular mail to your last known address. However, it is not sent to your Power of Attorney, so if all your affairs are being handled by a POA, that entity will not learn about this.

Reversal of Certification - Notice CP 508R is the written notification you receive, through regular mail to your last known address, that tells you the IRS is reversing the certification shown in 508C. It means the debt is fully satisfied or cannot be legally enforced, it is no longer seriously delinquent, or the certification was in error.

Understand that this can take time, so even if the certification is in error, it will still take the IRS around 30 days to make the reversal and provide notification to the State Department “as soon as practicable.”

HOW THE RULE IMPACTS YOU

First of all, you lose your passport, and it will take a while to get it back, no matter what. The new tax law passed in 2015 included language about passports. It requires the State Department to deny passports to anyone who owes the IRS a significant amount of money.

No new passport application will be processed.
An expired passport will not be renewed.
A current passport may be revoked or limited.
If you attempt to travel out of the country, you will not be allowed out of the country until you fix the problems with your back taxes. You may lose the money you paid for the vacation, too. If you have any idea that you have tax problems of this magnitude, check with the travel agencies and ticket offices about the chances for a refund or trip insurance.

WHAT CAN YOU DO IF YOU LOSE YOUR PASSPORT FOR BACK TAXES?

On another relatively good note, you aren't expected or required to pay the entire tax debt to get your passport back. You have quite a few options, in fact. Most of these will keep the IRS from sending the notification to the State Department in the first place if you take action as soon as you know of the tax debt.

You can pay the taxes in full, and be done with it.
You can set up an installment plan with the IRS to pay your debt over time. Just be sure to keep up timely payments.

You can go for an Offer-in-Compromise, which is a method of cutting your tax bill. However, there are restrictions to who can receive an Offer-in-Compromise, so see someone like us, Advance Tax Relief

You can show the Notice CP 508C is erroneous (issued in error).
As long as you are seen to be taking care of the problem, you can get your certification reversed and be on your way, if not very quickly. The State Department only places a hold on your application, giving you 90 days to make things right.

A couple of other ways you can resolve the issue include a requested or pending collection due process appeal with a levy or having collection suspended because you have or have requested innocent spouse relief.

If you take no action within 90 days, however, your passport application will be denied.

THE RULE DOESN’T APPLY TO EVERYONE

There are circumstances under which the IRS will not issue a certification to hold up your passport. They include those who…

Are in bankruptcy
The victims of identity theft
Serving in a combat zone
Living in a federally declared disaster area
Have been determined by the IRS to be in hardship and so your account is currently not collectible
With pending offers in compromise or pending requests for installment agreements
Are deceased. Even the IRS admits it can’t collect from someone who is no longer living.
In most of these scenarios, you might question a decision to make summer travel plans of any sort, but we won’t judge. Sometimes travel is necessary. It isn’t always a vacation. Also, the State Department can issue a passport for emergencies or for humanitarian reasons so a U.S. citizen can return from overseas.

Many people don’t realize that this new rule is in place. They find out about it when they receive the notification from the IRS, or when their passports are denied or revoked.

It’s unlikely the federal government will change its mind about this rule. So far, it’s netted them $11.5 million from people settling their debt to receive a passport. Another 114,000 people have signed installment agreements. Passports have proven to be a powerful incentive for people to pay their taxes.

You can avoid the issue entirely by paying your taxes on time or setting up an agreement when you know you can’t pay in full. Don’t wait until the State Department denies your passport to take care of your debt to Uncle Sam.

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2018/2019 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 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.

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

Tuesday, June 11, 2019

BEWARE: SIGNS AN IRS REVENUE OFFICER IS ABOUT TO CONTACT YOU!

Surprises can be fun – birthdays, anniversaries, maybe even one in a scary movie.


But one surprise that you don’t want is an unannounced visit from an IRS Revenue Officer.


That can make you feel like a scary movie is coming to life.


A Revenue Officer can take your house, levy your wages, clean out your bank account, and even take your business equipment.  You may feel like confronting Freddy Krueger is a better option.


NEED HELP WITH IRS BACK TAXES, AUDIT REPRESENTATION OR SMALL BUSINESS TAX PREPARATION?


ADVANCE TAX RELIEF LLC
www.advancetaxrelief.com
BBB A+ RATED
CALL (713)300-3965



If you owe money to the IRS, Revenue Officers have more power than any other IRS employee.


An IRS decision to send a Revenue Officer to you is not random, but rather based on careful consideration of your situation.  The more severe the IRS considers your case to be, the greater likelihood of Revenue Officer assignment.


