IRS SETTLEMENT SUCCESS – HUTCHINSON, MN

Offer in Compromise Success ($500 settlement on $68,000 income tax debt): Our tax resolution team announce another successful IRS settlement. Our client, Joseph M. from Hutchinson, MN reached out for our helping hand November 15th, 2015. At that time, Joseph owed the IRS $68,000. He had all of his returns filed, so he was fine with being tax compliant. He earns $6K per month but Joe has $2000 per month in court ordered child support, which he pays. He also has health insurance that was increasing an additional $300 per month. He had no assets of any kind. Our team, the best IRS help, proved to the IRS that Joe could only pay a total of $500 to settle his $68,000 income tax debt. Now Joe has the Fresh Start he deserves. He will be required to file his tax returns on time and pay whatever he owes for 5 straight years. We congratulate Joe. Who else wants to find out if your income tax debt can be settled?

GIVE OUR TEAM A CALL.

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IRS TO USE PRIVATE COLLECTION AGENCIES – GET IRS PROTECTION

Private Collection of Some Overdue Income Taxes

Starting this month, the IRS will begin sending letters to a select group of taxpayers whose overdue federal income tax accounts are being assigned to one of four private-sector collection agencies.

GET IRS PROTECTION TODAY BEFORE IT’S TOO LATE

We all know how abusive collection agencies can be and have been. We can all imagine a collection agency employee using the power of the Federal Government to abuse a financially struggling taxpayer so that they can collect a commission. We can all imagine a collection agency collector abusing a struggling taxpayer and denying them their rights.

YOU HAVE RIGHTS. GET PROTECTED TODAY.

This is a new program that was authorized under a federal law enacted by Congress in December 2015 which enables these designated contractors to collect, on the government’s behalf, unpaid tax debts. Taxpayers being assigned to a private collection agency would have had multiple contacts from the IRS in previous years and still have an unpaid tax bill.

John Koskinen, the IRS Commissioner stated, “The IRS is taking steps throughout this effort to ensure that the private collection firms work responsibly and respect taxpayer rights. The IRS also urges taxpayers to be on the lookout for scammers who might use this program as a cover to trick people. In reality, those taxpayers whose accounts are assigned as part of the private collection effort know they have a tax debt.”

How Does the New IRS Program Work?

The IRS will always notify a taxpayer before transferring their account to a private collection agency (PCA). First, the IRS will send a letter to the taxpayer and their tax representative informing them that their account is being assigned to a PCA and giving the name and contact information for the PCA.

Only four private collection agencies are participating in this program: CBE Group of Cedar Falls, IA; Conserve of Fairport, NY; Performant of Livermore, CA; and Pioneer of Horseheads, NY. The taxpayer’s account will only be assigned to one of these agencies, never to all four. No other private collection agencies are authorized to represent the IRS.

Once the IRS letter is sent, the designated PCA will send its own letter to the taxpayer and their representative confirming the account transfer. To protect the taxpayer’s privacy and security, both the IRS letter and the PCA’s letter will contain information that will help taxpayers identify the tax amount owed and assure taxpayers that future collection agency calls they may receive are legitimate.

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IRS Penalty Abatement – IRS Tax Attorney – IRS Penalties

IRS PENALTIES

IRS PENALTY ABATEMENT

It seems like the Internal Revenue Service (IRS) loves punishing taxpayers with income tax penalties and interest. Income Tax penalties began as a way to encourage prompt payment for taxes owed to the government. IRS penaties are added to overue income tax debt so often now that the extra charges have become a primary money maker for the IRS. According to the Internal Revenue Service Data Book, 2014 $25.5 billion dollars of civil penalties were assessed.

The best IRS help team at Flat Fee Tax Service, Inc. will work to help you, the taxpayer, who may qualify for removal of IRS penalties or penalty abatement.

What is an IRS penalty abatement? IRS penalty abatement is defined as removal of certain penalties assessed by the IRS.

Two common penalties that can meet criteria for possible abatement are:

  • Failure-to-File: “A failure to file penalty may apply if you did not file by the tax filing deadline”. (IRS Tax Tip 2013-58, April 18, 2013)
  • Failure-to-Pay: “A failure to pay penalty may apply if you did not pay all of the taxes you owe by the tax filing deadline”. . (IRS Tax Tip 2013-58, April 18, 2013)

Each of these income tax penalties are calculated a bit differently. Although both are capped at a maximum of 25% of your unpaid tax. The Failure-to-File penalty is generally 5% of your unpaid tax for each month the return is late. The Failure-to-pay penalty is generally .5% of the unpaid tax for each month it is late. The IRS will assess penalties for partial months.

