Friday, September 13, 2019

OWE THE IRS - HOW SAFE IS YOUR BANK ACCOUNT?

IRS bank levies and property seizures

An IRS levy on your bank account can be disastrous – checks not clearing, bank service charges, and concern over paying basic living expenses from the lost funds.

The good news is that tax law gives you a 21 day window to get the money back into your account before your bank sends it to the IRS.  After the money is deducted, the bank holds it for this 21 day period. This waiting period, mandated by Internal Revenue Code 6332(c), provides a valuable opportunity to contact the IRS, negotiate a release of the levy, and have the money returned to your account.

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

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www.advancetaxrelief.com
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Equally important is that an IRS levy on your bank account is not a continuing action with every dollar you deposit deducted from your account on an ongoing basis and sent to the IRS. Rather, an IRS bank levy is a one time only deduction from your bank account.  See Internal Revenue Manual 5.11.4.3.

Here is how it works: when your bank receives and processes the levy, it takes only the money on deposit at that time.  If the bank processes the levy on Wednesday when there is $500 is in the account, that money will be deducted from your account.  If you then put $500 in the account on Thursday, that money is yours and is not sent to the IRS.  The money deducted on Wednesday is held for 21 days, then sent to the IRS if not released.

The IRS generally refrains from making successive levies on the same source. Once the levy is sent, successive levies sent out in rapid fashion are unlikely in most cases.

IRS bank levies provide time for release and return of the funds, an advantage that should not be squandered.  Timely response and proper negotiation can recover the funds back into your account.

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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#OfferInCompromise #WageGarnishmentHelp #AuditReliefHelp #SmallBusinessTAXES

Thursday, September 12, 2019

TAXPAYER SENTENCED FOR FAILING TO PAY OVER WITHHELD PAYROLL TAXES

Court documents revealed that for a 24-year span beginning in 1992, Terra Ferguson, of New London, North Carolina, served as an office manager at a Randolph County, North Carolina pediatric doctor’s office. In her role, she was responsible for, and had complete control over, the practice’s finances. Additionally, her role included being responsible for payroll taxes.

Prosecutors alleged that between 2011 and 2016, Ferguson caused nearly $80,000 to be withheld from employee paychecks but willfully failed to pay the withheld taxes over to the IRS.



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

ADVANCE TAX RELIEF LLC
www.advancetaxrelief.com
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Under federal tax law, those who are responsible for the payroll tax function are required to withhold, account for, and timely pay over the withheld funds to the IRS. Additionally, Ferguson failed to pay the practice’s share of employment taxes. Investigators determined that Ferguson spent the money on her own personal expenses, including her own business ventures.

It is extremely common for those involved in payroll or employment tax crimes to also be non-compliant on their individual income tax returns. In the present story, Ferguson prepared false tax returns for her employer, which included an exaggerated mortgage interest deduction and the under reporting of gross receipts. Prosecutors asserted that the approximate tax loss of Ferguson’s criminal activity is nearly $375,000.

In addition to serving 14 months in federal prison, Ferguson will serve three years of supervised release. She was also ordered to pay restitution to the IRS in the amount of $374,101.

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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#OfferInCompromise #WageGarnishmentHelp #AuditReliefHelp #SmallBusinessTAXES

THE IRS SENT ME A NOTICE FOR NOT FILING A TAX RETURN - WHAT SHOULD I DO?

Once a non-filer has been identified, a series of computer-generated notices are mailed to the taxpayer at their last known address. Where no response is received on the notices the case is assigned to the Collection Division of the IRS.

The Automated Collection System (ACS) within the Collection Division may eventually attempt to contact a taxpayer by telephone seeking the delinquent returns. If ACS is unable to secure the delinquent returns, a Revenue Officer may be assigned to contact the taxpayer in person at their home or place of business.

The Revenue Officer has the option of determining if fraud has been committed by the taxpayer, in which case a referral may be made to CID for possible prosecution.



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.

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

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

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#OfferInCompromise #WageGarnishmentHelp #AuditReliefHelp #SmallBusinessTAXES

Monday, September 9, 2019

HOW TO FILE BACK TAX RETURNS WITH THE IRS

Back tax returns, at a glance:

Not filing a required return is a serious issue with the IRS.

If you don’t file, the IRS can file a return for you — with taxes and penalties.
You should take special care when preparing and filing late returns, because the IRS gives them extra scrutiny.
You can get expert help filing back tax returns with the IRS.

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



WHAT YOU NEED TO KNOW ABOUT DELINQUENT BACK TAX RETURNS

Most taxpayers are required to file a tax return every year. The IRS keeps a record of taxpayers who are required to file but don’t – and the IRS can pursue those returns. That can mean stiff consequences and increasing complications.

If you have back tax returns, the IRS can charge you expensive penalties, hold your refund and even file a return for you without any credits or deductions in your favor (called a substitute for return).

Whether you have one or many returns to file, you or your tax pro should start taking steps right away to file an accurate and complete tax return that will get you back in good standing with the IRS.

Here’s what to do.

1. Get all the information needed to file the past-due return.

Start by requesting your wage and income transcripts from the IRS. These transcripts will help you identify the Forms W-2 and 1099 that you will need to prepare your return. You can also order your account transcript to see any estimated tax payments or other credits posted to your account for that tax year. Learn how to research your IRS account.

Gather information about self-employment, investments, and any other income that isn’t on file with the IRS.

Review your situation for deductions and credits.
If necessary, ask the IRS for more time to file the late return, to avoid any enforcement actions (such as a substitute for return, levy, or lien).
Identify any special processing needed for your late-filed return (such as date-stamping or filing with an IRS compliance unit).

