FINDING THE BEST TAX DEBT RELIEF SOLUTION

IRS Hardship Program

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When you find yourself owing back taxes, you may be at a loss for how to proceed. Unfortunately, many taxpayers don’t know the tax debt relief options open to them until they face various tax debts as a result of IRS audits, fines, penalties, levies, or liens, as well as unpaid payroll taxes and IRS wage garnishment.

 

Regardless of your tax challenge, there are five primary methods to get tax relief when you owe back taxes. You may be able to take advantage of just one or two of these solutions according to your specific circumstances.  

 

#1 Offer in Compromise (OIC)

An Offer in Compromise is an agreement between the IRS and a taxpayer where the latter pays less than the outstanding taxes they owe. The IRS does not accept all applications for Offers in Compromise - the current success rate is only 25 percent. Still, if OIC is ideal for you, we can help you to settle the debt once and for all to avoid further accrual of penalties and interest on the tax debt.

 

NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

ADVANCE TAX RELIEF LLC

www.advancetaxrelief.com

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#2 Penalty Abatement

You can apply for penalty abatement when the IRS tacks an automatic penalty onto your outstanding taxes without considering your situation/reason for nonpayment. A tax relief professional can help you to file ‘reasonable cause’, which is written proof explaining the reason for nonpayment. If successful, you will get the penalties removed (or refunded if paid) and have more time to pay your outstanding taxes.

 

#3 Installment Agreement

IRS Installment agreements get the best reception from the IRS since the taxpayer undertakes to pay the debt in full. You can choose to pay your outstanding taxes in manageable instalments over some time if you cannot afford to pay at once. You can also seek an extension on an existing installment agreement should your financial situation deteriorate.

 

However, note that you must apply and meet the requirements before IRS approves your installment agreement. Further, penalties and interest will continue to accrue on the outstanding amount until you have paid in full. 

 

#4 Currently Non-Collectible (CNC)

If you cannot pay your back taxes because your financial situation has deteriorated (e.g. if you lost your job), you can apply for a Currently Non Collectible status. CNC applications can be approved if you show that your total income is less than the allowable living expenses according to federal standards.

If your application is approved, the IRS will grant you a reprieve from usual recovery and collection tactics. After 1-2 years, they will reassess your financial situation to determine whether you can resume payments. Also, you are required to notify the IRS if your financial situation improves. Note that penalties and interest continue to accrue while your account is in CNC status.

 

#5 Tax Audit Appeal

You can contest a tax audit if you feel that the IRS-recommended audit is inappropriate or incorrect. Disputed IRS audits are often settled when you initiate an appeal. Take advantage of the fact that the IRS prefers to resolve such issues because it is expensive, and they lose time and risk judgement against them. You need a tax professional who is familiar with the audit process to negotiate on your behalf.

 

#6 Innocent Spouse Relief

One spouse can apply for relief from tax liability or penalties for taxes filed jointly. However, you must prove that you were unaware of the understated income or taxes when you signed the tax return. A professional can help you to assess whether this avenue is right for you.

 

Contact Tax Industry to Help Deal with Back Taxes

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

 

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

 

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

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MOST COMMON BACK TAX MISTAKES AND HOW TO AVOID THEM

Back Taxes

Unfiled Tax Returns 

Each year, the IRS requires citizens to remit a certain amount of taxes based on their revenue. Unfortunately, when facing financial challenges, you may find it hard to pay what you owe. In some cases, you may also make mistakes when calculating your taxes and remit a lower amount

If you owe taxes from previous years, it is essential to clear them as soon as possible. Besides, take various precautions to protect yourself and your business from audits and asset freezing.

 

NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

ADVANCE TAX RELIEF LLC

www.advancetaxrelief.com

BBB A+ RATED

CALL (713)300-3965

 

Are you wondering which mistakes to avoid when owing to the IRS? Read on to discover six common blunders people make with back taxes and how you can prevent them.

 

1. Failing to Confirm Details on the Notice Letter

Once the IRS notices that you owe them taxes, they will send a notice explaining the reason for the contact and instructions on handling the issue at hand. Most people often fail to confirm the details indicated then end up repaying an amount higher than what they owe.

 

After receiving notice, confirm if the details indicated are correct. You can do this by comparing it with tax forms from the year in question. This way, you can correct an erroneous tax bill and prevent paying higher fines and penalties.

 

2. Not Responding to the IRS

Most IRS notices often indicate that you should respond by a certain date. Failing to do this can cause wage garnishment and bank account or asset freezing, worsening your financial situation.

 

Most IRS notices often indicate that you should respond by a certain date. Failing to do this can cause wage garnishment and bank account or asset freezing, worsening your financial situation.