As an example: If you owed $100,00.00 on your individual income tax return and filed an extension, but paid the total when the extension is due on October 15, your penalty would be approximately $3,000.However, if in the same circumstance you do not file an extension, your failure-to-file penalty may be capped, resulting in a much higher total IRS liability.

Interest generally accrues on unpaid tax in addition to penalties until the debt is paid in full. According to IRS.gov, topic 653, “The interest rate is determined quarterly and is the federal short-term rate plus 3%”, and is compounded daily. The complexity of the calculation can cause taxpayers to owes thousands of dollars in addition to the original tax liability.

Interest will continue to accrue.. If penalty abatement is granted the calculation for interest is adjusted accordingly.

Call the best IRS help team at Flat Fee Tax Service, Inc. or complete our form on this website to schedule your FREE and confidential consultation. 

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IRS Fresh Start Initiative – IRS Offer In Compromise Settlement

The IRS, in 2012, expanded their Offer in Compromise program with its Fresh Start Initiative, to help financially struggling taxpayers who are unable to pay their taxes due to financial difficulties. The Fresh Start Initiative, in addition to providing income tax relief to American taxpayers, also helps the IRS keep a check on the number of tax default cases, as it encourages more taxpayers to settle their old income tax debt so they can resume tax compliance.

What Qualifies You For The Fresh Start Initiative?

The IRS, under the Fresh Start Initiative, provides a number of options to financially distressed taxpayers.

1. IRS Penalty Relief

The Fresh Start Initiative allows eligible taxpayers up to a 6-month extension to pay their taxes. The IRS penalty for not paying income tax debt by April 15 is waived off until October 15. If, however, the taxpayer fails to pay their income taxes beyond the revised date, a penalty is charged.

The IRS penalty relief is available to two categories of taxpayers

  • Wages earning individuals who have been unemployed for a minimum of 30 consecutive days.
  • Individuals who experienced a dip of 25 percent or more in their income due to a slowdown.

Fresh Start Qualification Criteria

If you are married and filing jointly, your adjusted gross income must not exceed $200,000. If your filing status is single, qualifying widower, head of household, or married filing separately, the adjusted gross income must not exceed $100,000. In addition, if you have an outstanding of more than $50,000, you will bot be qualified to receive a waiver.

2. IRS Installment Payment Plan

The IRS Installment Agreement provision allows taxpayers to pay their income taxes, in installments, in a scenario wherein the taxpayer is unable to pay in full. It also gives taxpayers more time to pay. The threshold for the maximum amount of debt against which an installment plan can be prepared has now gone up from $25,000 to $50,000, with the maximum term for the repayment of installments being 6 years. Though you need to pay less in penalties, the interest will continue to accrue on your outstanding dues.

Taxpayers can set up an installment agreement withe IRS by using the Online Payment Agreement (www.irs.gov) without any intervention of an IRS agent. It is, however, essential that they agree to pay the installments through a direct debit mode.

3. Offer in Compromise (OIC) IRS Settlement

The Offer in Compromise provision allows financially struggling taxpayers to settle their outstanding income taxes for less than what they actually owe to the IRS. After the expansion of “Fresh Start” initiative, it has become easier for taxpayers to qualify for an Offer in Compromise settlement, as the IRS has relaxed the qualification standards, and therefore, more people are now eligible to settle with the IRS for less.

USE AN EXPERIENCED IRS TAX ATTORNEY

To apply for an Offer in Compromise (OIC) settlement, the taxpayer needs to file Form 433-A (OIC) or Form 433-B (OIC), and deposit a non-refundable application fee of $186. If, however, the taxpayer qualifies under the Low Income Certification guidelines, they would not have to pay the application fee. In addition to the form and application fee, the taxpayer may also be asked to pay the first month’s installment or 20 percent of the settlement amount, at the time of filing.

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IRS Wage Levy – IRS Bank levy – IRS Seizure – IRS Tax Attorney

An IRS Levy is among the most destructive tools the Internal Revenue Service (IRS) uses to collect what you owe them. An IRS bank levy effectively freezes your available funds in your bank account. The IRS freezes the funds in your bank account often leaving you with no money. Your seized assets are then applied by the IRS to your income tax debt. Any resulting unpaid checks or bank fees only add to your financial problems. Any account with your name on it may be at risk of a bank levy – even if the money isn’t yours. Financial institutions must comply with IRS requests or they will be subject to severe IRS penalties. Even if your paycheck is directly deposited into your account(s), you may not be able to access the funds.