If you have several past-due returns to file, the IRS normally requires that you file returns for the current year and past six years. But your specific facts and IRS rules will determine how far back you should file.

2. Complete the return and submit it to the appropriate IRS unit.

Complete your tax returns accurately. It’s best to double check your return against your IRS transcripts to make sure that you included all your income as it was reported to the IRS, and that you included all your withholding/estimated tax payments.
If you owe and can’t pay the full amount, consider requesting a payment arrangement with the filed return.

Attach a penalty relief request to the return, if applicable. If you have one past-due return to file, you may qualify for penalty relief on any failure to file and failure to pay penalties. If you have multiple returns to file, it’s more difficult to process the return and manage the resulting penalties and balances owed. You’ll need to investigate your penalty relief options further in these complex situations.

Send your return to the right IRS location.
Make sure you get proof that you filed, in case the IRS doesn’t process your return or you experience related compliance activity (like IRS collection notices, a lien, a levy, or an unfiled return investigation).

3. Monitor return processing and other compliance activities.

Periodically request your account transcripts or contact the appropriate IRS unit to make sure that the IRS processed your return.

If the IRS took prior actions on the un-filed return (such as filing a substitute for return), follow up to ensure that the IRS closed the case with no matters outstanding.

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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#OfferInCompromise #WageGarnishmentHelp #AuditReliefHelp #SmallBusinessTAXES

Tuesday, September 3, 2019

FRESH START WITH THE IRS? HOW IT REALLY WORKS

 Currently Not Collectible, Form 433A, Installment agreements, IRS Financial Statements, Offer in compromise, Trust fund recovery penalty

An offer in compromise can put IRS troubles behind you and bring a fresh start on your taxes.

But the road to a fresh start with the IRS is not necessarily as simple as it may sound.

The IRS has very strict criteria that they use to determine if a tax debt should be compromised.

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


Before jumping in with a compromise, there is much you need to know about the IRS settlement process, including:

–     Whether you should even file an offer in compromise.  For example, if the IRS has a limited time left to collect your debt (out of the 10 year period they are given by law), should you jump in or remain on the sidelines?  Sometimes, it is better to hold ’em, but you need to know when.

–     What are your chances of success. The IRS rejects more comprises than it accepts, due in part to its rigorous financial guidelines that are used to determine if they should settle or if they believe they can get paid in full.  Know if your situation merits the time invested to settle ahead of time.

–     How to use the internal IRS criteria to negotiate the best settlement.  It is important to know the IRS offer in compromise valuation formula before jumping in.  Do you make too much to settle?  What if you spend too much and the IRS wants you to cut your budget so you can pay them more?  The IRS has specific formulas that are used in valuing a compromise that should be reviewed and applied to your situation before jumping in.

–     The best ways to handle the full financial disclosure that the IRS requires.  The IRS wants to know where you work, bank, the amount in your retirement accounts, what cars you drive, what your house is worth, what you make, and what you spend.  What if your income varies year to year, and right now it is at a high?  What income do you pick (hint: the IRS permits income-averaging over several years to even out the highs and lows)?

–     How to complete the IRS financial statements and compromise forms.  For example, the IRS guidelines permit you to reduce the value of your cars and house by 20% on the financial statements, effectively lowering the value of your compromise by 20%.  Proper completion of the forms can result in significant savings in settlement.

–     Your rights to dispute an IRS rejection of an offer in compromise.  Maybe they think your home is worth more than it is.  Or aren’t allowing you necessary living expenses.  Or think you earn more than you do or will in the fixture.  Either way, any IRS compromise decision is subject to an independent review by the IRS Office of Appeals.  Many offers that are initially turned down are ultimately accepted by appeals.

Success with an offer in compromise is based on knowing the IRS’s settlement guidelines, understanding how to apply those rules to your situation, and responding if the IRS does not properly follow and implement them.

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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#OfferInCompromise #WageGarnishmentHelp #AuditReliefHelp #SmallBusinessTAXES

Wednesday, August 28, 2019

KNOW THE IRS WARNING SIGNS OF LEVY OR SEIZURE:

KNOW THE IRS WARNING SIGNS OF LEVY OR SEIZURE

IRS Letter 3174, New Warning of Enforcement

IRS collection notices, IRS Collection Problems, IRS levies and property seizures, Revenue Officers

When working with an IRS Revenue Officer, there are two warning signs that levy action is imminent.

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



The first sign is the IRS Final Notice of Intent to Levy.  This notice is required by law (Internal Revenue Code 6331) and provides a 30 day right to stop levy action by filing an administrative appeal.  The appeal puts resolution in the hands of an IRS settlement officer (as opposed to an IRS enforcement officer). This is known as a collection due process appeal because levy action cannot occur until you have exhausted your rights to review.  And if you cannot reach resolution with a settlement officer, there are additional rights of appeal to U. S. Tax Court. While this process is pending, there is no levy action.

If you missed filing the appeal, there are virtually no restrictions on the IRS’s ability to levy your wages, bank accounts, etc.  Which leads to the second sign that levy action could occur: IRS Letter 3174, New Warning of Enforcement.

The IRS does not have to issue Letter 3174 before levying  – but by their own administrative rule (Internal Revenue Manual 5.11.1.2.2.7), the IRS does send a second warning in certain circumstances. The purpose of Letter 3174 is to provide a refresher to taxpayers if a long time has passed since the Final Notice of Intent to Levy was issued.  As an alternative to sending the letter, a Revenue Officer can also give the notice intended by Letter 3174 verbally. This is an IRS administrative courtesy. The point here is to recognize the signs of when levy may be imminent.