 

3. Delaying to Select a Payment Plan

The IRS offers payment plans to help clear back taxes when facing financial problems. Still, most people delay selecting a suitable tax debt relief program, leading to interest accumulation. Waiting too long to start repaying the debt also affects credit scores and financial credibility.

 

The best way to avoid this issue is by picking a suitable repayment plan quickly. Some of the programs to consider are installment agreement, offer in compromise, and IRS Fresh Start.

 

4. Paying Taxes with Credit

Another common mistake with back taxes is borrowing money to repay it. While you may want to clear your debt faster, it is crucial to consider your financial situation. Taking out a loan or paying tax bills with a credit card charging a high-interest rate will further affect your finances.

 

In the long run, you will end up spending a significantly high amount. Avoid further damage to your assets by applying for a suitable IRS repayment program. This way, you have more time to clear the debt with limited straining or financial pressure.

 

5. Failing to Seek Professional Help

While you may find it less expensive to deal with the IRS alone, it may lead to costly mistakes. Without professional help, you may reduce the chances of qualifying for a repayment program. Moreover, you increase the chances of higher penalties and fines after failing to abide by IRS policies.

 

Working with a tax resolution expert can help you deal with back taxes more efficiently. These experts will ensure you select a payment plan that is suitable for your financial status.

 

6. Inadequate Documentation

If you do not keep proper records of your interactions with the IRS, it may be hard to provide evidence for a claim. Besides that, following up on your application may be challenging and time-consuming.

 

Avoid this back tax mistake by keeping copies of all documents shared by or with the IRS. Further, ensure you note the name of the personnel you converse with for simplified follow-up. If possible, record these conversations as you may need them for future reference.

 

Contact Tax Industry to Help Deal with Back Taxes

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

 

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

 

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

#TaxRelief

#BestTaxReliefCompanies

WHAT YOU SHOULD KNOW ABOUT THE IRS FRESH START PROGRAM

IRS Fresh Start Program

IRS Tax Relief

Paying taxes to the Internal Revenue Service (IRS) may be challenging when facing financial problems. Unfortunately, failing to remit can lead to the accumulation of debt and fines. If you owe the IRS, you may be wondering if any tax relief programs can help you repay and avoid further consequences.

One initiative that has been effective in helping people deal with accrued taxes is the Fresh Start program. If you qualify for this initiative, you can avoid penalties, fines, high-interest rates, and the IRS withholding your salary

Here, we discuss five essential things you should know about this program before applying. We will also explain how to identify if you qualify and discuss the measures you should take to maintain eligibility.

NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

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CALL (713)300-3965

1. It Offers Extended Installment Agreement

The IRS Fresh Start program offers fixed installment schedules to taxpayers who owe less than $50,000. Using this initiative, you get a maximum of six years to repay the entire amount. Besides that, the IRS will not charge you any penalties as long as you pay using the provided schedule.

They will also refrain from engaging in collection activities such as freezing your assets or holding your wage. When you qualify for an extended installment agreement, you will avoid the debt from building up and get enough time to repay.

2. You Can Opt for an Offer in Compromise

If you have standing assets that you can use to clear some portion of your debt, you may apply for an Offer in Compromise (OIC). This program will allow you to repay an amount that is significantly less than what you owe. However, you must deposit an amount equal to 20% of your total debt as you submit your application.

As the IRS considers your offers, you must continue remitting monthly installments. Once they accept it, proceed to pay the agreed amount within the provided time. While it is hard to qualify for OIC, it is an ideal option if you want to clear your tax liability to invest or borrow a loan.

3. Fresh Start Can Release Your Tax Lien

Securing investments and qualifying for credit may be challenging when you owe the IRS. But, with the Fresh Start initiative, you can apply for tax lien withdrawal.

This program involves paying your entire debt through a direct deposit. After that, you can request the IRS not to display this payment on your credit reports and public fiscal information. This way, your debt will not affect your credit score or financial credibility.

4. There Are Qualifications Requirements

Owing taxes does not mean you automatically qualify for the Fresh Start program. Each repayment option has specific requirements you must meet for the IRS to consider your case. First, you should not be bankrupt because the body needs to prove that you can repay the debt.

If you own a small business or are self-employed, you must calculate the amount of tax you expect to pay in the current year. After that, present this information when applying to the Fresh Start program of your choice.

You must also ensure that you filed taxes for previous years, even if you did not pay. Moreover, it should be clear that you cannot remit the total amount you owe due to financial problems.

5. IRS Determines If You Qualify

The IRS receives numerous applications to the Fresh Start Program. As a result, it may not be possible to accept all interested parties. After receiving tax relief requests, the IRS will assess them based on several factors. These may include:

History of loan default

Case credibility

Tax filing accuracy

The next step will mainly involve assessing your financial position to determine if you are more qualified than other candidates. With this information, the IRS can decide if you are eligible and send feedback by mail.