You have 21 days (includes weekends and holidays) to get your money back.

FLAT FEE TAX SERVICE, INC. CAN STOP AN IRS LEVY

IN ONE (1) DAY

An IRS wage levy also known as a wage garnishment, presents similar challenges. In these situations, the Internal Revenue Service (IRS) sends your employer a written notice requesting a major portion of your pay as payment for your outstanding income tax bill. Just like banks, your employer must obey the IRS’s request or face severe legal punishment.

The IRS can exercise complete control of your existing and future assets. You need to know that if you are self-employed, your clients or customers will receive a demand for collection in what’s known as a “payor” levy. The payments they owe you are then sent to Internal Revenue Service (IRS). Bank and wage levies may allow the IRS to control every decision and financial move you make.

The IRS may also seize your Social Security, your Social Security Disability (SSDI) or your Veteran’s Pension. The IRS may seize a minimum of 15% (or more) under the Federal Payment Levy program (FPLP).

An IRS wage levy (wage garnishment remains in place until you pay your tax liability or until a levy release is negotiated.

Receiving a notice from the IRS of Intent to levy requires immediate attention. Don’t lose your paycheck, your bank account or your Social Security.

Call us for your FREE and confidential consultation. 

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IRS Revenue Officer Help – IRS Tax Attorney

IRS REVENUE OFFICER HELP
 
IRS TAX ATTORNEY ASSISTANCE

An IRS Revenue Officer is one of the last people you want appearing on your doorstep. Armed with an extensive arsenal of collection weapons, such as liens, levies, garnishments, and seizures, IRS Revenue Officers have all the means to make you pay unpaid taxes. Financial stress, however, is not the only problem at hand, as the IRS Revenue Officer can also contact your neighbors, relatives and colleagues, causing public humiliation.

How Flat Fee Tax Service, Inc. Can Help

The best IRS help team at Flat Fee Tax Service, Inc. understand that every taxpayer’s issue is unique. Our IRS help team will follow a collaborative approach to create a customized plan of action for every client. Our IRS help team, led by an IRS Tax Attorney, has in depth discussions with clients to understand your unique issues, and the dynamics at play, such as your income, financial obligations, pending liabilities, and other such factors. Based on the information gathered, we create a holistic plan to help you get your IRS problem addressed.

Why Choose Flat Fee Tax Service, Inc.?

Flat Fee Tax Service, Inc. has a team of widely experienced associates. We are the go-to destination for IRS Revenue Officer assistance. Our IRS Tax Attorney(s) have successfully handled exceedingly diverse and complex cases of unpaid taxes, negotiating favorable resolutions with IRS Revenue Officers on behalf of our clients. Our goal is to always secure the best IRS resolution that suits our clients’ prerequisites and complies with the Internal Revenue Code.

Other attributes that set Flat Fee Tax Service, Inc. apart include:
Comprehensive Expertise
Streak of Successful Representations
No-obligation Free Consultation
Affordable Fees
Undivided Focus
Better Business Bureau Accredited
A Plus Better Business Bureau Rating
No Client Complaints

 

Offer in Compromise or Currently not Collectible?

Failure to meet your annual tax obligation is an invitation to severe financial and legal consequences. The IRS can impose legal penalties, delay reimbursement, and in worst-cases, seize your possessions and put you behind bars. There is no escape from filing and paying your taxes, but the IRS provides a few avenues to help those who are unable to make payments due to financial difficulties. An Offer in Compromise settlement and Currently not Collectible status are two solutions available to help taxpayers who meet the IRS’s financial hardship criteria. Both options, however, have their pros and cons, which you need to be aware of to make an informed decision on which avenue to pursue to resolve your tax issues. To help you decide, we discuss the details in the blog post.

Offer in Compromise

An IRS settlement through the Offer In Compromise program lets the taxpayer settle the entire debt by paying an amount that is less than what is actually owed to the IRS. Certain criteria must be met, then if the IRS agrees to an Offer in Compromise (OIC), the taxpayer should make sure to file their income tax returns on time and pay the tax in full for the next five years.

Offer in Compromise Advantages

  • An Offer in Compromise (OIC) removes a Federal tax lien against the taxpayer.
  • As the income tax debt goes away, you earn more money by not having to pay back taxes.
  • The IRS settlement can be paid in installments.