It is important to recognize the circumstances that will lead to the IRS sending Letter 3174, New Warning of Enforcement.  Of course, there has to first be the Final Notice of Intent to Levy. And you should not receive Letter 3174 from the IRS Automated Collection Service (ACS) – just IRS Revenue Officers.  Automated Collection Service letters are all computer generated – no human function involved. Letter 3174, New Warning of Enforcement is generated by a Revenue Officer. So, expect to receive Letter 3174 only if you are working with a local IRS Revenue Officer, who will manually generate the warning letter.  In most every other situation, it is unlikely you will get a refresher notice after a Final Notice of Intent to Levy has been issued.

There is also a time frame that Revenue Officers that follow in issuing the refresher levy warning notice. Revenue Officers are instructed to issue Letter 3174 if more than 180 days have passed since the Final Notice of Intent to Levy was issued, and no enforcement action or warning of enforcement has occurred in that time frame.

If you receive Letter 3174, it is important to call your Revenue Officer within 15 days of the date on the letter. That is the window the IRS provides before starting enforcement again. In most cases, all you need to do is make contact with the Revenue Officer, find out what it is she needs from you (i.e., a financial statement), and set a date to provide it. You should not need to resolve the case in 15 days, just make efforts to communicate with the Revenue Officer. Not responding to the notice will likely result in levy action against your wages and bank accounts.

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


IRS Letter 3174, New Warning of Enforcement

IRS collection notices, IRS Collection Problems, IRS levies and property seizures, Revenue Officers

When working with an IRS Revenue Officer, there are two warning signs that levy action is imminent.

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


The first sign is the IRS Final Notice of Intent to Levy.  This notice is required by law (Internal Revenue Code 6331) and provides a 30 day right to stop levy action by filing an administrative appeal.  The appeal puts resolution in the hands of an IRS settlement officer (as opposed to an IRS enforcement officer). This is known as a collection due process appeal because levy action cannot occur until you have exhausted your rights to review.  And if you cannot reach resolution with a settlement officer, there are additional rights of appeal to U. S. Tax Court. While this process is pending, there is no levy action.

If you missed filing the appeal, there are virtually no restrictions on the IRS’s ability to levy your wages, bank accounts, etc.  Which leads to the second sign that levy action could occur: IRS Letter 3174, New Warning of Enforcement.

The IRS does not have to issue Letter 3174 before levying  – but by their own administrative rule (Internal Revenue Manual 5.11.1.2.2.7), the IRS does send a second warning in certain circumstances. The purpose of Letter 3174 is to provide a refresher to taxpayers if a long time has passed since the Final Notice of Intent to Levy was issued.  As an alternative to sending the letter, a Revenue Officer can also give the notice intended by Letter 3174 verbally. This is an IRS administrative courtesy. The point here is to recognize the signs of when levy may be imminent.

It is important to recognize the circumstances that will lead to the IRS sending Letter 3174, New Warning of Enforcement.  Of course, there has to first be the Final Notice of Intent to Levy. And you should not receive Letter 3174 from the IRS Automated Collection Service (ACS) – just IRS Revenue Officers.  Automated Collection Service letters are all computer generated – no human function involved. Letter 3174, New Warning of Enforcement is generated by a Revenue Officer. So, expect to receive Letter 3174 only if you are working with a local IRS Revenue Officer, who will manually generate the warning letter.  In most every other situation, it is unlikely you will get a refresher notice after a Final Notice of Intent to Levy has been issued.

There is also a time frame that Revenue Officers that follow in issuing the refresher levy warning notice. Revenue Officers are instructed to issue Letter 3174 if more than 180 days have passed since the Final Notice of Intent to Levy was issued, and no enforcement action or warning of enforcement has occurred in that time frame.

If you receive Letter 3174, it is important to call your Revenue Officer within 15 days of the date on the letter. That is the window the IRS provides before starting enforcement again. In most cases, all you need to do is make contact with the Revenue Officer, find out what it is she needs from you (i.e., a financial statement), and set a date to provide it. You should not need to resolve the case in 15 days, just make efforts to communicate with the Revenue Officer. Not responding to the notice will likely result in levy action against your wages and bank accounts.

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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#OfferInCompromise #WageGarnishmentHelp #AuditReliefHelp #SmallBusinessTAXES

HOW MUCH DO YOU OWE THE IRS IN BACK TAXES?

Back Taxes, ACS Collections, Offer In Compromises, Notice of Federal Tax Lien

If you have been wondering “How much do I owe the IRS?” it may be a matter of a simple calculation using an IRS form, or it may require the services of a professional tax company.

The IRS tax code is complicated and changes each year can make determining your tax obligations difficult. Advance Tax Relief located in houston texas is a three-tiered tax service, offering tax resolution, tax preparation and bookkeeping services all under one roof. Our tax team has the expertise and experience to work with you to determine what you owe.

FAQS ABOUT IRS DEBT

At Advance Tax Relief LLC, we pride ourselves on being a full-service tax company, offering a wide range of tax related services geared towards both individuals and businesses. If you are wondering how much you owe the IRS, or have questions about your IRS forms, Advance Tax Relief can help! Find our answers to the most frequently asked questions about IRS debt below.

WHAT SHOULD I DO IF I OWE THE IRS?

Many taxpayers who owe back taxes wonder how much they owe to the federal government, because of interest and penalties that begin to accrue when they have not paid or filed. Others may owe more because of a new life circumstance like marriage, deaths, new jobs, divorce or inheritances. There are a variety of life events that can affect your tax liability.

