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Partial Payment Installment Agreements: A Middle Ground for Tax Debt

Mon, 20 Apr 2026 17:58:08 GMT

Why the IRS Offers This Option

The IRS knows that some taxpayers simply cannot pay their full balance—ever. Taking all their income or forcing asset liquidation isn’t always realistic and can push individuals into financial hardship.

A PPIA allows the IRS to:

• Collect something rather than nothing

• Avoid forcing taxpayers into bankruptcy

• Keep individuals compliant going forward

• Reduce the administrative burden of aggressive enforcement

In short, a PPIA is the IRS’s way of acknowledging that full collection may be impossible.

Who Qualifies for a PPIA?

A PPIA is ideal for individuals who:

• Cannot full-pay the total tax balance before the statute expires

• Cannot afford the monthly payment required under a normal installment agreement

• Do not qualify for an Offer in Compromise

• Have limited income or high allowable living expenses

• Have minimal assets or equity

• Would experience financial hardship if forced to pay more

To evaluate eligibility, the IRS analyzes:

• Monthly income

• Necessary living expenses

• Equity in assets (home, cars, investments, etc.)

• Bank statements

• Current and future ability to pay

The IRS’s goal is to determine your reasonable collection potential (RCP)—a calculation of what you can realistically afford each month.

How the IRS Calculates Your Monthly Payment

The IRS uses strict financial guidelines to figure out your required monthly payment. They consider:

• Your income

• Your allowable expenses (which are capped by IRS standards)

• Equity in assets

• Your projected ability to pay over time

A tax resolution specialist can help ensure:

• All allowable expenses are counted

• Your assets are valued properly

• Your income is analyzed correctly

• You are not forced into a payment you cannot sustain

Without representation, people often agree to payments that are far too high.

The IRS Re-Evaluates PPIAs Every Two Years

Once approved, a PPIA is not “set and forget.” The IRS reviews your financial situation every two years to determine whether:

• Your payment should increase

• Your situation has worsened

• The agreement should continue as is

These reviews can be stressful without a professional defending your numbers, especially if your income increases.

Why a PPIA Can Be Life-Changing

A Partial Payment Installment Agreement can dramatically ease the burden of IRS debt because your monthly payment is based on what you can truly afford—not the total amount you owe. This protects your income and savings while giving you a realistic path forward. Once a PPIA is in place, levies and garnishments stop, allowing you to rebuild financially without constant IRS pressure. And since any remaining balance is forgiven when the collection statute expires, many taxpayers end up paying far less than their total debt. For individuals facing large balances and limited resources, a PPIA is often the most practical alternative to bankruptcy and one of the few options that provides long-term relief without financial devastation.

Final Thoughts

If you owe IRS tax debt and cannot afford to pay it in full, a Partial Payment Installment Agreement may be the relief you’ve been searching for. Our tax resolution firm can determine whether you qualify, negotiate directly with the IRS, and secure the lowest possible payment so you can finally move forward.

Contact IRS Tax Fighters at 281-962-0070 to schedule a confidential consultation today.

Are You Eligible for Penalty Abatement? Learn the Requirements

Wed, 18 Feb 2026 21:19:10 GMT

1. Reasonable Cause

The IRS may grant penalty relief if you can show that your failure to comply was due to a reasonable cause. Acceptable reasons include:

• Serious illness or injury affecting you or a family member.

• Natural disasters, fires, or other unforeseen events.

• Inability to obtain necessary financial records.

• Reliance on incorrect professional advice.

You’ll need to provide documentation to support your claim, such as medical records, insurance reports, or legal documents.

2. First-Time Penalty Abatement (FTA)

If you’ve been compliant with your tax filings and payments in the past, you may qualify for First-Time Penalty Abatement. To be eligible, you must meet the following criteria:

• No penalties for the prior three tax years (except estimated tax penalties).

• All required returns filed for the current year.

• Any outstanding tax due has been paid or arrangements made to pay.

FTA is one of the most commonly granted forms of penalty abatement because it rewards taxpayers with a history of compliance.

3. Administrative Waivers

In some cases, the IRS may issue administrative waivers when penalties are incorrectly assessed or if there are systemic issues with tax agency operations. If this applies to you, the penalties can be removed without significant documentation requirements.

Steps to Request Penalty Abatement

If you believe you qualify for penalty abatement, here’s how you can take action:

1. Assess Your Eligibility

Review your circumstances and determine whether you meet the criteria for reasonable cause, First-Time Penalty Abatement, or an administrative waiver.

2. Submit a Request

Requests for penalty abatement can be made in writing or over the phone. If you’re submitting a written request, you’ll need to send Form 843, Claim for Refund and Request for Abatement, to the IRS, along with supporting documentation. For simpler cases, you can call the IRS directly to make your request.

3. Gather Supporting Documents

If you’re applying under reasonable cause, collect the evidence needed to support your claim, such as medical bills, repair invoices, or a letter from your tax professional.

4. Wait for a Decision

The IRS will review your request and notify you of their decision. This process can take several weeks or even months, depending on the complexity of your case.

Common Mistakes to Avoid When Requesting Penalty Abatement

Submitting a request for penalty abatement can be challenging, and mistakes may lead to delays or denials. Here are some common pitfalls to avoid:

1. Failing to Provide Sufficient Documentation

Your request must be backed by evidence. Without proper documentation, the IRS is unlikely to approve your claim.

2. Overlooking the First-Time Penalty Abatement Option

Many taxpayers don’t realize they qualify for First-Time Penalty Abatement. Review your history to see if you meet the criteria.

3. Ignoring the Importance of Compliance

You must be current with all tax filings and payments before the IRS will consider your request. Ensure your current tax obligations are up to date.

4. Procrastinating

The sooner you address penalty abatement, the better. Delays can lead to additional penalties and interest accumulating on your tax debt.

When Should You Apply for Penalty Abatement?

The ideal time to apply for penalty abatement is as soon as you’re aware of the penalties. Prompt action can prevent additional interest and penalties from accruing. Common scenarios where you should consider applying include:

• Receiving a penalty notice from the IRS or state tax agency.

• Experiencing a life event or hardship that prevented timely compliance.

• Discovering errors in penalties assessed by the IRS.

• Learning about your eligibility for First-Time Penalty Abatement.

The Role of a Tax Resolution Specialist in Penalty Abatement

Navigating the penalty abatement process can be complex, especially if your case involves significant penalties or multiple years of non-compliance. A tax resolution specialist can:

• Assess Your Eligibility: Evaluate whether you qualify for penalty abatement and recommend the best course of action.

• Prepare Your Request: Draft a compelling request with all necessary documentation to support your case.

• Communicate with the IRS: Act as your representative, handling all correspondence and negotiations with tax authorities.

• Advocate for You: Protect your rights as a taxpayer and ensure you receive fair treatment throughout the process.

Conclusion

Tax penalties can create significant financial stress, but penalty abatement provides a pathway to relief. Whether you qualify due to reasonable cause, First-Time Penalty Abatement, or an administrative waiver, taking action can reduce your financial burden and help you regain control of your tax situation.

If you’re unsure of your eligibility or need help navigating the process, a tax resolution specialist can guide you every step of the way. Don’t let penalties hold you back! Contact IRS Tax Fighters or call 281-962-0070 to start resolving your tax issues today.

The Hidden Dangers of Failing to File Estimated Taxes

Wed, 11 Feb 2026 01:34:32 GMT

• Underpayment Penalty

Even if you do pay your taxes when you file your return, you may still get hit with an underpayment penalty if you didn’t pay enough throughout the year.

And here’s the kicker, both penalties are stacked on top of the interest the IRS charges daily.

Failure to file estimated taxes is like putting your tax debt on a high interest credit card you never signed up for.

2. Falling Behind Once Makes It Easier to Fall Behind Again

Taxpayers rarely fall behind for just one quarter. Once you start the cycle, it becomes harder to break:

• You owe money for the current year

• You need to start making estimated payments for the next year

• You still have everyday bills and living expenses

• The IRS keeps adding penalties and interest

Very quickly, it becomes impossible to catch up on your own.

Many clients tell us they thought they could “pay it off next year.” But when next year comes, they owe even more, and the overwhelm spirals.

3. Your Income May Trigger IRS Scrutiny

If you’re self-employed or a contractor, the IRS expects estimated taxes.

Failing to pay them can trigger:

• Automated IRS notices

• IRS compliance flags

• A potential audit

• Referral to IRS Collections sooner than expected

This doesn’t mean you did anything wrong, it simply means the IRS views missed estimated payments as a sign you may have unpaid tax liabilities.

4. The IRS Can Introduce Aggressive Collection Actions

Once the IRS processes your return and sees unpaid tax, the collection machine begins moving, whether you’re ready or not. Missed estimated payments often lead to:

• Balance due notices

• Liens on property

• Levies on bank accounts and wages

• Passport restrictions for seriously delinquent tax debt

• Enforced collection if you don’t respond in time

Most taxpayers have no idea how fast this process moves until the IRS is already dipping into their paycheck or freezing their bank account.

5. You May Miss Out on Opportunities to Reduce What You Owe

The IRS offers several programs that may reduce or resolve your tax debt if you qualify, including:

• Penalty abatements

• Installment agreements

• Partial pay installment agreements

• Currently Not Collectible (CNC) hardship status

• Offers in Compromise (settling your tax debt for less than you owe)

But many taxpayers never learn about these options until it’s too late or until they make mistakes responding to the IRS on their own.

6. Doing Nothing Only Makes the Problem Worse

Ignoring estimated taxes doesn’t just create a one-time problem, it becomes a multiyear financial trap. But you don’t have to face it alone.

Thousands of taxpayers regain control every year by hiring a qualified tax resolution professional who deals with the IRS on their behalf, protects their assets, and negotiates the lowest possible resolution allowed by law.

Whether you missed one quarter or several years, you’re not alone, and you’re not beyond help. The worst thing you can do is let fear or embarrassment keep you from getting the relief you need.

You don’t have to keep looking over your shoulder. Contact IRS Tax Fighters today for a confidential, no obligation consultation by calling 281-962-0070.

Let’s review your situation, explain your options, and create a plan to resolve your tax debt once and for all. Your peace of mind starts with one call.

How the IRS Decides Whose Assets to Levy First

Tue, 27 Jan 2026 23:05:45 GMT

Priority #2: Accounts Receivable (Your Clients’ Payments)

Next, the IRS often levies accounts receivable, redirecting customer payments straight to the IRS. This is one of the most damaging actions the agency can take because it instantly cuts off revenue. For businesses already struggling, an AR levy can halt operations overnight.

Priority #3: Wages and Personal Income

When individuals (owners, officers, shareholders, responsible persons) owe back taxes, or have been assessed TFRP, the IRS may levy wages or salary.

A wage garnishment is continuous, meaning:

• It stays on every paycheck

• It lasts until the debt is satisfied or a resolution is reached

• It can take 70%–100% of disposable income depending on filing status

Unlike bank levies (which are one-time), wage garnishments repeat automatically. This makes them an incredibly effective pressure tactic.

For business owners who take a W-2 from their own company, the IRS can garnish their pay the same as any employee.

Priority #4: Merchant Accounts and Third-Party Payments

If you’re paid through Stripe, PayPal, Square, Shopify, Amazon, or similar platforms, the IRS can levy those merchant accounts too. Because these systems process money daily, a levy can choke off revenue fast.

Priority #5: Business Equipment and Physical Assets

Contrary to popular belief, the IRS does not want to seize physical property. It’s time-consuming, expensive, requires storage, and often results in far less value than expected.

However, they will seize vehicles, machinery, tools, office equipment and inventory if they feel the business is ignoring them or acting in bad faith.

Asset seizures usually occur later in the collection process or when the IRS believes the business is intentionally avoiding payment.

Priority #6: Real Estate

Real estate is last on the list because:

• It requires court approval

• It’s slow

• It’s expensive

• It draws public scrutiny

But it does happen, especially when payroll taxes or large liabilities are involved, or when a responsible person has significant equity in a home or rental property.

The IRS will file a federal tax lien long before a seizure occurs, but a lien is the first step toward that possibility.

Why Some Owners Get Hit Faster Than Others

The IRS considers:

• Whether payroll (trust fund) taxes are involved

• The size of the debt

• Whether a Revenue Officer is assigned

• A pattern of non-response

• Whether assets are being moved

• Previous compliance history

Payroll tax debts trigger the fastest and most aggressive enforcement.

Final Thoughts

A levy isn’t the starting point; it’s the end of a long series of ignored notices. Once levies begin, your options shrink dramatically.

If you’re behind on payroll taxes or worried about a levy hitting your business bank account, receivables, or wages, contact IRS Tax Fighters to schedule a confidential consultation by calling 281-962-0070 today. We’ll intervene with the IRS, protect your assets, and negotiate a plan that keeps your business functioning before the IRS decides what to take next.

Tax Resolution Tips for Gig Workers and Independent Contractors

Fri, 23 Jan 2026 22:09:30 GMT

First Step: File Your Returns (Even If You Can’t Pay Yet)

The biggest mistake independent contractors make is ignoring unfiled returns because they can’t pay. But the IRS won’t even talk to you about resolving your debt until you’re compliant.

This golden rule of tax resolution is you can’t fix what you haven’t filed. Filing your returns shows the IRS you’re trying to make things right. It also stops certain penalties from growing and starts the clock on the collection statute expiration date (CSED), the 10-year period the IRS has to collect.

Even if you’re missing 1099s or bank records, a tax resolution specialist can reconstruct your income using IRS wage and income transcripts or bank statements. The key is to get compliant first, then work on a payment or settlement plan.

Keep Accurate Records of Income and Expenses

Gig income is taxable whether you receive a Form 1099 or not. Many platforms issue 1099-NEC or 1099-K forms, but some don’t. You’re required to report all earnings, including cash tips or direct payments from clients.

At the same time, gig workers are entitled to valuable deductions that can dramatically reduce taxable income. Common deductible expenses include:

• Mileage or vehicle expenses

• Supplies and tools used in your work

• Cell phone and internet used for business

• Home office expenses

• Marketing, advertising, and software costs

• Contract labor or subcontractor fees

Keeping receipts and mileage logs can make or break your tax case. If you’re under IRS examination or seeking relief, good records can help prove your deductions and reduce what you owe.

Estimate and Pay Quarterly Taxes

The IRS expects you to pay as you go. Gig workers who expect to owe more than $1,000 for the year are required to make quarterly estimated payments (April, June, September, and January).

Even if you’ve fallen behind, starting now can make a big difference. It shows the IRS you’re current on new taxes, which is essential for qualifying for any tax resolution program like an Installment Agreement or Offer in Compromise.

A simple way to stay on track is to set aside 25–30% of each payment you receive for taxes. Apps like QuickBooks Self-Employed or Everlance can help you track income, mileage, and estimated taxes automatically.

Know Your IRS Resolution Options

If you already owe back taxes, you still have options. The IRS offers several programs that can help gig workers settle or reduce their debt.

1. Installment Agreement

You can pay what you owe over time—often up to 72 months—through a monthly payment plan. This can prevent wage garnishment or bank levies as long as you stay current.

2. Offer in Compromise (OIC)

If you can’t afford to pay the full amount, the IRS may accept a settlement for less based on your income, expenses, assets, and ability to pay. Many self-employed taxpayers qualify if their earnings are inconsistent or seasonal.

3. Currently Not Collectible (CNC)

If paying the IRS would create financial hardship, your account may be placed in CNC status. The IRS temporarily stops collections while your financial situation improves.

4. Penalty Abatement

If you’ve filed and paid late due to reasonable cause—such as illness, loss of records, or reliance on bad advice—you may qualify for first-time abatement or penalty removal.

Each of these programs has strict qualification criteria and documentation requirements, which is why professional representation can make all the difference.

Protect Your Business—and Your Peace of Mind

The IRS has been stepping up enforcement on 1099 and gig income in recent years. With third-party reporting via Form 1099-K, it’s harder than ever to “fly under the radar.” Failing to address back taxes can lead to:

• Bank levies or wage garnishments

• Liens that damage your credit

• Seizure of refunds

• Stress, anxiety, and sleepless nights

On the other hand, resolving your tax issues can bring instant peace of mind and help you move forward confidently in your business.

The Bottom Line

Being self-employed gives you flexibility, control, and independence, but it also means you shoulder the full responsibility for managing your taxes. Whether you’re behind on filings, owe thousands in back taxes, or just want to avoid future IRS trouble, the time to act is now. Here at IRS Tax Fighters we specialize in helping gig workers and independent contractors with tax problems. You can call us at 281-962-0070.

How to Prepare for an IRS Appeals Hearing

Wed, 24 Dec 2025 05:50:06 GMT

Step 2: Review the IRS Notice Carefully

When the IRS schedules an appeals hearing, they will send you a written notice outlining the details of your case. Carefully review this notice to:

• Identify the specific issue(s) being contested.

• Note any deadlines or required actions.

• Understand the IRS’s position and evidence.

Step 3: Gather Supporting Documentation

To build a strong case, you’ll need to provide evidence that supports your position. Examples of supporting documentation include:

• Tax returns and related records.

• Receipts, invoices, and bank statements.

• Correspondence with the IRS.

• Expert opinions or valuations, if applicable.

Organize your documents in a logical order and highlight key points for easy reference during the hearing.

Step 4: Prepare a Written Summary

A written summary of your case can help you present your argument clearly and concisely. Include the following elements in your summary:

1. Introduction:

o Briefly explain the issue under appeal and your main points.

2. Background:

o Provide context for the dispute, including relevant dates and events.

3. Evidence:

o Summarize the supporting documentation you’ve gathered.

4. Conclusion:

o State the resolution you’re seeking and why it’s justified.

Having a written summary will help you stay focused and ensure you cover all critical points during the hearing.

Step 5: Practice Your Presentation

Effective communication is essential during an IRS appeals hearing. Practice presenting your case in a clear, confident, and respectful manner. Consider the following tips:

• Anticipate questions the appeals officer might ask.

• Rehearse your responses to potential challenges.

• Stay calm and composed, even if the discussion becomes tense.

Step 6: Understand the Appeals Process

Familiarize yourself with the steps involved in the appeals process so you know what to expect. Key stages include:

1. Pre-Hearing Preparation:

o Submit requested documents and prepare your presentation.

2. The Hearing:

o Present your case and respond to the appeals officer’s questions.

3. Post-Hearing Deliberation:

o The appeals officer will review the evidence and make a decision.

4. Final Decision:

o You’ll receive a written determination outlining the outcome.

Step 7: Consider Professional Representation

Navigating an IRS appeals hearing can be complex, especially if you’re unfamiliar with tax laws and procedures. A tax professional or attorney can:

• Provide expert advice tailored to your situation.

• Help you prepare your case and documentation.

• Represent you during the hearing and negotiate on your behalf.

Common Mistakes to Avoid

To maximize your chances of success, steer clear of these common pitfalls:

1. Missing Deadlines:

o Submit all required documents on time to avoid delays or dismissal of your appeal.

2. Failing to Prepare:

o Thorough preparation is crucial to presenting a strong case.

3. Being Disrespectful:

o Treat the appeals officer with courtesy and professionalism.

4. Neglecting Professional Help:

o Going it alone can be risky, especially if your case is complex.

Take Action Today

An IRS appeals hearing is your chance to resolve tax disputes without the need for litigation. By understanding your rights, gathering evidence, and preparing thoroughly, you can present a compelling case and work toward a favorable resolution.

If you’re feeling overwhelmed, IRS Tax Fighters is here to guide you through every step of the process. Call us at 281-962-0070 to schedule a consultation and take the first step toward resolving your tax dispute.

The IRS and Cryptocurrency: What to Do If You Owe Back Taxes on Crypto Gains

Fri, 19 Dec 2025 05:30:51 GMT

• Income from Mining or Staking: Rewards earned through mining, staking, or airdrops are treated as ordinary income at their fair market value when received.

This means crypto activity can create multiple taxable events throughout the year—not just when you “cash out” to fiat currency.

How the IRS Is Tracking Crypto Activity

Some investors assume crypto is anonymous and hard to trace. That’s no longer true. The IRS has ramped up enforcement significantly:

• Exchange Reporting: Major U.S.-based exchanges (like Coinbase, Kraken, and others) issue Form 1099 to the IRS and account holders for certain transactions.

• Blockchain Analysis: The IRS partners with blockchain analytics firms to track transactions on public ledgers.

• Tax Return Question: Every individual tax return now asks whether you engaged in any digital asset transactions during the year.

The IRS’s message is clear: crypto transactions are visible, and failing to report them can lead to serious trouble.

Common Reasons People Owe Back Taxes on Crypto Gains

Crypto taxes can get complicated fast, and even well-intentioned investors can end up with a tax bill. Some common scenarios include:

1. High Volume Trading: Day trading crypto across multiple exchanges can generate hundreds or thousands of taxable events—easy to underreport.

2. Failure to Track Cost Basis: Without accurate records of purchase price and dates, it’s difficult to calculate gains or losses correctly.

3. Not Reporting Mining or Staking Rewards: These are treated as income when received and can create tax obligations even if you don’t sell the coins.

4. Price Volatility: Selling crypto after a big run-up may result in large taxable gains, even if the market crashes later.

If you’ve made any of these mistakes, you may already owe the IRS back taxes.

Consequences of Owing Crypto-Related Back Taxes

The IRS treats unpaid crypto taxes the same way it treats any other unpaid taxes. Possible consequences include:

• Penalties and Interest: Failure-to-file and failure-to-pay penalties can add up quickly, along with daily interest charges.

• Tax Liens and Levies: If you don’t address your balance, the IRS can file a federal tax lien against your property or levy (seize) your bank accounts, wages, or other assets.

• Criminal Charges in Extreme Cases: Deliberate tax evasion—such as hiding crypto holdings—can lead to criminal prosecution.

The longer you wait, the more severe and costly these consequences become.

Steps to Take if You Owe Back Taxes on Crypto Gains

If you discover or suspect that you owe taxes on your cryptocurrency activities, here are the steps to take:

1. Gather All Transaction Records

Collect data from every exchange or wallet you’ve used, including trade histories, purchase dates, amounts, and fees. Tools such as crypto tax software can help consolidate this information.

2. Calculate Your Tax Liability

You’ll need to determine your cost basis and capital gains or losses for each transaction. If you’ve received mining or staking rewards, calculate the fair market value when received.

3. File or Amend Your Tax Returns

If you failed to report crypto transactions on previous tax returns, file amended returns (Form 1040-X) for those years. This is often a critical step in demonstrating good faith to the IRS.

4. Pay What You Can

Paying the full amount immediately will stop penalties from accruing. If you can’t pay in full, send as much as possible to reduce interest and penalties.

5. Explore IRS Resolution Options

The IRS offers programs to help taxpayers resolve back taxes, including:

• Installment Agreements: Monthly payment plans that spread out your tax debt.

• Offer in Compromise (OIC): Settle your debt for less than the full amount if you qualify.

• Currently Not Collectible Status: If you’re in financial hardship, the IRS may temporarily suspend collection.

A tax resolution professional can help you evaluate which option fits your circumstances.

6. Respond Promptly to IRS Notices

If you’ve received IRS letters regarding unreported crypto income or unpaid taxes, respond immediately. Ignoring notices will only escalate the problem.

How to Stay Compliant Going Forward

Once you’ve addressed your back taxes, put systems in place to avoid future problems:

• Use Reliable Crypto Tax Software: Track every transaction throughout the year.

• Keep Detailed Records: Maintain records of purchase prices, dates, and any fees.

• Make Estimated Tax Payments: If you trade frequently, consider quarterly estimated payments to avoid surprises at tax time.

• Consult a Tax Professional: Work with a CPA or tax resolution specialist experienced in cryptocurrency taxation.

Don’t Wait for the IRS to Catch Up

Crypto is no longer the Wild West. The IRS has the tools and partnerships to track digital asset transactions, and enforcement is increasing each year. If you owe back taxes, it’s far better to come forward voluntarily than to wait for the IRS to contact you. Voluntary disclosure often results in reduced penalties and demonstrates good faith.

Final Thoughts

The IRS treats cryptocurrency just like other property—and failing to report your gains can lead to significant back taxes, penalties, and potential legal action. Whether you traded Bitcoin once or are an active DeFi participant, the time to address unreported crypto gains is now.

Need Professional Help With Crypto-Related Tax Debt?

IRS Tax Fighters specializes in helping individuals and businesses resolve tax debt—including issues related to cryptocurrency gains. Contact us at 281-962-0070 or visit our contact page to schedule a confidential consultation and take the first step toward putting your crypto tax problems behind you.

What Happens When You Owe Payroll Taxes as a Small Business Owner

Mon, 08 Dec 2025 21:34:46 GMT

2. IRS Letters Start Arriving

This usually begins with notices showing the missed deposit, accrued penalties, and interest. These penalties are some of the highest in the tax code—up to 15% just for missing the deposit deadline.

3. The IRS Assigns a Revenue Officer (RO)

When payroll taxes are not paid for multiple quarters, your case often gets assigned to a Revenue Officer—an IRS field collection agent with significant authority.

When that happens, the matter becomes serious. Revenue Officers will:

• Show up at your business unannounced

• Request extensive financial records

• Interview you and key employees

• Demand immediate payment or a plan

• Move quickly to enforce collection if you don’t respond

4. The Trust Fund Recovery Penalty (TFRP) Investigation Begins

This is the biggest surprise many business owners face.

If payroll trust fund taxes weren’t paid, the IRS can personally assess the Trust Fund Recovery Penalty (TFRP) against any responsible individual—including owners, officers, shareholders, check-signers, or anyone with authority over finances.

This means the IRS can collect the trust fund portion of the debt from your personal assets—your bank accounts, wages, retirement accounts, even your home in extreme cases.

You’ll be asked to sit for a Form 4180 interview. What you say in that interview will determine whether you are personally assessed tens or hundreds of thousands of dollars in penalties.

5. IRS Levies and Liens Can Happen Quickly

If you don’t respond—or you miss deadlines—the IRS can take immediate steps to collect:

• Levy business bank accounts

• Seize accounts receivable

• Garnish your personal or business wages

• Shut down merchant accounts

• File a federal tax lien

• In rare cases, seize business assets

A payroll tax case can move from “late deposit” to “levy action” in a matter of weeks or months.

Most employers don’t fall behind because they’re reckless. It usually happens because:

• A big client paid late

• A major expense hit unexpectedly

• A recession or downturn crushed cash flow

• You kept employees on payroll longer than you should have

• You were trying to save the business during a rough patch

But the IRS doesn’t consider these mitigating circumstances. Payroll taxes are considered a fiduciary duty. From their perspective, once you fall behind, you’re a risk that needs immediate intervention.

That’s why you need someone protecting you from the very first letter.

Don’t Wait – Payroll Tax Problems Get Worse, Not Better

If you’re behind on payroll taxes—even one quarter—you are in one of the highest-risk categories in the eyes of the IRS. The longer the problem goes unaddressed, the fewer options you have and the more aggressive the IRS becomes.

But with expert help, the situation is absolutely manageable.

If your business owes payroll taxes—or you’ve received collection notices, a visit from a Revenue Officer, or received a Trust Fund Recovery Penalty letter contact IRS Tax Fighters at 281-962-0070 to schedule a consultation with an experienced tax resolution specialist.

We’ll protect your business, negotiate with the IRS, and design a resolution strategy that helps you move forward with confidence. Your business—and your peace of mind—are worth it.

How to Know When You Need a Tax Resolution Specialist and How They Can Help

Fri, 07 Nov 2025 01:25:49 GMT

5. Struggling with Complex Tax Laws

Tax laws are notoriously complicated, and even small mistakes can lead to significant penalties. If you’re struggling to navigate the rules or feel overwhelmed by your situation, a specialist’s expertise can make all the difference.

What Does a Tax Resolution Specialist Do?

A tax resolution specialist is a licensed professional—usually a Certified Public Accountant (CPA), Enrolled Agent (EA), or tax attorney—who specializes in helping individuals and businesses resolve tax issues. Here’s how they can assist:

1. Assessing Your Tax Situation

Tax resolution specialists begin by analyzing your financial records, tax returns, and correspondence with the IRS or state tax agencies. This thorough assessment allows them to identify the root of the problem and develop a tailored strategy for resolution.

2. Navigating Tax Laws and Procedures

With their in-depth knowledge of tax laws and IRS procedures, specialists can ensure compliance and help you avoid additional penalties. They know how to interpret complex regulations and apply them to your unique circumstances.

3. Representing You Before Tax Agencies

Dealing with the IRS or state tax agencies can be stressful and intimidating. A tax resolution specialist acts as your representative, handling all communication and negotiations on your behalf. This not only reduces your stress but also improves your chances of a favorable outcome.

4. Negotiating Settlements and Payment Plans

Whether it’s an Offer in Compromise, penalty abatement, or an installment agreement, tax resolution specialists are skilled negotiators. They work to secure the best possible terms for you, helping to resolve your tax issues efficiently.

5. Protecting Your Rights

Taxpayers have rights, and a tax resolution specialist ensures that those rights are upheld. They act as your advocate, ensuring that you’re treated fairly throughout the resolution process.

Common Tax Issues Addressed by Specialists

Here are some of the most common problems a tax resolution specialist can help with:

1. Unpaid Tax Debts

If you owe back taxes, a specialist can help create a plan to address the debt, whether through payment plans or negotiated settlements.

2. Tax Liens and Levies

A specialist can negotiate to have liens and levies removed or prevented, protecting your assets and credit score.

3. Wage Garnishments

Specialists can work to stop wage garnishments and help you resolve the underlying tax issue.

4. Tax Audits

Facing an audit? A tax resolution specialist can represent you during the process and ensure the audit is handled correctly.

5. Penalty Abatement

If you’ve been hit with penalties, a specialist can request abatement if you have reasonable cause, potentially saving you thousands of dollars.

When to Take Action

It’s never too early to contact a tax resolution specialist. Taking action as soon as you notice a problem can prevent it from escalating and save you time, money, and stress in the long run. Situations that warrant immediate attention include:

• Receiving a notice from the IRS or state tax agency

• Facing wage garnishments, bank levies, or tax liens

• Owing more taxes than you can afford to pay

• Being selected for a tax audit

• Feeling overwhelmed by complex tax laws

Conclusion

Tax issues can be daunting but knowing when to seek help and understanding what a tax resolution specialist does can make all the difference. These professionals provide the expertise and support you need to resolve your tax problems effectively, allowing you to focus on what matters most.

If you’re dealing with tax problems, take the first step toward resolution today. Call IRS Tax Fighters at 281-962-0070 to speak with a qualified tax resolution specialist.

The Truth About IRS Passport Revocation for Unpaid Tax Debts

Mon, 27 Oct 2025 17:18:57 GMT

2. Department of State Action:

Once the IRS certifies your debt, the State Department can:

o Deny your application for a new passport or renewal.

o Revoke your existing passport.

o Limit your passport to allow only direct return to the United States.

3. Timeline:

The process is not instantaneous. Typically, the State Department gives you 90 days after receiving the certification to resolve your tax issue before revoking your passport. However, if you are applying for a passport or attempting to renew, they can deny your application right away.