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2014, 2015, 2016, 2017, 2018, 2019 & 2020 Form 1040 tax returns or past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund and reduce your chances for an IRS AUDIT.

Advance Tax Relief is headquartered in Houston, TX. 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.

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation

#TaxAttorneys

#TaxDebtRelief

#TaxHelp

#TaxRelief

#BestTaxReliefCompanies

FIRST TIME TAX DEBT PENALTY ABATEMENT: How it works

The IRS has an administrative waiver that provides penalty relief for certain penalties for taxpayers who have a clean compliance history.  This waiver is called the IRS’ first-time abatement or “FTA.”  FTA has been around since 2001, but few use it to abate their penalties.

Let me break down the rules for you.  For a list of forms that FTA applies, see this blog post.

FTA applies to 3 very common penalties: FTA is primarily directed at three common penalties-  failure to pay (“FTP”- 56% of all penalties), failure to file (“FTF” – 12% of all penalties), and the failure to deposit (“FTD”) penalties for employers who remit payroll deposits.

NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

ADVANCE TAX RELIEF LLC

www.advancetaxrelief.com

BBB A+ RATED

CALL (713)300-3965

S corporation and partnership late filing penalties qualify for FTA: yes, those dreaded late filing penalties for the pass-through entities qualify for FTA.  You will have to find someone at the IRS who is aware of this rule to be successful in abating late filing S corp or partnership penalties.

Look back 3 years for a clean compliance history: the last three years need to be penalty free, with the exception of the estimated tax penalty.  For example, if you have a qualifying penalty in 2018, you cannot have a penalty in 2015-2017 to qualify.

Past estimated tax penalties do not qualify for FTA and do not disqualify you from FTA: if the taxpayer has an estimated tax penalty in the past three years, it will not disqualify the taxpayer from FTA.

If you owe taxes, you can use FTA from any year past 2000: FTA can only be “refunded” for the past three tax years or any penalty paid within the past two years (the IRS refund statute rules).  However, if you owe back taxes, you can use FTA from 2001 to the current tax year to be offset against the amount owed.  See this blog post for more.

Accuracy penalties do not qualify for FTA: if you are audited or receive a CP2000, you may be assessed a 20% accuracy penalty in addition to the tax owed.  Accuracy penalties do not qualify for FTA.  However, the IRS provides a get out of jail free card for the accuracy penalty for negligence if it is the first time the taxpayer received a CP2000 notice.

You must be in “good standing” with the IRS: this means all required returns must be filed and, if you owe back taxes, you are in a collection agreement with the IRS.

If you qualify for FTA, the IRS will code a reasonable cause abatement as FTA if it applies: this is a new rule in 2018.  If you qualify for penalty abatement for FTF, FTP, or FTD based on reasonable cause (you have reasons outside of your control, like sickness, that caused the noncompliance), the IRS will code your penalty abatement as FTA if the taxpayer has a clean compliance history.  This will disqualify any penalty in the next 3 years from qualifying for FTA.  In the past, taxpayers could get reasonable cause abatement in Year 1 and use FTA in Year 2.  Prior to 2018, the IRS considered penalties abated for reasonable cause in prior years as “clean compliance.”

How do you find out if you qualify? 

The easiest method to understand if you qualify and can use FTA is to review your IRS account transcripts.  Transcripts will show penalties applied, by year, and you can apply the rules above to check if you qualify.

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2014, 2015, 2016, 2017, 2018, 2019 & 2020 Form 1040 tax returns or past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund and reduce your chances for an IRS AUDIT.

Advance Tax Relief is headquartered in Houston, TX. 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.

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

#TaxRelief

#BestTaxReliefCompanies

FOUR WAYS UNFILED TAX RETURNS CAN HAUNT YOU AND CAUSE A WAGE GARNISHMENT BY IRS

Haven’t filed taxes in a year or two (or four or ten)? You’re not alone. While the majority of people pay their taxes on time, about 7 million taxpayers fail to file their taxes every year. If you’re in that 5% of taxpayers, you might be asking yourself, “What’s the worst that can happen if I haven’t filed my taxes for this past year or previous years?” Well, the consequences for unfiled tax returns aren’t pretty.

We’re not saying that the IRS operates like a scary movie villain, but they do know how to haunt people who don’t follow their rules and file on time. Their tactics range from disappearing tax refunds and credits to a not-so-pleasant surprise filed tax return on your behalf. The kind of haunting that the IRS will do isn’t so easily solved with burning sage or sprinkling some salt. Instead, this IRS haunting might be best solved by tax preparation help.