The first task is to make sure you truly owe the IRS. Read your completed return and look for any errors you may have inadvertently made, whether it be that you forgot to add a deduction, or you added the same income twice. If you expected to receive a credit or qualify for a deduction and you didn’t, be sure that you answer all of your questions correctly.

You can also contact the IRS on the phone, or do so in person through a local IRS office. You’ll need to have your Social Security number and personal information with you. You can then ask whether there’s an IRS tax balance owed on your tax account for any previous filing periods. The representative should be able to tell you whether you have an outstanding balance, and will be able to tell you how many different assessments you may owe.

Many taxpayers are uncomfortable contacting the IRS, or have no idea where to start when it comes to settling their tax debt. Advance Tax Relief can handle all interactions with the government agency and help you prepare tax returns for both the current year and any previous year in which you didn’t file. Contact us today 713-300-3965 to begin the process.


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




THE CARDINAL RULE: ALWAYS FILE YOUR TAXES ON TIME

The most important thing to do as a taxpayer, whether you can afford your tax liability or not, is to file your taxes on time. Even if you know you won’t be able to pay it off immediately, simply filing will save you hundreds and even thousands of dollars by minimizing tax penalties. There are failure-to-file penalties and failure-to-pay penalties that become more severe as time goes on, so this is an essential first step in the process of relieving your tax debt.

In general failure-to-file penalties are steeper than failure-to-pay penalties. A failure-to-file penalty is usually set at 5 percent of your tax debt for each month they go unpaid, but this penalty cannot exceed 25 percent of your total tax debt. In contrast, a failure-to-pay penalty is usually set at .5 or 1 percent of your unpaid taxes for each month, which also cannot exceed 25 percent of your total tax debt.

If you have already been penalized for failing to file or pay, you may qualify for relief under the First Time Penalty Abatement (FTA) policy. To qualify, the following must be true:

You’ve already paid or arranged to pay any tax due.
You didn’t previously need to file a return, or you’ve had no penalties during the three years prior to the tax year in which you received a penalty.
You’re in compliance with all payment and filing requirements.
An FTA can only be claimed for a single tax period. It allows typically compliant taxpayers to request the abatement or removal of certain penalties. This can see a taxpayer saving hundreds and even thousands of dollars. Many taxpayers who may qualify for an FTA fail to do so, if only because they don’t understand how it works—or don’t even know that it exists.

Advance Tax Relief can help you determine if the FTA applies to your situation, so give us a call today at (713)300-3965.


IRS NOTICES

If you believe you owe the IRS, keep a close eye on your incoming mail. The IRS sends numerous notices to delinquent taxpayers; with each subsequent notice, the consequences increase in severity. The IRS will send notices for the following reasons:

You have an outstanding balance
You are due for a refund from the IRS
They have a question about your return
They amended your return
There are delays in processing your return

Receiving a notice from the IRS can be intimidating, but avoid the urge to ignore these letters. The letters may be a reminder of balance due, such as, Notice CP501. Each contains valuable information, and waiting to take action can result in longstanding financial consequences. The sooner you respond, the sooner you’ll be able to minimize any interest and penalty charges incurred from your outstanding tax debt. Each IRS notice lists a number to contact at the top right corner; call the number provided. The IRS is more willing to work with taxpayers that are proactive about getting their debt settled. If you have more questions, we can help. Call today at (713) 300-3965.

WHAT TYPE OF IRS NOTICES WILL YOU POSSIBLE RECEIVE?

Every year, the IRS sends out more than 200 million notices to taxpayers that serve a variety of purposes. With over 1,000 different types of IRS notices, there’s a letter for everything; some may request additional information for a tax filing document, some may seek overdue payment, and some may inform you of an audit on your account. There are two main factions of IRS notice that should never be ignored when it comes to tax debt, and these include: the IRS Statutory Notice of Deficiency, and Final Notice of Intent to Levy.

IRS Statutory Notice of Deficiency: If you receive a CP3219 or LT3219 notice, the IRS is notifying you that you owe additional taxes on a tax return. This may mean they’ve performed an audit, your tax return doesn’t match taxable income information the IRS has received from other parties, or they’re performing an unfiled return investigation. Before receiving this notice, you’ve been sent multiple notices explaining any additional taxes the IRS believes you owe. This is essentially your “last chance” notice. You have 90 days to either protest the additional taxes or pay the tax owed.

Final Notice of Intent to Levy: If you’ve ignored previous notices and refused to get in contact with the IRS about settling your debt, you’ll receive a Final Notice of Intent to Levy. This means your case has been transferred to the IRS Collection Unit, who now have the authority to enforce collection through a lie or levy. You’ll never receive a Final Notice of Intent to Levy out of the blue; the IRS sends out numerous letters beforehand that request you pay your bill or make an installment plan with the IRS. After this notice is sent, you have 30 days to create a payment plan with the government agency, or be subject to a levy. A tax levy can see the IRS seizing funds from your paycheck, in what is known as a wage garnishment, or taking the funds directly from your bank account.

WHAT IF I IGNORE IRS NOTICES?

Ignoring the IRS’s attempts to collect what they’re owed can result in some pretty harrowing consequences, including the previously mentioned tax levies and liens. Ignoring an IRS notice can cause both immediate and long-term issues.

Substitute for Return: If you fail to file and ignore the IRS’s requests to do so, they may file a substitute for return. This takes the place of a regular tax return, and sees the IRS calculating your taxes for you, based upon your previous tax returns.