Situations That Are NOT Considered “Seriously Delinquent”

The IRS does not certify taxpayers to the State Department if:

• You are in a valid installment agreement or offer in compromise.

• You have a pending request for either of the above.

• You have filed for innocent spouse relief.

• You are in bankruptcy.

• You are a victim of tax-related identity theft.

• You live in a federally declared disaster area, or the debt is currently uncollectible due to hardship.

These exceptions mean that if you are proactive about working with the IRS, you can avoid passport problems entirely—even if you owe more than the threshold.

Warning Signs You Could Be at Risk

The IRS doesn’t certify debt without sending notices. But many taxpayers miss these warnings because they:

• Moved without updating their address.

• Ignored IRS mail out of fear or confusion.

• Thought they had more time to respond.

If you’ve been receiving IRS collection letters (such as CP14, CP501, or CP503) and your tax debt is climbing, you could be on the path toward a CP508C notice.

Consequences of Passport Revocation

Having your passport denied or revoked can be far more than an inconvenience:

• Business Travel: If your work requires international travel, losing your passport can jeopardize contracts and income.

• Family Emergencies: You could be unable to visit sick relatives or attend important events abroad.

• Leisure Travel: Planned vacations may need to be canceled, often at significant financial loss.

And while the State Department usually provides a 90-day window to resolve the debt before revocation, it can deny a pending passport application immediately. That means you may not even be able to leave the country for a planned trip.

How to Avoid or Stop Passport Revocation

If you receive a CP508C notice or suspect you’re close to the threshold, take action quickly:

1. Verify the Notice

Double-check that the IRS’s certification is correct. Sometimes payments or credits have not yet posted. You can contact the IRS directly or have a tax professional request your account transcript.

2. Pay the Debt in Full

Paying the entire balance—including penalties and interest—will cause the IRS to reverse the certification, usually within 30 days. While this is the fastest path, it’s not realistic for everyone.

3. Enter Into an Installment Agreement

If you can’t pay in full, set up a formal installment agreement with the IRS. Once approved, the IRS will withdraw the certification and notify the State Department.

4. Submit an Offer in Compromise

If you qualify for an Offer in Compromise (OIC) to settle your debt for less than the full amount, the IRS will reverse the certification once your OIC is pending and again if it’s accepted.

5. Request Currently Not Collectible (CNC) Status

If you can prove financial hardship, the IRS may place your account in CNC status, which also stops passport revocation.

6. Appeal the Certification

If you believe the IRS certified your debt in error, you can request a judicial review in U.S. Tax Court or federal district court.

What to Expect After You Resolve the Debt

Once you’ve paid or made arrangements, the IRS will notify the State Department within 30 days to remove the certification. The State Department will then reinstate your passport privileges.

However, this process is not instantaneous. If you have imminent international travel, inform the IRS and the State Department of your travel plans. In rare emergencies, the State Department may issue a limited passport for direct return to the U.S., but only in very specific situations.

Conclusion

International travel is a privilege many people take for granted until it’s at risk. If you have significant tax debt, don’t wait until you’re at the airport to find out there’s a problem. Address your tax situation early and get professional help if needed.

Need Professional Tax Debt Help?

IRS Tax Fighters specializes in helping individuals and businesses resolve tax debt and avoid consequences like passport revocation. Contact us at 281-962-0070 to schedule a confidential consultation and take the first step toward resolving your IRS problems today.

How the IRS Collection Process Works

Mon, 06 Oct 2025 04:22:44 GMT

Step 3: Collection Actions Begin

Once the IRS determines that the debt is unresolved, they may initiate collection actions. Here are some of the most common methods:

1. Tax Liens: A tax lien is a legal claim against your property (real estate, personal property, or financial assets). While it doesn’t involve immediate seizure, it can harm your credit score and make it difficult to sell or refinance property.

2. Wage Garnishment: The IRS can contact your employer and require them to withhold a portion of your paycheck to satisfy your tax debt. This is often referred to as a "wage levy."

3. Bank Levies: A bank levy allows the IRS to seize funds directly from your bank account. Once the levy is issued, the bank freezes your account and forwards the funds to the IRS after 21 days unless you resolve the debt.

4. Seizure of Assets: In rare cases, the IRS may seize physical assets, such as your home, car, or other valuables, to satisfy unpaid tax debt.

Important Note: The IRS’s ability to collect through liens, levies, and asset seizures is powerful, but you have rights and options to protect yourself.

Step 4: Options for Resolving Tax Debt

Fortunately, the IRS offers several programs to help taxpayers resolve their debts. Here are some of the most common solutions:

Installment Agreements

An installment agreement allows you to pay your tax debt in monthly installments over time. This can help make large tax bills more manageable. Depending on your situation, you may qualify for a streamlined agreement that requires minimal financial documentation.

Offer in Compromise (OIC)

An Offer in Compromise allows you to settle your tax debt for less than the full amount owed. To qualify, you must demonstrate that paying the full amount would create a financial hardship. The IRS considers factors such as income, expenses, and asset equity when evaluating OIC applications.

Currently Not Collectible (CNC) Status

If you can’t afford to pay your tax debt due to financial hardship, you may qualify for "Currently Not Collectible" status. While in CNC status, the IRS temporarily suspends collection efforts. However, penalties and interest will continue to accrue on your balance.

Innocent Spouse Relief

If your tax debt is the result of errors or omissions made by your spouse (or former spouse) on a joint tax return, you may qualify for innocent spouse relief. This program can relieve you of responsibility for the tax debt associated with your spouse’s mistakes.

Tip: Each of these options requires specific qualifications and documentation. Working with a tax resolution professional can help ensure your application is accurate and complete.

Step 5: Your Rights as a Taxpayer

The IRS must follow strict rules when collecting taxes, and you have rights throughout the process. These include:

1. The Right to Be Informed: The IRS must provide clear explanations of your tax obligations and any actions they intend to take.

2. The Right to Challenge the IRS: You have the right to appeal IRS decisions, such as liens or levies, if you believe they are incorrect or unfair.

3. The Right to Retain Representation: You have the right to work with a tax professional to help resolve your case.

4. The Right to a Fair and Just Tax System: The IRS must consider your financial situation and ability to pay when taking collection actions.

Why You Should Act Now

Ignoring tax debt won’t make it disappear. In fact, delays can lead to increased penalties, interest, and enforcement actions. By addressing the issue early, you can explore options to reduce your debt, prevent aggressive collection actions, and regain financial stability.

If you’re unsure where to start, don’t worry. IRS Tax Fighters specializes in helping individuals and businesses resolve their tax issues quickly and efficiently. Contact us at 281-962-0070 to schedule a consultation today.

Final Thoughts

The IRS collection process can be stressful, but understanding how it works is the first step toward resolving your tax issues. From responding to notices to exploring resolution options, taking proactive steps can help you avoid unnecessary financial strain and protect your assets.

Remember, you don’t have to navigate this process alone. With the right help and guidance, you can overcome your tax challenges and achieve peace of mind.

10 Strategies to Settle Your Tax Debt Without Breaking the Bank

Wed, 24 Sep 2025 05:02:31 GMT

An OIC can be a game-changer, but it requires thorough preparation and documentation. You should know that there are strict requirements and not everyone qualifies. Working with a tax resolution specialist can significantly increase your chances of approval.

4. Request a Penalty Abatement

Penalties can make up a significant portion of your tax debt. If you’ve faced circumstances beyond your control—such as a medical emergency or natural disaster—you may qualify for penalty abatement. The IRS offers relief through:

• First-Time Penalty Abatement

• Reasonable Cause Penalty Relief

Submitting a well-documented request can lead to substantial savings.

5. Consider Currently Not Collectible (CNC) Status

If paying your tax debt would leave you unable to cover basic living expenses, you can request to be placed in "Currently Not Collectible" status. This temporarily halts IRS collection efforts, including wage garnishments and levies.

While interest continues to accrue, CNC status gives you breathing room to stabilize your financial situation.

6. File All Missing Tax Returns

If you have unfiled tax returns, the IRS may assess your tax debt based on estimates, which often overstates your actual liability. Filing your missing returns can reduce the debt and open the door to resolution options.

Failing to file can also disqualify you from programs like Offers in Compromise or installment agreements.

7. Protect Yourself From Collection Actions

If you’re struggling with tax debt, it’s crucial to understand your rights and how to protect yourself from aggressive IRS collection actions like liens, levies, and wage garnishments.

• Request a Collection Due Process Hearing: If you’ve received a Final Notice of Intent to Levy, you have the right to request a hearing to appeal the action. This can halt collections temporarily while your case is reviewed.

• Submit Form 911: The Taxpayer Advocate Service (TAS) can intervene if you’re experiencing significant financial hardship due to IRS actions. Submitting Form 911 can help protect you while working on a resolution.

Understanding your rights and acting proactively can prevent financial devastation while you work toward resolving your tax debt.

8. Challenge the Debt Through Audit Reconsideration

If your tax debt arises from an IRS audit and you believe the findings were incorrect, you can request an audit reconsideration. This involves submitting additional documentation to dispute the audit results.

While this process doesn’t guarantee a reduction in debt, it’s worth pursuing if you have strong evidence to support your case.

9. Negotiate a Partial Payment Installment Agreement (PPIA)

A Partial Payment Installment Agreement allows you to pay less than the full amount owed over time. Unlike a regular installment agreement, a PPIA reduces your total liability.

10. Seek Professional Help

Navigating IRS programs and negotiations can be complex and time-consuming. A tax resolution specialist can analyze your financial situation, determine the best strategy, and negotiate on your behalf.

Professionals have the expertise to handle IRS communications and ensure your case is presented in the best possible light.

Tips for Success When Settling Tax Debt

1. Act Quickly

The sooner you address your tax debt, the more options you’ll have for resolution. Delaying action can lead to additional penalties and interest.

2. Stay Organized

Keep all financial records, IRS notices, and correspondence in one place to streamline the resolution process.

3. Be Honest and Transparent

Accurate and truthful communication with the IRS is essential for resolving your debt effectively.

4. Understand Your Rights

Taxpayers have rights during the resolution process, including the right to representation and the right to appeal IRS decisions.

Conclusion

Tax debt can feel like an insurmountable burden, but you have options to address it without breaking the bank. From installment agreements to Offers in Compromise and penalty abatements, there’s a strategy for every financial situation.

Remember, seeking professional help can make a significant difference in the outcome. Contact IRS Tax Fighters or call 281-962-0070 to connect with experienced tax resolution specialists who can guide you through the process and help you achieve financial peace of mind.

Take the first step toward resolving your tax debt today!

How to Handle an IRS Audit Like a Pro

Fri, 19 Sep 2025 20:50:43 GMT

Types of IRS Audits

The IRS conducts audits in different ways, depending on the complexity of the case:

1. Correspondence Audit

This is the most common and least invasive type of audit. The IRS requests specific documents or clarification via mail.

2. Office Audit

You’ll be asked to visit an IRS office to discuss specific items on your tax return.

3. Field Audit

An IRS agent visits your home, place of business, or tax preparer’s office to conduct a comprehensive review.

4. Taxpayer Compliance Measurement Program (TCMP)

These audits are highly detailed and review every aspect of your tax return to gather data for future enforcement activities.

Knowing the type of audit you’re facing is crucial to preparing effectively.

Steps to Handle an IRS Audit Like a Pro

1. Don’t Panic

Receiving an audit notice is unsettling, but panicking won’t help. Instead, carefully read the notice to understand what the IRS is requesting and the timeline for your response.

2. Gather All Relevant Documents

Collect all financial records, including receipts, invoices, bank statements, and any other documentation that supports the information reported on your tax return. Organization is key during an audit.

3. Understand Your Rights

Taxpayers have rights during an audit, including the right to representation and the right to appeal IRS decisions. Familiarize yourself with these rights to ensure you’re treated fairly.

4. Be Honest and Transparent

Always provide accurate and truthful information to the IRS. Misleading or withholding information can lead to severe penalties or even criminal charges.

5. Stay Organized

Keep all correspondence, notes, and records related to the audit in one place. This will make it easier to respond to IRS requests and track your progress.

6. Respond Promptly

Timely responses to IRS inquiries are critical. Missing deadlines can lead to additional penalties or enforcement actions.

7. Avoid Volunteering Extra Information

Answer only what is asked and provide the specific documents requested. Offering additional details can raise new questions and complicate the audit.

8. Hire a Tax Resolution Specialist

Navigating an audit can be overwhelming, especially for complex cases. A tax resolution specialist can represent you before the IRS, negotiate on your behalf, and ensure the process runs smoothly.

Common Audit Traps to Avoid

1. Procrastination

Delaying your response to an audit notice only worsens the situation. Take action as soon as possible to avoid penalties.

2. Lack of Preparation

Failing to organize your documents or prepare adequately can lead to unfavorable outcomes.

3. Arguing with the IRS

Maintaining a professional and respectful tone during interactions with IRS agents is essential. Confrontational behavior won’t help your case.

4. Ignoring Professional Help

Trying to handle a complex audit alone can lead to mistakes. Seeking professional guidance can make a significant difference in the outcome.

What Happens After an Audit?

Once the IRS completes the audit, they’ll issue a report outlining their findings. Possible outcomes include:

1. No Change

The IRS accepts your return as filed, and no additional taxes are owed.

2. Agreed

You agree to the IRS’s findings and pay any additional taxes or penalties owed.

3. Disagreed

You disagree with the findings and can appeal the decision through the IRS Office of Appeals or, if necessary, pursue further legal action.

If you owe additional taxes after an audit, you may be able to negotiate a payment plan or other resolution with the IRS.

Preventing Future Audits

While there’s no surefire way to avoid an audit, taking these precautions can reduce your chances:

• File Accurate Returns: Double-check your tax return for errors before submitting it.

• Report All Income: Ensure all sources of income are reported, even small amounts.

• Keep Detailed Records: Maintain organized financial records to support your tax filings.

• Work with a Tax Professional: A qualified tax professional can help you file accurate returns and minimize audit risks.

Conclusion

An IRS audit doesn’t have to be a nightmare. With the right approach, preparation, and professional guidance, you can handle the process confidently and protect your financial interests. Remember, the key is to stay calm, stay organized, and seek help when needed.

If you’re facing an IRS audit or want to ensure your tax filings are audit-proof, don’t go it alone. Contact IRS Tax Fighters or call 281-962-0070 to connect with experienced tax resolution specialists who can guide you through the process and achieve the best possible outcome.

Filing Back Taxes to Avoid IRS Trouble: A Simple Guide

Wed, 10 Sep 2025 20:36:44 GMT

2. Use the Correct Tax Forms

Each tax year requires its specific forms and instructions. These can be downloaded from the IRS website. Be sure to use the correct year’s form to ensure accurate reporting.

3. Prepare Your Tax Returns

Accurately complete each return, ensuring all income and deductions are properly reported. While this can be done independently, hiring a tax professional can save you time and reduce the risk of errors.

4. Submit Your Returns

Mail your completed tax returns to the IRS. If you owe taxes, include a payment or set up a payment arrangement to begin addressing your balance.

What to Do If You Owe Back Taxes

Owing money to the IRS can feel intimidating, but there are several options to resolve your debt:

• Installment Agreements: Spread your payments over time with a manageable monthly plan.

• Offer in Compromise: Settle your tax debt for much less than the full amount owed if you meet certain qualifications.

• Currently Not Collectible Status: Temporarily halt collection efforts if you’re facing financial hardship.

How to Avoid Future Filing Issues

Once you’ve filed your back taxes, staying on track with your future filings is essential. Here are some tips to help you remain compliant:

1. Set Reminders: Mark your calendar with key tax deadlines to avoid missing them.

2. Organize Your Documents: Keep your financial records organized throughout the year to make filing easier.

3. Consult a Tax Professional: Work with a tax advisor to ensure your returns are accurate and filed on time.

4. Use Electronic Filing: File your taxes electronically to ensure faster processing and fewer errors.

5. Adjust Withholdings: If you consistently owe taxes, adjust your withholdings to better match your tax liability.

The Risks of Not Filing Back Taxes

Failing to address unfiled taxes can lead to severe consequences, including:

• Substitute for Return (SFR): If you don’t file, the IRS may file a substitute return on your behalf. These returns often exclude deductions and credits, resulting in a higher tax bill.

• Loss of Refunds: Refunds for unfiled returns are forfeited if not claimed within three years.

• Tax Liens and Levies: The IRS can place liens on your property or seize your assets to collect unpaid taxes.

• Criminal Charges: In extreme cases, failure to file can result in criminal prosecution.

Take Action Today

Filing back taxes is a critical step in avoiding IRS trouble and regaining financial peace of mind. Don’t wait until enforcement actions make the situation worse. Take control of your tax situation today.

At IRS Tax Fighters , we’re here to help you every step of the way. Call us at 281-962-0070 to schedule a consultation. Together, we’ll create a plan to resolve your tax issues and secure your financial future.

Avoiding Wage Garnishments: What to Do When the IRS Comes After Your Paycheck

Sat, 09 Aug 2025 17:28:11 GMT

3. Wage Garnishment Begins: If no action is taken, the IRS notifies your employer to start withholding a portion of your paycheck.

How Much Can the IRS Garnish?

The IRS doesn’t take your entire paycheck but rather a portion based on exemptions determined by federal law. The amount exempt from garnishment depends on factors like your filing status and the number of dependents you claim. However, the exempt amount is typically minimal, and the garnishment can leave you struggling to cover basic living expenses.

For example, if your monthly income is $4,000 and your exempt amount is $1,000, the IRS can garnish up to $3,000 of your wages each month.

Steps to Avoid or Stop Wage Garnishment

If you’ve received a notice from the IRS or are already experiencing wage garnishment, there are several actions you can take to protect your paycheck:

1. Address the Problem Immediately

Ignoring IRS notices will only worsen the situation. As soon as you receive a Notice of Intent to Levy, take it seriously and act promptly

2. Request a Collection Due Process (CDP) Hearing

If you receive a Final Notice of Intent to Levy, you have 30 days to request a CDP hearing. This hearing gives you the opportunity to present your case, negotiate a resolution, or contest the garnishment.

3. Enter into a Payment Agreement

One of the most effective ways to stop wage garnishment is to enter into a payment agreement with the IRS. This could include:

• Installment Agreement: Spread your payments over time to resolve the debt in manageable installments.

• Offer in Compromise (OIC): Settle your tax debt for less than the full amount owed if you qualify.

• Currently Not Collectible (CNC) Status: Temporarily halt collection efforts if you’re experiencing significant financial hardship.

4. Request Penalty Abatement

If your tax debt includes penalties for late filing or payment, you may be able to request penalty abatement. This can reduce the overall amount you owe and make it easier to resolve your debt.

5. Seek Professional Help

Dealing with the IRS can be overwhelming, especially when facing wage garnishment. A tax resolution specialist can negotiate on your behalf, develop a strategy for resolving your debt, and work to stop the garnishment quickly.

How to Prevent Wage Garnishment

The best way to avoid wage garnishment is to address tax issues before they escalate. Here are some preventative steps you can take:

1. File Your Taxes on Time

Late or missing tax returns can trigger IRS enforcement actions. Ensure you file your taxes on time each year to avoid penalties and collection efforts.

2. Pay What You Owe or Set Up a Payment Plan

If you can’t pay your taxes in full, don’t ignore the debt. Contact the IRS to discuss payment plan options that fit your budget.

3. Respond to IRS Notices

Ignoring IRS notices won’t make the problem go away. Promptly respond to any correspondence and take the necessary steps to resolve the issue.

4. Work with a Tax Professional

A tax professional can help you stay compliant with tax laws, address potential issues early, and develop a plan to manage your taxes effectively.

What to Do If Wage Garnishment Has Already Begun

If the IRS has already started garnishing your wages, don’t despair—you still have options to stop or reduce the garnishment:

• Negotiate a Payment Plan: Contact the IRS to discuss payment options and request that the garnishment be lifted in exchange for entering into a payment agreement.

• Prove Financial Hardship: If the garnishment is causing significant financial hardship, you may be able to convince the IRS to stop or reduce the garnishment.

• Pay the Debt in Full: If possible, paying the debt in full will immediately stop the garnishment.

• Appeal the Garnishment: If you believe the garnishment is unjustified or inaccurate, you can appeal the IRS’s decision.

Taking these steps with the guidance of a tax resolution specialist can help you regain control of your finances and stop the garnishment as quickly as possible.

Conclusion

Wage garnishment can be a stressful and financially draining experience, but it’s not the end of the road. By acting promptly and seeking professional help, you can stop or avoid garnishment, resolve your tax debt, and regain financial stability.

If you’re facing wage garnishment or want to avoid it altogether, don’t wait—call IRS Tax Fighters at 281-962-0070 to discuss your options with an experienced tax resolution specialist. Let us help you take the first step toward resolving your tax issues and protecting your paycheck.

How to Negotiate a Payment Plan with the IRS

Mon, 04 Aug 2025 18:18:46 GMT

Step 3: Gather Necessary Documents

To negotiate effectively, you’ll need to provide the IRS with detailed financial information. Be prepared to gather the following:

• Income Statements: Pay stubs, 1099s, or other proof of income.

• Expense Documentation: Monthly bills, rent or mortgage statements, utility bills, and other necessary expenses.

• Asset Information: Details about your bank accounts, retirement accounts, and property.

• Tax Returns: Ensure your past tax returns are filed, as the IRS typically requires this before approving a payment plan.

Step 4: Determine What You Can Afford

Before negotiating, assess your finances to determine how much you can reasonably afford to pay each month. The IRS will require you to submit Form 433-A or 433-F, which details your income, expenses, and assets. Be realistic about your budget to avoid defaulting on your payments.

Step 5: Contact the IRS

Once you’re prepared, it’s time to contact the IRS to initiate the negotiation process. You can do this by:

• Calling the IRS: Use the phone number provided on your IRS notice.

• Applying Online: For certain payment plans, you can apply directly on the IRS website.

• Submitting Forms by Mail: If required, complete and mail the appropriate forms to the IRS.

While it’s possible to handle this on your own, working with a professional can make the process smoother and increase your chances of approval.

Step 6: Negotiate Terms

During your discussion with the IRS, be prepared to negotiate terms that work for both parties. Key points to consider include:

• Monthly Payment Amount: Offer an amount you can afford, based on your financial analysis.

• Payment Timeline: Discuss how long you’ll need to pay off the debt.

• Interest and Penalties: In some cases, the IRS may reduce or waive penalties if you demonstrate financial hardship.

Be polite and honest throughout the negotiation process. The IRS is more likely to work with you if you’re cooperative and transparent.

Step 7: Finalize the Agreement

Once you’ve agreed on a payment plan, the IRS will provide written confirmation of the terms. Review this document carefully and keep a copy for your records. It’s crucial to:

• Make Payments on Time: Missing payments can void the agreement and result in enforced collection actions.

• Monitor Your Account: Regularly check your account to ensure payments are applied correctly.

• Communicate Changes: If your financial situation changes, notify the IRS immediately to discuss modifying your payment plan.

Step 8: Stay Compliant

To maintain your payment plan, you must stay compliant with all IRS requirements. This includes filing future tax returns on time and paying any new taxes owed. Falling out of compliance can result in the termination of your agreement.

Common Challenges and How to Overcome Them

Negotiating with the IRS isn’t always straightforward. Here are some common challenges and how to address them:

• High Monthly Payments: If the IRS proposes a payment amount you can’t afford, provide additional financial documentation to support your case.

• Rejected Applications: If your payment plan request is denied, work with a tax resolution expert to explore alternative solutions.

• Enforced Collections: If the IRS has already initiated wage garnishments or bank levies, act quickly to negotiate a payment plan and stop these actions.

Conclusion

Negotiating a payment plan with the IRS can feel daunting, but it’s a manageable process if you take the right steps. By understanding your options, gathering the necessary documentation, and approaching the IRS with a clear plan, you can resolve your tax debt and regain control of your finances.

At IRS Tax Fighters , we’re here to help every step of the way. Whether you’re starting the negotiation process or need assistance with an existing plan, our team has the knowledge and expertise to ensure a successful outcome. Call us at 281-962-0070 to get started today.

Tax Debt Resolution Options: Which One Is Right for You?

Fri, 25 Jul 2025 18:54:46 GMT

2. Offer in Compromise (OIC)

An Offer in Compromise allows eligible taxpayers to settle their tax debt for less than the full amount owed. The IRS considers factors such as income, expenses, and asset equity when evaluating OIC applications.

Key Benefits:

• Potentially reduces your overall tax liability.

• Provides a fresh start if approved.

Considerations:

• Strict eligibility criteria.

• Requires full disclosure of financial information.

• The application process can be time-consuming.

3. Currently Not Collectible (CNC) Status

If you’re experiencing financial hardship and cannot pay your tax debt, you may qualify for Currently Not Collectible (CNC) status. This status temporarily halts IRS collection efforts, such as wage garnishments or levies.

Key Benefits:

• Provides immediate relief from collection actions.

• Allows you to focus on improving your financial situation.

Considerations:

• Interest and penalties continue to accrue.

• The IRS will review your financial situation periodically to determine if CNC status should continue.

CNC status can be a lifeline for those in financial distress.

4. Penalty Abatement

The IRS may waive penalties for taxpayers who can demonstrate reasonable cause for failing to pay or file their taxes on time. Examples of reasonable cause include illness, natural disasters, or unavoidable financial setbacks.

Key Benefits:

• Reduces the overall amount owed.

• Encourages compliance moving forward.

Considerations:

• Does not eliminate the tax debt itself.

• Requires thorough documentation to support your request.

5. Innocent Spouse Relief

If your tax debt is the result of a spouse’s or former spouse’s actions, you may qualify for Innocent Spouse Relief. This option removes your liability for taxes, penalties, and interest caused by your spouse’s errors or omissions.

Key Benefits:

• Protects you from being held accountable for someone else’s actions.

• Provides relief in cases of unfair financial burden.

Considerations:

• Only applies to certain types of tax debt.

• Requires detailed evidence to support your claim.

6. Bankruptcy

In some cases, tax debt can be discharged through bankruptcy. However, this option is subject to strict eligibility criteria, and not all tax debts are dischargeable.

Key Benefits:

• Offers a potential fresh start.

• Can eliminate other financial obligations in addition to tax debt.

Considerations:

• Significant impact on your credit score.

• Complex legal process requiring professional guidance.

If you’re considering bankruptcy as a solution, consult with a tax resolution expert to understand how it may affect your tax debt.

How to Choose the Right Option

Selecting the right tax debt resolution option depends on several factors, including:

• The total amount of your debt.

• Your current financial situation.

• Your long-term financial goals.

Common Mistakes to Avoid

When resolving tax debt, it’s important to avoid common pitfalls that can complicate your situation:

1. Ignoring IRS Notices: Responding promptly to IRS communications can prevent escalation.

2. Choosing the Wrong Resolution Option: Selecting an option without fully understanding its implications can lead to more problems.

3. Filing Incomplete or Inaccurate Information: Errors on forms or applications can delay the process or result in rejection.

4. Failing to Seek Professional Help: Navigating tax debt resolution on your own can be overwhelming and increase the risk of mistakes.

Take Action Today

Dealing with tax debt can be stressful, but you don’t have to face it alone. Whether you’re considering an Installment Agreement, Offer in Compromise, or another resolution option, IRS Tax Fighters is here to guide you every step of the way.

Call us at 281-962-0070 to schedule a consultation. Together, we’ll create a plan to resolve your tax debt and help you achieve financial peace of mind.

Can’t Pay Your Tax Debt? Here’s What You Should Do Right Away

Mon, 14 Jul 2025 21:36:31 GMT

Step 4: Explore Payment Options

The IRS understands that not everyone can pay their tax debt in full immediately. That’s why they offer several payment options designed to make it easier for taxpayers to meet their obligations. Here are some of the most common options:

Installment Agreements

An installment agreement allows you to pay your tax debt over time through manageable monthly payments. There are two main types:

• Short-Term Payment Plans: For debts that can be paid off within 180 days.

• Long-Term Payment Plans: For larger debts requiring extended repayment periods.

Both options require you to provide detailed financial information to the IRS, including income, expenses, and assets.

Offer in Compromise (OIC)

An Offer in Compromise allows you to settle your tax debt for less than the full amount owed. This option is typically available to taxpayers who can demonstrate that paying the full amount would cause financial hardship.

While an OIC can be an excellent solution for eligible taxpayers, it’s important to note that the application process is complex. Working with a tax resolution professional can significantly improve your chances of approval.

Temporary Delay in Collection

If you’re experiencing extreme financial hardship, the IRS may temporarily delay collection efforts. While this doesn’t erase your debt, it provides breathing room to get your finances in order.

Step 5: Communicate with the IRS

Proactively communicating with the IRS can prevent your situation from escalating. Reach out to discuss your options and let them know if you’re unable to pay in full. Be honest and cooperative; the IRS is more likely to work with you if you demonstrate good faith.

If the idea of speaking with the IRS feels intimidating, consider hiring a tax resolution professional to represent you. This ensures that your rights are protected and that you have an experienced advocate handling the process on your behalf.

Step 6: Avoid Additional Penalties

Failing to address your tax debt can result in additional penalties and interest, which increase the total amount you owe. To avoid further financial strain:

• Pay What You Can: Even partial payments can reduce your debt and limit interest accrual.

• Stay Current: File all future tax returns on time and pay any new taxes owed promptly.

Step 7: Protect Your Assets

If your tax debt remains unresolved, the IRS may take enforcement actions, such as filing a tax lien, garnishing your wages, or seizing your bank accounts. To protect your assets, address your tax debt as soon as possible and consider professional help.

Step 8: Seek Professional Assistance

Dealing with tax debt can be overwhelming, but you don’t have to face it alone. A tax resolution professional can:

• Analyze Your Situation: Evaluate your financial circumstances and determine the best course of action.

• Negotiate with the IRS: Secure a payment plan or settlement that works for you.

• Ensure Compliance: Help you file all required returns and stay on track moving forward.

Hiring a professional not only saves you time and stress but also increases your chances of a successful resolution.

Conclusion

If you’re struggling to pay your tax debt, taking prompt and informed action is essential. By understanding your options, communicating with the IRS, and seeking professional assistance, you can resolve your tax issues and move forward with confidence.

Remember, you don’t have to navigate this process alone. At IRS Tax Fighters , we’re here to help you every step of the way. Call us at 281-962-0070 to take the first step toward financial freedom today.

The Truth About IRS Tax Liens and How to Remove Them

Fri, 11 Jul 2025 23:18:06 GMT

1. Pay the Tax Debt in Full

The most straightforward way to remove a lien is to pay off your tax debt completely. Once the debt is paid, the IRS will release the lien within 30 days. While this may not be feasible for everyone, it’s the quickest route to resolution.

2. Set Up an Installment Agreement

If you can’t pay the debt in full, an installment agreement allows you to make monthly payments over time. While the lien remains in place until the debt is paid off, the agreement prevents further collection actions.