 

1. You Could Face Suspenseful Silence from the IRS About Your Unfiled Tax Returns.

Believe it or not, if you don’t file your taxes, it’s possible the IRS may not reach out to you immediately.

You’ve probably heard horror stories about notices piling up in your mailbox and IRS tax collectors knocking down your door. But you rarely hear about the even spookier outcome: that you don’t file, and the IRS seemingly doesn’t do anything in response.

 

In case the IRS hasn’t contacted you, don’t be quick to assume that this suspenseful silence means they haven’t noticed. It’s possible, especially if you’re self-employed and don’t have any W-2s or Form 1099s that get sent to the IRS.

 

However, it’s equally possible that the IRS doesn’t have your correct address. They could be mailing you notices left and right. But if they don’t have an updated address for you, you won’t get those notices. And unfortunately, that’s on you. It’s your responsibility to update the IRS on your current address.

 

2. Tax Refunds and Credits Can Disappear Before Your Eyes.

Say you didn’t file your tax return four years ago. If you had any tax refund due to you from that return, it’s long gone by now. See, if you’re due a refund for withholding or estimated taxes, there’s a statute of limitations that kicks in. If you don’t file your return within 3 years of the due date, you’ll lose that money that was rightfully yours.

NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

ADVANCE TAX RELIEF LLC

www.advancetaxrelief.com

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CALL (713)300-3965

 

Disappearing Tax Returns

The same goes for tax credits like the Earned Income Credit. In fact, the IRS can be even more stingy with tax credits. If tax credits can cause a refund on a previously unfiled tax return, the IRS is unlikely to give them to you in retrospect.

Why let the IRS keep money that is rightfully yours? By leaving your tax returns unfiled, you’re giving them the go-ahead to hold onto your hard-earned money.

 

3. You Can Struggle to Make Big, Life-Changing Purchases.

Think about those monumental purchases you may make in your life:

 

A brand-new car

A mortgage on the perfect house for your family

A loan to start your own business

Tuition to attend the college of you or your child’s dreams

One of the unexpected ways an unfiled tax return can haunt you is your sudden inability to make these big purchases.

When you make purchases this big, you’re typically borrowing money. When you borrow money, financial institutions tend to require income verification to ensure you’ll be able to repay them. If you aren’t a W-2 employee, how will banks verify your income? You guessed it: using your tax returns.

Not having tax returns could indicate to lenders that they cannot trust you’ll be able to repay the loan. This isn’t to say you’ll be unable to buy a home or a car; just keep in mind that these processes will be much more difficult without tax returns.

Also, you’ll need your federal income tax returns to complete the Free Application for Federal Student Aid (FAFSA). Without this info to prove your financial need, you’ll be unable to apply for federal financial aid. Whether it’s for you or your child, this means you’ll miss out on helpful federal grants and subsidized student loans. And for similar reasons to those posed above with loans for cars and houses, you may find it difficult to take out private student loans as well.

 

4. The IRS Can Surprise You with a Twist Ending by Filing for You.

If you don’t submit a complete tax return, the IRS may do themselves a favor by filing a substitute.

Notice that we don’t say they do you a favor by filing your unfiled return. That’s because the substitute return they file on your behalf will not give you any of the credits, deductions, or exemptions you may have qualified for.

When the IRS files for you, it’s because they believe you owe them a tax debt. With a tax bill in play, the IRS has more to gain by filing for you.

 

IRS files for you

 

What This Twist Ending Looks Like

You’ll receive a Notice of Deficiency CP3219N, which will walk you through their substitute return. You’ll have 90 days to file the return in question or file a petition in Tax Court. If you don’t do anything in those 90 days, the IRS will go ahead with their return.

 

Once the IRS has hit you with that twist ending bill (plus any failure-to-file and failure-to-pay penalties they see fit to charge), you’ll then have to figure out how to pay your balances owed. Otherwise, you risk facing further IRS collection actions like levies and liens. Of course, you always have tax relief help options you can explore like an installment agreement or an IRS debt forgiveness program.

However, it’s still best for you to focus on filing your own tax return to try and take advantage of those deductions and exemptions the IRS may have glossed over in their substitute return. Once they have your filed return, the IRS usually will adjust your account accordingly.

Instead of ignoring unfiled taxes, take control of your life. When unfiled tax returns are haunting you, seek tax preparation experts to help to clear the air. With years of experience under their belt, tax professionals like ours can make sure your unfiled tax returns are filed correctly while maximizing deductions to minimize any potential tax bills.

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2014, 2015, 2016, 2017, 2018, 2019 & 2020 Form 1040 tax returns or past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund and reduce your chances for an IRS AUDIT.

 Advance Tax Relief is headquartered in Houston, TX. 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.

 

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

#TaxRelief

#BestTaxReliefCompanies