This means you have no control over the deductions and credits given, and could see you spending way more.

A Visit from the IRS: The IRS may send a tax revenue officer to your home. During these visits, they’ll ask you about your money situation and outline the various consequences you can expect should you choose to ignore your tax debt.

Wage Garnishment: This tax lien sees the government taking a portion of your paycheck each pay period in order to start paying off your tax debt.

Asset Seizure: There are some cases in which the IRS will seize personal assets to cover the cost of your tax debt. The IRS can seize virtually any personal asset, including your home, cars, boats, and other valuables; they will sell these items in order to repay your tax bill.

Criminal Charges: Although rare and usually only applicable in cases of fraud, delinquent taxpayers could face criminal charges for tax evasion. This can result in jail time.
What If I Can’t Pay What I Owe the IRS?

IF YOU FIND YOURSELF UNABLE TO PAY YOUR TAX LIABILITY IN FULL OR ON-TIME, THERE ARE A FEW OPTIONS TO CONSIDER. IT’S ALWAYS BETTER TO GET IN CONTACT WITH THE IRS AND COME UP WITH AN INSTALLMENT PLAN AS QUICKLY AS POSSIBLE. THIS WILL HELP YOU AVOID HEFTY PENALTIES AND INCREASING INTEREST CHARGES, AND MAY HELP YOU AVOID MORE SERIOUS CONSEQUENCES SUCH AS A TAX LIEN OR LEVY OR CALL ADVANCE TAX RELIEF FOR A FREE CONSULTATION.


A Short-Term Extension: If you can’t pay your tax debt immediately, you can consider a short-term extension to pay which provides you with 120 extra days to pay off all of your taxes.

Installment Agreements: If you won’t be able to come up with the necessary funds right away, you may consider applying for an installment agreement. Taxpayers who owe less than $50,000 or less qualify for this type of monthly installment plan. Once approved, you can pay through a direct debit option, which is the least costly of the options offered by the IRS.

Offer in Compromise: Taxpayers who will never be able to pay off their tax debt in full without undue hardship may qualify for an offer in compromise. Should your request be accepted, the IRS will forgive a portion of your debt, letting you settle for less than the full amount you owe. These are hard to qualify for, but our team of professionals can help increase the likelihood of qualifying.

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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Wednesday, August 21, 2019

DID YOU FILE A TAX EXTENSION FOR YOUR S-CORPORATION? SEPTEMBER 15TH IS APPROACHING!

CORPORATION TAX DEADLINE

Did you file for a tax extension for your S-corporation last March? Guess what. September 15, the deadline for filing your taxes after an extension is almost here. You have been getting your stuff together for this, right?

S-corporations are kind of a cross between a partnership/LLC and a C-corporation, which is what most people think of when they see the term “corp.” S-corporations exist to avoid double-taxation on earned income. Instead of paying both corporate taxes and each member paying individual income taxes, the income of the S corporation “passes through” to the members.

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

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


When it comes to taxes, S-corporations and partnerships follow most of the same rules under the U.S. tax code. Taxes are due on March 15th, and extensions are due September 15th. Of course, there are exceptions, but it wouldn’t be U.S. tax law without some confusion thrown in.

DO YOU NEED IRS TAX HELP?

The Definition of an S-Corporation

What is an S-corporation?

It is a corporation, but with characteristics of a partnership.
It can only be a domestic corporation.
Shareholders are limited to individuals, certain trusts, and estates, and they may not be partnerships, corporations, or non-resident alien shareholders.
The company can have no more than 100 shareholders and can have only one class of stock.
It cannot be an ineligible corporation such as certain financial institutions, insurance companies, and domestic international sales corporations.
Other entities that can be shareholders include certain tax-exempt organizations (501(c)(3)). However, partnerships do not qualify as shareholders.

As noted above, S-corporations elect to pass corporate income, losses, deductions, and credits to the shareholders for federal tax purposes. Shareholders report the flow-through income and losses on their personal individual tax returns and taxes are assessed at the individual income rate.

The S-corporation avoids double taxation on corporate income but is still responsible for tax on some built-in gains and passive income at the entity level. S-corporations are formed by submitting Form 2553 Election by a Small Business Corporation. All shareholders must sign the form.

Benefits and Disadvantages of S-Corporations

One benefit of S-corporations has already been mentioned. It allows you to incorporate without being taxed at the entity level, thereby saving your business federal tax. When a business is just starting up, every little bit helps.

Other advantages:

Limited liability protection is similar to an LLC or a C-corporation. Your liability is limited to the percentage you own of the company, and if the business is sued, your personal assets are safe.
As a corporation, your business can sell stock to raise capital.
The company has the benefit of perpetual existence. Even if a corporation owner dies or leaves, the company will continue. Stock and share transfers to individuals are made easier.
There are some disadvantages.

You need to be careful about setting “reasonable” compensation. The IRS places S-corporations under a microscope to ensure compensation is at fair market value. No trying to short yourself or others on compensation to increase corporate earnings. If you do, the IRS can and will reclassify any added corporate earnings as wages. Then you will owe Social Security and Medicare taxes on it.

The guidelines for profit and loss distribution to shareholders must be in proportion to their company stake. The S-corporation must also file several state and federal documents and pay fees to maintain the S-corporation status. Each state handles S-corporations differently.

Recent Changes in Tax Law Affecting S-Corporations

The Tax Cuts and Jobs Act passed in 2017 includes special distribution rules for eligible terminated S-corporations. The rules also changed to allow non-resident aliens to be potential current beneficiaries of electing small business trusts subject to the same charitable contribution rules as individuals.