3. Apply for an Offer in Compromise (OIC)

An Offer in Compromise lets you settle your tax debt for less than you owe. If the IRS accepts your OIC, they will release the lien once the agreed-upon amount is paid. Keep in mind that not everyone qualifies for this program.

4. Request a Discharge of Property

If you need to sell or refinance a specific asset, you can request a discharge of property from the lien. This removes the lien from that particular asset, allowing the transaction to proceed.

5. Subordination

Subordination doesn’t remove the lien but allows other creditors to take priority over the IRS. This can make it easier to secure a loan or mortgage.

6. Withdrawal of the Lien

In some cases, you may qualify for a withdrawal, which removes the public Notice of Federal Tax Lien. This option is available if you’ve paid your debt in full or are on a direct debit installment agreement.

How to Prevent a Tax Lien

The best way to deal with a tax lien is to prevent one from being filed in the first place. Here are some tips:

• File Your Taxes on Time: Even if you can’t pay, filing on time helps avoid additional penalties.

• Communicate with the IRS: If you’re struggling to pay, reach out to the IRS to discuss payment options.

• Seek Professional Help: Working with a tax resolution expert can help you address your debt before it escalates.

Why Professional Help Matters

Navigating tax liens and IRS procedures can be overwhelming. A tax resolution professional has the experience and knowledge to:

• Negotiate with the IRS: They can help you secure favorable terms for payment plans or settlements.

• Protect Your Assets: An expert can advise on the best strategies to prevent asset seizures or other enforcement actions.

• Save Time and Stress: Dealing with the IRS can be time-consuming and frustrating. Let a professional handle the process for you.

Common Myths About IRS Tax Liens

There’s a lot of misinformation about tax liens, which can lead to unnecessary panic or inaction. Let’s debunk some common myths:

• Myth: A Tax Lien Means You’ll Lose Your Property Immediately. Truth: A lien is a claim, not a seizure. While it’s serious, you won’t lose your property unless the IRS enforces the lien through a levy.

• Myth: You Can’t Do Anything Once a Lien Is Filed. Truth: There are several ways to address and even remove a lien, as discussed above.

• Myth: Tax Liens Disappear Over Time. Truth: Liens remain in place until the debt is paid or the statute of limitations expires, which can take up to 10 years or more.

Take Action Today

If you’re dealing with an IRS tax lien or want to prevent one, the time to act is now. Ignoring the issue will only make it worse, but with the right help, you can resolve your tax problems and move forward with confidence.

At IRS Tax Fighters , we’re here to provide the guidance and support you need. Call us at 281-962-0070 to schedule a free consultation. Let us help you take control of your tax situation and protect what matters most.

Understanding Offer in Compromise: Can You Settle for Less?

Wed, 09 Jul 2025 05:31:15 GMT

4. IRS Evaluation

The IRS carefully reviews your application, assessing whether the amount you’re offering is the most they can reasonably expect to collect. This evaluation includes a thorough analysis of your financial situation.

5. Decision

If the IRS accepts your offer, you must comply with all tax laws for the next five years to avoid defaulting on the agreement. If the offer is denied, you may appeal the decision or explore other resolution options.

Eligibility Criteria for Offer in Compromise

Not everyone qualifies for an Offer in Compromise. To be considered, you must meet specific eligibility requirements:

1. All Tax Filings Must Be Current

You must have filed all required tax returns before submitting your OIC application.

2. Required Estimated Payments Made

If you’re self-employed, you must be current on estimated tax payments for the current tax year.

3. No Open Bankruptcy Proceedings

Taxpayers in active bankruptcy are not eligible for an Offer in Compromise.

4. Demonstrated Inability to Pay in Full

The IRS evaluates your Reasonable Collection Potential (RCP), which is based on your income, expenses, and assets. If your RCP is less than the total tax debt, you may qualify for an OIC.

Reasons the IRS May Accept an Offer in Compromise

The IRS generally accepts Offers in Compromise under three circumstances:

1. Doubt as to Collectability

This applies when there is little chance the IRS will collect the full tax debt due to your financial situation.

2. Doubt as to Liability

If there’s a legitimate dispute over whether the assessed tax debt is correct, the IRS may accept an OIC.

3. Effective Tax Administration

Even if you can technically afford to pay the full amount, the IRS may accept an OIC if collecting the debt would create economic hardship or be unfair due to special circumstances.

Benefits of an Offer in Compromise

Settling your tax debt through an Offer in Compromise has several advantages:

• Reduced Financial Burden: You pay much less than the full amount owed, freeing up resources for other financial obligations.

• Fresh Start: Resolving your tax debt allows you to move forward without the fear of liens, levies, or garnishments.

• Peace of Mind: Eliminating the stress of unpaid taxes can improve your overall well-being.

Challenges of the Offer in Compromise Process

While the OIC program offers significant benefits, it’s not without challenges:

1. Complex Application Process

Submitting an accurate and compelling OIC application requires extensive documentation and knowledge of IRS procedures.

2. Low Acceptance Rate

The IRS accepts only a fraction of OIC applications each year, typically around 30%.

3. Continued Compliance Requirement

Even after your offer is accepted, you must comply with all tax laws for five years. Failure to do so can void the agreement.

How to Improve Your Chances of Success

To increase your likelihood of having an Offer in Compromise accepted:

• Be Honest and Thorough: Provide accurate and complete financial information.

• Seek Professional Help: A tax resolution specialist can help you prepare a strong application and negotiate with the IRS on your behalf.

• Stay Current with Tax Obligations: Make sure all required filings and payments are up to date before applying.

Is an Offer in Compromise Right for You?

An Offer in Compromise can be a valuable tool for resolving tax debt, but it’s not the best solution for everyone. You may benefit from exploring alternative options, such as:

• Installment Agreements: Spread your tax payments over time.

• Penalty Abatement: Request a reduction or elimination of penalties.

• Currently Not Collectible Status: Temporarily halt collection efforts if you’re facing financial hardship.

Each taxpayer’s situation is unique, so it’s essential to consult with a professional to determine the most appropriate strategy.

Conclusion

An Offer in Compromise provides a potential path to financial freedom for taxpayers burdened by overwhelming tax debt. While the process can be complex and challenging, the rewards of a successful OIC can be life-changing.

If you’re considering an Offer in Compromise, don’t navigate the process alone. Contact IRS Tax Fighters or call 281-962-0070 to schedule a consultation with an experienced tax resolution specialist. Let us help you take the first step toward resolving your tax debt and regaining control of your financial future.

How to Avoid Tax Scams When Seeking Tax Relief Services

Mon, 02 Jun 2025 21:03:00 GMT

2. Verify Credentials and Experience

Before working with any tax relief company, take the time to verify their credentials:

• Check for Licensing: Ensure the company employs licensed professionals like Certified Public Accountants (CPAs), Enrolled Agents (EAs), or tax attorneys. These professionals are authorized to represent you before the IRS.

• Research Reviews: Look for reviews on trusted platforms like the Better Business Bureau (BBB) or Google. Avoid companies with numerous complaints or unresolved issues.

• Ask for References: A reputable company should be willing to provide references or examples of past success stories.

3. Beware of “Too Good to Be True” Promises

Scammers prey on people’s desperation, often making bold claims like:

• “We can eliminate your tax debt completely!”

• “You don’t need to pay anything to the IRS.”

• “We have special connections with the IRS to resolve your case faster.”

Legitimate tax relief services will never make such claims. While programs like the IRS’s Offer in Compromise (OIC) can reduce tax debt, not everyone qualifies. An honest tax professional will evaluate your financial situation and provide realistic expectations.

4. Understand IRS Programs and Processes

Educate yourself about legitimate IRS tax relief programs, including:

• Installment Agreements: A payment plan that allows you to pay your tax debt over time.

• Offer in Compromise (OIC): A program that lets you settle your tax debt for much less than you owe if you meet specific criteria.

• Currently Not Collectible (CNC) Status: A temporary pause on collections for taxpayers facing financial hardship.

Understanding these programs can help you spot scammers who misrepresent or oversimplify the process. At IRS Tax Fighters , we specialize in navigating these programs to find the best solution for your unique situation.

5. Avoid “One-Size-Fits-All” Solutions

Every tax situation is different, and a cookie-cutter approach rarely works. Beware of companies that:

• Recommend the same solution (like an OIC) to every client.

• Fail to customize their strategy based on your financial details.

• Rush you into signing contracts without explaining their plan.

A legitimate tax resolution company will take the time to analyze your income, expenses, assets, and liabilities before recommending a tailored plan.

6. Protect Your Personal Information

Tax scammers often aim to steal your identity or sensitive information. To protect yourself:

• Never Share Information Over the Phone or Email: The IRS will not request personal or financial details via phone, email, or text.

• Use Secure Communication: Ensure the company you’re working with uses secure methods to handle your information.

• Check for IRS Impersonators: If someone claims to be from the IRS, verify their identity by contacting the IRS directly at 1-800-829-1040.

7. Trust Your Instincts

If something feels off about a tax relief company or professional, trust your instincts. Ask questions, request documentation, and don’t be afraid to walk away if you’re uncomfortable. Scammers rely on fear and confusion, so staying informed and confident is your best defense.

8. Work with a Trusted Tax Resolution Company

One of the best ways to avoid tax scams is to work with a reputable, experienced tax resolution firm. At IRS Tax Fighters, we are committed to helping you resolve your tax debt with integrity and transparency. Here’s what sets us apart:

• Proven Track Record: We’ve helped countless clients achieve favorable outcomes with the IRS.

• Licensed Professionals: Our team includes Tax Resolution Specialists with years of experience.

• Transparent Pricing: We provide clear, upfront pricing with no hidden fees. Once we understand your tax debt, we can provide our solution and the cost based on what services you need.

• Comprehensive Support: From IRS notices to audits, we handle every aspect of your case.

Conclusion

Avoiding tax scams requires vigilance, research, and a healthy dose of skepticism. By understanding the tactics scammers use and working with a trusted tax resolution company, you can safely navigate the path to resolving your tax debt.

At IRS Tax Fighters , we’re here to help you every step of the way. Don’t let fear or confusion hold you back—reach out to us today at 281-962-0070 for expert guidance you can trust.

What Happens If You Ignore IRS Collection Letters?

Fri, 18 Apr 2025 06:38:07 GMT

4. CP504 – Final Notice Before Levy The CP504 is a serious warning. It notifies you that the IRS intends to seize your assets, such as bank accounts or wages, to satisfy your tax debt.

5. Letter 1058 or LT11 – Final Notice of Intent to Levy This letter is the final step before the IRS takes legal action. It informs you of your right to a Collection Due Process (CDP) hearing. Ignoring this letter means the IRS can proceed with levies and liens.

Consequences of Ignoring IRS Collection Letters

Failing to respond to IRS notices can lead to several serious outcomes:

1. Accruing Penalties and Interest

Unpaid taxes accumulate interest daily, and penalties can add up quickly. The longer you wait, the more you’ll owe. The IRS charges a failure-to-pay penalty of 0.5% of the unpaid tax amount for each month or part of a month that the debt remains unpaid, up to a maximum of 25%.

2. Federal Tax Liens

A federal tax lien is the government’s legal claim against your property when you fail to pay your tax debt. Liens can:

• Make it difficult to sell or refinance your property

• Stay in place until the debt is paid in full

3. Wage Garnishments

If you ignore IRS notices, the agency may garnish your wages to collect the debt. This means your employer will be required to send a portion of your paycheck directly to the IRS until your tax debt is satisfied.

4. Bank Levies

The IRS can freeze your bank accounts and seize funds to cover your tax liability. You won’t be able to access your money until the levy is resolved, which can cause significant financial hardship.

5. Property Seizures

In extreme cases, the IRS can seize physical assets, such as your home, car, or other valuables, to satisfy your tax debt. While this is less common, it’s a real possibility if you continually ignore IRS letters.

6. Passport Revocation or Denial

The IRS can notify the State Department of your tax delinquency, leading to the denial or revocation of your passport. This can impact your ability to travel internationally.

How to Respond to IRS Collection Letters

Ignoring IRS letters is never the solution. Here’s what you should do instead:

1. Read the Letter Carefully

Each letter provides specific details about your tax situation, including the amount owed, deadlines, and instructions for resolving the issue. Understanding the letter is the first step in addressing the problem.

2. Verify the Information

Mistakes can happen. Double-check your records to confirm the accuracy of the IRS’s claims. If you believe there’s an error, you can dispute it.

3. Act Promptly

The IRS provides deadlines for a reason. Responding promptly can prevent penalties, interest, and enforcement actions. Even if you can’t pay the full amount, taking action is better than doing nothing.

4. Explore Your Options

There are several ways to resolve tax debt, including:

• Payment Plans: Installment agreements allow you to pay your debt overtime.

• Offer in Compromise: Settle your debt for much less than what you owe if you meet specific criteria.

• Currently Not Collectible Status: Temporarily delay payment if you’re facing financial hardship.

5. Seek Professional Help

Dealing with the IRS can be overwhelming, especially if you’re unfamiliar with tax laws and procedures. Working with a tax resolution company like IRS Tax Fighters can make the process much smoother. Our experienced professionals will negotiate with the IRS on your behalf and find the best solution for your situation.

Why Choose IRS Tax Fighters?

At IRS Tax Fighters, we understand the stress and anxiety that comes with IRS collection letters. Here’s why you can trust us to help:

• Experienced Professionals: Our team includes tax professionals with years of experience.

• Proven Track Record: We’ve helped countless clients resolve their tax issues successfully.

• Personalized Solutions: We tailor our approach to meet your unique needs and circumstances.

• Transparent Pricing: No hidden fees, just honest and upfront pricing.

Ignoring IRS collection letters can lead to serious consequences, but your tax debt can be resolved.

Conclusion

IRS collection letters are a warning sign that action is needed. Ignoring them won’t make the problem go away; it will only make it worse. From penalties and interest to wage garnishments and property seizures, the consequences of inaction can be severe.

The good news is that help is available. At IRS Tax Fighters, we specialize in helping taxpayers like you resolve their IRS issues and regain financial peace of mind. Don’t wait until it’s too late— contact us to get started today.

1099 Workers in Focus: How to Protect Yourself from IRS Scrutiny

Sun, 13 Apr 2025 05:02:14 GMT

Strategies to Minimize IRS Scrutiny

Now that you understand your tax responsibilities, here are some effective strategies to help you minimize the risk of IRS scrutiny:

1. File Your Taxes Accurately and Timely: Tax day is not something most people look forward to, and many people put it off as long as they can. As a 1099 worker, it’s even more important to make sure that your tax return is accurate and submitted by the deadline. Take the time to double-check your figures to avoid any errors that could potentially lead to an audit.

2. Track Your Earnings: One of the biggest red flags for IRS auditors is unreported or misreported income. Utilize accounting tools or payment platforms that help you track your earnings effectively. This practice not only aids in accurate reporting but also ensures that you have the necessary documentation readily available.

3. Request 1099 Forms from Clients: If you work with multiple clients, request 1099 forms from each one. This helps you know that all your income is accounted for and provides a clear record of what you’ve earned.

4. Make Timely Estimated Payments: Keep track of your quarterly estimated tax payments and ensure that they are made on time. Set reminders for yourself and put money aside periodically to help prevent any missed payments, which could lead to penalties.

5. Be Aware of Common Audit Triggers: Get familiar with factors that might trigger an audit, such as large deductions relative to your income or discrepancies between what you report as income and what your clients report to the IRS. Understanding these triggers can help you avoid the common pitfalls.

6. Communicate Promptly with the IRS: If you receive any notices or inquiries from the IRS, respond promptly and professionally. Ignoring their communications can lead to further complications. If you're uncertain about how to respond, contact our office , and we can help you.

Moving Forward with Confidence

As a 1099 worker, it is so important to understand your tax responsibilities and take proactive measures to avoid the IRS’s scrutiny. By staying organized, filing your taxes accurately, and being aware of common mistakes that many freelance workers make, you can reduce your risk of audits and penalties.

If you find yourself struggling with tax issues or facing IRS scrutiny, remember that you don’t have to face it alone. Tax resolution professionals like the ones at IRS Tax Fighters are here to help you navigate all the complexities of tax regulations and work toward a favorable resolution. Don’t hesitate to reach out to us at 281-962-0070 for support—your peace of mind is worth it.

Can the IRS Take My Property? What You Need to Know About Asset Seizure

Mon, 13 Jan 2025 02:43:52 GMT

3. Real Estate (Homes)

The IRS can place a tax lien on your property, which means they have a legal claim on your property and if your property is sold, then the buyer would be required to give the sales proceeds to the IRS rather than to you. Also, in some cases the IRS may initiate the seizure of your home or other real estate assets.

4. Vehicles

The IRS can seize vehicles, including cars, trucks, and boats, to cover unpaid taxes. After seizing the vehicle, they will sell it at auction to recoup some of the debt.

5. Other Personal Property

The IRS may also seize other valuable personal property, such as jewelry, collectibles, or business assets, to help satisfy the tax debt.

How the IRS Seizes Assets

Asset seizure is not an immediate process. The IRS must follow specific procedures before seizing any property. Here’s a generic outline of the typical process:

1. Notice of Debt

If you owe taxes and have not made arrangements to pay, the IRS will send you a series of notices warning you of the outstanding debt. These notices typically start with a simple request for payment but escalate to more formal warnings, such as the Final Notice of Intent to Levy. If you receive this notice, the IRS is informing you that they intend to take collection actions.

2. Levy and Seizure

If you do not respond or pay the taxes owed, the IRS may proceed with a levy, which allows them to seize assets. The IRS is required to send a final notice of levy at least 30 days before they take action. This is when the IRS will begin contacting your bank or employer to start garnishing your wages or bank accounts.

3. Seizing Property

If the IRS is unable to recover sufficient funds through levies or garnishments, they may move to seize your assets. Before taking property, the IRS will usually notify you in writing. They will also send an official notice of seizure if they plan to auction your property.

4. Auctioning Your Property

After the IRS seizes your assets, they will sell them at an auction to recover the unpaid tax debt. The proceeds from the sale are used to cover the amount you owe. If the sale exceeds your tax debt, you may be entitled to a refund.

How to Prevent IRS Asset Seizure

The risk of asset seizure can be avoided by addressing your tax debt before it reaches this stage. Here are steps you can take to protect your property and resolve your tax issues:

1. File and Pay on Time

The best way to avoid asset seizure is to file your tax returns on time and pay the taxes you owe. If you are unable to pay the full amount, the IRS offers options like installment agreements and Offer in Compromise (OIC) to make your debt more manageable.

2. Set Up a Payment Plan

If you cannot afford to pay your tax debt all at once, you can set up a payment plan with the IRS. An installment agreement allows you to make monthly payments toward your tax debt over time. This arrangement can help you avoid collection actions, including asset seizure, as long as you keep up with your payments.

3. Negotiate an Offer in Compromise

If you owe a substantial amount of taxes and cannot pay in full, an Offer in Compromise (OIC) might be an option. This program allows you to settle your tax debt for less than the full amount owed. However, qualifying for an OIC can be challenging, and the IRS carefully reviews your financial situation to determine if you qualify. A tax relief professional can help you navigate this process and increase your chances of success.

4. File for Currently Not Collectible Status

If you are facing financial hardship and cannot afford to pay your taxes, you may qualify for Currently Not Collectible (CNC) status. This status temporarily halts IRS collection actions, including asset seizures. While your debt remains, CNC status gives you a break and allows you to improve your financial situation.

5. Appeal the Seizure

If the IRS has already issued a notice of seizure, you have the right to appeal. If you can demonstrate that the seizure would cause undue financial hardship or that you were not properly notified, you may be able to halt the seizure process. Working with a tax relief professional can help ensure that your appeal is properly filed.

How a Tax Relief Professional Can Help

If you are facing the threat of IRS asset seizure, a tax relief professional can be your advocate in negotiating with the IRS and finding a solution. Here’s how a tax resolution expert can help:

● Negotiation: A tax relief professional can help you negotiate a payment plan or offer in compromise with the IRS, preventing the need for asset seizure.

● Representation: They can represent you in IRS hearings or appeals and communicate with the IRS on your behalf, taking the stress out of the process.

● Guidance: Tax resolution professionals will guide you through the steps to apply for Currently Not Collectible status or to challenge the seizure if necessary.

● Prevention: A tax relief expert can help you take the necessary steps to resolve your debt early, reducing the chances of escalation to asset seizure.

Take Action Today

If you’re at risk of losing your assets to the IRS, it’s important to take immediate action. Ignoring the situation will only make things worse, leading to asset seizure and financial hardship.

By working with tax relief professionals like the ones at IRS Tax Fighters , you can take steps to resolve your tax debt, protect your property, and avoid further collection actions.

Reach out to IRS Tax Fighters today at 281-962-0070 to discuss your options and begin the process of safeguarding your assets and your financial future.

How to Start the New Year Off Right to Resolve Tax Debt

Fri, 10 Jan 2025 05:28:55 GMT

By addressing your tax debt early in the year, you give yourself more time to work with the IRS on finding a manageable solution. This could include setting up a payment plan, requesting penalty relief, or negotiating a settlement through programs like the Offer in Compromise (OIC).

Explore Your Tax Resolution Options

When it comes to resolving tax debt, there are several options available depending on your financial situation. Here are a few of the most common tax resolution options:

1. Installment Agreements

If you can’t pay your tax debt in full right away, the IRS allows you to set up an installment agreement. This is a monthly payment plan that spreads out the cost of your debt over time, often making it more manageable. The IRS offers different types of payment plans, including short-term and long-term options, depending on how much you owe and your ability to pay.

2. Offer in Compromise (OIC)

If you owe a substantial amount in taxes and are unable to pay it all, you may be eligible for an Offer in Compromise. This program allows you to settle your tax debt for much less than the total amount owed, but qualifying for it can be challenging. The IRS looks at your income, expenses, and assets to determine whether you’re eligible. A tax resolution professional can help you assess your eligibility and guide you through the application process.

3. Penalty Abatement

In some cases, the IRS will reduce or eliminate penalties if there is reasonable cause for your failure to pay or file your taxes. If you can show that your inability to pay was due to circumstances beyond your control, such as medical emergencies or a job loss, you may be able to have penalties reduced or waived. A tax relief professional can help you present your case to the IRS and increase your chances of having penalties removed.

4. Currently Not Collectible Status

If you are facing significant financial hardship, the IRS may place your account in Currently Not Collectible (CNC) status. This means that the IRS will stop all aggressive collection activities, such as garnishments or levies. While this status does not completely eliminate your debt, it provides immediate relief and gives you more time to stabilize your finances.

Seek Professional Help to Navigate the Process

The process to resolving tax debt can be complicated, and dealing with the IRS on your own can be overwhelming. Tax relief professionals like the ones at IRS Tax Fighters can help you navigate the various programs available to you and negotiate with the IRS on your behalf. They can also provide expert advice on the best strategy based on your unique financial situation.

Since they handle all the communication with the IRS, you don’t have to deal with the stress of trying to manage the situation alone. They will help ensure that you meet all deadlines, file all necessary paperwork, and protect your rights as a taxpayer.

Planning for the Future

Once your current tax debt is resolved, it’s important to implement strategies to avoid future tax problems. A tax relief professional can help you with tax planning to ensure you stay on track with your obligations moving forward. This may include budgeting for future taxes, keeping better records of your income and expenses, and making timely quarterly tax payments to avoid underpayment penalties.

Starting the year with a clear tax resolution plan can set you up for financial success in the months ahead. Addressing your back taxes now can reduce the stress and burden of dealing with the IRS later on, and it allows you to move forward with a clean slate.

Take Action Now

If you owe $10,000 or more in taxes, don’t wait until the IRS escalates collection actions. Start the year off right by seeking professional help to resolve your tax debt and find a manageable solution.

Tax relief professionals like the ones at IRS Tax Fighters can help you understand your options and work with the IRS to find the best outcome for your financial situation.

The sooner you take action, the sooner you can get back to focusing on your life and your business without the looming threat of IRS actions. Contact IRS Tax Fighters today at 281-962-0070 to discuss your options and take the first step toward resolving your tax debt.

What Happens If You Don’t Pay Your Taxes? The Consequences You Need to Know

Mon, 06 Jan 2025 20:22:20 GMT

On top of that, the failure-to-pay penalty is charged if you don't pay the amount due. This penalty is usually 0.5% of the unpaid taxes, compounded monthly, and can also add up to 25%.

In addition, the IRS charges interest on the unpaid balance, which is calculated daily and based on the federal short-term interest rate plus 3%. It’s clear that these penalties and interest can add significantly to outstanding tax debt.

IRS Liens

If you continue to ignore your tax debt, the IRS may file a tax lien against your property. A tax lien is a legal claim on your assets, including your home, car, and business. It is essentially the IRS’s way of making sure they have the first claim to the proceeds of the sale of your property if you ever decide to sell or refinance.

Levy Actions and Seizure of Assets

If the tax lien doesn’t motivate you to resolve your debt, the IRS can escalate to a levy. A levy allows the IRS to seize your property to satisfy your tax debt. This could include garnishing your wages, seizing funds from your bank account, or taking physical assets, such as your car or home.

Wage garnishment is one of the most common methods used by the IRS to collect tax debt, and it involves the IRS taking a percentage of your income directly from your paycheck. This can make it very hard to meet your everyday living expenses.

Potential Legal Consequences

In extreme cases, if the IRS believes you’ve engaged in fraudulent activity or intentionally tried to evade paying your taxes, they may pursue criminal charges. While criminal tax evasion is rare, it is a possibility if there is significant evidence of fraud, willful misreporting, or failure to cooperate with IRS investigations.

Why Ignoring Tax Debt Is Risky

The risk of ignoring your tax debt goes beyond the potential for garnishments, levies, and liens. Failing to address your unpaid taxes can also lead to significant long-term consequences, including:

● Increased Debt: Penalties and interest continue to accumulate, increasing your overall liability and making it harder to pay off your debt.

● Financial Hardship: Wage garnishments and levies can leave you without the necessary income to pay for basic living expenses like rent, groceries, or utilities.

● Loss of Assets: Seizing your home, car, or other assets can cause significant hardship and can be difficult to recover from financially.

The sooner you address your tax debt, the easier it is to find a solution before the IRS resorts to these more harsh collection actions.

How a Tax Relief Professional Can Help

If you’re facing unpaid taxes, penalties, or the threat of garnishments and levies, the tax relief professionals at IRS Tax Fighters can help you navigate the complex tax resolution process. Here are some of the most common ways we can help:

● Negotiation with the IRS: We can negotiate directly with the IRS to settle your debt for less than the full amount owed through an Offer in Compromise (OIC). We can also negotiate installment agreements to make your monthly payments more manageable.

● Penalty Abatement: If you’re facing penalties due to late filing or payments, we can try and request penalty abatement based on reasonable cause. This can help reduce or eliminate penalties that have accumulated, reducing your overall debt.

● Stopping Garnishments and Levies: If your wages are being garnished or your assets are at risk of being seized, we may be able to help stop these actions by working with the IRS to put a halt to levies and garnishments, and set up an agreement with the IRS that is more manageable for you.

● Currently Not Collectible Status: If you’re in financial hardship, we may be able to apply for Currently Not Collectible (CNC) status, which temporarily halts IRS collection actions. While the debt remains, you won’t face collection actions during this time, giving you a chance to improve your financial situation.

● Audit Representation: If the IRS is auditing your tax return, we can represent you and make sure that you understand the process and your rights. We negotiate with the IRS to minimize any additional tax liability.

Why You Shouldn’t Wait

Tax debt can quickly spiral out of control if left unresolved. Ignoring your tax obligations may provide temporary relief, but it only makes matters worse in the long run. The IRS has a variety of powerful tools at its disposal to collect unpaid taxes, and they won’t stop until the debt is paid.

By taking action now, you can reduce the risk of severe penalties, garnishments, and asset seizures. A tax relief professional can guide you through the process, help you understand your options, and negotiate on your behalf to find a resolution that works for your situation.

If you’re facing tax debt or fear the IRS may take aggressive action against you, don’t wait until it’s too late. Reach out to the professionals at IRS Tax Fighters at 281-962-0070, and we will help you navigate your options and bring your tax issues to a manageable resolution.

When to Reach Out to a Tax Resolution Professional

Mon, 23 Dec 2024 21:18:34 GMT

4. Inability to Pay Your Taxes

If you find yourself in a situation where you cannot pay your taxes in full, don’t panic. Instead, consult with a tax relief professional. They can help you understand your options, such as setting up a payment plan or applying for an Offer in Compromise, which allows you to settle your tax debt for less than the total amount owed.

5. Multiple Years of Unfiled Tax Returns

Failing to file tax returns for multiple years can lead to serious consequences, including increased penalties and legal repercussions. If you’re behind on filing your returns, it’s essential to seek professional help as soon as possible. Tax resolution experts can assist you in catching up on your filings, ensuring that you comply with tax laws and minimize potential penalties.

6. Stress and Anxiety Over Tax Issues

If you’re feeling overwhelmed by your tax situation, it’s a strong indication that you could benefit from professional assistance. Dealing with tax debt, notices, or audits can create significant stress, impacting your overall well-being. A tax resolution professional can help take the weight off of your shoulders, offering you peace of mind and a clear path forward.

7. Lack of Knowledge about Tax Laws and Regulations

If you find tax laws confusing or feel unsure about your rights and obligations as a taxpayer, reaching out to a professional is a wise choice. Tax resolution experts have in-depth knowledge of tax laws and can provide clarity on your specific situation, helping you make informed decisions based on your needs.

How a Tax Resolution Professional Can Help

Once you’ve recognized the signs that indicate it’s time to seek help, here’s how a tax resolution professional can help you moving forward:

● Expert Negotiation: Tax relief professionals are skilled negotiators when it comes to working with the IRS and you want them on your side. They understand the intricacies of tax law and can advocate for you, aiming to secure as favorable an outcome as possible.

● Customized Solutions: Each taxpayer's situation is unique, and having the right professionals on your team can help you develop tailored strategies based on your specific circumstances. Whether it’s negotiating a settlement or setting up a payment plan, they can provide personalized solutions to fit whatever your needs are.

● Comprehensive Support: From handling communications with the IRS to representing you during audits, tax resolution professionals are there to offer you comprehensive support throughout the entire process. You’re never alone, and their guidance alone will save you time and stress.

● Long-Term Financial Planning: Beyond immediate tax relief, these professionals can assist you in developing strategies to manage your finances and avoid future tax issues, laying the groundwork for a more secure financial future and setting you up for success.

Taking the Next Step

Recognizing the signs that it’s time to reach out to a tax resolution professional is the first step toward taking back control of your financial situation. Don’t let stress and uncertainty dictate your life - take proactive action that can pave the way to resolving the issue once and for all.

If you’re facing tax challenges, whether it’s unfiled returns, overwhelming debt, or the fear of an audit, don’t hesitate to contact our team at IRS Tax Fighters .

We’re here to help you navigate the complexities of tax resolution and work towards a solution that will work best for you. Your financial peace of mind is just a call away .