Offer in Compromise Disadvantages

  • You have to pay $186 as a filing fee to process the request.
  • There is a possibility of the IRS rejecting the request.
  • You have to be perfectly tax compliant for five years, once the Offer in Compromise (OIC) request is accepted.
  • You must owe $10,000 or more to take advantage of the Offer in Compromise program.

Currently not Collectible status

If you are unable to pay your income tax debt, the IRS may consider your eligibility for Currently Not Collectible Status. The IRS will cease all collection activities, which includes levies and garnishments, until the IRS notices an improvement in your financial condition. The IRS will send a statement that includes detailed information of the income tax debt to the taxpayer every year the account is in CNC (Currently Not Collectible) status. If the taxpayer is not able to pay the amount, the IRS will keep postponing the collection.

Currently not Collectible Advantages

  • You don’t have to pay any amount to the IRS
  • You don’t’ have to worry about tax levies and garnishments
  • The Statute of Limitations continues to run and it may run out on your income tax debt.
  • Currently not Collectible status is your only choice if you owe less than $10,000.

Currently not Collectible Disadvantages

  • Despite the your Currently not Collectible (CNC) status, you still owe the IRS and a Federal tax lien, nost likely, will be filed
  • If you do not file a tax return, there is a probability of cancellation of the uncollectible status
  • Dramatic increase in income can also lead to cancellation of the status

Making a Decision

If you cannot pay your past due income tax debt, it’s always better to settle the entire income tax debt. Don’t run half the race. Finish the race and get yourself a Fresh Start.

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IRS Wage Garnishment – IRS Levy – IRS Tax Attorney

Wage Garnishment/ Bank Levy Release

Can You Live Off of 50% of Your Paycheck?

Of course you can’t. When the IRS or state has tried to collect your back income taxes unsuccessfully, they will begin to seize your assets. Assets can be your bank account(s) and/or your paycheck and wages. So by not opening letters or returning phone calls they will take the next step. This process is called a “levy”. When the IRS seizes your wages, it’s commonly termed a “wage garnishment”. IT’s really called a levy

The IRS, taxing authorities, are legally allowed to:

  • Seize Bank accounts
  • Demand payment from accounts receivable (yes, if someone owes you money, they will have to pay the IRS and not you.. effectively putting you out of business)
  • Take control of property for auction
  • Assume title on vehicles.

Virtually anything of value can be seized to satisfy the outstanding income tax debt. Levies and wage garnishment can be the most stressful and humiliating of all collection tactics. The IRS will do this to force taxpayers into willful compliance. We do not recommend that you go at this alone.

FLAT FEE TAX SERVICE WILL STOP YOUR IRS WAGE GARNISHMENT

The best IRS help team, at Flat Fee Tax Service, Inc., is led by an IRS Tax Attorney who will contact the IRS IMMEDIATELY to release you wage garnishment and/or levy.

Flat Fee Tax Service, Inc. has been very successful in getting levies lifted and garnishments stopped. Most often, our clients get their IRS wage garnishment stopped in one day. Our IRS Tax Attorney knows your rights as a taxpayer and our IRS help team is here to help. If you are at this point, then your best bet is to seek out our professional help to put a stop to further IRS enforcement action.

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Can The IRS Levy Seize My Bank Account – Yes – IRS Tax Attorney Help

The IRS can legally seize, levy your assets to satisfy an income tax debt. When the IRS sends a tax levy to your bank, the levy attaches to all the funds in your account at the time. Your bank is required to give your money to the IRS once a 21 day period elapses. You have twenty-one (21) days (includes Saturday, Sunday and holidays) to have the IRS release your money back to you. You have no time to lose.

IRS Actions Before Issuing a Bank Levy

The IRS will not levy and seize your bank account(s) until the IRS has sent you several notices of your obligation to pay your income tax debt. The IRS must make a tax assessment against you and send you a Notice and Demand for Payment.

If you do not respond to this notice or refuse to pay the income tax debt, the IRS may send additional notices before finally issuing you a Notice of Intent to Levy and Notice of Your Right to Hearing. This must be sent to you at least 30 days before the levy.

You have a right to this hearing, known as a Collection Due Process (CDP) hearing, if you respond to the notice within 30 days. If you request a hearing, the IRS cannot levy your bank account until after the hearing. This is why it is critical that you take action immediately if you have received a Notice of Intent to Levy.