Besides the TCJA, there have been changes in 20 sections of the Internal Revenue Code, which governs the taxation of S-corporations. In the past year to year and a half, there have been multiple cases decided and IRS guidance issued about these sections.

Changes include new limitations on business interest, new rules on qualified business income deductions, changes in charitable contributions and ESBTs, and changes in assignments of income.

DECIDING WHICH TAX DEDUCTIONS TO USE

Extended Filing Deadlines

Sometimes it isn't possible to get all the documentation together to file taxes on time. For this year, the original tax deadline for S-corporations was March 15, 2019, if you follow the calendar year. If you follow a fiscal year, your original return is due on the 15th day of the third month following the end of your fiscal year.

The IRS allows most taxable entities the ability to file for a six-month extension. This year the extended deadline is September 15, 2019, regardless of whether you use the calendar year or fiscal year.

The Required Documentation for S-Corporations

S-corporations file returns on Form 1120-S (provided your company’s request for S-corporation status is approved) and individual shareholders receiving tax distributions on Schedule K-1.

If you need a six-month extension, you needed to file Form 7004 (deep breath) Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns,  if you follow the calendar year. The deadline to file for the extension was March 15. 2019 and you have until September 15, 2019, to file corporate returns for 2018.

Although S-corporations are not taxable entities, you are still required to keep records of all income and deductions, and report them to the IRS each year.

Gather and prepare the following as appropriate for your business:

Form 1120-S: U.S. Income Tax Return for S-corporation
Schedule K-1: Shareholder’s Share of Income, Deductions, Credits, etc.
Form 940: Employer’s Annual Federal Unemployment Tax Return (FUTA)
Form 941: Employer’s Quarterly Federal Tax Return
Form 1099: Non-Employment Compensation
Form W2: Wage and Tax Statement
Don’t forget the supporting documentation for each form or schedule as needed.

What If You Miss the Date?

Missing the date will likely result in a moderate financial penalty, perhaps an extra interest charge. The IRS recommends filing as soon as possible to avoid additional interest and penalties, especially if you owe taxes.

To recap: If you filed for a tax extension last March 15th for your S-corporation, the deadline to file is rapidly approaching. September 15th will be here before you know it. Make sure you have all your documentation ready to go, and get it filed and pay any taxes as soon as possible.

By the way, you don’t have to wait until September 15th, you know. If you have everything together now, why don’t you go ahead and get it over with?

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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Tuesday, August 20, 2019

GETTING THE IRS TO RELEASE A TAX LEVY WHEN YOU HAVE BACK TAX UNFILED RETURNS

Automated Collection Service, Economic hardship and the IRS, IRS Appeals, IRS Financial Statements, Tax Court, Unfiled returns

When the IRS levies your wages or accounts, it is usually to get your attention.

There is something the IRS wants that you have not provided – it could be a financial statement, estimated tax payments, or getting in compliance on unfiled tax returns.

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

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And to get the levy released, the IRS is usually going to condition it on, say, getting your unfiled tax returns in first.  The IRS tells you that they operate on a “compliance first, levy release second” basis.

But what if you cannot get the back tax returns prepared quickly enough to get the levy released when you need it, which is now?

The levy is causing an economic hardship to you – preventing you from paying your bills – while you work to get the tax returns prepared.

But the IRS does not care – the are standing pat – all returns filed, no exceptions, no levy release.

There is help out of this bind.

The U.S. Tax Court, in the case of Vinatieri v. Commissioner, 133 T. C. 892 (2009), held that the IRS is required to release levies even if tax returns are not filed, provided it can be proven to the IRS that the levy is causing an economic hardship to you.

In the Vinatieri case, the IRS sent Kathleen Vinatieri a Final Notice of Intent to Levy, putting her on notice that they wanted to levy her assets.  Ms. Vinatieri responded by telling the IRS that any levy would prevent her from paying her bills. She requested a hearing with an IRS appeals officer, known as a Collection Due Process Appeal.

At the hearing, the Ms. Vinatieri provided financial information to the IRS verifying that if her income was levied, she would be in economic distress.  The IRS appeals officer agreed that Ms. Vinatieri could not afford a levy, or to make any payments to the IRS on her debt, and that a levy would create an economic hardship to her.  This qualified Ms. Vinatieri’s account to be placed in currently uncollectible status, with the IRS leaving her alone and not levying.

But IRS appeals officer sustained the levy – even though it was undisputed that it would cause an economic hardship – as Ms. Vinatieri had unfiled tax returns.

Ms. Vinatieri headed to Tax Court, and the court agreed with Ms. Vinatieri, ruling that the IRS must release a levy even if there are unfiled tax returns if the levy is causing an economic hardship and the account qualifies for currently uncollectible status.

The Tax Court’s decision was based on Internal Revenue Code 6343(1), which requires the IRS to release a levy if it will cause an economic hardship. The court found that there was no wording in the Internal Revenue Code conditioning the release on the filing of past due tax returns.  The Tax Court found the wording of the law to be clear – if a levy causes economic hardship, the IRS must release it, and cannot condition the levy release on getting in compliance with unfiled tax returns.

After the Vinatieri case was decided, two things happened at the IRS:

The IRS Taxpayer Advocate announced that they would be assisting taxpayers who were being levied, had unfiled tax returns, and could demonstrate that the levy would cause them economic hardship.