Tips for Gig Workers to Avoid IRS Garnishments

Thu, 12 Dec 2024 05:04:38 GMT

How Wage Garnishment Happens

Wage garnishment is not an immediate action - it’s a process that builds up over time. The first step involves the IRS sending notices to inform you of the tax debt and giving you the chance to settle the amount owed.

If these notices are ignored, the IRS may issue a Final Notice of Intent to Levy, which is your final warning that they intend to garnish your wages.

It’s always important not to ignore any communication from the IRS. In this scenario, once the Final Notice of Intent to Levy is issued, the IRS can begin the garnishment process.

For gig workers, this usually means that the IRS will contact your clients or payment processors to withhold your earnings up to the amount owed to the IRS. This can make it difficult to access your income, as the money is withheld directly before you receive it.

Steps to Avoid IRS Garnishment

The best way to avoid wage garnishment is to stay proactive and address your tax obligations early. Here are a few key actions you can take to ensure you don’t find yourself facing garnishment:

Paying Estimated Taxes on Time

As a self-employed individual, you are required to pay self-employment taxes in addition to regular income taxes. The IRS expects you to pay estimated taxes on a quarterly basis. If you miss these payments, the IRS can assess penalties and, eventually, initiate garnishment. To avoid this, make sure to set aside money throughout the year and pay your taxes quarterly. Keeping track of your income and setting aside funds can make quarterly payments easier to handle.

File Your Tax Return On Time

Even if you can't pay the full amount you owe, filing your taxes on time is crucial. If you fail to file, the IRS can assess additional penalties, making the situation worse.

Filing on time, even if you're unable to pay, shows the IRS that you're making an effort to comply with the law, which may help you in negotiating a payment plan or other resolution options.

Set Up a Payment Plan

If you can’t pay your tax debt in full, it’s important to explore payment options. The IRS offers installment agreements that allow you to pay your debt in manageable monthly payments. Setting up a payment plan before garnishment begins can protect your income and prevent further collection actions. Make sure to stay current with your payments to avoid any additional penalties or collection efforts.

Keep Track of All Income and Expenses

It’s essential to keep accurate records of your income, especially as a gig worker. The IRS will only garnish your wages if they know you owe taxes, so the more organized you are, the easier it is to comply with tax regulations.

By staying organized and maintaining detailed financial records, you reduce the chance of any issues found in your filings that could lead to back taxes and, eventually, garnishment.

What to Do if You Receive a Garnishment Notice

If you’ve already received a garnishment notice, don’t panic. While garnishment is a serious matter, it is not the end of the road. There are steps you can take to resolve the issue before the garnishment takes effect.

First, contact the IRS immediately. Ignoring the notice will only make matters worse. You have the right to appeal the garnishment, and in some cases, the IRS may be willing to halt the garnishment if you show that it would cause undue financial hardship. Additionally, you may be able to request a payment plan or even an Offer in Compromise, which could greatly reduce the total amount you owe.

However, it’s important to note that negotiating with the IRS on your own may be an uphill battle, and that’s where a tax relief professional can help. They specialize in negotiating with the IRS, and they can advocate on your behalf to stop garnishments and set up a manageable solution. They can also help you explore other options, such as applying for Currently Not Collectible status, which suspends collection actions.

How Tax Relief Professionals Can Help

Tax relief professionals are experts at navigating the complexities of IRS tax laws and can help you prevent or stop wage garnishment. If you’re already facing garnishment, a tax relief professional can:

● Negotiate with the IRS – A tax relief professional will work with the IRS to negotiate a payment plan, reduce penalties, or potentially settle your tax debt for less than you owe (Offer in Compromise).

● Stop Garnishments – They can file appeals to stop garnishment actions and help you secure more favorable terms.

● Represent You in IRS Communications – A professional can handle all communications with the IRS on your behalf, taking the stress off you and ensuring that the process moves smoothly.

● Offer Long-Term Solutions – Beyond just stopping garnishments, tax relief professionals can help you avoid future tax issues by providing advice on managing your tax responsibilities and avoiding pitfalls in the future.

As a gig worker, it’s essential to understand the potential risks of IRS garnishment and take steps to avoid it. By staying on top of your estimated tax payments, filing your returns on time, and keeping accurate records, you can prevent tax issues before they arise.

If you’re already facing a garnishment notice, call the tax relief professionals at IRS Tax Fighters at 281-962-0070. They can provide you with the expertise and support you need to resolve the situation and protect your income.

If you're struggling with tax debt or facing IRS garnishment, don’t hesitate to reach out to our office. With our assistance, you can take control of your tax situation and avoid the financial strain of garnishments.

Navigating an IRS Audit: What to Expect and How to Prepare

Mon, 02 Dec 2024 03:35:17 GMT

What Does The IRS Audit Process Look Like?

What is an IRS audit, anyway? In a nutshell, it’s an examination of an individual's or business' financial information and records to make sure that they are in compliance with tax laws and regulations.

Typically, there are three main types of IRS audits: correspondence audits, office audits, and field audits. Correspondence audits are usually conducted through the mail, while office audits and field audits involve in-person meetings with IRS agents.

During an audit, the IRS will request certain documents and records related to your tax return such as income statements, expense receipts, bank statements, etc.

They may also ask for additional documentation to support the deductions, credits, or other tax-related items that you claimed on your return.

How Can I Prepare For An IRS Audit?

Being prepared for an IRS audit is a key step to ensuring a smooth and successful process. Here are some steps you can take to make sure you are fully prepared:

● Organize Your Financial Records

Gather all relevant financial records. This will include income statements, expense receipts, bank statements, and any other documentation that could be related to your tax return. Organize your documents in a clear and simple manner so that it is easy to provide them to the IRS when requested.

● Review Your Tax Return

Go through your tax return with a fine tooth comb to ensure that all information is accurate and complete. Double-check for any errors or discrepancies that may raise red flags during the audit process. If you identify any mistakes, consider filing an amended return to correct them before the audit begins.

● Understand Your Rights

The IRS audit process can be overwhelming, and it’s important to know that you have certain rights during the audit. Consulting with a Tax Resolution Professional like the ones at IRS Tax Fighters can help you manage the process and communicate with the IRS. Having knowledgeable representation can prove to be invaluable when it comes to protecting your interests throughout the entire process.

● Respond Promptly to IRS Requests

If the IRS requests additional information or documentation during the audit, respond promptly and provide the requested materials in a quick and timely manner. If you fail to comply with IRS requests, it can result in delays or further scrutiny, so it's essential to be proactive and cooperative throughout the audit process.

● Stay Calm and Cooperative

It is no secret that undergoing an IRS audit can be a stressful time, but it's important to remain calm, cooperative, and professional at all times. Avoid making confrontational or defensive statements, and instead focus on providing accurate and relevant information to the IRS. Having a positive attitude and demeanor throughout the process can help facilitate a more amicable audit experience.

Facing an IRS audit may seem daunting and come as quite a shock, but with the right preparation and support, you can navigate the process with confidence. Remember to stay proactive, cooperative, and informed throughout the audit process.

If you find yourself facing an IRS audit, reach out to IRS Tax Fighters at 281-962-0070 to help guide you. We can help alleviate any stress and uncertainty that may come up during the process and give you peace of mind.

The Role of Tax Resolution Firms: What They Can Do for You

Mon, 25 Nov 2024 01:58:11 GMT

3. Navigating the IRS Communication Maze

Communicating with the IRS can be intimidating, especially if you’re unsure of your rights and obligations. Tax resolution firms act as your advocates, handling all communications with the IRS on your behalf. They respond to notices, negotiate settlements, and ensure that your case is managed efficiently. This representation can take a significant weight off your shoulders.

Alleviating Stress During Tax Challenges

One of the most important benefits of finding a trusted tax resolution firm is the reduction of stress that comes with tax debt. The uncertainty and fear of IRS actions can be paralyzing, but with the support of an expert, you can regain your peace of mind. Here’s how:

Expert Guidance Every Step of the Way

Knowing you have a knowledgeable ally can ease your worries. Tax resolution firms are well-versed in tax codes and IRS processes, enabling them to navigate the complexities on your behalf. This expertise ensures that you have someone who understands the ins and outs of tax resolution.

Emotional Support and Reassurance

Dealing with tax debt can take an emotional toll. These professionals provide not just financial expertise but also emotional support. They understand the challenges you’re facing and work diligently to alleviate your concerns, ensuring you never feel alone in the process.

A Clear Roadmap to Resolution

Tax resolution firms develop a tailored action plan specific to your situation. This roadmap outlines the steps involved in resolving your tax issues, making the process feel much more manageable. Having a clear plan in place can reduce anxiety and empower you to take control of your financial future.

Planning for Your Financial Well-Being

Engaging a tax resolution firm doesn’t just address immediate concerns; it sets the foundation for long-term financial health. They can help you implement strategies to prevent future tax problems and improve your financial stability:

● Budgeting Advice: Professionals can assist in creating a budget that factors in your tax obligations, ensuring you set aside money for future payments and avoid falling behind again.

● Tax Planning Insights: While tax resolution professionals don’t provide direct tax advice, they can guide you in understanding potential tax implications of your financial decisions, helping you make informed choices moving forward.

Moving Forward

Navigating tax debt is a challenging journey, but you don’t have to face it alone. Tax resolution services are dedicated to providing tailored solutions that meet your unique circumstances, alleviating stress and advocating for you every step of the way.

By partnering with experts in the field, you can reclaim control over your financial situation and work towards a brighter, tax-compliant future. If you’re dealing with tax debt, don’t hesitate to reach out to our team of tax resolution professionals at IRS Tax Fighters . We’re here to help you find the right resolution options for your specific situation and work diligently to achieve the best possible outcome.

What You Need to Know About Tax Penalties and Interest

Mon, 04 Nov 2024 18:39:31 GMT

For example, if you owe $1,000 in taxes and are one month late, the penalty would be $50 (5% of $1,000). If you’re six months late, the maximum penalty could reach $250 (25% of $1,000).

2. Failure-to-Pay Penalty

If you file your tax return on time but don’t pay the amount that is due, a failure-to-pay penalty is incurred. This penalty is usually 0.5% of your unpaid taxes for each month or part of a month that the taxes are unpaid, up to a maximum of 25%.

For example, if you owe $1,000 in taxes and are one month late in payment, the penalty would be $5 (0.5% of $1,000). If you are six months late, the penalty could be $30 (6 x 0.5% of $1,000).

3. Accuracy-Related Penalty

The accuracy-related penalty applies if you under report your income or claim incorrect deductions. This penalty is 20% of the underpaid tax amount. Common causes of this penalty can include mathematical errors, incorrect deductions, and failure to report all of your income.

For instance, if you incorrectly report $10,000 less income than you actually earned throughout the year, and this results in $2,000 of underpaid taxes, you could owe a penalty of $400 (20% of $2,000).

4. Fraud Penalty

If the IRS determines that you’ve committed tax fraud, the penalty can be severe. This penalty is typically a whopping 75% of the underpaid tax amount. Tax fraud involves intentional acts to evade taxes, such as falsifying income or hiding assets, and it can have serious consequences.

5. Estimated Tax Penalty

If you’re self-employed or otherwise required to pay estimated taxes throughout the year, failing to make these payments can result in an estimated tax penalty. This penalty is calculated based on the amount you owe and the time it remains unpaid.

How Interest is Calculated

In addition to penalties, interest accrues on unpaid taxes, as well. The interest rate is determined quarterly and is based on whatever the federal short-term rate is plus 3%. The interest compounds daily, meaning that interest is charged on both the original amount owed and any accrued interest.

For example, if you owe $1,000 in taxes and the interest rate is 5%, the interest charges for one year would be approximately $50. And since interest compounds daily, the total amount owed could be higher the longer the taxes remain unpaid.

Addressing Penalties and Interest

1. File Your Returns On Time

Even if you can’t pay the full amount, it’s crucial to file your tax returns on time to avoid the failure-to-file penalty. If you need more time, there’s always an option to file for an extension. However, it’s important to know that the extension to file is not an extension to pay, so you’ll still accrue interest on any unpaid taxes.

2. Set Up a Payment Plan

If you can’t pay your taxes in full, setting up a payment plan with the IRS can help. This will allow you to pay off your debt in installments, which may be easier for you over time. This won’t eliminate the penalties and interest, but it can greatly reduce them and make your payments much more manageable.

3. Request Penalty Abatement

If you have a valid reason for missing your tax obligations, such as a serious illness or natural disaster, you might have the option to qualify for penalty abatement. This means that the IRS could reduce or eliminate the penalties you owe. It’s essential to provide documentation and a detailed explanation for your situation, so make sure to prepare as much information as you possibly can.

4. Seek Professional Help from A Tax Relief Professional

Even with the information provided in this article, trying to figure out the potential tax penalties and interest can be complex. Luckily, there are professionals like the ones at IRS Tax Fighters that are skilled at handling these situations and can help make a significant difference.

Tax relief professionals can assist in negotiating with the IRS, setting up payment plans, and requesting penalty abatements. They can also help you understand all of your options and help you make informed decisions about how to handle your tax debt.

5. Consider an Offer in Compromise

In some cases, if you can’t pay your full tax liability and your financial situation qualifies, you might be able to settle your debt for far less than the full amount owed through an offer in compromise. Be aware that this route requires an extensive evaluation of your finances and typically involves submitting a detailed application.

Moving Forward

Understanding the penalties and interest associated with unpaid taxes is essential for managing your tax obligations effectively. By filing on time, setting up payment plans, and seeking professional assistance, you can address your tax debt and reduce the financial burden of penalties and interest.

If you’re struggling with unpaid taxes and need help navigating the complexities of penalties and interest, IRS Tax Fighters is here to assist you. Contact us today at 281-962-0070 to explore your options and find a solution that works for you.

Understanding Your IRS Negotiation Options

Tue, 29 Oct 2024 15:12:38 GMT

2. Offer in Compromise (OIC)

An Offer in Compromise is an agreement between you and the IRS that allows you to settle your tax debt for less than the full amount owed. It’s designed for people who can’t pay their debt in full and can demonstrate they’ve been through financial hardship.

● How It Works: You submit a proposal to the IRS outlining how much you can afford to pay and why you believe this amount should be accepted as a full settlement. The IRS will then review your documentation and financial situation to determine if your offer is reasonable.

● Pros: If accepted, you’ll pay less than what you owe, and the debt will be resolved. This option can significantly reduce your tax liability.

● Cons: The process can be lengthy and complicated, and not all offers are accepted. Additionally, you’ll need to meet strict eligibility requirements, and there’s a non-refundable application fee.

3. Currently Not Collectible (CNC) Status

If you’re experiencing severe financial hardship and can’t make any payments toward your tax debt, you might qualify for Currently Not Collectible status. This status temporarily halts IRS collection actions.

● How It Works: You provide documentation to the IRS showing that you’re unable to pay your debt due to financial difficulties. The IRS will review your situation and may place your account in CNC status, which means they won’t pursue collection actions against you while you’re unable to pay.

● Pros: This option provides temporary relief from IRS collection actions, such as wage garnishments and bank levies.

● Cons: Interest and penalties will still continue to accrue, and the IRS may keep a close watch on your financial situation to determine if your status should be continued or changed.

4. Penalty Abatement

If you’ve been hit with penalties for late payments or non-filing, you might be able to request a penalty abatement. This means you can ask the IRS to reduce or remove your penalties based on reasonable cause.

● How It Works: You must demonstrate to the IRS that your failure to pay or file on time was due to circumstances beyond your control, such as a serious illness or natural disaster. If the IRS finds your reasons valid, they may reduce or eliminate the penalties.

● Pros: Reducing or removing penalties can lower your overall tax liability.

● Cons: You’ll still be responsible for paying the original tax debt and any accrued interest.

Tips for Successfully Negotiating with the IRS

1. Gather Your Financial Information: Before negotiating with the IRS, make sure you have a crystal clear understanding of your financial situation, including documentation to back up your income, expenses, and all of your assets. This will help you present a realistic proposal.

2. Be Honest and Accurate: Provide accurate information to the IRS to avoid complications. Misrepresenting yourself or the facts can lead to delays, rejections, or even additional penalties.

3. Consider Professional Help: Tax relief professionals like the ones at IRS Tax Fighters are a valuable resource and can assist you in negotiating with the IRS. They have experience in handling tax debt and can help walk you through every step of the complicated process.

4. Stay in Communication: If you’ve entered into an agreement with the IRS, keep up with your payment schedule and communicate if you encounter any issues. Maintaining a positive relationship with the IRS can only help prevent further complications.

5. Review Your Options Regularly: Your financial situation may change over time, so it’s important to keep up to date with your tax relief options and adjust your strategy as needed.

If you’re struggling with tax debt and need help negotiating with the IRS, reach out to IRS Tax Fighters . We will assess your situation, help you choose the best resolution option, and work on your behalf to achieve the best possible outcome.

Remember, addressing tax debt sooner rather than later can help you avoid additional penalties and interest and provide you with a clearer path to financial stability. If you’re ready to explore your options for settling tax debts with the IRS, contact our team today for a free, no-obligation consultation.

Received a Tax Bill from the IRS? Here’s What to Do Next

Wed, 09 Oct 2024 20:23:48 GMT

Stay calm and read the notice very carefully to understand why you owe the money and exactly how much is due.

Step 2: Verify the Details

Before you take any action, verify that the bill is accurate. The IRS can make mistakes, and so can taxpayers. Compare the IRS notice with your tax return and all of your supporting documents.

Be vigilant to look for discrepancies or potential errors. If you believe there’s a mistake, you’ll need to gather any and all evidence you possibly can to back up your claim.

Step 3: Understand Your Payment Options

The IRS provides several payment options to help taxpayers settle their bills:

● Pay in Full: If possible, paying the full amount by the due date will stop any further interest or penalties from accruing.

● Installment Agreement: If you can’t pay the full amount at once, you can apply for an installment agreement, which would allow you to make monthly payments.

● Offer in Compromise: In cases of significant financial hardship, you may qualify for an Offer in Compromise, which allows you to settle your tax debt for less than the full amount owed.

● Temporary Delay: If paying the bill would prevent you from covering basic living expenses, you can request a temporary delay of the collection process.

Step 4: Communicate with the IRS

If you have questions or need to discuss payment options, don’t hesitate to contact the IRS. The notice you received will include a contact number. Be prepared with your tax information and any relevant documents when you call.

Having clear communication with the IRS can help you better understand your situation and help find a resolution that works for you.

However, it’s not always easy to get in touch with the IRS, which is another reason why having experts like the ones at IRS Tax Fighters on your side is beneficial. We take care of the communication for you.

Step 5: Respond Promptly

Timely action is crucial. The IRS sets deadlines for payment and responses to notices. Missing these deadlines can result in additional penalties and interest, which is just adding to the tax bill owed.

Make sure you’re aware of the dates and respond when indicated in the notice. Whether you’re paying the bill, disputing the amount, or requesting a payment plan, get in touch with the IRS on time.

Step 6: Keep Detailed Records

Throughout the process, you must keep meticulous records of all communications with the IRS, payments made, and any documents sent or received. These records will be your backup in the event there are any disputes or if you need to reference them in the future.

Receiving a tax bill from the IRS doesn’t have to be a nightmare. By staying calm, verifying the details, understanding your payment options, and communicating effectively with the IRS, you can navigate this challenge more easily.

If you’ve received a tax bill from the IRS and owe $10,000 or more, contact the tax resolution experts at IRS Tax Fighters at 281-962-0070.

We’re here to help you understand your options and make the process as easy as possible. Reach out today for a free, no-obligation consultation and take the first step towards resolving your tax debt with confidence.

Steps to Take for Individuals with Unfiled Tax Returns

Mon, 09 Sep 2024 04:25:52 GMT

1. Failure-to-File Penalty: This penalty accrues at a rate of 5% of the unpaid taxes per month, up to a maximum of 25% of the unpaid tax amount. It will apply to the net amount that is due after accounting for any payments and credits.

2. Failure-to-Pay Penalty: If taxes are owed but not paid by the filing deadline, a failure-to-pay penalty gets applied. This penalty accrues at 0.5% of the unpaid tax amount per month, also capped at 25%.

3. Interest Charges: In addition to penalties, interest accrues on the unpaid tax balance. The interest rate is determined quarterly and compounded daily, reflecting the cost of borrowing as set by the IRS.

4. Legal Action: Continuously not complying with filing requirements may result in legal action, including IRS collection efforts, levies on wages and bank accounts. In addition, you could also be facing a $10,000 fine, and a year in prison, for every unfiled income tax return, as it’s considered a misdemeanor in the U.S. for not filing a legally due tax return.

Steps to Take for Filing Overdue Tax Returns

While this information may seem alarming or overwhelming, don’t allow it to paralyze you from moving forward. It is crucial to take action.

You want to take care of your unfiled tax returns as soon as possible because the amount you owe will just continue to grow.

Start taking action with these steps:

Step 1: Gather Necessary Information

● Income Documents: Collect all W-2s, 1099s, and any other income statements for each tax year.

● Expense Records: Gather any and all receipts and documentation for deductions, credits, and expenses claimed.

● Previous Tax Returns: Obtain copies of previously filed tax returns, if available.

Step 2: Prepare and Submit Delinquent Tax Returns

● Download Forms: Access the necessary IRS forms for each tax year requiring filing.

● Complete Forms: Fill out the appropriate tax forms accurately, reflecting income, deductions, and credits for each year.

● Submit Returns: Mail completed tax returns to the IRS for each applicable tax year. Consider sending them via certified mail to track delivery.

Step 3: Address Tax Payment Options

● Payment Plans: If taxes are owed but cannot be paid in full, consider applying for a payment plan (installment agreement) with the IRS.

● Offers in Compromise: In cases of significant financial hardship, explore the option of settling tax debts for less than the full amount owed through an Offer in Compromise.

● Penalty Abatement: Request abatement of penalties if reasonable cause can be demonstrated for the failure to file or pay taxes.

How Tax Relief Professionals Can Help

Don’t think that this has to be done all on one’s own! Tax relief professionals like the ones at IRS Tax Fighters are a tremendous resource and may even help reduce the total amount owed.

Their expertise goes a long way. Here are just a few of the things that tax relief professionals can assist with:

● Compliance Guidance: Ensure accurate completion and timely submission of delinquent tax returns.

● Negotiation Skills: Negotiate with the IRS on behalf of the taxpayer to secure favorable payment terms or settlement agreements.

● Penalty Relief: Advocate for penalty abatement based on reasonable cause or first-time abatement criteria.

● Financial Analysis: Conduct a financial analysis to determine the most suitable tax resolution strategy, such as installment agreements or Offers in Compromise.

Addressing unfiled tax returns is vital for anyone seeking to regain compliance with IRS requirements.

Luckily, resources are available to you. Tax relief professionals play a crucial role in facilitating compliance, minimizing penalties, and securing favorable tax resolutions.

Contact the tax relief professionals at IRS Tax Fighters today at 281-962-0070 to discuss your options.

How To Know If You Qualify for Tax Relief

Thu, 15 Aug 2024 19:16:07 GMT

Knowing the total amount of your debt will be an important step in the process and will help in deciding your best relief option.

2. Examine Your Financial Situation

To even qualify for tax relief, you are required to demonstrate that you’re having financial difficulties. You will need to look at your current finances - income, expenses, and current assets.

Many people find themselves struggling to make ends meet, so if you can not cover both your living expenses and tax debt, you may be eligible for relief.

Work on gathering important documents like pay stubs, bank statements, and bills to clearly show your financial situation, especially if you are struggling.

3. Ensure Your Tax Filings Are Up-to-Date

Most tax relief options require that you have filed all your past and current tax returns, which means you need to be current with all your tax filings.

If you’ve missed any returns, get them filed as soon as possible, and make sure you’re keeping up with any new tax bills to avoid making your situation worse.

4. Explain Your Reason for Penalties

If you’re seeking penalty relief, you need to explain why you didn’t pay your taxes on time.

Some common valid reasons might include illness, natural disasters, or other significant hard times that you can prove. Have all of your evidence ready along with detailed explanations for your specific situation. It may help to strengthen your case.

5. Review Your Tax History

Your history with the IRS can influence your eligibility for tax relief. If you’ve had ongoing issues or shown deliberate avoidance, it might affect your options.

A tax relief professional like the ones at IRS Tax Fighters will help review your history and determine how it impacts your chances of qualifying for relief.

6. Understand Different Relief Options

As mentioned earlier, when faced with a large amount of tax debt, there are various relief options potentially available, each with specific rules:

● Payment Plans: These are ideal if you can’t pay everything at once but can manage monthly payments.

● Offers in Compromise: This option is better if you can’t pay what you owe and face severe financial hardship.

● Penalty Relief: Available if you have a reasonable cause for not paying on time.

Understanding these options and their rules may help you choose the right path for your situation.

Determining if you qualify for tax relief can be a complicated process, but with the right information and support, you can navigate this process more easily and find the help you need.

If you’re feeling overwhelmed by the options available to you or are facing financial difficulties, don’t hesitate to reach out for assistance.

The team at IRS Tax Fighters is here to help you understand your options and find the best solution for your needs. Contact us today to get started.

5 Ways Tax Relief May Be A Better Option Than Bankruptcy

Thu, 08 Aug 2024 05:32:28 GMT

They will take the time to assess your tax liabilities, handle all of the negotiations with the IRS on your behalf, and develop comprehensive plans to help you reduce or settle your tax debts in the most effective manner.

2. Avoiding Permanent Financial Consequences

Bankruptcy can have long-term financial repercussions, including damaging your credit score and limiting future financial opportunities. It remains on your credit report for several years, and can impact your ability to secure loans, mortgages, or even certain job opportunities.

In contrast, working with a tax relief professional simply aims to resolve your tax debts without the severe and lasting consequences of bankruptcy. They are there to help protect your financial standing and work towards maintaining your financial health in the long term.

3. Preservation of Assets

Filing for bankruptcy often involves liquidating assets or following a court-mandated repayment plan. This process can result in the loss of valuable assets such as homes, vehicles, or personal possessions.

Tax relief professionals prioritize protecting your assets while negotiating with the IRS to settle tax debts through manageable repayment plans or other arrangements. They are advocates for you and the solutions that allow you to retain ownership of your essential assets, and in turn preserving your financial stability and peace of mind.

4. Expert Negotiation Skills

Navigating IRS negotiations requires in-depth knowledge of tax laws and procedural intricacies. Tax relief professionals possess extensive experience in dealing with the IRS, and they understand all the nuances of tax debt resolution and negotiation techniques.

They will leverage their expertise to achieve favorable outcomes for you and minimize the penalties or interest charges associated with any unpaid taxes.

5. Comprehensive Financial Guidance

Beyond resolving tax debts, tax relief professionals offer more holistic guidance. They assess your overall financial situation, providing insights into tax planning strategies, budgeting, and future financial management.

It’s a proactive approach that helps you avoid future tax problems and establish more sound financial practices that will help you maintain compliance with tax laws.

From personalized tax solutions and asset protection to expert negotiation skills and comprehensive financial guidance, tax relief professionals will work diligently to help resolve your tax issues effectively.

They will prioritize your financial well-being and aim to achieve a sustainable debt relief plan all while safeguarding your financial future.

If you owe $10,000 or more in back taxes and are facing a decision of whether to file for bankruptcy or pay your tax debt, contact the professionals at IRS Tax Fighters today at 281-962-0070 for a free, no-obligation consultation. We are happy to answer any questions that will help you make the right decision for you.

Tax Relief Options for Individuals Facing Economic Hardship

Mon, 22 Jul 2024 23:54:49 GMT

2. Hardship Extensions

Hardship extensions provide additional time to pay taxes without penalties. This option is beneficial for individuals facing temporary financial difficulties that prevent them from meeting their tax deadlines.

To qualify for a hardship extension, you must demonstrate unexpected circumstances or significant financial hardship.

These hardship extensions offer breathing room for taxpayers to stabilize their finances and avoid immediate penalties for late payment.

3. Offers in Compromise (OIC)

An Offer in Compromise is a settlement agreement between the taxpayer and the IRS that allows the taxpayer to settle their tax debt for less than the full amount owed. This is a suitable option for individuals experiencing severe financial hardship or those with little ability to pay their tax debt in full.

Taxpayers must show that they are unable to pay the full tax liability through financial disclosures, and then the IRS will do a thorough review to determine if the taxpayer can pay and what the appropriate settlement amount may be.

Offers in Compromise provide a path to resolve tax liabilities while potentially substantially reducing the overall debt burden, which offers significant relief to people that are struggling financially.

Applying for Tax Relief: Steps to Take

Applying for tax relief options requires careful preparation and adherence to IRS guidelines. It’s best to work with a tax relief professional like the ones at IRS Tax Fighters so that they can help guide and support you through this process.

Here’s what the process typically looks like:

Step 1: Assess Financial Situation

Evaluate income, expenses, assets, and liabilities to determine the extent of financial hardship.

Gather supporting documentation, such as bank statements, pay stubs, and tax records, to substantiate financial status.

Step 2: Choose the Appropriate Relief Option

Consider the specifics of each relief option (payment plans, hardship extensions, Offers in Compromise) and determine which aligns best with your financial circumstances.

Consult with a tax relief professional for guidance on eligibility, application requirements, and expected outcomes.

Step 3: Prepare and Submit Application

Complete necessary forms accurately, providing comprehensive financial information as required.

Submit the application to the IRS with all supporting documentation, ensuring compliance with submission deadlines and guidelines.

Step 4: Monitor Application Progress

Stay informed about the status of your application through IRS communications or updates from your tax relief professional.

Respond promptly to any requests for additional information or documentation from the IRS.

Benefits of Seeking Professional Assistance

The steps above may seem simple and easy, but they are far from it. The entire process can be overwhelming if trying to handle it on your own.

Seeking assistance from a tax relief professional offers several advantages:

● Expertise: Tax relief professionals possess specialized knowledge of IRS regulations and procedures, optimizing chances for successful relief.

● Negotiation Skills: Professionals can negotiate on behalf of taxpayers to secure favorable payment terms or settlement agreements.

● Peace of Mind: Professional representation alleviates stress and uncertainty and will ensure compliance and maximize the available relief options.

By proactively exploring the options in this article and seeking professional guidance when needed, individuals can have peace of mind knowing their financial obligations are being managed responsibly even during economic hardships.

Contact the tax relief professionals at IRS Tax Fighters today at 281-962-0070 to discuss your options.

How the IRS Operates and How Tax Relief Can Help

Mon, 15 Jul 2024 20:51:44 GMT

Challenges Faced by Taxpayers

Navigating the IRS's enforcement actions and resolving tax debts can be daunting tasks for taxpayers. Many individuals and businesses may find themselves overwhelmed by all of the different tax laws and nuances, plus dealing directly with the IRS can be a nightmare.

Taxpayers facing financial difficulties or unforeseen circumstances may struggle to meet their tax obligations, which leads to mounting tax debts and potential legal consequences. The stress and anxiety associated with IRS enforcement actions can also take a toll on taxpayers' well-being and financial stability.

It’s vital to know your options when you have tax debt. Luckily, tax relief professionals like the ones at IRS Tax Fighters can help you navigate the overwhelming processes.