Here five factors the IRS uses to determine if a Revenue Officer will be visiting you:


HOW MUCH DO YOU OWE THE IRS?


For the most part, the IRS does not use its big gun, the Revenue Officer, to go after smaller balances.  IRS Revenue Officer resources are limited. The IRS has approximately 14, 000,000 delinquent collection accounts but only around 3,500 Revenue Officers.  Clearly, all IRS tax debts are not created equal.


That means the IRS is generally not using its top tier agents on balances under $100,000.


In most cases, only if you owe $100,000 or more to the IRS, is it considered serious enough to merit contact from a Revenue Officer.


DO YOU HAVE UNFILED BACT TAX RETURNS?


Maybe you had a tax return that you knew you could not pay, and were paralyzed to file it.  Or maybe you are better at your craft than bookkeeping. Regardless, the IRS wants your tax returns, and it is Revenue Officer’s job to collect them from you.


In most cases, the IRS considers filing the last six years’ returns as sufficient.  Even if you have returns unfiled for 10 or 20 years, Internal Revenue Manual guidelines permit the IRS to accept six, and you are done.


IRS records can be obtained with what they know about your unfiled returns, including who paid you and how much.  This can be used to prepare tax returns to get you back in the system and lower the risk of a surprise visit from a Revenue Officer looking for your filings.


HOW MANY YEARS OF TAXES DO YOU OWE THE IRS?


The longer your problem has persisted, the more the IRS wants a Revenue Officer to make sure it stops.


We are human, and we make mistakes – one mistake can be owing the IRS year after year, with good intent to one day get ahead.  The IRS calls this “pyramiding.” Every year you stack a new tax liability on top of another.


The more you pyramid your taxes, the greater your risk of contact from a Revenue Officer.  Generally, owing the IRS for three or more years is enough to cause the IRS to take notice.


We want to stop the pyramiding and lower the chances of an IRS Revenue Officer coming around.


WHAT TYPE OF TAXES DO YOU OWE THE IRS?


If you have a business and have not been paying your employee withholding taxes, you have a higher risk of hearing from an IRS Revenue Officer.


The IRS places a high priority on using Revenue Officers to work employment tax cases because the taxes involve other people’s money.  If you have employees, you are required to deduct taxes from their paychecks, and pay that to the IRS. But you may have run into cash flow problems, and you find there is not enough money to pay the IRS and your overhead.


When you chose to pay the overhead and not the employee withholding taxes, the IRS gets aggressive.  Cash flow needs to be addressed to find the room to pay the money to the IRS. If you have not filed your employment tax returns, those need to be immediately prepared and filed.


The sooner we get into compliance with your employee withholding taxes, the less likely it will be for the IRS to come knocking.


ARE YOU PAYING THIS YEARS TAXES?


Simply put, the IRS wants you to get updated with filing and paying.  Now.


If you are self-employed, and have had trouble setting money aside for IRS estimated taxes, a good solution is to open a new bank account.  Every time you get paid from a customer, it is best to take a percent of that check, and put it aside in the estimated tax bank account.


For example, if your most recent tax return shows that your customers paid you $60,000, and you owe $6,000 to the IRS, we know that 10% of every dollar you are paid is for taxes.  Going forward, 10% of every check you receive should go into the estimated tax account to pay your current taxes.


The last thing you want during your day is a surprise visit from an IRS Revenue Officer.  What’s done is done, but that does not mean the future cannot be better, with less tax stress.  The risk of the IRS showing up at your house or place of business can be minimized, and the beast can be tamed.


GET TAX RELIEF HELP TODAY
If you think that you may need help filing your 2018/2019 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 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.
#TaxDebtProblems #FilingBackTaxes #TaxReliefPrograms #IRSDebtForgivenes #TaxAttorneysNearMe #IRSLawyer #TaxReliefFirms #OfferInCompromise #TaxResolution #LocalTaxAttorney #HelpFilingBackTaxes #TaxDebtSettlement #TaxReliefAttorneys #IRSHelp #TaxRELIEF #TaxAttorneys #AuditHelp #BackTaxes #OfferInCompromise #WageGarnishmentHelp #AuditReliefHelp #SmallBusinessTAXES

Friday, June 7, 2019

IRS TAX LIENS AND TAX LEVY: KNOW THE DIFFERENCE

IRS levies and property seizures, IRS Seizures, Tax liens

The IRS has two ways to collect back taxes:  a Federal tax lien and tax levy. A tax lien is different from an IRS levy – the lien does not result in the IRS taking your property from you.  That is done by levy.

You have rights to defend the filing of a lien, and prevent the issuance of a levy.  To be able to assert your rights and protect your property, it is important to understand and recognize the tools the IRS uses.