At the CDP hearing, you can negotiate an IRS settlement through the Offer in Compromise program or enter into an installment agreement. You can also dispute the amount if you believe the IRS has made a mistake in assessing the tax, provided that you haven’t had a prior opportunity for an appeal. If you are unable to negotiate a deal, you can live with at the CDP hearing, you have the option of filing a petition in Tax Court. Tax Court is not your best option.

What to Do Once a Bank Levy Is Served?

GET YOURSELF AN EXPERIENCED IRS TAX ATTORNEY

If you missed your chance to have a CDP hearing and the bank levy has been served, your bank must hold onto your funds for 21 days before handing them over to the IRS. This short delay gives you time to negotiate or otherwise stop the levy before the IRS takes your money. The levy freezes the funds in your account, so you will not be able to avoid the levy by withdrawing funds.

HAVE YOUR IRS BANK LEVY STOPPED BY USING AN IRS TAX ATTORNEY

It is much better to negotiate with the IRS while your money is still in your possession. You may have several options for disputing your tax or negotiating a payment agreement, and they are all preferable to an IRS bank account levy.

If your bank account has been levied, contact an IRS Tax Attorney immediately. This is your only hope.

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The Pros and Cons of Using an IRS Tax Attorney – Local or Nationwide

If you are in need for IRS tax help, be sure to consult with a IRS tax resolution team led by an IRS Tax Attorney. Taxpayers who have an income tax debt have found federal tax relief essential when it comes to resolving disputes with missing tax returns or past due income tax debt, Looking for an IRS Tax Attorney help often comes down to assuming you have to find a local professional. But is this really the best move for you?

Although your first priority might be to find a free tax lawyer, you’ll be unlikely to locate one. You will want an IRS Tax Attorney who resolves IRS tax problems on a daily basis.  You do not want an attorney who may interface with the IRS “every so often”. As a matter of pragmatism, it’s good to remember that you get what you pay for. In this respect, free tax assistance probably won’t be to your advantage. Real income tax problems require real “honest to goodness” solutions. While you would look for a local plumber or a local doctor to attend to your drainage or health needs, local tax relief attorneys aren’t always your best option.

Contemporary Realities

You don’t have to ask, “When do I need an IRS Tax Attorney?” knowing already that your income tax issue is one that requires an experienced licensed professional, you’ll next ask, “Where do I get IRS help?” Enlisting a local tax relief lawyer may be in your interest if you’re familiar with the party you’re going to be working with. However, finding reliable tax relief lawyers–ones you don’t already know–can be a challenge. More than likely a local tax attorney will be more expensive. Also, a local tax attorney will probably not allow you to stretch out your fees over an 11 month period as Flat Fee Tax Service, Inc. will.

Who can you trust. You want to make sure that you find not only an affordable IRS tax attorney, but also one that you know can handle your income tax problem accurately and legally. How do you gauge these qualities in a tax professional you’ve never met? Once upon a time, you had to rely on word of mouth. These days, though, finding an IRS Tax Attorney for IRS problems comes down to using all the modern tools at your disposal.

The internet is your best friend when it’s time to conduct research. If you know when to hire a tax attorney, you can first begin by searching for tax resolution companies. Reputable organizations or individuals will have a basic description of their services, as well as individual reviews on non-affiliated websites. The more information you have about the tax professional in question, the more informed your decision will be.

What to Look For

Is the IRS Tax Attorney Accredited by the Better Business Bureau?

Does the IRS Tax Help Company Have Complaints?

When looking for an affordable IRS tax attorney or tax relief professionals that are also reliable, there are a few key things to keep an eye out for. Having positive Better Business Bureau reviews certainly adds credibility but you also want to look at the company’s specific area of expertise. Choosing the best IRS help team that has a reputation for both sound tax resolutions, as evidenced by previous clients, and experience handling a variety of income tax issues is ideal.

An IRS Tax Attorney may ultimately come down to how your first consultation goes. When you describe your income tax problem to a specialist, pay attention to what you’re told. First, you should never be pressured to pay for services up front; nor should you accept tax help services that are not clearly defined for you. These rules apply whether you’re dealing with someone locally, or a nationwide organization. It all comes down to their reputation and how they conduct their business. And just as you wouldn’t drive to the IRS headquarters to discuss your problem, finding a reliable tax professional doesn’t necessarily mean going down the street to meet them. Place your trust in your research first, then the abilities of your licensed tax professional–wherever they reside.

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