The Role of Tax Relief Professionals

Seeking assistance from tax relief professionals can provide much-needed support and guidance. Tax relief professionals are well-versed in tax laws and regulations, and they specialize in helping taxpayers resolve their tax issues. They can assess a taxpayer's financial situation, negotiate with the IRS on their behalf, and develop customized strategies to address their tax debts.

How Tax Relief Can Help

Tax relief professionals offer a range of services designed to alleviate the burden of tax debts and provide relief to taxpayers. These services may include negotiating installment agreements, settling tax debts for less than the full amount owed through offers in compromise, and representing taxpayers in IRS audits and appeals.

Additionally, tax relief professionals can provide expert advice on tax compliance, tax planning, and strategies to prevent future tax issues so you can have peace of mind knowing you are prepared.

For taxpayers facing tax issues, understanding how the IRS operates and seeking assistance from tax relief professionals is essential to navigating the complexities of tax collection and finding viable solutions to resolve tax debts.

If you owe $10,000 or more in back taxes, contact our office today at 281-962-0070 for a free, no-obligation consultation so we can go over your options. By leveraging our expertise, you can regain control of your situation and financial future. Contact us today.

7 Reasons Taxpayers Get An IRS Audit

Mon, 17 Jun 2024 22:45:28 GMT

3. High Deductions and Credits

Claiming excessive deductions or tax credits compared to your income level or industry norms can invite IRS scrutiny. While deductions and credits are valuable tools to reduce your tax liability, they must be justified and supported by appropriate documentation.

For instance, inflating charitable contributions or business expenses can lead to audits. Taxpayers should exercise caution, ensuring their claims align with tax regulations and that they maintain comprehensive records.

4. Failure to Report Income

Failure to report income, whether intentional or accidental, is a significant audit trigger. This includes income from freelance work, rental properties, interest, dividends, or offshore accounts. Accurate and comprehensive income reporting is crucial to prevent tax audits and legal complications.

5. Self-Employment and Business Activities

Self-employed individuals and small business owners face higher audit risks due to the complexity of their tax returns. The IRS closely scrutinizes business deductions, income sources, and compliance with tax laws.

Common audit triggers in this category include claiming excessive business expenses, misclassifying workers as independent contractors, or underreporting self-employment income.

Taxpayers in these categories should maintain accurate records and seek professional guidance to ensure compliance.

6. Inconsistent Filing History

Frequent amendments or inconsistencies in your filing history may prompt IRS scrutiny. While it's perfectly acceptable to amend a tax return to correct genuine errors or provide additional information, excessive amendments or inconsistencies can raise suspicion.

Maintaining consistent and accurate filing practices helps reduce the likelihood of audits based on your filing history.

7. High-Income Individuals

High-income individuals often face increased audit risks due to the potential for larger tax liabilities. The IRS verifies that high earners accurately report their income, deductions, and credits. While high-income individuals have legitimate opportunities for deductions and credits, their returns undergo more thorough examination.

Already Audited? Do This Next

What if you’re already in an audit? The first thing you need to do is call a firm like ours that specializes in complicated tax problems like this.

Should you ever face an IRS audit, remember that IRS Tax Fighters is available to provide expert assistance, ensuring that you navigate the audit process with ease and confidence.

If you're currently dealing with IRS problems and owe $10,000 or more in back taxes or are being audited, reach out to our tax resolution firm , and we'll schedule a free and confidential consultation to explain your options thoroughly and help you permanently resolve your tax problem.

Avoiding Tax Scams: Tips for Protecting Yourself from Fraudulent Tax Relief Services

Wed, 29 May 2024 17:06:22 GMT

Beware of Unrealistic Promises

Be cautious of tax relief companies that make unrealistic promises or guarantees, such as promising to settle your tax debt for "pennies on the dollar" or guaranteeing specific outcomes.

Resolving tax issues with the IRS is a complex process, and there are no guarantees of success. Legitimate tax relief professionals will provide realistic expectations and work diligently with you to achieve the best possible outcome for your situation.

Avoid Upfront Fees

Any tax relief company that requires upfront fees to be paid in full or demands payment before properly diagnosing a case is a red flag. Reputable tax relief professionals typically offer free consultations to assess your case and will provide recommendations and options to you.

Once they determine if working together is a good fit, they will outline their fee structure clearly and transparently with an Engagement Agreement Letter.

Verify Contact Information

Before providing any personal or financial information to a tax relief service, verify their contact information, including their physical address, phone number, and email address.

Fraudulent companies are skilled at using fake or misleading contact information to avoid detection. Legitimate tax relief professionals will have a verifiable presence and be responsive to inquiries. Your personal information should always be guarded, so this step is crucial.

Check for Complaints or Scam Reports

Search online for any complaints or scam reports associated with the tax relief service you're considering. The Better Business Bureau (BBB) and Federal Trade Commission (FTC) maintain a database of consumer complaints and investigations into fraudulent activities.

Avoid the companies with a history of complaints or suspicious behavior. There are plenty of credible options available to you without having to resort to a company with a bad reputation.

Trust Your Instincts

If something seems too good to be true or if you feel uncomfortable with the information provided by a tax relief service, trust your instincts and proceed with caution.

Your intuition can often alert you to potential scams or deceptive practices. Take the time to thoroughly evaluate your options and seek advice from trusted sources before making any decisions.

By following these tips and exercising caution when seeking a reputable and trustworthy tax relief service, you can protect yourself from falling victim to fraudulent schemes and scams. If you do encounter any suspicious or fraudulent activity, report it immediately to the appropriate authorities, such as the BBB or FTC, to prevent others from being victimized.

If you're in need of legitimate tax relief assistance, consider reaching out to our team at IRS Tax Fighters . We are dedicated to helping taxpayers resolve their tax issues ethically and effectively, and we're here to guide you through the process with integrity and professionalism.

Contact us today at 281-962-0070 for a no-obligation consultation to review your options and we can determine what your next steps should be.

Insights Into the Origins of Tax Debt

Thu, 23 May 2024 22:11:35 GMT

Trouble with the IRS

The consequences of unresolved tax debt can be severe and far-reaching, and as tax debt grows, individuals may find themselves in hot water with the Internal Revenue Service (IRS). Taxpayers may receive notices and demands for payment from the IRS, signaling the urgency of addressing their tax liabilities.

The IRS has the authority to pursue aggressive collection actions to recover unpaid taxes. This can possibly mean issuing tax liens, levying bank accounts, garnishing wages, and even seizing assets.

Tax liens can negatively impact credit scores, hinder an individuals' ability to get loans or credit, and prevent the sale of real estate and other assets. Wage garnishments can leave individuals struggling to make ends meet, while asset seizures can result in the loss of homes or other property.

Moreover, the ongoing stress and anxiety due to unpaid taxes can take a toll on individuals' mental and emotional well-being, which can affect their overall quality of life.

Seek Assistance from a Tax Relief Professional

When faced with overwhelming tax debt and pressure from the IRS, it’s important to know your options. One of the best ways to get help is to seek assistance from a tax relief professional.

A tax relief professional can assess your financial situation, evaluate your tax liabilities, and develop a personalized plan to help resolve your tax debt. They are also well versed in negotiating with the IRS and can likely settle debts for less than the full amount owed.

At IRS Tax Fighters , we pride ourselves on being an advocate for our clients, and we work tirelessly to achieve a favorable resolution and alleviate the burden of tax debt. With our guidance and support, our clients can take control of their finances again and finally achieve financial freedom.

If you find yourself bogged down by looming tax debt, don't hesitate to contact our office today at 281-962-0070 for a free, no-obligation consultation to review your options. By taking proactive steps to address your tax debt, you can pave the way toward a brighter financial future free from the burden of unpaid taxes. Contact us today .

Understanding the Causes and Effects of Tax Debt

Wed, 15 May 2024 19:18:51 GMT

Unraveling the Consequences of Tax Debt:

As already mentioned, one of the immediate consequences of tax debt is the accumulation of penalties and interest charges imposed by the IRS or state tax authorities. The penalties and interest significantly increase the total amount owed, making it more challenging for taxpayers to resolve their tax liabilities.

Failure to address tax debt can trigger aggressive collection actions by the IRS, including tax liens, levies, and wage garnishments. Tax liens can affect assets and property, while levies allow the IRS to seize bank accounts, wages, or other assets to satisfy unpaid taxes. Wage garnishments can lead to large portions of paychecks being withheld to repay the tax debt.

Having unpaid tax debt can have long-lasting consequences on an individual's or business's credit score and financial standing. Tax liens among other collection actions may be reported to the credit bureaus, negatively impacting the taxpayer’s credit score and making it more challenging to secure loans, mortgages, or lines of credit in the future.

In severe cases of non-compliance or tax evasion, taxpayers may face legal consequences, including civil or criminal penalties, fines, or even imprisonment. While criminal prosecution for tax crimes is relatively rare, it can have devastating repercussions on individuals or businesses that are found guilty of tax evasion or fraud.

The stress and anxiety associated with unresolved tax debt can take a significant toll on taxpayers' emotional and psychological well-being. Constant worry about IRS collection actions, financial instability, and uncertainty about the future can lead to increased levels of stress, depression, and overall mental health challenges.

Navigating the complex web of tax debt requires a thorough understanding of its underlying causes and potential consequences. It’s important to take proactive steps to address tax liabilities and mitigate the impact that they can have on your financial well-being.

If you find yourself weighed down by back taxes, don't hesitate to contact our office today at 281-962-0070 for a free, no-obligation consultation to review your options and secure your financial future.

Navigating Tax Relief: A Guide to IRS’s Offer in Compromise

Fri, 03 May 2024 23:37:43 GMT

Understanding Offer in Compromise

The Offer in Compromise program is designed to provide relief for taxpayers burdened by excessive tax debt by offering them a chance to settle their liabilities for a fraction of the amount they owe.

It’s a program that acknowledges how in certain circumstances, taxpayers may be unable to pay their full tax obligations due to financial hardship. By allowing taxpayers to compromise the amount that they pay to the IRS, the Offer in Compromise program aims to provide an easier pathway to resolving tax debt and getting back on track.

Eligibility Criteria

Not all taxpayers qualify for the Offer in Compromise program. To be deemed eligible, you must check the boxes for specific criteria that the IRS has established.

For example, taxpayers must show that they are unable to pay their full tax debt within a reasonable timeframe.

Additionally, taxpayers must be in compliance with all tax filing and payment requirements, including the timely filing of tax returns and payment of estimated taxes.

Submission Process

We are dealing with the IRS, so it comes to no surprise that the process of applying for an Offer in Compromise can be complex and daunting, especially for those that are unfamiliar with the intricacies of tax law.

That’s why tax relief professionals can play a crucial role in guiding taxpayers through this process and helping them prepare and submit a comprehensive offer to the IRS.

From gathering financial documentation to calculating an appropriate offer amount based on the taxpayer's ability to pay, tax relief professionals can ensure that every aspect of the offer is carefully considered and presented to the IRS for review.

Evaluation and Review

Once the offer is submitted, the IRS conducts a thorough review of the taxpayer's financial situation to determine its acceptance or rejection. This review process usually includes an assessment of the taxpayer's income, expenses, assets, and liabilities.

A tax relief professional will help guide you on all of the necessary supporting documentation and arguments to demonstrate why the offer should be accepted. They are there to help advocate on behalf of their clients during this review process and help to eliminate much of the stress that comes with the process.

Tax relief professionals help increase the likelihood of a favorable outcome for their clients because of their extensive experience handling these matters.

Acceptance and Settlement

If the IRS accepts the offer, taxpayers are required to fulfill the terms of the agreement. This may involve making a lump-sum payment or installment payments over time.

Tax relief professionals work closely with their clients to ensure compliance with the terms of the settlement, and they provide guidance and support every step of the way.

By handling the communication between the taxpayer and the IRS and facilitating the process, tax relief professionals help streamline the settlement process. This can ease the burden of the taxpayer and tremendously reduce the amount of stress they would have been put through had they handled it all on their own.

Benefits of Offer in Compromise

The Offer in Compromise program offers numerous benefits for taxpayers struggling with overwhelming tax debt.

By settling their tax liabilities for less than the full amount owed, taxpayers can achieve significant savings and financial relief.

Offer in Compromise also provides a pathway to a fresh start, allowing taxpayers to regain control of their finances and finally move forward with confidence.

Additionally, by resolving their tax issues through the OIC program, taxpayers can avoid the stress and uncertainty of IRS collection actions, such as levies and liens, providing immediate relief from the burden of unpaid taxes.

Tax relief professionals play a crucial role in guiding taxpayers through the complexities of the OIC program, advocating on their behalf and ensuring the best possible outcome.

If you're burdened by unpaid taxes and struggling to make ends meet, contact IRS Tax Fighters today to schedule a free and confidential consultation. We will help you navigate the process and secure a favorable outcome with the IRS, paving the way for a brighter future for you.

Everything You Need To Know About Back Tax Relief

Mon, 25 Mar 2024 23:14:23 GMT

● Financial Relief: Back tax relief programs aim to alleviate the financial strain caused by unpaid taxes. By negotiating with the IRS or state tax authorities, tax relief professionals can help reduce the overall tax debt or develop manageable payment plans.

● Preventing Penalties: Unpaid taxes often lead to the accrual of penalties and interest, significantly increasing the total amount owed. Back tax relief strategies can include penalty abatements, reducing the financial burden on taxpayers.

● Preventing Severe Enforcement Actions: The IRS has the unbridled authority to take actions such as wage garnishments, bank levies, and property seizures to collect unpaid taxes. Back tax relief professionals work to prevent or release these enforcement actions, safeguarding your assets and income.

● Resolution of Complex Issues: Tax disputes and issues related to back taxes can be intricate. Tax relief professionals possess the expertise to navigate these complexities, ensuring that you receive fair treatment and an optimal resolution.

Key Components of Back Tax Relief

Now, let's delve into some of the key components and strategies involved in back tax relief:

● Offer in Compromise (OIC): OIC is a program that allows eligible taxpayers to settle their tax debt for less than the full amount owed. Tax relief professionals assess your financial situation and negotiate with the IRS to reach a mutually acceptable offer. However, there are strict eligibility requirements.

● Installment Agreements: An installment agreement enables taxpayers to pay their back taxes over time through manageable monthly payments. Tax relief professionals can negotiate favorable terms and ensure compliance with the agreement. In some cases, you can request a partial pay installment agreement which can reduce what you owe.

● Penalty Abatement: IRS penalties can significantly inflate your tax debt, and tax relief professionals can advocate for penalty abatement, reducing or eliminating these additional charges.

● Currently Not Collectible (CNC) Status: If you are experiencing financial hardship, tax relief professionals can help you obtain CNC status, temporarily suspending tax collection efforts until your financial situation improves.

● Audit Representation: If your back tax issues stem from an IRS audit, tax relief professionals can represent your interests, gather required documentation, and negotiate with auditors to reach a resolution.

The Role of a Tax Relief Professional

Tax relief professionals are your allies in the journey to resolve back tax issues by offering their expertise, negotiation skills, and in-depth knowledge surrounding the regulations and procedures that are necessary when dealing with the IRS.

More than anything, tax relief professionals offer you peace of mind and help alleviate the stress and anxiety associated with back taxes.

If you find yourself weighed down by back taxes, don't hesitate to contact our office today at 281-962-0070 for a free, no-obligation consultation to review your options and secure your financial future.

Lien vs. Levy: Deciphering Tax Terminology

Tue, 12 Mar 2024 00:16:05 GMT

Impact on Credit Score:

A tax lien can have a severe impact on the taxpayer's credit score. It can make it challenging to secure loans or credit and can result in higher interest rates on existing credit.

Asset Encumbrance:

While a tax lien does not immediately result in the seizure of assets, it encumbers the taxpayer's property and assets.

This means that if the taxpayer tries to sell property or assets with a tax lien, the IRS or state will typically have a claim on the proceeds.

Priority Status:

Tax liens often take precedence over other creditors, including 2nd mortgage holders and other creditors. This means that the government's claim is superior, and they have a first right to the taxpayer's assets.

Lien Release:

A lien can be released once the tax debt is fully paid or when the taxpayer arranges an alternative payment plan with the taxing authority. It's essential to resolve a lien promptly to regain control over your assets and credit.

What Is a Tax Levy?

A tax levy, on the other hand, involves the actual seizure of a taxpayer's property or assets to satisfy unpaid tax debt. It represents a more aggressive collection action by the IRS or state taxing authority. Let’s review the key aspects of a tax levy.

Issuance of Levy:

A tax levy is a legal action taken by the IRS or state to collect unpaid taxes. It can result in the seizure of bank accounts, wages, accounts receivable, vehicles, real estate, and other valuable assets.

Bank Levy:

A common form of tax levy is a bank levy, where the IRS or state taxing authority freezes and eventually withdraws funds from the taxpayer's bank account to cover the unpaid tax debt.

Wage Garnishment:

A wage levy, or garnishment, involves continuously taking a portion of the taxpayer's wages or salary (up to 90% of their net pay in certain situations) directly from their employer to satisfy the tax debt. This can have a significant impact on the taxpayer's income.

Accounts Receivable:

An accounts receivable levy involves taking the money a customer of a business owes to that business so if you are a business owner and your business owes tax debt, the IRS can take the money that is owed to your business by issuing levies to your business’ customers.

Asset Seizure:

In extreme cases, the IRS or state can seize and auction off the taxpayer's assets, including real estate, vehicles, or personal property, to recover the unpaid taxes.

Levy Release:

To release a levy, the taxpayer must address the tax debt by either paying it in full, arranging a payment plan, filing delinquent tax returns, or demonstrating that the levy is causing severe financial hardship. Once the issue is resolved, the taxing authority will release the levy.

If you find yourself dealing with tax liens, levies, or other tax-related challenges, contact IRS Tax Fighters today to help you resolve your tax issues and achieve financial stability.

Avoiding Tax Liens and Levies

The best way to avoid having to deal with tax liens and levies is to avoid them in the first place. Here are some proactive steps you can take:

1. Timely and Accurate Filings:

File your tax returns on time and ensure they are accurate. Filing extensions or incorrect information can trigger audits and tax debt.

2. Review Your Tax Returns:

Review your tax returns before you file them, checking for errors, discrepancies, or potential red flags that might invite IRS scrutiny.

3. Pay Taxes Promptly:

Pay your taxes on time and in full. If you can't pay, consider options like installment agreements or an offer in compromise to settle your debt.

4. Seek Professional Guidance:

Tax relief professionals like IRS Tax Fighters play a vital role in assisting individuals and businesses facing tax issues, from negotiating with taxing authorities to developing strategies for lien and levy resolution. If you have back tax debt today, contact us for a free consultation.

8 Common IRS Tactics You Need To Know

Thu, 08 Feb 2024 19:52:59 GMT

Tactic #4: Freezing Your Bank Accounts

The idea of the IRS freezing your bank accounts can be terrifying, as it implies immediate financial turmoil.

Reality: The IRS can levy your bank account to collect unpaid taxes, but they typically provide notice before taking such action. Additionally, you have rights to appeal and negotiate a release of the levy, allowing you to access your funds. The IRS allows you 21 days, from the date of the levy notice, to attempt to have the funds returned to your bank account.

Tactic #5: Never-Ending Interest and Penalties

Taxpayers often worry that interest and penalties on unpaid taxes will accumulate endlessly, leading to insurmountable debt.

Reality: While interest and penalties can significantly increase your tax debt over time, there are options for reducing or eliminating them. Tax professionals can help negotiate penalty abatements and explore payment plans to manage the debt effectively. With IRS interest rates at 8% charged on unpaid taxes today, your debt can literally double in a short period of time when you take into account the daily compounding of interest and penalties that are left unresolved.

Tactic #6: Losing Your Passport

The IRS has the authority to revoke or deny a passport if you owe a significant amount of unpaid taxes.

Reality: This is a relatively recent enforcement tool used by the IRS, primarily targeting individuals with tax debt over $50,000 who are actively avoiding their obligations. Most taxpayers will not face passport revocation if they engage in resolving their tax issues.

Tactic #7: Endless Audits

Some taxpayers believe that once audited, they'll be subjected to continuous audits, creating an ongoing burden. However, the IRS will want to audit the prior and subsequent periods all at the same time. For example, if the IRS is auditing your 2021 return, they will also be looking at 2020 and 2022 simultaneously.

Reality: IRS audits are typically conducted to address specific issues within a tax return. While being audited can be stressful, it does not automatically lead to perpetual audits. Addressing any identified concerns can bring the audit to a close.

Tactic #8: Imminent Seizure of Business Assets

Business owners often worry that the IRS will seize their business assets, leading to the collapse of their livelihood.

Reality: The IRS does have the authority to padlock your business, but this is typically a last resort. They prefer to work with businesses to establish payment plans or negotiate settlements that allow the business to continue operating.

However, owing payroll (941) taxes is a double whammy. Not only can the IRS go after your business, they can also go after you personally.

Understanding the reality behind common IRS tactics is essential for taxpayers facing tax issues. While the IRS has unbridled power to collect unpaid taxes, they prefer resolution over severe enforcement actions.

Seeking assistance from a tax relief professional can help you navigate the IRS maze of complexities, negotiate manageable solutions, prevent them from enforcing collection against you, and protect your rights and options.

Don't let fear of IRS tactics paralyze you—take proactive steps today to address your tax challenges and find a path toward resolution. Contact our office today at 281-962-0070 for a free, no-obligation consultation to review your options.

5 Reasons to Reach Out to a Tax Resolution Professional

Fri, 02 Feb 2024 19:35:00 GMT

3. Wage Garnishments or Bank Levies

If the IRS has initiated wage garnishments or bank levies to collect unpaid taxes, it's a clear sign that you need professional, and immediate assistance.

Tax resolution experts can negotiate with the IRS to release these levies and develop a plan to resolve your tax issues.

4. Threats of Property Seizure

The IRS has the authority to seize your property, including homes, vehicles, and other assets, to satisfy tax debts. If you have received threats of property seizure, it's imperative to act quickly and seek the expertise of a tax resolution professional to protect your assets and negotiate a favorable resolution.

5. Inability to Negotiate with the IRS

Negotiating with the IRS can be a daunting task, especially if you lack the experience and knowledge to do so effectively. Tax resolution professionals specialize in negotiating with the IRS on behalf of their clients, ensuring that your interests are represented and that you receive fair treatment.

When you encounter any of the above issues, it's a clear signal that it's time to reach out to a tax resolution professional. Firms like ours are equipped to assess your tax situation, develop tailored solutions, negotiate with tax authorities, and provide peace of mind during challenging times.

Don't hesitate to seek professional assistance when facing tax problems, as timely action can lead to more favorable outcomes and financial relief.

Contact our office today for a free, no-obligation consultation to review your options.

Common Frustrations When Dealing With The IRS When You Owe Back Taxes

Sat, 20 Jan 2024 21:48:16 GMT

2. Lack of Clarity and Inconsistent Information

IRS communications can be laden with complex jargon and technical terms that are challenging for the average taxpayer to decipher. Understanding notices, forms, and tax codes often requires expert knowledge.

Taxpayers also may receive conflicting information or advice from different IRS representatives. This inconsistency can lead to confusion and hinder progress in resolving tax issues, and often, it can make your problems worse.

3. Lengthy Response Times

When taxpayers correspond with the IRS through mail or fax, response times can be excruciatingly slow. Waiting weeks or months for a reply can delay the resolution process and amplify frustration.

4. Complex Documentation & Form Requirements

Submitting the required documentation to the IRS can be an intricate and demanding task. Missing or incorrect documents can lead to further delays and complications.

Not only is the documentation difficult, but IRS forms are notorious for their complexity. Filling out forms accurately can be challenging, and errors can lead to rejected submissions and additional hassles.

5. Intimidating IRS Notices & Negotiating

Receiving a notice from the IRS can be intimidating, especially when it includes legal language and threats of seizures, penalties or liens. Many taxpayers feel overwhelmed and unsure how to respond effectively.

Once they eventually get in touch with an IRS representative, the negotiation process can be a stressful endeavor. Taxpayers may feel unequipped to handle the negotiation process, leading to unfavorable outcomes.

Given the myriad challenges and frustrations associated with navigating the IRS independently, many individuals turn to tax resolution professionals for assistance.

Tax relief firms like ours have knowledge, experience, and resources to:

● Expedite the resolution process by communicating directly with the IRS on the taxpayer's behalf.

● Interpret complex tax codes, notices, and forms.

● Negotiate favorable terms for tax debt repayment.

● Provide clarity and guidance throughout the process.

● Alleviate the stress and anxiety associated with IRS interactions.

The frustrations of dealing with the IRS on your own are undeniable. From interminable wait times to intricate documentation requirements, taxpayers often find themselves overwhelmed and disheartened.

Seeking professional help from a reputable tax resolution company like IRS Tax Fighters can be the most effective way to navigate the complex world of tax debt resolution, offering individuals the support and expertise needed to achieve a favorable outcome while alleviating the burden of IRS-related stress.

Contact our office today at 281-962-0070 for a free, no-obligation consultation and let us deal with the IRS for you.

Understanding Tax Penalties: How They Accumulate and Ways to Minimize Them

Sat, 06 Jan 2024 06:37:16 GMT

Accuracy-Related Penalties are triggered when there are discrepancies in the income reported or errors in the tax returns filed. This category includes negligence, substantial understatement of tax, and overvaluation of property claims. These penalties emphasize the importance of accurate and honest reporting.

When a check paid to the IRS bounces, a Penalty for Bad Checks or Electronic Payments is levied based on the amount of the check.

Employers are required to withhold and remit employment taxes to the IRS. Late Payment of Employment Taxes can result in penalties that escalate over time. Employers are required to pay these taxes in the right amount, on time, and in the right way. Failure to do so can be costly, starting at 2% but going as high as 15% depending on the timeline.

Self-employed individuals or those with other non-wage income are required to make estimated tax payments throughout the year. A Penalty for Underpayment of Estimated Tax may be assessed if these payments are not made or are insufficient.

The Accumulation of Penalties

Tax penalties can have a compounding effect over time. For instance, the failure-to-file penalty starts accruing from the day after the tax filing deadline and grows with each month the return remains unfiled, until the penalty reaches its maximum limit. The same mechanics apply to other penalties like the failure-to-pay penalty, which underscores the importance of addressing tax issues promptly to prevent an accumulation of penalties.

Strategies to Minimize or Eliminate Tax Penalties

Filing on time is a simple yet effective strategy to avoid the failure-to-file penalty. Even if you can't pay your taxes, filing on time can save you from this penalty.

Utilizing payment plans offered by the IRS can help manage tax debts in a structured manner, thereby avoiding the failure-to-pay penalty. These installment agreements allow taxpayers to pay their tax debts in manageable monthly installments.

If full payment is not possible, paying as much as you can by the due date can reduce the total penalties and interest accrued. This proactive step can also demonstrate good faith, which may be beneficial in negotiations with the IRS.

Engaging a tax relief professional can provide valuable insights into your tax situation, helping to make informed decisions that minimize penalties. Their expertise can be instrumental in navigating the complex tax landscape.

The IRS might provide penalty abatement for reasonable cause or under the first-time penalty abatement policy. It’s worthwhile to explore this option, and a tax professional can guide you on the eligibility criteria and the process involved.

Tax penalties can add a significant burden, but with a proactive approach and a solid understanding of tax regulations, they can be minimized or avoided. Engaging a tax relief professional can provide personalized advice and assistance, ensuring you remain compliant while minimizing your tax burden.

Reach out to our firm today for a consultation.

Tax Relief 101: Exploring Different Forms of Tax Relief and Who Qualifies

Wed, 29 Nov 2023 23:53:25 GMT

Offer in Compromise (OIC):

An OIC is a provision that enables taxpayers to settle their tax debt for less than the full amount owed, provided they meet certain eligibility criteria. This form of relief is ideal for individuals facing financial hardship. Not everyone qualifies, but if you do, this can help you settle with the IRS for a fraction of what you originally owed. Reach out to our firm to see if you qualify.

Penalty Abatement:

Penalties for unpaid taxes are hefty and often sink the taxpayer in deeper debt. That’s why a penalty abatement can provide substantial relief by waiving certain penalties accrued on a tax debt. Individuals may qualify for penalty abatement if they have a reasonable cause for not complying with tax obligations, such as facing a serious illness or a natural disaster.

Innocent Spouse Relief:

Taxpayers who filed joint returns and were unaware of their spouse’s erroneous or fraudulent tax reporting may qualify for innocent spouse relief. This provision can shield individuals from being held responsible for the tax liabilities arising from their spouse's actions.

Currently Not Collectible (CNC) Status:

The CNC status temporarily halts IRS collection activities for individuals facing financial hardship. To qualify, taxpayers must prove that paying the tax debt would result in severe financial hardship.

Understanding your eligibility for these tax relief options can be the first step towards alleviating your tax burden.

It's advisable to consult with tax relief professionals who can provide personalized advice based on your unique financial situation. If you're facing a daunting tax bill or dealing with IRS issues, reaching out to a tax relief professional like us can provide clarity and help you navigate the complex tax landscape towards a resolution. If you owe over $10,000 to the IRS, or have unfiled tax returns give us a call at 281-962-0070 for a free, no-obligation consultation to see which of the above programs you qualify for.

Unexpected Tax Increases: Factors to Consider for Year-Round Tax Planning

Tue, 21 Nov 2023 05:36:49 GMT

Factor #2 - Working as a Freelancer:

While freelancing offers independence and flexibility, it can also introduce complex tax implications. Freelancers and self-employed individuals are subject to the self-employment tax, which includes both the employer and employee shares of Medicare and Social Security taxes. Failing to account for this tax burden and set aside funds accordingly can lead to unpleasant surprises come tax season.

Factor #3 - Failing to Take Your Required Minimum Distribution (RMD):

Retirement accounts, such as IRAs and workplace plans, require individuals to begin withdrawing minimum distributions once they turn 70. Failing to meet this requirement can result in substantial tax penalties. It is crucial to stay informed about RMD rules and ensure compliance to avoid unnecessary financial setbacks.

Factor #4 - Skipping Your IRA Contribution:

Opting to skip your annual IRA contribution can have unforeseen consequences for your tax bill. Before deciding to forgo contributing to your IRA, it is prudent to evaluate the potential impact on your overall tax liability. Running the numbers and seeking professional advice can help you make an informed decision.

Factor #5 - Paying Off Your Mortgage:

While paying off your mortgage is good and may provide a sense of financial freedom, it can affect your tax situation. Mortgage interest is typically tax-deductible if you itemize your deductions. Losing this deduction could potentially increase your tax liability. Planning for this potential increase in tax liability is important.

Seek Professional Assistance for Tax Debt Cases:

If you find yourself owing back taxes, it is crucial to seek professional assistance to navigate the complexities of tax debt resolution. Our firm specializes in helping individuals negotiate with the IRS and we can potentially settle tax debts for a fraction of the amount owed. Contact us today for a confidential consultation, and let our experienced tax resolution specialists guide you through the IRS maze, providing you with peace of mind.