The IRS Office of Chief Counsel issued Notice CC 2011-005 to make sure that appeals officers followed Vinatieri when presented with cases where there was demonstrated economic hardship and unfiled returns.
What this means to you:

First, even though Vinatieri is law, do not expect all IRS agents to know and follow it.  That is not intentional – it is probably more because every IRS Revenue Officer or Automated Collection Service employee does not know about Vinatieri, or if they do know, they lose sight of it in their daily work flow.

In other words, change can be slow, and tax return filing as a condition to levy release – even if the account should otherwise be currently uncollectible – has long been an ingrained part of IRS culture.

That means you need to know the law and your rights under it, and be prepared to respectfully point it out to the IRS when necessary.

Second, it is important to understand that “economic hardship” is defined as qualifying for IRS currently uncollectible status.  This means that to be able to use Vinatieri we need to prove to the IRS that your income is enough to only pay your living expenses.  Bear in mind, though, that the IRS does have living expenses caps – meaning your hardship and living expenses has to match the IRS’s definition and guidelines.

Vinatieri means that Internal Revenue Code 6343(a) (1) gives you relief from a levy while we complete your unfiled returns if your are in economic hardship and qualify for IRS currently uncollectible status.  In that situation, the IRS cannot hold the returns over your head and condition levy release on the returns being filed.  But to finalize the uncollectible determination, the IRS will still need your tax returns – Vinatieri forces them to release the levy in the meantime.  It gives you relief while you prepare what is missing, and evens the playing field.

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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Tuesday, August 13, 2019

SMALL BUSINESS OWNERS AND IRS TRUST FUND RECOVERY PENALTIES - WHAT IT IS AND HOW YOU CAN SETTLE THESE BACK TAX PENALTIES

IRS Revenue Office, Form 4180, IRS collections

When you have employees, you withhold their Medicare and Social Security contributions from their checks, and in most cases, you also withhold some income tax. These amounts are referred to as trust fund taxes, and you are obligated to send that money to the IRS.

If you fail to make those payments, the government can charge a very serious Penalty called the Trust Fund Recovery Penalty.

What is the Trust Fund Recovery Penalty (TFRP)?

The Trust Fund Recovery Penalty is the penalty you face if you withhold income tax, Medicare, and Social Security payments from your employees’ paychecks, but you don’t send the money to the IRS. It is one of the largest penalties charged by the IRS. The agency takes it very seriously, and if you are deemed responsible for the missing payments, the IRS will not hesitate to take your personal assets to recoup their money.

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

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www.advancetaxrelief.com
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Who Can Be Responsible for the TFRP?

The IRS can and will levy this penalty on anyone who willfully fails to collect and pay trust fund taxes. That includes owners, CEOs, and directors, but it can also include employees, third party payroll administrators, outside accountants, and bookkeepers. For corporations, shareholders can also be held responsible, and for non-profits, members of the board of trustees may be considered responsible.

Essentially, anyone in the organization who collects or pays these taxes can be held responsible. In addition, anyone who knows the taxes aren’t being paid can also be held responsible. The IRS can hold multiple people responsible, and the agency will do what it takes to get the money.

To establish responsibility, the IRS has to prove that the individual in question was aware that the taxes were due and aware they weren’t being paid. The individual must have purposefully or willfully ignored the law. For example, if you or someone related to your organization took the money set outside for payroll and income taxes and used it to pay another bill, that’s a clear sign of willfulness.

How Much Is the Trust Fund Recovery Penalty Amount?

The Tax Fund Recovery Penalty is not small. In fact, it is equal to the amount of taxes that were unpaid. Once again, that includes any income taxes withheld from an employee’s paycheck plus the employee’s Social Security and Medicare contributions. Note that Social Security and Medicare contributions are also referred to as FICA (Federal Insurance Contributions Act) taxes.

To explain, let’s say you paid an employee $900. You noted on the paycheck stub that you withheld $90 for income tax plus $52 for Social Security and $13.50 for Medicare. However, you didn’t send any of that money to the IRS. In that case, the unpaid tax bill is $156.00. You owe that amount plus that amount again as a penalty. That doubles your bill.

With a single employee, that can be a lot over an extended period of time. With multiple employees, the numbers can be staggering.

What Happens If the IRS Assesses a Trust Fund Recovery Penalty?

If the IRS believes that a company hasn’t been paying its trust fund taxes, an officer from the agency starts an assessment to figure out who is responsible. As part of that process, the IRS requests multiple documents and lots of information from the company.

That includes bank statements and canceled checks, but it also includes details about who has passwords for online accounts and who knows PINs for bank cards. The IRS wants to see who’s paying the bills, who’s controlling the money, and where the money is going.

The agency will likely also request articles of incorporation or partnership contracts to get a sense of the layout of power in the company. Then, when the agent hones in on a potentially responsible party or parties, the IRS will request an interview with those people.

What Is the Interview for a Trust Fund Recovery Penalty?

There’s a lot to understand about the interview process. Whether you are the owner of a company or just someone the IRS thinks is responsible for the missing taxes, you may be summoned. This is sometimes called a Form 4180 interview. Click the links for detailed information on the interview process and how to avoid an interview.

How Can You Settle the Penalty?

Like other types of tax debt, there are options to pay this penalty. If you don’t have the full payment, you can apply for a payment plan or an installment agreement. Alternatively, you can try to settle the debt for less than you owe through the offer in compromise program or through a partial payment installment agreement.

The important thing is to contact the IRS and set up an arrangement before the IRS tries to garnish your wages or seize your assets. You cannot discharge these penalties in bankruptcy.