NEED HELP WITH IRS BACK TAXES, AUDIT REPRESENTATION OR SMALL BUSINESS TAX PREPARATION?

ADVANCE TAX RELIEF LLC
www.advancetaxrelief.com
BBB A+ RATED
CALL (713)300-3965


Here is what you need to know about the IRS tax lien and IRS tax levy:

IRS TAX LIEN

An IRS tax lien protects and secures the IRS’s rights to your property.  The lien attaches to property you own when it is filed, and property you purchase later.  A Federal tax lien most commonly impacts real estate.

If you own a house, and the IRS files a tax lien against you, the lien would give the IRS an interest your home similar to that of your mortgage company.

Example:  Your house is worth $90,000, and you have a mortgage of $65,000 on it.   There is $25,000 of equity in your house. Before the IRS filed its tax lien, that equity would be yours.  Now that the lien has been filed, the equity belongs to the IRS. If you want to sell your house, the IRS gets your equity at closing, not you.

The IRS usually files its Federal tax lien with county recorder or clerk of courts in the county where you reside the property is located.   For the tax lien to affect real estate, it must be filed in the county where the property is located. It would then encumber all of your real estate in that county.  A federal tax lien does not name the property it attaches to – it automatically encumbers all your real estate in the county it is filed and all of your other personal property.

If the IRS files a lien against you, you have a 30 day window to file an adminstrative appeal to request reconsideration of the filing.  This is called a collection due process appeal.

The lien expires when the IRS statute of limitations on collection expires – in most cases, 10 years.

IRS TAX LEVY

The purpose of an IRS levy is to take your property.  An IRS levy is the same as a seizure, or garnishment. The IRS can levy on your wages, bank accounts, subcontractor pay, accounts receivable, even retirement accounts.  The IRS can seize your house, car or your business equipment (although those are rare). For most people, it is the levy, not the lien, that hurts.

There are only a few things the IRS cannot levy  – these “exemptions” are listed in Internal Revenue Code 6334.   The exemptions you can claim include the right to keep unemployment benefits, workers compensation, most household goods and some tools of your trade from the IRS.

Before the IRS can levy on your property, they must first send you a Final Notice of Intent to Levy.  This is your notice of that the IRS intends to start enforcement against you. After you receive the Final Notice of Intent to Levy, you have 30 days to file an appeal of the proposed IRS collection action. If you file the appeal, the IRS is prevented from taking action until your hearing is completed.  The purpose of the hearing is to reach a resolution to levy action before it occurs – offer in compromise, installment agreement, uncollectible, for example.

The IRS does not need to file a Federal tax lien as a prerequisite to levying your wages, bank accounts, etc. – just the Final Notice of Intent to Levy.

In the rare cases of seizure of a house, the IRS must get court approval first.  To do this, the Department of Justice will usually file a lawsuit against you in Federal District Court seeking approval to foreclose and take your house.  Again, this is not a preference of the government.

The Federal tax lien and tax levy gives the IRS different rights against you – the lien as to security in your property, the levy to take it.  Together or apart, the lien and levy are powerful tools for the IRS.

GET TAX RELIEF HELP TODAY
If you think that you may need help filing your 2018/2019 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 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.
#TaxDebtProblems #FilingBackTaxes #TaxReliefPrograms #IRSDebtForgivenes #TaxAttorneysNearMe #IRSLawyer #TaxReliefFirms #OfferInCompromise #TaxResolution #LocalTaxAttorney #HelpFilingBackTaxes #TaxDebtSettlement #TaxReliefAttorneys #IRSHelp #TaxRELIEF #TaxAttorneys #AuditHelp #BackTaxes #OfferInCompromise #WageGarnishmentHelp #AuditReliefHelp #SmallBusinessTAXES

Monday, June 3, 2019

SIGNS THAT THE IRS IS ABOUT TO GARNISH YOUR WAGES AND LEVY YOUR BANK ACCOUNT

Automated Collection Service, IRS levies and property seizures, IRS Seizures, Revenue Officers, Substitute returns, Unfiled returns
It’s what keeps you going from month to month – your wages, and the money in your bank account.
You need it to pay your bills, provide for your family, keep a roof over your head, food on the table, make your car payment.

NEED HELP WITH IRS BACK TAXES, AUDIT REPRESENTATION OR SMALL BUSINESS TAX PREPARATION?