Year-round tax planning is essential to minimize surprises and optimize your financial well-being. By being aware of factors that can unexpectedly raise your taxes, such as early retirement plan withdrawals, self-employment tax obligations, missed required minimum distributions, skipped IRA contributions, and the impact of mortgage payoff, you can take proactive steps to manage your tax liability effectively.

Remember, hiring a tax resolution specialist for IRS problems is crucial for protecting your hard-earned income and assets. Let us help you take back control of your financial lfe by reaching out to our firm today .

10 Pitfalls: How Individuals Often Find Themselves in IRS Trouble

Wed, 15 Nov 2023 18:31:12 GMT

3. Claiming Excessive Deductions:

While tax deductions can significantly reduce tax liability, overstepping by claiming excessive or unwarranted deductions can be problematic. This includes inflating charitable donations or exaggerating business expenses.

4. Ignoring IRS Notices:

The IRS often sends notices for minor discrepancies or requests for additional documentation. Ignoring these can escalate the issue, leading to more severe consequences.

5. Engaging in Tax Evasion Schemes:

Illegal schemes, such as hiding money in offshore accounts or engaging in identity theft and fraudulent returns, are serious offenses that can lead to criminal charges. It’s not a crime for taxpayers to use the tax code to legally find ways to pay less taxes. However, some people get a little too creative or they get the wrong advice. Consult with a tax professional before engaging in schemes to lower your taxes.

6. Misclassifying Workers:

Business owners might be tempted to classify workers as independent contractors rather than employees to save on taxes. However, if the IRS determines this is a misclassification, it can lead to back taxes and penalties.

7. Not Making Estimated Tax Payments:

Self-employed individuals and some other taxpayers often need to make quarterly estimated tax payments. Failure to make these payments or underestimating the amount can result in penalties and often a surprise tax bill.

8. Not Reporting Foreign Income:

U.S. citizens and resident aliens are typically required to report worldwide income, including from foreign trusts and bank accounts. Overlooking or intentionally omitting this can lead to substantial penalties.

9. Engaging in High-Transaction or Cash Businesses:

Those engaged in businesses that deal primarily in cash transactions (like restaurants, construction, or salons) are often under the IRS radar for underreporting income. Keep good records in case of an audit.

10. Ignoring State Tax Obligations:

While much focus is on federal taxes, individuals also have state tax obligations. Neglecting to file state returns or not paying state taxes can lead to trouble at the state level.

What happens if you land in tax trouble?

IRS problems, once initiated, can escalate quickly, leading to hefty fines, penalties, or even legal actions. Being aware of these common pitfalls and ensuring compliance can help individuals maintain a clear record and avoid unnecessary complications with tax authorities. When in doubt, it's always advisable to seek advice from tax professionals or experts in the field.

If you're facing IRS problems and owe $10,000 or more in back taxes or are being audited, reach out to our tax resolution firm , and we'll schedule a free and confidential consultation to explain your options thoroughly and help you permanently resolve your tax problem.

Business Owners: Owe Back Taxes? Actionable Steps for Facing IRS Debt

Wed, 08 Nov 2023 03:40:46 GMT

2. Open Lines of Communication:

Ignoring IRS notices can exacerbate your situation. Instead, get proper representation from a qualified tax relief firm and have them engage with the IRS on your behalf. Firms like ours have dealt with the IRS many times before. Timely responses showcase your commitment to resolve the issue and the right firm will guide you through every step of the process.

Owing 941 payroll taxes is double jeopardy. Not only can the IRS levy and lien your business income and assets, they can pierce the corporate veil, without a court order, and go against you personally.

3. Understand Penalties and Interest:

Unpaid taxes don't just stay static; they accumulate penalties and interest over time. With current IRS interest rates hovering at 8%, compounded daily, each day you procrastinate is costing you big time. Familiarize yourself with the accruing amounts to grasp the full scope of your liability. The more time you let pass, the higher the penalties and interest will be.

4. Consider Installment Agreements:

The IRS often allows businesses to pay their tax liabilities over a period of time in monthly installments. If you can demonstrate genuine inability to pay the lump sum, they might consider an installment agreement. This can help in managing cash flows and ensuring business operations aren't severely disrupted.

5. Offer in Compromise (OIC):

In specific circumstances, the IRS might accept a reduced amount to settle the entire debt. Known as an Offer in Compromise, this option is contingent on demonstrating you cannot pay the full tax liability over the remaining 10-year collection statute. The right tax resolution firm will help you explore this option if you’re qualified for the program.

6. Temporarily Delay the Collection:

If your business is in a dire financial situation, the IRS might temporarily delay their collection efforts. While this offers a short-term reprieve, it's essential to use this time wisely and strategize a long-term solution.

7. Seek Professional Assistance:

Engaging with a tax resolution firm can be invaluable. They can guide you through the intricacies of tax laws, help keep your business open, negotiate with the IRS on your behalf, and help formulate a plan tailored to your unique circumstances.

8. Preventative Measures:

While addressing current unpaid taxes is vital, implementing systems to avoid future discrepancies is equally crucial. Regularly review your finances, maintain clear records, and stay updated with tax regulations. Make quarterly estimated payments and be proactive throughout the year by creating a concrete plan with your qualified tax resolution professional.

Unpaid taxes are a looming storm cloud for any small business owner. While the IRS might seem lenient initially, their eventual intervention can be formidable. By acknowledging the debt, communicating promptly, understanding your options, and seeking professional guidance, you can navigate these challenges effectively. Remember, in the realm of taxes, proactive action is always better than reactive measures.

Gig Workers on the Radar: How On Demand Workers Can Reduce Their IRS Audit Risk

Fri, 27 Oct 2023 04:39:03 GMT

Track Earnings on the App or Platform

One of the biggest red flags for IRS auditors is unreported or misreported income. It is absolutely critical for all gig workers, freelancers and other self-employed individuals to track their earnings carefully and report them correctly.

Tracking those earnings does not have to be cumbersome, and many participants in the gig economy already make it easy. If you are working for an app-based service, you may be able to find your total earnings on the platform - no calculator or spreadsheet required.

If you’re not, it’s important to track all of your income on something like Quickbooks. That way, when the IRS asks you for more information, you have it ready.

Ask Small Volume Clients for 1099 Forms

A single gig worker can have dozens of individual clients, and that can make accurate accounting and tax reporting difficult. One of the best ways to close this gap is by asking every client to issue a 1099-NEC form showing how much was earned throughout the year.

Major clients may already issue these 1099-NEC forms, but smaller ones may not realize they have this kind of reporting responsibility. Asking them nicely and explaining the importance of accurate reporting could convince them that the form really is required.

Check with Payment Processors for Accurate Figures

Another easy way to keep track of your earnings is through the payment processor you rely on. Services like PayPal, Stripe and Payoneer allow clients to pay freelancers and gig workers quickly, but they also tally up the individual earnings and provide handy reports for those small business owners.

If you are unsure about what to report to the IRS, you can simply go into the payment processor app or website and tally it up. Some payment processors make it easy, with detailed reports, while others require a bit of sleuthing. Either way, you can probably get the information you need this way.

Keep Your Deductions to a Reasonable, Legally Allowed Level

As a gig worker you are essentially a small business owner, and that entitles you to a host of new tax deductions. From the car you drive to the electricity powering your home office, lots of things you use every day can be deducted to lower your final tax bill.

The problem arises when gig workers and freelancers get greedy, writing off personal items and services as business expenses and invoking the ire of the IRS in the process. If you want to stay off the tax collection radar, make sure the deductions you claim fall within reasonable limits. Outsized deductions are a huge red flag for auditors, and writing off too much could put you at the top of the list.

Make Your Estimated Payments on Time

If you only do a few gigs here and there, you may not have to worry about making estimated payments to the IRS. But as your business grows, chances are you will be required to make those estimated payments - or face additional penalties down the line.

For those who are required to make quarterly payments, writing those checks promptly is important, so mark your calendar and make sure you set aside enough money to pay the IRS. These quarterly payments are a way of life for the self-employed, and that includes a growing number of gig workers.

The gig economy is growing fast, and that is good news for those who long to be their own bosses. As more and more employees leave their jobs for lives of self-employment, the IRS is already taking notice, and that could be bad news for unwary and incautious taxpayers. The tips listed above can help you reduce your risk of trouble, so you can focus on building your business instead of worrying about the IRS.

Tax Scams You Should Be Aware of That Could Get You In Trouble With The IRS

Mon, 18 Sep 2023 18:43:31 GMT

#1. IRS Impersonators

When tax season begins, fake IRS agents come out of the woodwork. Those phony IRS impersonators may flood your email inbox with threatening messages and text your smartphone with incorrect information.

Those IRS impersonators may call you on your landline or smartphone, ratcheting up the threats and the danger. From threatening arrest if back taxes are not paid to using hard sell tactics to get you to pay up, those impersonators can take a big bite out of your wallet.

If you want to stay safe, know that the real IRS never initiates communication via email, text, or phone calls. In fact, the IRS does not send collection notices via email. If there is a problem with your taxes, the IRS will send a good old-fashioned letter, so watch your mailbox and ignore everything else.

#2. Phishing Scams

Phishing scams are always going on, but they really ramp up as tax season gets underway. Those cybercriminals know that tax season is a stressful time for their victims, and that they may put their guard down if confronted with a sufficiently scary subject line.

It's always a good idea to treat unsolicited emails with a healthy dose of skepticism, but that's even more true when tax season is on the horizon. You should always investigate such messages thoroughly -- and never click on embedded links that could harbor malware and other threats.

#3. Fraudulent Filing

If you do not file your taxes quickly, cybercriminals may do it for you. Fraudulent filing has increased, upping the risk that you could be the next victim.

These fraudulent filers use Social Security numbers and other personal information they buy on the dark web. Armed with that information, they file fraudulent tax returns, claiming refunds they are not entitled to and funneling them to their own accounts instead of yours. The best way to guard against this risk is to file your tax return as quickly as possible and protect your personal information online.

#4. Shady Tax Preparers

Sometimes the people you pay to prepare your taxes are the source of the scam. Shady unlicensed tax preparers mine information from their clients, keeping lists of Social Security numbers and other key information to perpetrate future crimes.

If you trust your taxes to a preparer who is less than honest, identity theft may not be your only problem. Those shady tax preparers may also commit fraud, making up deductions, claiming phony dependents, and ultimately getting you a huge tax refund you do not really qualify for. When the IRS catches the mistake, the tax preparer will be long gone, leaving you on the hook for penalties, interests, and the kind of stress only an IRS audit can provide.

Filing taxes is stressful enough, but falling for a scam could make your interactions with the IRS even worse. Cybercriminals see tax filing season as a golden opportunity, one they are ready, willing, and eager to exploit for their nefarious purposes.

If you want to protect yourself and your money, you must take a proactive approach to cybersecurity. Knowing the dangers is a vital first step, so keep a close watch on your information at all times.

If you're facing tax troubles, reach out to our tax resolution firm , and we'll schedule a free and confidential consultation to explain your options thoroughly and help you permanently resolve your tax problem.

Tax Resolution and Your Finances: What is an Offer in Compromise?

Tue, 12 Sep 2023 18:07:14 GMT

An offer in compromise is a well-known but often misunderstood part of the tax code, and navigating its complexities can be challenging. Not all taxpayers will qualify for the offer in compromise program, and even those who do may struggle with the intricacies of dealing with the IRS.

This is why it's crucial to work with a tax resolution expert when you have back taxes. Without an expert on your side, the IRS may reject your offer for a compromise, and the amount you owe could keep increasing due to additional penalties and interest.

If you've received a tax due notification from the IRS, you can't afford to wait. When the tax agency wants their money, they want it immediately, and without an offer in compromise, your options may become severely limited. The longer you wait, the more challenging your situation may become. However, hiring the right tax professional—one who specializes in dealing with the IRS—can turn things around.

An experienced tax resolution specialist possesses comprehensive knowledge of all IRS programs, including the offer in compromise option. Even if you don't qualify for an offer in compromise, a tax relief expert can help you explore alternative options, allowing you to settle your debt while still having enough money to sustain your life.

Few things in life are as daunting as owing money to the IRS. When that notice arrives in your mailbox, it's easy to panic and do nothing. However, this situation demands prompt action. The faster you act, the easier it will be to find a qualified professional who genuinely cares about your best interests. Once you've connected with a reputable tax resolution firm, you can work towards paying off your debt, achieving a fresh start with the IRS, and finally putting this unfortunate chapter of your financial life to rest.

Understanding a Notice of Federal Tax Lien and What to Do About It

Fri, 08 Sep 2023 23:33:18 GMT

How Does It Affect Your Credit?

Once the IRS files a Notice of Federal Tax Lien, it becomes public record. Credit reporting bureaus often pick up this information, which means that the federal tax lien may eventually appear on your credit report and could hinder your ability to obtain credit.

How Does It Affect Your Business?

A tax lien attaches to all your business property and rights to business property, including accounts receivable. This can significantly impact your ability to run your business normally and put you further behind.

What About Bankruptcy?

Filing for bankruptcy does not automatically eliminate your tax debt or the Notice of Federal Tax Lien. These obligations often persist even after the bankruptcy process.

Is a Lien the Same as a Levy?

The terms "lien" and "levy" are often used interchangeably, but they have distinct differences. A federal tax lien represents the government's legal claim or interest in all your property. However, the IRS does not sell off or forcefully confiscate your assets. Nonetheless, having the IRS place a chain on everything you own can certainly make your life significantly more challenging.

A levy, on the other hand, refers to the enforcement of the lien through the collection of taxes. This can include actions such as seizing funds directly from your bank account or garnishing up to 90% of your paycheck.

What Should You Do Next?

According to the IRS website, "Paying your tax debt in full is the best way to get rid of a federal tax lien. The IRS releases your lien within 30 days after you have paid your tax debt." However, for most people, writing a check for the full amount is not feasible. This is where a tax resolution specialist can be of assistance.

Contrary to the IRS's advice, your initial step should be to contact a qualified tax resolution professional, such as ourselves. Dealing with the IRS on your own is like going to court without a lawyer—it's possible, but your chances of achieving a favorable outcome are slim.

A qualified tax resolution expert can create a resolution plan, immediately communicate with the IRS on your behalf, and initiate negotiations to alleviate your tax problem.

Feel free to reach out to our firm , and we'll be happy to schedule a confidential consultation without any obligation. During this session, we'll explain the options available to you for permanently resolving your tax problem.

Avoid Tax Troubles: How Amended Tax Returns Can Save Your Day

Wed, 16 Aug 2023 18:40:33 GMT

The Amended Tax Return Process:

Not all errors require filing an amended return. The IRS automatically corrects simple math mistakes. However, when there's a need to change filing status, income, allowable deductions, or credits, filing an amended return is essential. To initiate this process, you'll need to complete Form 1040X, which can be electronically filed. This is where the expertise of a tax professional becomes invaluable, as they can guide you through the intricacies of the form.

Proper Documentation and Explanation:

When completing Form 1040X, each amended tax year requires its own separate form, each of which must be filed separately. The form provides space to explain the changes made, and it's important to clearly state the line numbers and reasons for the amendments. While you don't need to attach a copy of the original return, any additional IRS forms or supporting documents must be included to substantiate the changes.

Processing Time and State Returns:

After filing your amended return, it may take several weeks for the IRS to process it. It's worth noting that amending your federal return may also necessitate changes to your state tax return, especially if the amendment involves reporting increased income. Consulting a tax resolution professional will ensure that all necessary steps are taken to address both federal and state tax matters.

Seeking Expert Assistance for Tax Debt Cases:

If you anticipate owing money to the IRS after filing your return, it's crucial to engage the services of experienced tax resolution firms like ours. Our tax resolution specialists posess specialized skills that go beyond what traditional accounting or tax law firms can offer. Our firm specializes in tax problem resolution and can represent you before the IRS. Contact us today for a no-obligation confidential consultation, and let us help you explore permanent solutions to your tax problems.

In conclusion, amending your tax return can rectify errors, report missed income, or claim additional deductions. The process involves completing Form 1040X and filing it with the IRS. While it may take time for the IRS to process your amended return, seeking professional assistance from a tax resolution expert ensures that the procedure is handled accurately and efficiently. Don't let tax troubles overwhelm you— reach out to our firm today and take the first step towards resolving your tax issues for good.

Important Factors to Consider When Choosing a Tax Resolution Firm

Fri, 21 Jul 2023 01:01:52 GMT

Tax Relief and IRS Negotiation Experience

When engaging a tax relief firm, you are essentially hiring a team of experts. It is vital to ensure that the professionals handling your case are fully equipped for the task at hand. Look for specific areas of expertise, such as IRS resolution specialists, including CPA’s who specialize in tax resolution and individuals experienced in negotiating with the IRS on behalf of taxpayers. Size does not necessarily determine the quality of a tax relief agency. Some of the most reputable firms are smaller entities with extensive experience.

Regardless of the firm's size, the crucial aspect lies in the tax resolution expertise possessed by the individuals working on your case.

Compassion and Understanding

Dealing with the IRS is not just a financial challenge; it can also be an emotionally taxing experience. Receiving a letter from the IRS, demanding immediate payment or notifying you that you are being audited, is bound to cause distress and unease. Working with a compassionate and caring tax relief firm can greatly alleviate the emotional burden. While expertise and capability should not be compromised, there is no reason why you cannot have both. During the selection process, seek someone who genuinely cares about your well-being and situation. Opt for the firm that you feel most comfortable working with.

Recent IRS Negotiation Success Stories

The IRS is an immense agency, and the tax code is constantly evolving, leading to increasing complexity. Consequently, past experience may not always be relevant. When assessing tax relief firms, look for recent testimonials and case studies showcasing their successful negotiations with the IRS.

Having a track record of positive outcomes demonstrates their proficiency and indicates that they understand the intricacies of dealing with the IRS. Working with such experts can provide peace of mind and facilitate the resolution of your tax problem.

Receiving a notice from the IRS can be a daunting experience, but it does not have to spell financial devastation. You do not have to live in fear of each visit to your mailbox. By knowing how to find an excellent tax relief partner, you can take control of your situation.

Reach out to our tax resolution firm , and we will schedule a free, confidential consultation without any obligation. During this meeting, we will explain your options comprehensively and guide you towards a permanent resolution for your tax problem.

Taking Steps to Correct Errors on Your Tax Return

Wed, 21 Jun 2023 04:22:38 GMT

Overstating business expenses: If you operate a business, there might be a temptation to inflate deductions. While some deductions may be valid, it's important to adhere to the approved list and avoid claiming deductions far beyond the norm. Consult with a tax professional to ensure compliance with tax laws and prevent improper deductions on your return.

Math errors: Whether filing electronically or using paper forms, your information is entered into a computer system. Computers excel at mathematical calculations, making any errors or discrepancies stand out. While a math error may not necessarily lead to an audit, it can attract unwanted attention. Double-checking your returns and involving a qualified tax professional can help prevent such issues.

Filing an Amended Return - The 1040X

Individual income tax returns can be amended generally within three years of the original due date by filing IRS Form 1040X. This form allows you to provide the IRS with information on what was originally filed, the corrected details, and the reason for the changes. Additionally, it enables adjustments to personal exemptions, such as correcting errors related to dependents.

Here are a few tips for filing the 1040X form:

Use a separate 1040X form for each year requiring corrections and send each form in its own envelope.

Clearly indicate the tax year at the top of each form.

Explain the changes and reasons for correction on the back of the form. Include any schedules, forms, or supporting documentation affected by the changes.

If your federal corrections impact your state taxes, submit a corrected return for the relevant state as well.

It is strongly recommended to consult a tax resolution professional for assistance with your amended return. They can help file multiple years of unfiled tax returns, facilitate settling for a reduced amount, and provide valuable guidance to help you avoid tax-related troubles.

You Have 3 Years

Many taxpayers only discover errors in their tax returns when preparing subsequent year's returns. These mistakes may come to light during discussions with tax preparers or through personal review. There is no specific time limit for correcting a return; amendments can be made whenever an error is noticed. However, the IRS generally accepts corrections up to three years after the original return's filing date.

You can electronically file a 1040X

As of 2020, the IRS started accepting electronically filed forms 1040X. Prior to 2020, all forms 1040X had to be mailed to the IRS.

Also, as of February 2023, the IRS can now direct deposit any refund that results from the filing of an amended tax return. Prior to February 2023, 1040X refunds were mailed to taxpayers in the form of a check.

If Correcting Mistakes Results in Additional Taxes Owed

If you discover a mistake on your tax return that underreports your tax liability, it is crucial to amend your return promptly. The IRS is likely to uncover significant discrepancies, such as unreported income from freelancing or self-employment, and may impose interest and large penalties on the outstanding tax owed. By proactively addressing the error, you can minimize the assessment of penalties.

If you anticipate having substantial tax debt and owe more than $10,000 to the IRS or state and cannot afford to pay in full, it is advisable to contact our firm for assistance. We specialize in helping individuals find tax relief and, in some cases, settle their tax debt for a fraction of the total amount owed. Don't hesitate to reach out to us for a resolution.

Correcting errors on your tax return is essential to maintain compliance with IRS regulations and minimize potential penalties. By taking the necessary steps to amend your return with the assistance of a tax resolution professional, you can ensure accuracy and alleviate any concerns regarding your tax situation.

Possible Tax Resolution Strategies to Ease Your Mind If You Owe Money to the IRS

Fri, 09 Jun 2023 18:17:14 GMT

Review the Amount Owed and Your Tax Return in Question

If the IRS says you owe money, don't assume they are correct. The tax agency makes mistakes, and so do taxpayers and tax preparers. Whether you filed your taxes on your own or hired someone else to do it for you, it's crucial to examine your return and compare what you find with what the IRS is claiming. It's advisable to seek professional assistance for this tax review, even if you initially filed your taxes yourself. A professional with IRS experience may be able to uncover errors and inconsistencies that you would have missed on your own, which could save you money.

While this review may not eliminate the extra taxes the IRS says you owe, it doesn't hurt to be sure. Many taxpayers who believed they owed money to the IRS have ended up owing nothing or even receiving a refund from the agency.

Set Up a Payment Plan

Getting a notice of additional tax due from the IRS can be frightening, particularly if you cannot afford to pay what the agency says you owe. However, keep in mind that you don't necessarily have to pay the bill all at once.

The IRS is frequently willing to work with taxpayers and set up payment plans, which could make paying what you owe more manageable and less stressful. Once again, it's a good idea to seek professional assistance and guidance here. The IRS can drive a hard bargain, and you don't want to end up with a payment plan you can't afford.

If you fall behind on the payment plan you agreed to, the IRS may take further enforcement action, including garnishing your paycheck or freezing your bank accounts. Seeking the assistance of a tax resolution professional upfront can help you avoid these serious consequences.

Explore an Offer in Compromise Settlement

If you genuinely can't pay the amount the IRS claims you owe, you may be able to negotiate a smaller payment. The IRS may not advertise this program, but the tax agency is often willing to work with taxpayers by accepting smaller amounts, particularly if those taxpayers have few assets and limited income. Sometimes, these can be for a fraction of what's owed if you qualify. We offer a free no-obligation consultation to determine whether you qualify.

If you plan to pursue this last option, it's crucial to work with a tax resolution expert. These compromise offers can be incredibly complex, with legal language and terms that can be difficult to comprehend. You don't want to make a mistake here, and you want to ensure that paying the compromise account will result in a complete settlement of your tax bill.

How to Avoid 4 Tax Resolution Company Rip-Offs!

Tue, 16 May 2023 21:38:41 GMT

The second scam is the bait and switch tactic. Some firms will quote low fees for a particular service just to get you in the door, then inform you of additional services needed, and charge more to complete your case. On the other hand, most reputable tax resolution specialists work on a fixed or flat fee basis, so you'll know what you're paying upfront to achieve permanent resolution.

The third scam is the salesperson versus licensed professional issue. Only a CPA, Attorney, or an Enrolled Agent can represent you before the IRS. Ensure that you're only speaking with a licensed professional who is also a tax resolution specialist regarding your situation and possible remedies.

Lastly, beware of firms requiring you to pay the entire amount of the fee upfront. A reputable tax resolution specialist will typically require a reasonable deposit to start your case and allow you to pay them over time in fixed monthly payments that fit your budget.

In summary, don't let the complexities of tax resolution get the best of you. With the help of a reputable tax resolution specialist, you can put your worries to rest and focus on getting your financial life back on track.

If you're struggling with tax resolution and want an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

We will offer several solutions based on your specific situation which could include negotiating an offer in compromise for a discounted settlement, requesting an appeal, reducing penalties, offering a monthly payment plan, filing delinquent tax returns, or representing you in an IRS audit or hearing.

The Biggest Mistake Tax Payers Make - Avoid Paying Back Taxes

Tue, 25 Apr 2023 19:44:24 GMT

How to Resolve Back Tax Issues

If you owe back taxes, it is important to take action as soon as possible. The longer you wait, the worse the situation will become. Here are some steps you can take to resolve your back tax issues:

Seek professional help - Do not contact the IRS alone. That’s like going to court without a lawyer. In some cases, you can reduce the amount you owe to the IRS but only a tax resolution professional can help walk you through the maze of dealing with the IRS. If you need help with how to proceed or need help negotiating with the IRS, consider seeking professional help from a CPA who is also a Tax Resolution Expert.

When you are working with a tax resolution specialist firm like ours, we can help you as there are a number of options to resolve your back taxes. The good news is the IRS has several debt settlement options including their Fresh Start Initiative and is generally willing to settle with taxpayers who can prove that they don't have the funds to pay the IRS in full.

If you owe back taxes, it is essential to take action as soon as possible to resolve the issue. The IRS offers payment plans and other options for taxpayers who are unable to pay their full tax debt. By working with a tax resolution specialist, you can resolve your back tax issues and avoid further problems in the future.

If you need an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

How to Avoid a Surprise Tax Bill & What To Do If You Receive One

Fri, 14 Apr 2023 18:04:31 GMT

Pay estimated taxes.

If you're self-employed or have other sources of income that aren't subject to withholding, you may need to pay estimated taxes throughout the year. The IRS provides forms and instructions for calculating and paying estimated taxes.

Review your tax return.

Review your tax return from the previous year to ensure you haven't overlooked any deductions or credits. This can help you avoid overpaying your taxes and receiving a surprise tax bill.

If you find yourself in tax trouble (even if you have years of unfiled tax returns), reach out to our expert tax resolution firm for a free, no-obligation consultation. [add your contact page link]. While you wait to have your consultation, here are a few steps you can take to help you in your situation.

Review the bill & determine the reason for it.

Carefully review the bill to ensure everything is accurate. As you are reviewing your bill, identify the reason for the bill. It could be due to an error on your tax return, an unexpected change in your income, or a change in tax laws.

Consider your options.

If everything on the bill seems accurate and you are at fault for what the IRS is claiming you owe, you have a few options. If you can't pay the bill in full, consider your options for resolving the debt. You may be able to set up a payment plan with the IRS, negotiate a settlement, or a few other options to help aid you in your situation. However, do not ignore this tax bill as the IRS can be relentless in collecting what they believe is owed to them and ignoring the situation will make it much worse.

Seek professional help.

Do not contact the IRS without representation as they can be very intimidating to the average taxpayer and are not on your side. If you're unsure how to proceed or need help negotiating with the IRS, consider seeking help from a tax relief specialist.

We have years of experience helping taxpayers just like you resolve IRS and State tax problems and negotiating the best deal on your behalf. If you owe the IRS money, contact us now for a consultation to learn about your options.

By taking steps to avoid a surprise tax bill and knowing what to do if you receive one, you can minimize the impact on your finances and avoid future surprises. Remember to stay organized throughout the year, review your tax return, and seek professional help if necessary.

What is Tax Resolution & How Can It Help You During the 2023 Tax Season?

Tue, 04 Apr 2023 17:47:38 GMT

The IRS can be an intimidating agency to speak with and will do everything in their power to collect what is owed to them. Connect with one of our tax resolution specialists for a no-obligation consultation so we can review your case and guide you to the best option for your specific situation. You won’t have to talk to the IRS and our firm can provide the peace of mind you need to resolve your tax issue.

What is Tax Resolution?

Tax resolution, also known as IRS Representation, or Tax Controversy, is the process of resolving back tax issues with the IRS or state tax authorities. It generally involves negotiating a payment plan or a settlement agreement for less than you owe. Many times, for a lot less if you’re eligible.

There are several options available for resolving taxes owed including:

Payment Plan - A payment plan is an installment agreement that allows you to pay off your tax debt over time until the debt is paid in full.

Partial Pay Payment Plan - A “PPIA” is an installment agreement that allows you to pay off your tax debt for less than the full amount.

Offer in Compromise - An Offer in Compromise (OIC) is an agreement between you and the IRS to settle your tax debt for less than the full amount owed. To qualify for an OIC, you must demonstrate that you are unable to pay your tax debt in full and meet certain eligibility requirements.

Currently Not Collectible - If you are facing financial hardship and are unable to pay your tax debt, you may qualify for Currently Not Collectible (CNC) status. This means that the IRS will temporarily suspend collection efforts until your financial situation improves. However, this does not mean you do not owe what you owe, it just means it is a temporary suspension on making monthly payments to the IRS.

How Can Tax Resolution Help You?

If you find yourself in the unfortunate situation of owing back taxes to the IRS, then here is how tax resolution can help you in several ways:

Avoid Penalties and Interest - When you owe back taxes, the IRS will assess penalties and interest on the amount owed. These fees can add up to another 50% to the principal tax owed. We can help you avoid or reduce these fees, which can add up quickly over time.

Reduce Your Tax Debt - Tax resolution can help you negotiate a settlement agreement or payment plan that reduces your tax debt. This can make it easier to pay off your outstanding taxes and get back on track financially.

Protect Your Assets - If you owe back taxes, the IRS will eventually attempt to garnish your wages or seize your assets, including bank accounts. We can help you protect your assets and income and negotiate the lowest monthly payment allowed by law.

Improve Your Credit Score - When you owe back taxes, it may negatively impact your credit score. Tax resolution can help you pay off your tax debt and improve your credit score over time.

In conclusion, tax resolution is a way to settle tax debt and get back on track financially. It involves negotiating a payment plan or settlement agreement with the IRS or state tax authorities. By avoiding penalties and interest, reducing your tax debt, protecting your assets, and improving your credit score, tax resolution can help you achieve financial stability and peace of mind. If you owe back taxes, it is important to take action sooner, rather than later, and explore your options for resolution.

Our firm specializes in tax resolution, even if you have years of unfiled tax returns, or owe the IRS over $10,000 we can help! If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

Filing Taxes When You Owe Money: What to Do and What You Need to Know

Wed, 29 Mar 2023 17:48:18 GMT

Seek Professional Tax Help and Guidance

Owing money to the IRS is no joke, and dealing with the situation is not something you should try to tackle on your own. If you know you owe money to the IRS and cannot pay the bill in full, it is important to seek professional help and guidance.

A tax resolution expert can guide you through the process, helping you prepare, submit and negotiate a payment plan that works for you and the IRS doesn’t get to manage your monthly cash flow. You also may qualify for an offer in compromise, which settles your case for much less than the amount owed, but it’s important to act as quickly as possible - you do not want your tax situation to get worse.