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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Wednesday, August 7, 2019

BACK TAX OPTIONS WHEN A SPOUSE OWES IRS BACK TAXES

Back Taxes, Spouse Owes Back Taxes

Getting married means sharing your life with your spouse in more ways than one. You may be combining two separate households, including your finances. If you did not talk about it before you said, “I do,” you may want to discuss those finances before you receive a surprise wedding gift from the IRS.

If your spouse owes back taxes, even from before you were married, and if you file a joint return, you will be on the hook for those back taxes, too. Unless you can file for spousal tax relief.

Depending on your circumstances, you have several options available for tax relief from a spouse’s back taxes. This post provides information that you can use to investigate which option will work for you.

DO YOU NEED IRS TAX HELP?

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

ADVANCE TAX RELIEF LLC
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Where Did the Tax Debt Come From?

Owing debt or being in arrears on taxes are not romantic topics people want to discuss right before marriage. However, uncomfortable or not, you deserve to know your marriage partner’s financial situation.

Is he behind in child support payments?
Is she late paying her student debt?
Is there a court judgment pending that remains unpaid?
Are there any state debts awaiting payment?
The IRS can garnish wages and seize tax refunds to pay any of these debts. If you file jointly, you forfeit the joint refund. It won’t matter that you were not initially responsible for the debt. In the eyes of the IRS, a joint return is fair game. Once each of you has signed, you are each jointly and individually responsible for any tax, interest, or penalties incurred by the other.

The IRS also plays by rules, some of which allow a spouse relief from a partner’s poor financial decisions.

Innocent Spouse Relief

Innocent Spouse Relief is one of the rare methods of gaining full tax forgiveness from the IRS. You must prove your spouse (or former spouse) incurred a tax debt without your knowledge. The tax debt can come from a variety of circumstances.

Your spouse or ex-spouse failed to report income.
Your spouse or ex-spouse underreported income.
Your spouse or ex-spouse claimed deductions or credits fraudulently.
Of course, it’s more complicated than simply saying you didn’t know about these issues when you signed the joint tax return.

First, complete IRS Form 8857 - Request for Innocent Spouse Relief. Understand that if you lie on the form, you can be charged with perjury. Once you have filed, the IRS will contact your spouse or former spouse to obtain any relevant information they require.

If the government learns you had knowledge of the issue when you signed the joint return, you will not qualify for relief.

If the IRS finds no evidence that you were knowledgeable, you can receive Innocent Spouse status, which makes you eligible for full and total forgiveness on all tax debt owed on that specific filing.

The relief includes not only taxes but interest and penalties as well. One caveat: Innocent Spouse Relief only applies to individual income or self-employed taxes. It does not include household employment taxes, individual shared responsibility payments, or business taxes and trust fund recovery penalties for employment taxes.

The good news is that the IRS will calculate the taxes you are responsible for, you don’t have to.

Separation of Liability

Separation of Liability is available for unpaid liabilities resulting from underpayment of taxes. You are allocating (separating) the understatement of tax (plus interest and penalties) on your joint return between you and your spouse (or ex-spouse). After that, you are only responsible for the tax allocated to you.

You can only file for separation of liability if you are no longer married to, or are legally separated from, the spouse with whom you filed jointly. Being widowed is included. Also, you cannot be a member of the same household as the spouse you filed jointly with at any time in the 12 months before the date you file for separation of liability.

File IRS Form 8857 - Request for Innocent Spouse Relief. Separation of Liability is one aspect of the innocent spouse option.

Equitable Relief

If the IRS determines you do not qualify for innocent spouse or separation of liability, you may be eligible for Equitable Relief. The government gives consideration for equitable relief only after denying innocent spouse relief or relief by separation of liability.

The difference between equitable relief and innocent spouse or separation of liability is that you may receive the relief from an understatement or underpayment of tax of which you had knowledge. Equitable relief judgments consider all facts and circumstances to determine whether to grant relief. For example, if you were the victim of domestic abuse before you signed the joint return, and due to the abuse, did not challenge any items on the return for fear of retaliation from your spouse.


Injured Spouse Relief
Injured Spouse Relief differs from Innocent Spouse Relief in that the IRS considers someone took money that was rightfully yours (injured you) as opposed to committing wrongdoing on a joint return of which you had no knowledge (you are innocent). The Treasury Department Offset Program can collect for a range of debt:

Past-due federal or state taxes
Late child support payments
Late alimony payments
Other federal debt, like overdue student loan payments
If the U.S. Treasury Department takes some or all of your joint refund through the Offset Program, money you expected to receive, and applies it to the debt owed by your spouse, you may be eligible for Injured Spouse Relief to recover your share of the refund.

To apply, file IRS Form 8379 - Injured Spouse Allocation as soon as you know your refund will be affected by a spouse’s (or ex-spouse’s) qualifying debt. You will need to file a form for each tax year where your refund was impacted, but you only have three years from the due date of the original return or two years from the date the offset was taken.

There you have it. If you can prove you had no knowledge of the debt liability, such as back taxes, created by your spouse or ex-spouse, you may qualify for innocent spouse relief or relief by separation of liability. If you are not eligible for either, you may still be qualified for equitable relief, depending on your circumstances.

If you do not receive an expected refund for the same reason, you may qualify for injured spouse relief.

If you are concerned about the potential for issues with a joint return, you can always file separately and avoid the problem. Alternatively, your spouse can increase the number of exemptions to increase the amount of tax withheld from his or her wages to cover the debt before you file jointly. Then you won’t need injured spouse relief.

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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Monday, August 5, 2019

WHAT CAN HAPPEN IF YOU DON’T FILE YOUR BACK 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?

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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