ADVANCE TAX RELIEF LLC
www.advancetaxrelief.com
BBB A+ RATED
CALL (713)300-3965



But at the same time, you owe back taxes to the IRS, and are looking over your shoulder, concerned that the IRS may strike and clean you out.
If any of these 10 signs are true, then your fears are real, and you are indeed at risk for an IRS levy on your wages or bank account:

A)   Has the IRS sent you a Final Notice of Intent to Levy and Notice of Rights to an Appeals Hearing?  This is the GrandFather of all IRS collection notices, and is identified in the upper left hand corner as an LT11 letter.  By law the IRS has to send the Final Notice to you before they can levy. After they send you the Final Notice, tax laws then make the IRS wait 30 days to levy. During this 30 day period, you have the right to stop the levy action by requesting that the IRS office of appeals review the case.  This is called a Collection Due Process Appeal.

But if the IRS sent you the Final Notice and you did not appeal, they can now levy you at anytime.

If you are unsure if the IRS has sent you the Final Notice of Intent to Levy, we can secure their internal records and transcripts that can tell us how real the risk of levy is.

B)  Has the IRS given you a deadline, and the deadline has passed?  Like any good debt collector, the IRS likes putting taxpayers on deadlines.  It can be a deadline to get an unfiled tax return in, or to provide the IRS a financial statement on their Form 433A, 433B or 433F. Either way, missed deadlines raises the ire of the IRS.  And that, in turn, significantly increases the chance that they will take it out on you with a levy on your wages or bank account. But we can get the IRS the information they are missing.

C)     Have you been contacted by an IRS Revenue Officer, but not responded by communicating back in kind?  IRS Revenue Officers are the top dogs in IRS collection enforcement. They are local, they and work where you live and work, and have your case because the IRS wants to pay really close attention to you and your tax debt.  Ignoring them is done at your peril – don’t do it. If a Revenue Officer has dropped a card off at your house, we need to call her and move the case to resolution. If the Revenue Officer has requested financial records or tax returns, they need to be provided.  Remember, when your head is in the mouth of the bear, say nice bear.

D)     Do you continue to owe the IRS year after year?  The IRS calls this “pyramiding” – every year, the pyramid of your tax debts grows bigger.  The IRS can work with us if we stop the problem – what’s done is done. But not getting into compliance and paying taxes going forward results in little mercy from the IRS.  Simply put, there is no negotiating to stop them when the problem has not stopped.

If you are self-employed, that means making estimated tax payments.  To do that, I recommend that we open up a new, separate bank account, and name it your estimated tax account.  Every time you get paid from a customer, we want to take a percent of that payment off the top and escrow it in your estimated tax account.  That percent is simple: It is calculated on the ratio of your gross income to your taxes. For example, you are paid $90,000 gross in a year, and that results in a $9,000 in taxes owed to the IRS, your tax rate is 10% of your gross income.

So every time you get paid, 10% of that check would get set aside for the IRS in the estimated tax account.  You pay as you go, pay as you get paid. Demonstrating to the IRS that you are setting money aside in an estimated tax account truly can take the sting out of past mistakes.

E)     If you have unfiled tax returns, the IRS will not hold back until you get in compliance. This is like not paying year after year.  An end has to be put on the problem to negotiate out of it. If you have unfiled tax returns, the IRS will not relent until you get them filed.  And how does the IRS get your attention to get those returns filed? They will levy your wages and bank accounts.

Even worse, if you do not file the returns, the IRS has the law on its side in being able to start an investigation and prepare the returns for you.  The IRS calls this a Substitute for Return. It is an IRS estimate of your tax liability, and usually result in you owing much, much more than if you filed the return on your own.  The good news is that in most circumstances the IRS will still accept the original return after they have filed a Substitute for Return. But problems with getting your returns in is a sure-fire way to provoke the IRS into levying you.

If you have the risk factors for an IRS levy, they can be reduced or eliminated.  Even if the IRS sent a Final Notice of Intent to Levy, in most cases they will allow up to a year to file a collection due process appeal late, which will stop the levies. Missed deadlines can sometimes be renegotiated, the sooner the contact after the deadline the better.  And if you are going to miss a deadline, call and ask for more time – good faith requests for extensions are usually granted. Revenue Officers need contact, and want what you want – to close a case file.

We need to help the IRS do their job, not restrict it or make it harder.  And regardless of past mistakes, escrowing current taxes can be done, and unfiled returns can be prepared to place you in compliance.

Remember, the IRS levies for a reason.  With the proper steps, the risk factors of levy can be taken away from the IRS, and an account in the IRS’s active collection enforcement inventory can be put to rest, giving you peace from having to look over your shoulder.


GET TAX RELIEF HELP TODAY
If you think that you may need help filing your 2018/2019 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 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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