Hopefully, you will find a reason to smile when you file your taxes this year. Hopefully, you will find that you are due a refund, and you can begin making plans for the money that will soon arrive in your bank account.

If not, it is important to know what to do and which steps to take. If you

owe money to the IRS, you need professional help and guidance, so call a tax relief expert right away to preserve your rights and your money.

Before you make a decision, let our firm see if we can help. We negotiate with the IRS day-in and day-out. We can potentially settle your tax debt for a lot less than you owe. Call us today to find out. Our tax resolution specialists navigate the IRS maze so you don’t have to.

Everything You Need to Know About Filing your 2022 Taxes

Wed, 22 Mar 2023 16:58:45 GMT

Understand Tax Deductions and Credits

Tax deductions and credits can help reduce the amount of taxes you owe. Deductions are expenses that reduce your taxable income, while credits directly reduce the amount of taxes you owe. For the everyday American, some common deductions include mortgage interest, charitable donations, and student loan interest. However, most taxpayers will take the “standard” deduction. Common tax credits include the earned income tax credit and child tax credit.

Choose the Right Tax Preparation Method

There are several ways to prepare and file your taxes. You can use a tax preparation software, hire a tax professional, or file by paper. The method you should go with depends on your situation. For the most accurate and best result, we always recommend hiring a tax professional that can ensure everything is filed correctly. If you owe back taxes from other years, then we highly recommend hiring a tax resolution specialist to look into your case to ensure the IRS does not garnish your wages or put a tax levy on your assets.

File on Time

The tax filing deadline for 2022 is April 18, 2023. Make sure you file your taxes on time to avoid penalties and interest. If you are unable to file by the deadline, you can request an extension. But, remember, an extension only relates to the filing of the tax return. If you owe for 2022, and you file an extension, what you owe must be paid in with the extension to avoid failure to pay penalties.

Pay Any Taxes Owed

If you owe taxes, make sure you pay them on time. The IRS offers several payment options, including online payment plans, direct debit, check or money order. Failure to pay taxes owed can result in penalties, interest charges, and worse case scenarios like tax liens and garnishments.

Keep a Copy of Your Tax Return

Make sure to keep a copy of your tax return for your records. You may need it for future reference or to apply for loans or financial aid.

What to Do If You Owe Back Taxes

If you owe back taxes, the most important thing you can do is take action. Ignoring your tax debt will only make the situation worse, as the IRS will continue to assess penalties and interest on the amount owed. Contact a tax resolution specialist to look over your case, and let them guide you through the process to ensure you don’t jeopardize your financial future.

Our firm specializes in tax resolution. We serve clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows the “ins and outs’ and knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

Filing taxes can be overwhelming, but it doesn't have to be. By understanding your filing status, gathering necessary documents, taking advantage of deductions and credits, filing on time, paying any taxes owed, and keeping a copy of your tax return, you can ensure a successful tax filing experience in 2023.

IRS Offers Several Ways To Pay Off Delinquent Tax Debt

Tue, 07 Mar 2023 23:37:50 GMT

4. Extended or Flexible Payment Plan: This plan is available to taxpayers who owe up to $250,000 in taxes and are unable to pay the debt within 72 months. The taxpayer must agree to pay 100% of the debt over a longer period of time, up to 120 months. No financial information is required, however, a lien may be filed.

5. Currently Not Collectible: This plan is available to taxpayers who are unable to pay their taxes due to financial hardship. The taxpayer's account will be placed on hold for a period of time, during which the IRS will not take any collection action. Interest and penalties continue to accrue. Financials are required and a lien may be filed.

6. Offer in Compromise: This program is available to taxpayers who are unable to pay the full amount of taxes owed and are unable to pay through an installment agreement. The taxpayer may be able to settle their debt for less than the full amount owed. Many times, for a fraction of what’s owed. There are strict eligibility requirements and full financial disclosure is required.

Taxpayers should consult with a tax professional to determine the best payment plan for their specific situation.

Before you enter the daunting maze of IRS regulations, consult a Tax Relief Expert at our office. Schedule your complimentary consultation to assess your situation and compare your options for tax relief today!

Failing to address IRS tax debt can be a costly mistake. Interest compounds daily, similar to credit card debts, and the amount owed often doubles every several years due in part to penalties and interest. Now is the time to take charge of your finances by addressing this head-on before it spirals out of control. The IRS Installment Agreement can be a great option for taxpayers who can’t pay the IRS off in a lump sum.

Our firm has the expertise and skill to navigate the IRS and help you resolve your tax issues, even if you have unfiled returns from multiple years. Through an Offer in Compromise which is IRS's debt settlement program, we may be able to settle your entire tax debt- including penalties and interest for 85% or more off, if you qualify! Our team can guide you through this process and we invite anyone who wants professional advice on dealing with their taxes to contact us so that they can find a permanent solution for their problem.

How to Prepare for an IRS Audit

Thu, 09 Feb 2023 20:56:31 GMT

An IRS audit can be a very time consuming and intrusive exercise that can include a visit from the auditor. Audits can also be conducted remotely. This method, known as a desk audit, involves sending documents through fax or mail to evaluate accuracy and compliance with established law.

Filing taxes is a complex process and the IRS seeks to ensure accuracy by auditing income tax returns. These examinations may be focused on certain deductions, particularly if taxpayers have claimed for more than what their reported income suggests - but this does not necessarily indicate any wrong-doing or misconduct. The IRS can also select your return to be audited for no reason at all. These are referred to as “random” audits to ensure compliance with the tax laws.

Taxes are a fundamental pillar of our society and the government strives to ensure that everyone is compliant. To this end, random audits from both Federal and State authorities may be conducted in order to verify taxpayers' income as well as expenses incurred throughout the year; making sure all taxation payments due remain accurate.

Preparing for a tax audit should be an ongoing process. To avoid any problems, ensure that all deductions taken are backed up with proof - you never know what may arise in the future! Ensure each tax record remains safely stored away for at least seven years as per IRS regulations.

Protect your finances and future by taking the time to review your tax returns before signing off, even if you have a professional do them. An examination of the documents will not only help ensure accuracy in filing but also offers an invaluable opportunity for you to gain knowledge on taxes - safeguarding against potential penalties or interest charges related to inaccuracies down the line.

Tax audits can be intimidating, but with a little foresight and the right representation it doesn't have to cause stress. Staying organized throughout the year is key for having peace of mind when tax season rolls around. Finding an experienced professional who understands your individual needs will help make dealing with the audit as painless as possible.

Take the worry out of representing yourself in front of the IRS, which is like going to court without a lawyer. Let our expert team lift this from your shoulders and navigate the IRS on your behalf. Schedule a no-obligation consultation to explore your options and get on track towards permanently resolving any worries you have over having to meet with and defend yourself in an IRS income tax audit.

How to Avoid an Expensive Tax Bill… & What to Do If You Receive One

Mon, 23 Jan 2023 16:01:14 GMT

The Earlier the Better!

Ignoring an IRS debt could ultimately result in serious consequences. It is in your best interest to be aware of any outstanding amount as soon as possible, providing time for tax planning and sourcing the necessary funds.

Don't let late payments rack up and cause costly penalties and interest. Be proactive about filing your taxes so you'll have a good idea of what will be owed, if anything, that is needed to be paid on time.

Pay Attention to Your Paychecks

With the recent changes in tax law, your paychecks may have grown more generous - but don't get too excited! They could mean less of a refund or an unexpected bill when you file. Make sure to stay informed and plan ahead so unpleasant surprises won't come back to haunt you this filing season.

To prepare for tax season, it's important to monitor your paychecks and ensure that the right amount is withheld. If you see a decrease in federal taxes being taken out of each paycheck, adjust this with your employer immediately - even though it may mean taking home less every month. Doing so can help protect you from federal and state tax debts and penalties later!

Run Your Numbers Before

With just your final paycheck from last year and a few additional details, you can gain insight into what kind of tax refund or balance due to expect come filing season. It pays to take the time for preparation now so there are no unpleasant surprises later! However, please note that you should never use your 2022 final paycheck to prepare your return. You’ll need the actual W-2 from your employer in order to file a complete and accurate return.

To be prepared for tax season, compile all necessary records of your income, credits and deductions to estimate what you owe. Leverage the power of a reliable tax preparation software or use an everyday calculator with those numbers in hand to better understand your financial situation.

Know You Have Back Taxes or Will Owe A Lot?

Ignoring a tax bill isn't an option; the IRS will always come knocking. Settling it quickly can save you from further financial trouble, so don't delay. Your taxes may burden your wallet now, but they'll take hefty chunks out of your future if left unresolved!

Dealing with the IRS can be a daunting experience for many taxpayers. Even getting the IRS on the phone these days is nearly impossible. Without proper guidance, and expert help, attempting to negotiate your own tax problem is like going to court without a lawyer - not a wise move!

Struggling with tax burdens from the IRS? Our experienced team knows the IRS’s “ins and outs”, knows how to navigate the IRS maze and is here to assist you in finding a resolution that works best for your unique situation. Take advantage of our knowledge and expertise by booking an appointment with us today - take control of your taxes, and your life, before they become unmanageable!

What is a Federal Tax Lien Notice & What Should You Do If You Receive One?

Tue, 10 Jan 2023 04:43:05 GMT

Lien vs. Levy

For the unaware taxpayer, it is important to understand the difference between liens and levies. People will use them interchangeably, but they are very different. A lien grants the government legal rights over all of your

property. This does not mean they are going to sell your property, but it does make it difficult for you when the government has an ownership stake in your assets, especially if you are looking to sell them, like real estate.

Anything you sell, the IRS will receive its cut before you receive anything.

A levy, on the other hand, is the physical seizure of income and assets. The IRS is the only creditor on the planet that can garnish your income and remove money from your bank account without a court order.

This may affect your credit.

The consequences of the IRS filing a Notice of Federal Tax Lien are significant. This lien is public record, and eventually may show up on one's credit report which can severely impact their ability to secure further credit in the future as well as lower their credit score.

The effects on your assets.

A federal tax lien restricts your ability to utilize and monetize any existing or future assets - from real-estate, stock investments, automobiles, etc. This means that the IRS is first in line for proceeds if you were to sell any of your assets, before you receive any cash.

The effects on your business.

Protecting your business from financial troubles is important, and a lien can be especially damaging. It attaches to all of your property which could seriously impact the normal day to day operations of your business, leaving you further in debt than before.

Thinking about filing for bankruptcy?

Although filing for bankruptcy may offer relief from debt, it's important to note that your tax obligations and Notice of Federal Tax Lien still remain in effect. To ensure financial freedom, take steps to address any existing unpaid taxes before planning a successful future.

When a levy is enforced, it can result in the government seizing funds from your bank account or drastically reducing up to 75% of your net pay.

Next Steps

Paying off your tax debt in full is the most effective way to erase a federal lien. Typically, the IRS will release the lien within one month of payment. But if you are unable to pay such a large sum at once, as most people are, don't lose hope - this is where a tax resolution specialist can help.

When it comes to the IRS, navigating legal channels on one's own is a risky endeavor. The best course of action for those facing tax issues is to seek out expert, professional help by calling an experienced and qualified tax resolution provider like us. With our expertise right by your side, your chances of achieving a positive outcome improve significantly!

Reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem once and for all.

What to Do if You Owe Back Taxes

Wed, 14 Dec 2022 21:53:35 GMT

Review Your Budget

Owing money to the IRS is no fun, but you will have to resolve this one way or another. Hopefully, you can work out a more favorable payment plan

with the IRS, one that might allow you to pay a reduced amount, but that will depend on your income, your allowable expenses, and your assets, if any.

It is important to review your monthly household budget carefully if you owe back taxes to the IRS. Every dollar you can pay back is one less dollar you will owe interest on, so think about where you can cut back and how you might be able to free up some cash.

Talk to a Tax-Relief Expert

The bad news is that you owe back taxes to the IRS. The good news is you may be able to settle the entire amount, including penalties and interest, for a fraction of what’s owed through the IRS’s offer in compromise program.

If you qualify for one of those programs, you may be able to settle your debt for less than you owe, but this is not something to tackle on your own. Work with a tax-relief expert, both to identify the proper programs and to make negotiating with the tax agency easier and more effective.

You can use the budget you reviewed earlier to identify sources of income and resources you have access to. Once that information is presented, the tax-relief expert can help you find a suitable tax compromise plan that just might save you a lot of money.

Take Care of the Problem sooner rather than later

Time is of the essence when you owe money to the IRS. Once those back taxes are assessed, the clock is ticking, and every day that passes will mean higher penalties, and compounding interest.

If you want to put your tax debt behind you once and for all, you will want to act fast. The sooner you start working on your tax resolution plan, the sooner you can take your financial life back.

To help ease the stress from your situation, we offer a free, no-obligation consultation with one of our tax resolution experts. You don't have to worry about confidentiality or cost because the consultation is free with zero gimmicks or commitments. Schedule an appointment with one of our tax resolution specialists today.

Do You Owe Money to the IRS But Can’t Pay? Try This.

Wed, 09 Nov 2022 19:51:53 GMT

When dealing with the IRS, it is best to have a professional in your corner. The IRS can be very intimidating and might ask invasive questions that could land you deeper into trouble than before if you do not know how to answer properly. Remember - they are not friends of yours; their job entails collecting what they believe you owe them so make sure any interaction stays as simple and effective as possible. That is why it is crucial to reach out for help from one of our tax resolution specialists.

Temporary Solution

If your status is approved, it does not mean you do not have to file your current and future taxes. This status only applies to your back taxes that the IRS is looking to collect. The currently not collectible status is simply a bandaid to help you get back on your feet. That way you can put yourself in a better position to make a payment in the future. The IRS may review your status every year or two if it looks like there is potential for repayment.

Statute of Limitations

The IRS is an institution that prides itself on being collections-oriented. They will try to collect outstanding taxes for only 10 years from the date they were assessed against you. Once the 10 years is up, the IRS can no longer collect the back taxes. This also applies if you have the currently not collectible status. If you do not have the status, or are in an installment agreement, or have an offer in compromise pending, the IRS can garnish your wages, levy your bank account, and other assets.

In today's tough economic climate, many families are struggling to make ends meet. If you're worried about the IRS garnishing your wages or levying bank accounts, or filing liens against your property for non-payment of taxes you owe - then reaching out may give you some peace of mind.

Our firm will help explain all options available in order to relieve any anxiety associated with these situations because we know how intimidating this can be if nothing has been done before. There is a solution to every IRS problem. Connect with one of our tax resolution specialists to see if you qualify for the currently not collectible status, or any of the other IRS settlement options you may be eligible for and the best next steps for your situation.

What To Do If You Receive a Levy Notice From the IRS

Sat, 05 Nov 2022 23:55:48 GMT

Make Payment Arrangements

We can negotiate a payment plan for your back taxes with the IRS that is something that you can afford without causing financial hardship. If you are entered into an installment plan, the IRS will not initiate aggressive collections actions against you.

Get an Offer In Compromise

If you qualify, you can get your debt “settled” for less than what you actually owe. Oftentimes, for a lot less. This is what we call an offer in compromise. An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability via payments, or doing so creates a financial hardship. The IRS will look into your ability to pay, your income, your expenses, and your assets to determine if you qualify for an offer in compromise.

The IRS generally approves an offer in compromise when the amount offered showcases the most they can expect to collect within a reasonable period of time. If you do move forward with an offer in compromise, make sure you hire a tax resolution specialist to help you prepare, submit and negotiate an offer, and be sure to check their qualifications before working with them. In these situations, you want the best of the best to represent you.

The IRS is no place for the faint-hearted. It’s hard enough filing your taxes on time every year, but if you ever find yourself in need of tax resolution services that can help permanently resolve problems with the IRS - reach out to our firm today! We will look into your situation and give you the best options for your specific case. Contact one of our tax resolution specialists today.

The 2022 Inflation Reduction Act: How Will It Impact You If You Owe Money to the IRS

Fri, 21 Oct 2022 18:41:19 GMT

The reality behind the army of IRS agents is much different and far less troubling than what you may be hearing. Most of the new hires will be administrative personnel, IT workers bent on upgrading old hardware, customer service representatives to answer the endlessly ringing phones, and so on. That does not mean there will not be new agents on the job, but the scope of the new hires is not a reason to panic, even if you currently owe money to the IRS.

Enforcement Efforts Will Ramp Up

Even though only a portion of those new IRS hires will be "on-the-ground agents," the overall goal of this bill for the IRS is to increase the amount of revenue they are collecting from taxpayers. There is reason to believe that the IRS will be more aggressive with its collection efforts because of the Inflation Reduction Act.

The nature of this bill has raised concerns that the IRS will have an increase in audits for small business owners and regular taxpaying citizens across the United States. Our government claims the IRS's efforts are geared more toward citizens in higher tax brackets; however, you can never be too sure since it does not clearly state that they will not target the "everyday" taxpayer. If you think you owe money to the IRS, this is the time to take it seriously to avoid any extra fees or, worst-case scenario, the IRS freezing any of your bank accounts and garnishing your wages.

If You Have an Agreement in Place Nothing Should Change

The IRS has been increasing its efforts against taxpayers even before passing the 'Inflation Reduction Act of 2022'. If you have been targeted by one of these actions, they are still looking for a suitable settlement with you and will not stop until the settlement is resolved.

Hopefully, you are working with a professional as you work with the IRS since the settlement process can get pretty complicated and working with a tax relief specialist ensures you can get the lowest settlement possible for your specific situation under the law.

If you are still working through the details of a settlement, you could find the IRS will try to drive a harder bargain. This could be especially true if the amount owed is over $10,000. Either way, working with a tax resolution professional is crucial since ignoring the situation will only worsen it. The longer you wait, the more expensive your situation will become.

Professional Tax Relief Guidance is More Important Than Ever

The recent passage of the Inflation Reduction Act has introduced a great deal of uncertainty among taxpayers, especially those who owe money to the IRS. If you are not currently working with a professional and relying on their guidance, seeking outside help will become even more critical.

That is why it is vital to work with a professional, so do yourself and your wallet a favor by connecting with a tax resolution specialist like IRS Tax Fighters . We specialize in helping people get their IRS tax problems settled and behind them once and for all!

What to Do If You Receive a Collection Letter from the IRS

Sat, 15 Oct 2022 05:16:58 GMT

Before you do anything else, take the time to read the notice carefully. Find out precisely what the letter says and what the IRS is proposing. Is the IRS claiming you underreported your income for the past year? Are they saying that you took a deduction you were not entitled to? Is the tax agency challenging your interpretation of a statute? The more you know about what the IRS claims, the easier it will be to defend yourself and, ultimately, save you money and headaches.

Pull Out Your Tax Return and Supporting Documents

As previously stated, some tax notices are merely the result of minor disagreements or inconsequential math errors, but others are more serious. Now that you understand what the IRS is stating, you will want to look at what you claimed when filing your tax return.

You can start by pulling out a copy of the tax return in question, making sure to get the right one based on the contents of the collection letter. Hopefully, you have a copy of the return saved on your computer or in your filing cabinet. If not, you can request one from the IRS or have a professional request it for you.

Now that you have your tax return, you can look it over in comparison to the collection letter, looking for any mismatches or erroneous entries. If the return seems good to you, the next step is to get out all the supporting documents.

Those supporting documents may include 1099 forms from your bank and brokerage accounts, W-2 forms from employers, and anything else you included on your tax return. If you took deductions against your income, you will also want to gather those documents and keep them handy.

Take Prompt Action

One thing is certain when it comes to fighting with the IRS - wasted time is wasted money. The interest and penalty clock starts ticking the moment the supposedly erroneous tax return is filed, and every minute you wait could be more money out of your pocket.

If you wait too long the IRS can, without a court order, garnish 90% of your net pay AND clean out your bank account. They can also seize your home and other assets.

The number one thing to do is act fast, which means finding and reviewing the applicable documents immediately. Once you have everything together, you can take the next and arguably the most critical step.

Find a Suitable Professional

Taking on the IRS is not something you want to do alone. You wouldn’t go to court without a lawyer and you certainly don’t want to go up against the IRS without expert representation. Even if you are confident filing your taxes and handling your finances, arguing with the IRS is not a DIY activity.

If you hope to limit the damage and reduce the amount, or the proposed amount they are demanding, you will want a professional in your corner. Working with a tax relief specialist could save you a lot of money in the end, along with countless hours of grief and stress. The sooner you seek professional help with your tax problem, the better, so do yourself a favor and do not wait.

IRS problems can affect all aspects of your life. The stress of not filing or paying your taxes could make you lose sleep. If you are looking for tax relief, we can help!

To help ease the stress from your situation, we offer a free, no-obligation consultation. You don't have to worry about confidentiality or cost because the consultation is free with zero gimmicks or commitments. Schedule an appointment with one of our tax resolution specialists today.

5 Critical Reasons to Hire a Tax Resolution Professional

Thu, 22 Sep 2022 17:34:35 GMT

1) Relief from the IRS & Your State of Mind

When you receive the first letter from the IRS, it can make your stomach drop and your heartbeat a little faster, but working with a tax resolution expert can set your mind at ease because you have a professional working on your case to help you through this gut-wrenching experience. As an added bonus, once you hire a tax resolution expert you won’t have to meet or speak with the IRS.

2) Guidance from a Professional

One of the benefits of hiring a tax resolution professional is that it gives you access to professionals that do this type of work on a daily basis. Working with a tax resolution expert is especially important if you are dealing with any back taxes. They understand the latest laws impacting your case to help you make the best decision for your situation.

3) Saves You Money

An added benefit of hiring a tax resolution professional is that it can save you a lot of money. Yes, it will cost money to hire them, but it's a lot less expensive compared to having no representation at all. A tax resolution professional also has more experience with handling different issues compared to a regular accountant, which is why it's recommended to hire a tax resolution professional if you are dealing with the IRS.

4) Get Your Time Back

Trying to research all of the regulations involving the tax code is nearly impossible and extremely time consuming for most people. However, working with a tax resolution professional is a great way to resolve your tax issue as they must keep up to date with the latest laws. These professionals understand all of the ins and outs of the IRS maze and can help you negotiate the lowest possible settlement amount or the lowest possible monthly payment amount, allowed by law.

5) Avoid Costly Mistakes

Mistakes can easily happen while you are dealing with the IRS without you even knowing it. Unfortunately, even small mistakes can lead to significant penalties and cause plenty of headaches. Hiring a tax resolution professional is a great option for avoiding these mistakes. They deal with these situations on a daily basis and understand how to work with the IRS to ensure you can save the most amount of money.

Closing Thoughts

Working with a tax resolution professional is something that many people find to be both beneficial and necessary. They can help you avoid costly mistakes when filing taxes or during an IRS audit, as well offer much needed guidance throughout the process of doing so! By partnering up for this kind of work, you'll have saved yourself tons of time by working together instead of spending hours trying to figure out what's wrong on your own - while avoiding stress altogether.

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OWE BACK TAXES?

If you owe the IRS or state $10,000+ and are feeling blindsided every year by a huge tax bill - don't wait. We can help! Contact us today for more information about how we'll work to settle your debt so that it doesn’t become impossible tomorrow. It's always difficult when faced with major financial problems such as unpaid taxes; however there is relief available through reputable organizations like IRS Tax Fighters which specializes in settling debts without going into collections agencies.

Think Tax Filing Season is Over? Why You May Need to File an Amended Return

Mon, 19 Sep 2022 17:51:16 GMT

So, when should you file an amended return, and how do you go about it? Here are some key things you need to know.

You Forgot to Report All Your Income

If you neglected to report all of your income, it is only a matter of time until the IRS finds out, and when they do you could be on the wrong side of a big bill. So instead of waiting for the IRS to catch up, fess up by filing an amended return.

Be sure to gather up all of your documents and compare the income you reported to the new total you have now calculated. If you owe any additional tax, you will want to pay it right away to avoid interest and penalties.

Brokerage Forms are Sometimes Late

If you have stock market holdings and own mutual funds, you will be receiving forms from the brokerage firms that hold those accounts. Those forms will provide details of the dividend income and capital gains you received, so you can provide accurate filings to the IRS.

What you may not know is that those brokerage and mutual fund statements are sometimes sent out late. Worse yet, the numbers are often updated after the fact, meaning the information you filed on your original return may no longer be accurate.

If you receive an updated 1099 from your brokerage firm or mutual fund company, you may need to file an amended return to account for the discrepancy. If you fail to update your own numbers, the IRS could come after you for additional taxes and penalties.

You Got a Tax Bill But You Know You Don’t Owe

This can be tricky and it’s best to have representation from a tax resolution firm like ours. If the IRS is sending you letters claiming you owe money, but you’re certain you don’t owe, then filing an amended return can sometimes do the trick.

Another thing to note is that the IRS makes mistakes. So having an IRS Relief firm like ours on your side can help clear these mistakes and settle your tax debt.

You Forgot to Claim a Legitimate Credit or Deduction

Sometimes an amended return can reduce the amount you owe if you forgot to claim a legitimate tax credit or deduction.

Even if you have already filed your return, you can still go back and claim any credits or deductions you may have missed.

File Your Amended Return Within Three Years

You only have a limited amount of time to file an amended return, so you need to act quickly. In most cases you will need to file your amended return within three years, and if you miss the deadline you could be out of luck.

If you think you need to file an amended return, check out your tax records for the last three years. If you identify any potential issues, or overlooked credits and deductions, it is time to file your amended return.

Tax filing season may be over, but you can always file an amended return. As long as you are within the allowable time period, you can adjust your already filed returns to reflect previous omissions, or take advantage of overlooked deductions.

OWE BACK TAXES?

Our firm specializes in tax problem resolution. We can serve clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

When DIY Won't Do: 3 Instances, When Hiring a Tax Relief Professional is the Only Way to Go

Fri, 09 Sep 2022 20:33:06 GMT

#1 You Just Received a Major Windfall

Even if you know how to handle your finances, receiving a major windfall can throw your plans for a loop. Whether you are the lucky holder of a winning lottery ticket or the recipient of a major inheritance, it pays to seek outside advice.

If you choose the DIY approach and make a mistake, you could end up paying more in taxes than you should, but a high tax bill is not the only danger. Handling your windfall the wrong way could throw off your asset allocation, impact financial aid for your college-bound children and create additional problems down the road.

#2 You Have Existing Tax Problems with the IRS

When you have issues with the IRS, you absolutely cannot afford to go it alone. Attempting to resolve tax issues on your own is unwise in the extreme, and a single slipup could leave you on the hook for even more. I mean, ask yourself if you would go before a judge in court without a lawyer representing you? Probably not. It’s the same here. Representing yourself before the IRS is generally not a good idea. Don’t do it. You most likely will get “creamed”!

If you receive a notice from the IRS, time is of the essence, but you should not let the desire for fast action override the need for professional help and guidance. If you want to resolve your issues fairly without going broke, do yourself a favor and find the right tax resolution firm. Hiring a CPA or an attorney that is trained in tax relief is the best way to preserve your rights, and you do not want to go it alone.

#3 When You Have Assets You Need to Protect

When you owe taxes, the IRS only cares about one thing, and that is to get paid what they think you owe them.

They’ll levy your bank account, emptying everything you have in there. If you run a business, that means you won't be able to pay your employees, pay your office rent or keep your lights on, ultimately putting you out of business.

They’ll also garnish your paycheck leaving you about 10% to 25% of your net pay to live on. Good luck with that.

They can also put a lien on your assets, including real estate, personal property and financial assets. This puts in jeopardy everything you’ve worked so hard to attain.

Hiring the right tax relief professional can help you avoid such extreme measures taken by the IRS. They’ll communicate with the IRS on your behalf so you don’t have to. If you have assets you can’t afford to lose, then hiring a tax relief pro is the only way to go.

The Bottom Line

Even if you are confident in your Do It Yourself (DIY) approach or feel your tax problem isn’t so serious, it never hurts to get a second opinion. If you are doing everything right, that tax resolution specialist’s advice will give you peace of mind. If there are deficiencies in your actions, the advice you get could stop you from making a devastating, and possibly irreversible, mistake. Plus, you may find out that you can settle your back tax liabilities for less than what you owe. Sometimes for a small fraction of what’s owed!

If you do run into tax trouble, reach out to our tax resolution firm and we’ll schedule a free, no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem.

Do You Have Unfiled Tax Returns? Here’s What To Do.

Fri, 02 Sep 2022 16:07:32 GMT

Before we jump into it, if you have back tax debt or years of unfiled tax returns, contact our firm for a consultation. You won’t have to talk to, or meet with the IRS and our firm can provide the peace of mind you need to resolve your tax issue.

The longer you wait, the worse the situation will become. Here are some important steps you can take if you have unfiled returns with the IRS.

Get Your Documentation

If you’ve been neglecting your taxes for too long, it's time to take care of things. An experienced tax resolution firm can help get things back on track and oftentimes, even if the records are missing or destroyed, there are alternative methods to reconstruct your tax return. However, only a tax resolution professional will be able to accomplish this.

If you are missing W2 and 1099 forms from past years an experienced tax resolution pro has the ability to retrieve these as well.

Go Through the Numbers

The fear of not having the money to pay has caused many people to avoid filing their returns altogether , but those worries are often misplaced.

According to the IRS statistics approximately one-third (34%) of all unfiled federal tax forms may actually be due a refund! Now that you have all the documentation you need, it is time to run the numbers. And while you may not be able to get exact figures without filing the returns, you can get an idea of how much you might owe.

Hire a Professional

Whether you are an individual, partnership or corporation there is a strong temptation to let your past mistakes go. But doing so would put both financial security and freedom at risk - which makes filing those old tax

returns seem like tempting fate instead of bravely taking on the challenge ahead! It is a misdemeanor and possible jail time for failing to file legally required income tax returns. Don’t let this happen to you.

The IRS will assess a 25% failure to file penalty as well as up to a 25% failure to pay penalty, plus interest. Just filing your return, even if you can’t pay, will save you big time!

When you're dealing with back taxes, it's important to have someone on your side who knows what they are doing. A tax resolution professional can give invaluable advice and guidance about how to lower the amount that the IRS claims you owe and the best steps moving forward for your situation.

You're not alone in the battle against the IRS. The IRS is ready and waiting for you, so it's best to have an expert on your side who knows how to get the help you need and deserve.

A tax resolution professional can give advice about what needs to be done; from gathering documents like W-2s or 1099’s right down to making sure everything looks perfect when filing those unfiled returns.

Contacting the IRS on your own is not only a scary thought, it’s highly not recommended, but avoiding them will make your situation worse. When you don't file your taxes and lose track of what's owed to the government it can have devastating consequences for both yourself personally as well as financially. The IRS stores detailed records of everyone in their database

and chances are, you are already on their radar due to your lack of compliance.

Filing those returns ASAP will go miles in helping you get back on track before any more damage becomes irreversible. Filing your taxes might seem like a daunting task, but there is help for you. The right professional can make things right with the IRS and relieve the stress from this difficult situation.

The stress of not filing taxes can be enough to make you lose sleep. What's worse, IRS problems usually affect all aspects of one's life. Do yourself and your sanity a favor by filing your returns now; it isn't nearly as scary or daunting as receiving the final collection letter from the IRS or getting your bank accounts levied.

If you are looking for tax relief, we can help! To help ease the stress from your situation, we offer a free consultation with a tax resolution expert. You don't have to worry about confidentiality or cost because the consultation is completely free. Schedule an appointment with an expert today.

Do You Owe Money to the IRS? Possible Tax Resolution Strategies to Set Your Mind at Ease

Tue, 23 Aug 2022 18:44:16 GMT

1. Review the Amount Owed And Your Tax Return In Question

If the IRS says you owe money, you should not simply assume they are right. The tax agency does make mistakes (a lot), as do tax preparers and ordinary taxpayers.

Whether you filed your taxes on your own or hired someone else to do it for you, it is important to examine your return and compare what you find with what the IRS is claiming. It pays to seek professional help for this tax review, even if you originally filed your own taxes. A professional with IRS experience may be able to uncover errors and inconsistencies you would have missed on your own, and that could end up saving you money.

There is no guarantee this review will eliminate the extra taxes the IRS says you owe, but it never hurts to be sure. There have been many cases in which taxpayers who thought they owed money to the IRS ended up owing nothing - or even being due a refund from the IRS.

Set Up a Payment Plan

Getting a notice of additional tax due from the IRS is frightening, especially if you cannot afford to pay what the agency says you owe. Keep in mind, however, that you do not necessarily have to pay the bill all at once.

The IRS is often willing to set up payment plans with taxpayers, and those payment plans could make paying what you owe easier and less stressful. Once again, it is a good idea to seek professional help and guidance here - the IRS can drive a hard bargain, and you do not want to end up with a payment plan you cannot afford and wind up defaulting on it.

If you fall behind on the payment plan you agreed to, you could be subject to additional enforcement action, including the tax agency garnering your paycheck or seizing funds from your bank accounts. Getting the help from a tax resolution professional up front can help you avoid these serious consequences.

Explore an Offer in Compromise Settlement

If you are truly unable to pay the money the IRS claims you owe, you may be able to work out a (much) smaller lump sum payment. The IRS may not advertise this program, but they are at times willing to work with taxpayers by accepting lesser amounts, especially if those taxpayers have little in the way of equity in assets and a limited income. Sometimes these settlements can be for a very small fraction of what’s owed, if you qualify. We offer a free no obligation consultation to find out if you qualify.

If you plan to explore this last option, it is critical that you work with a tax resolution expert. An offer in compromise can be extremely complicated, with legalese and language that can be difficult to understand. You do not want to make a misstep here, and you want to ensure that you are only paying the lowest amount, allowed by law, in settlement of your tax bill.

Few things are as frightening as getting a letter from the IRS. That official-looking letterhead is bad enough, but what the letter says is even worse. If you receive such a letter, you need to take positive steps right away. Ignoring the situation will make it worse and it won’t go away, and the sooner you start exploring your tax resolution options the better off you will be.

If you want the help of an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain all your options to permanently resolve your tax problem.

Small Business Owner: Owe Payroll Taxes? Here’s What To Do

Fri, 08 Jul 2022 19:12:29 GMT

Penalties are The Kiss Of Death When It Comes To Back Payroll Taxes

Penalties for failing to file and pay your payroll taxes are the “kiss of death” for any small business owner. They tack on penalties totaling 33% in just the first 16 days! And it doesn’t stop there. The IRS adds interest on top of the penalties too. It is not uncommon that a payroll tax liability doubles in short order. And if you don’t pay them or work something out, they will shut you down! It’s much less work for the Revenue Officer, as most are lazy, to simply close you down than work out an arrangement with you.

They IRS Will Collect Or They Will Shut You Down

It’s as simple as that. The IRS is the most brutal collection agency on the planet. They have more authority than the President of the United States! And they have all the ways and means to do whatever it takes to collect what’s owed to them. You didn’t wake up in the morning, go to work, and say to yourself, I’m not paying my payroll taxes because you didn’t want to. The money simply wasn’t there. It’s not your fault. One week you’re short of cash. It was a slow week, a customer’s check bounced, or any number of legitimate reasons that just prevent you from paying the IRS. You’re a good person. You figure you will make it up the next week. But then next week comes and goes, and you realize you still don’t have enough money to make that payroll tax deposit. And then the entire situation starts “snow-balling” into an avalanche.

Should You Call The IRS To Get Your Payroll Issue Fixed?

If you were to call the IRS, and were able to get through after waiting on “hold” for an hour or two, and try to explain your situation—you might as well have a conversation with the wall—because they don’t care. The IRS representative that you’re talking to probably makes less than $20 an hour and is poorly trained. Do you think they ever had to make a payroll in their life? Do you think they know what it’s like running a small business? Do you really think they will have any sympathy for you?

Not only is the answer “NO” but they can also dictate the fate of your case. What they will try to get, while you’re on the phone, is all your personal and financial information. They want to know where you bank; they’ll want to know all about your customers who owe you money, they’ll want to know about the value of all your assets, like your home, cars, motorcycles, etc. Why? Because now they have all the information they need to levy your bank accounts, take your receivables and seize your property.

Now that you know you shouldn’t be talking to the IRS because they are not going to help you, you might be wondering what you should do? Where should you turn for help? The smartest thing you can do to protect your business and family is to have someone represent you—someone who deals with the IRS for a living. You need to get help—but not just from anyone—you need help from someone who is an experienced competent professional, and deals with the IRS every day, helping small business owners keep their businesses and settle IRS payroll tax problems.

If you were charged with a serious misdemeanor or felony, would you go to court without a lawyer? You don’t want to represent yourself before the IRS either. You need professional, expert representation.

Reach out to our firm to get expert tax resolution help. We’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

Once you decide to retain us, we step into your shoes and protect you from the IRS’s abusive tactics. We take over all communications from the IRS on your behalf. You don’t have to speak with the IRS anymore. We do. Not only that—they are not allowed to talk to you once you’ve signed our Power of Attorney! Once they realize you have someone on your side protecting you who knows their tricks as well as they do, they have to step back and follow the law. We can protect you from the IRS harassing you, calling you, showing up at your front door, and levying your bank accounts and other assets!

Contact us now and lets get your payroll tax issue resolved!

Is it Bad to Settle With the IRS?

Thu, 23 Jun 2022 17:16:32 GMT

An "offer in compromise" is a negotiated settlement between the taxpayer and the IRS that is intended to help taxpayers who owe more than they can pay. In a lot of cases, you can settle your entire tax bill for a fraction of what you owe, if you qualify. You can only get one if you genuinely can't afford to pay back taxes or if doing so would cause extreme hardship. This can apply, for example, if you have become disabled.

You have to be current on all legally required income tax returns and must be current on any estimated tax payments if you are self-employed and you cannot file for bankruptcy.

The IRS would rather take an offer in compromise than send you to collections and potentially get less money. Taking an offer in compromise will NOT affect your credit score. Having your offer in compromise accepted is a far better financial decision in the long run.

However, working out what offer to make on your own and learning the whole process can be challenging. That’s like representing yourself in a court of law without a lawyer. Not smart. A better answer is to find a tax resolution specialist that can help you with the process to see if you qualify and determine what you will have to pay.

One of the great things about working with a qualified and local tax resolution firm is that you get protection from the overbearing IRS, letting you sleep better at night knowing you’re on your way towards permanent tax resolution. They can head-off any impending garnishments of your paycheck or levies on your bank account.

Settling with the IRS is a good thing and is often the best answer to dealing with your back tax bill and moving on with your life.

If you want an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

If You Don't Have Money to Pay Your Taxes, You Have Legitimate Options

Wed, 15 Jun 2022 02:06:38 GMT

First, make sure that you file your returns

Even if you have no hope of being able to pay your taxes, you must at least file your income tax returns. Whatever the penalties are for not paying your taxes, the penalties for not filing are much larger and non-filers can be subject to a criminal investigation. The IRS will remove penalties for not filing and not paying, but you have to have a good reason. We can request to have your penalties removed or reduced. It's also important to remember that when you file for an extension, it only gives you more time to file. Your payment date remains unchanged.

Revisit your W-4 withholdings

If your employer withholds money from your salary to pay your taxes, you shouldn't have to worry about paying anything extra from that income source. If you do owe more, it's a sign that your withholding exemptions are incorrectly reported on your W-4 form. To make sure that you don't get into tax trouble repeatedly, you should make sure your W-4 form is correct and get advice from a tax professional about the kind of withholdings necessary for exemptions.

Make a partial payment

If you can't afford to pay all that you owe, you should pay whatever you can. While you will still be hit with interest and penalty charges, they will be smaller than they would be if you paid nothing. These charges are proportional to what you owe the IRS.

Try to work with the IRS

If you can't pay, there are resolution options available to you if you qualify for them. They include a payment plan or an offer in compromise to name a few. You need to first step up and admit to your inability to pay, though.

An offer in compromise is an agreement between the IRS and the taxpayer that allows the taxpayer to settle their debt for less than the amount owed. Sometimes, for a fraction of the amount owed. There are strict eligibility requirements, and you should consult with a tax resolution specialist first.

An installment agreement, aka payment plan, is an agreement between the IRS and the taxpayer that permits the taxpayer to pay back their debt over time, generally in 60-72 months. Depending upon the amount owed, and ability to make monthly payments, determines the type of installment agreement the IRS will allow, as there are several variations of these payment plans. An experienced tax resolution specialist will guide you through the maze and myriad of these different options.

If you need an expert tax resolution provider who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

Do You Owe Back Taxes? Why You Should Stop Panicking & Start Planning

Tue, 24 May 2022 22:48:39 GMT

Confirm the Amount Owed

When you owe back taxes, one of the first things you should do is make sure you really owe the money. The IRS has been known to make mistakes, a lot of mistakes, and the agency is far from foolproof. Contact the IRS or have us do an IRS transcript analysis to determine the amount the IRS claims you owe.

Seek Out Deductions You May Have Missed

At the very least, you may not owe as much as you think you do, and every dollar you can remove from the bill is one more dollar in your favor. Now is the time to scour your past and current tax returns, looking for deductions and tax credits you might have missed.

Unless you are a seasoned tax expert, you will probably need some professional assistance to make this happen. If you are already working with a CPA or tax expert, you can ask them to look at your past tax returns but only a tax resolution expert, who helps people like you for a living, can protect your income and assets as you go through the process.

If you missed a few deductions and tax credits along the way, your tax professional can file amended returns on your behalf, lowering the amount of tax debt you owe - and possibly eliminating it altogether. However, you usually can’t go back more than 3 years to amend returns.

Look for Special Programs You May Qualify For

The bad news is the IRS wants its money and has the power to collect it.

The good news is the tax agency also offers several programs tax filers can use to make the repayment process easier. In some cases, the IRS may even be willing to settle for less, possibly much less, than the total amount of back taxes you owe.

These programs are not available to everyone, and if you have the resources needed to pay your back taxes, the IRS is unlikely to give you much of a break. But if your resources are limited, the tax agency may decide that a small amount of tax repayment is better than none at all.

The first step in the process is finding the programs for which you might qualify, and that will probably require the help of an experienced tax resolution expert. Negotiating with the IRS is not an easy thing to do, and you may need help to drive the best bargain and reduce your back taxes. In the end, it may be well worth paying a tax relief expert to negotiate on your behalf, especially if you end up with a much lower tax bill.

It is easy to panic when you owe back taxes, but you should not let fear get in your way. The longer you ignore the problem, the worse it is likely to get, and the sooner you act, the better off you, and your finances, will be. There is a solution to every IRS problem. Let us see what IRS tax debt settlement programs you qualify for today.

7 Reasons to Work with a Tax Resolution Professional To Resolve Your Back Taxes

Mon, 09 May 2022 17:03:22 GMT

3. The tax resolution process could save you a lot of money. Tax resolution professionals are experts at settlements, and working with one could save you a ton of money.

4. Timely action could save your home and property. If you wait too long, you could put your home, business, bank accounts and personal property at risk. Time is of the essence when it comes to resolving tax issues, and timely assistance could make a world of difference.

5. You will feel less alone. Few things feel as lonely as fighting the IRS on your own. When you work with a tax resolution expert, not only do you not have to go it alone but they actually step into your shoes to represent your best interests.

6. You will have a chance to file missing returns. When faced with a big tax bill, it is easy to do nothing, but failing to file legally required tax returns could have serious consequences down the line. If you have years of unfiled returns, a tax resolution expert can help you catch up.

7. You could save your credit score. Unresolved issues with the IRS will reflect badly on your credit report, lowering your credit score and making it harder to borrow money or qualify for a mortgage. Timely tax resolution could preserve your stellar credit score and help you avoid those serious consequences.

Owing money to the IRS can be pretty frightening. There is a reason those three letters strike so much fear into the hearts of ordinary citizens, even those who have done nothing wrong.

If you are in trouble with the IRS, you cannot afford to ignore the issue, so act fast and get the help you need today. Working with a tax resolution expert carries a host of benefits, starting with the seven outlined above.

Most likely, you wouldn’t go to court without a lawyer. Similarly, it’s best not to deal with the IRS without expert representation which can be provided by a tax resolution expert.

Reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem.

Owe Money to the IRS? Use These Money Saving Tips Before You File

Fri, 15 Apr 2022 04:28:28 GMT

Boost Your Year-End 401(k) Contribution

This might not help you for 2021 but planning ahead is always key and for 2022 you still have time to increase the amount you put into your 401(k) plan at work. All it takes is a form from HR and a simple instruction and you will be putting more money aside for the rest of the year - and reaping the tax benefits when you file.

Boosting the amount you put into your 401(k) for the end of the year is one of the best ways to reduce your taxable income. You might even decide to make the increase in contribution levels permanent, giving you an additional benefit year after year.

Beef Up Your IRA Contributions

You have until the tax filing deadline to make your final IRA contribution, and putting more money in now could save you a lot of money when you file. If you qualify for a deductible IRA, you can use the contributions to reduce your taxable income, giving you a big benefit and helping you save a lot of money.

It is important to check the contribution limits carefully to make sure you do not run afoul of the IRS regulations. If you contribute too much you could end up with a penalty, and that will erase any benefits you would otherwise have received.

Sell Your Losing Stocks or Crypto Investments

If some of the stocks or crypto you bought have been less than stellar performers, cutting them loose could save you money on your taxes and free up the remaining cash for better investments. This strategy works particularly well if you have capital gains elsewhere in your portfolio, since you can use the losses on some stocks to offset the winners in your portfolio.

There are a number of things to consider when using this strategy, including how long you have held the stock and your feelings about the company. If you are unsure about how to make the sale, or whether or not you should, just check with your broker or financial advisor.

No one wants to owe money to the IRS, and the tax agency can be especially difficult to deal with. If you want to avoid this unhappy scenario, sound tax planning throughout the year is your best defense.

If the results of your careful planning still show that you owe money to the IRS, there are things you can do, even late in the game. The steps listed above can reduce your overall tax bill and give you more breathing room with the IRS.

OWE BACK TAXES?

Our firm specializes in tax resolution and helping people who owe the IRS $10,000 or more. We’ve seen taxpayers get blindsided every year by a huge tax bill and often falling behind on their taxes for years on end. If that’s you, we can help. Contact our firm today to discuss your tax debt settlement options.

Tips for Making Self Employment Less Taxing

Tue, 29 Mar 2022 23:11:08 GMT

If you get blindsided by a tax bill of more than $10,000 to the IRS but can’t pay in full, contact our firm today . We help people find tax relief.

If you are newly self-employed and want to avoid this fate, here are some timely tips for making your self-employment activities less taxing.

Set up a business bank account. It is important for the self-employed to keep their personal and business activities separate, and the best way to do that is with a business bank account. A basic business checking or savings account will make it easier to track your income and expenses, making tax season easier and less costly.

Open a business credit card account. Having a separate credit card in the name of your business will give you an easy way to pay expenses applicable to your self-employment income. This can make expense tracking, reporting, and tax filing a lot easier.

Avoid underpayment penalties by making quarterly payments. When you work a traditional job your employer is responsible for accurate tax withholding, but the self-employed are not so lucky. As a self employed individual you are responsible for paying your taxes on a timely basis, and failing to do so could trigger costly penalties and interest. Making quarterly payments to the IRS is the best way to avoid those expensive repercussions.

Track expenses throughout the year, not just at tax time. If you wait until April to add up your expenses, you could miss deductions that would have otherwise reduced the amount you owe. Tracking expenses when they are incurred will help you avoid this underreporting, so you get credit for every penny.

Research retirement plans for the self-employed. The self-employed have access to some exceptionally generous retirement plans, including solo 401(k) plans and SEP-IRAs. These accounts can sharply reduce the amount of taxes you pay, so do your homework and choose the one that is right for you.

Have your taxes reviewed by a qualified tax professional. When your taxes are simple, doing them yourself is pretty easy. Tax software makes tax filing simple, but that simplicity could be costly when you are self-employed. Even if you are confident in your abilities, having your work reviewed by a CPA could save you a lot of money.

There is a lot to love about self-employment, from the chance to work at home to the opportunity to live life on your own terms. Even so, being self-employed can be taxing, quite literally, and it is important to plan carefully from the start. The tips listed above can help you reduce your taxes, so you can keep more of the money you worked hard for.

OWE BACK TAXES?

Are You Self-Employed? Here's How to Prepare for Tax Time and Avoid Getting Into Tax Debt

Sun, 13 Mar 2022 03:39:42 GMT

Note: If you find yourself in tax debt, owe back taxes or are under audit, our firm can help negotiate with the IRS and potentially settle your tax debt. As a tax resolution firm, we always recommend that you reach out to a professional who knows how to aggressively negotiate and defend you against the IRS on your behalf. Call us today. Our tax resolution firm can navigate the IRS maze so that you have nothing to worry about.

Verify Your Advance Tax Payments

The only thing worse than paying money to the IRS is not getting credit for it. As a self-employed individual or gig worker, you have probably made advanced payment to the tax agency on a quarterly basis, so dig out those canceled checks, grab those receipts and get ready for tax time.

When you file your taxes you will need to input the dates you submitted those quarterly payments, and those days may or may not coincide with the formal schedule laid out by the IRS.

Add Up Your Income

Even if you are relying on your clients to issue 1099 forms, it is a good idea to tally up your income on your own. Keep in mind not all clients may issue 1099s, and the ones that do could report inaccurate or incomplete figures, and by adding it up on your own you will be able to catch these problems early, while replacement forms can still be issued. Also, all income received is required to be reported whether or not a 1099 is issued.

Adding up your income will also serve a number of other purposes, each important to your timely tax filing and the maximizing of your hoped-for refund. For one thing, knowing how much you earned will allow you to maximize retirement plan contributions aimed at the self-employed, a big potential savings you might otherwise miss out on. Adding up your earnings will also allow you to estimate your tax due or refund, giving you time to prepare and helping you avoid an unpleasant shock when April 18 rolls around.

Tally Your Expenses

The world of self-employment can be taxing, but there are also potential savings to be had. As a self-employed individual or member of the gig economy, you may be able to write off everything from office supplies and furniture to computers and gasoline for your car.

Now is the time to tally your expenses so you do not miss out on a valuable deduction when filing season rolls around. Be sure to look at expenses that may have been paid automatically as well, including recurring payments for routine costs like internet access and phone service.

Seek Out Additional Deductions

The calendar year may be over, but you still have time to reap some valuable deductions. Now that you know how much you have earned in self-employment income, you have the opportunity to seek out new deductions and maximize the ones you have already taken.

If you participate in a retirement program for the self-employed, for instance, you can contribute additional money up to the tax filing deadline, giving you a chance to pile current earnings in and apply them against the taxes that would otherwise be due. These generous tax breaks for retirement savings are among the most valuable for the self-employed, and you still have time to take advantage of them.

It goes without saying that you should consult a tax expert for specific questions about retirement plan contributions, possible deductions, and other applicable subjects. Even if you plan to file your own taxes, consulting with an expert could save you a lot of money.

Run the Numbers through a Tax Estimator

For many in the self-employed community, early filing is simply not an option. If you have investments in a brokerage account, for instance, you may not receive the tax forms you need until well into February or even March, making tax planning that much more difficult.

The fact that your personal tax filing season will likely be delayed is certainly frustrating, but it does not mean you cannot run the numbers on your own. You can estimate your tax bill online using the figures you have already compiled, giving you a good idea of what to expect when the real filing season rolls around.

A number of tax preparation companies, including big names like H&R Block and Intuit, provide free online calculators, so you can assess your tax situation well in advance. If you prefer you can simply enter the numbers you do have into your favorite tax filing software program for a fast and easy estimate.

Tax filing season is stressful for nearly everyone, but it can be a particularly challenging time for gig workers and the self-employed. From chasing down forms from reluctant clients to finding deductions that will lower the tab, the self-employed and members of the gig economy must overcome many hurdles by the time the tax filing deadline rolls around, and the sooner they get started the easier their lives will be. The tips listed above will help you slay your own personal tax demons, so you can rest easy and focus on building your business.

If you find yourself a large surprise tax bill or a collection notice from the IRS, the steps you take next are absolutely critical. Trying to take on the IRS on your own is a dangerous, and potentially expensive thing to do, and you should always contact a tax resolution firm.

By working with an expert, you can gain access to vital information about small business settlement programs the IRS offers. You can gain access to the expertise you will need to settle your tax bill for less than you owe and get back in the good graces of the IRS. Time is of the essence when the IRS comes calling, and with the interest and penalty clock ticking you do not have one second to waste. So call us, your tax resolution expert, for a case evaluation.

Tax Relief Options for Small Business Owners

Fri, 11 Feb 2022 00:43:05 GMT

Small business owners are increasingly the target of enforcement efforts by the IRS, but the IRS does have some programs in place to make paying what those business owners owe easier. In some cases, those small business tax relief and tax resolution programs let you settle for less than what you owe, but qualifying is not as straightforward as you might think.

For businesses that may be eligible, the assistance of a tax resolution specialist is absolutely critical. These experts can help guide you through the process and make sure you qualify, so you can rest a little easier and get back to building your business.

Payment Plans/Installment Agreements

If the amount your small business owes to the IRS is relatively small and you do not want to deal with additional hassles, it may make sense to pay the entire bill in full. If paying in full would be a hardship, the IRS does offer payment plans, and setting one up can make paying back what you owe easier and more financially palatable.

Keep in mind that interest will continue to accrue while the debt remains outstanding, and that is something to think about.

Offer In Compromise

If you’re under a lot of financial hardship, it may make more sense to try for

an offer in compromise (OIC), a special IRS program that could allow you to pay back much less than you owe.

The offer in compromise program is a popular one with individual taxpayers and small business owners. If paying the entire amount would create a financial hardship for you, your family or your business, a tax resolution specialist can help you make the case to the IRS that you deserve a break.

What’s the best option?

Each of these options has its pros and cons, and it is important to understand how these programs work and who qualifies to use them. If your small business is in trouble with the IRS, taking the right action right away could reduce the amount you owe, give you some breathing room and allow you to focus on your clients - not on your taxes.

Running a small business has its challenges, but those difficulties are nothing compared to the stress and anxiety small business owners feel when dealing with the IRS. With so many small business owners now in IRS crosshairs, it has never been more important for freelancers, gig workers, and the self-employed to have an advocate in their corner.

If you find yourself on the wrong end of an audit, an examination, a tax bill, or an enforcement action from the IRS, the steps you take next are absolutely critical. Trying to take on the IRS on your own is a dangerous, and potentially expensive thing to do, and you should always contact a tax resolution firm.

By working with an expert, you can gain access to vital information about small business settlement programs the IRS offers. You can gain access to the expertise you will need to settle your tax bill for less than you owe and get back in the good graces of the IRS. Time is of the essence when the IRS comes calling, and with the interest and penalty clock ticking, you do not have one second to waste. So call us, your tax resolution expert, for a case evaluation.

Avoid the April 15 Blues - Take a Step-by-Step Approach to Your Taxes This Year

Fri, 04 Feb 2022 05:26:11 GMT

That said, we recommend taking a methodical and step-by-step approach to preparing and filing your taxes and avoid burying your head in the sand on April 15th. As with any unpleasant and complicated task, breaking your taxes down into smaller and more manageable chunks can make things easier. This year, vow to take a step-by-step approach to your tax return. If you follow these simple steps, you could be done with your taxes before you know it.

Step 1 - Set Up a Command Center

Chances are you will start receiving tax documents in early January, and you may still be receiving those documents in March. That means you need a convenient place to keep all those documents. Setting up a command center in your home makes it easier to store those documents and keep them at hand.

If you have a home scanner, take a few minutes to image each document as it arrives. Set up a special folder on your computer or cloud storage service to hold all those documents. Those electronic copies can be invaluable if the originals are damaged or destroyed.

Step 2 - Choose A Good Tax Preparation Service (But Use A Tax Resolution Service For More Complicated IRS Issues)

While they cannot make the task totally painless, tax preparation professionals do make the process a great deal easier.

Keep in mind, if you owe multiple years of taxes and have multiple years of unfiled returns, we recommend reaching out to a tax resolution firm that will understand your unique situation and find the tax relief you need. Most tax preparers aren’t trained in complex tax resolution, so find the right firm to help you with your case.

Step 3 - Enter Your Tax Documents As You Get Them

One of the great things about technology is that you can organize and file each tax document as you get it, often you can download all your tax documents from various online services. For example, your direct deposit payroll service will give you your W2 and different vendors provide statements and 1099’s online. If the mailman brings you a 1099-INT or a W-2, you can simply scan things as they come in.

Just open each document, scan it to create an electronic backup and log on to your favorite secure cloud storage to file your documents. Whether you get five tax documents a day or just one, entering the information now can save you time later on.

Step 4 - Review Your Documents and Final Tax Return

After you think you have all your documents organized and your tax return is ready to file, the next step is to review everything and make sure there aren’t any obvious issues. Go through the paper and electronic copies and check each one off on your tax return. If any of those documents are missing or anything is wrong, go back and enter them right away.

Step 5 - Bring It All Together

Now that the final review is complete and all the documents have been entered, it is time to bring it all together and actually file your return. Your tax prep professional should include a series of checks designed to catch common errors and point out audit flags. Be sure to ask questions and correct any problems you might find. Be sure to print off a copy of your tax return and save an electronic version to your computer.

Nothing can make filing taxes fun, and this annual chore will never be a pleasant one. Even so, you can make the task less taxing by breaking tax filing down into its component parts. Following the steps outlined above can help you deal more effectively with your tax bill and all the complexities of the tax code.

OWE BACK TAXES?

Our firm specializes in tax resolution and helping people who owe the IRS or state $10,000 or more. We’ve seen taxpayers get blindsided every year by a huge tax bill and often falling behind on their taxes for years on end. If that’s you, we can help. Contact our firm today to discuss your tax debt settlement options.

IRS Fresh Start Program Changes Make It Easier to Apply and Get an Offer in Compromise

Fri, 21 Jan 2022 05:45:27 GMT

The IRS has also clarified how a dissipated asset will be included in a taxpayer’s calculation of reasonable collection potential.

In some cases, equity from income-producing assets will not be included in a business’s calculation of reasonable collection potential.

What is an Offer in Compromise?

An offer in compromise, or OIC, is an agreement between the IRS and taxpayers to settle their tax liabilities for far less than the total amount owed.

The IRS generally won’t accept an OIC if the agency believes the taxpayer can pay the liabilities in full through a payment agreement or in one lump sum.

The IRS analyzes the taxpayer’s reasonable collection potential to determine whether an OIC will be accepted.

If you owe back taxes, our firm can help negotiate with the IRS and potentially settle your tax debt. Call us today. Our tax resolution specialists can navigate the IRS maze so that you are able to take full advantage of the changes made through the Fresh Start Program.

If you have outstanding tax liabilities and struggle to pay what you owe, the IRS Fresh Start Program may provide the relief you need to get out of debt and avoid further penalties. The new changes to the program allow more individual and business taxpayers to take advantage of programs like an Offer in Compromise.

Common Tax Relief Programs the IRS Offers

Tue, 11 Jan 2022 06:13:14 GMT

With that said, here are some of the most common tax relief programs the IRS has to offer - and how you can access them.

#1 Payment Plans

Otherwise known as installment agreements, one of the most common ways taxpayers approach the repayment of their back taxes is by setting up a payment plan. This type of program is a popular one, and for good reason - it can greatly reduce the stress you feel as you deal with an unexpected tax bill.

There are pros and cons to this approach, and it is important to explore your other options very carefully. With a payment plan you may need to pay the entire amount you owe, but you can stretch the repayment out over months or even years. Keep in mind, however, that the IRS will continue to charge interest on the remaining balance, so this option will require you to pay more than the amount you now owe.

Offer in Compromise

Another program the IRS offers is known as the offer in compromise, or OIC. This option allows eligible taxpayers to settle their tax debts for much less than the IRS says they owe, and that means you could save a lot of money if you qualify for this program.

The offer in compromise is not right for everyone, and it is important to work with a tax relief expert or tax resolution specialist if you are exploring this kind of compromise. If you have significant assets, the IRS may not be willing to settle, but if you are strapped for cash the offer in compromise arrangement could be a great way out of the trouble you find yourself in.

IRS Hardship Program - Currently Not Collectable

The IRS hardship program is another option for taxpayers who are financially unable to pay what they owe to the tax agency. If you are truly strapped for cash and worrying about your tax debt, you should definitely check out the hardship program, but you should not try to work with the IRS on your own.

The hardship program has some very specific requirements, and if you make a mistake when applying, you could find yourself locked out of the process. By working with a tax resolution specialist you can increase your odds of success and possibly save yourself a lot of money in the process.

What is the best option?

As you can see, the IRS does offer a number of programs that can reduce the amount you owe - or even forgive your tax debt altogether. If you are eligible for one of these tax relief programs, you could find yourself breathing a lot easier, but the IRS is not likely to give you the information if they do not have to.

As a taxing authority and agency, the IRS has an interest in keeping these relief and resolution programs under wrap. Their goal, after all, is to collect as much money as possible and telling taxpayers that they can pay less is simply not in their interest.

For all of those reasons and more, it is important to work with a tax resolution professional whenever you are dealing with an IRS problem. Whether the debt is the result of years of unfiled taxes, a discrepancy in the amount reported and what the IRS says you owe or anything else, specific expertise can make a huge difference - and save you a lot of money in the process.

What Can the IRS Do to Collect Back Taxes?

Tue, 04 Jan 2022 05:47:52 GMT

As if all this were not frightening enough, the tax agency also has the power to levy your bank accounts, including the accounts you need to run your business and your life. Those bank account freezes could leave you without the cash you need, putting you in a real bind and forcing you to pay back what you owe.

Your home could even be at risk if you owe money to the IRS. The tax agency could, for instance, apply a lien against not only your primary residence but any other real estate you own. The threat of this kind of action has compelled many taxpayers to cough up the money the agency says they owe, even if they think the IRS is wrong.

As you can see, the IRS has wide latitude and plenty of power, and the tax agency is often unwilling to settle for less than the government says you owe. If you disagree with the amount the IRS is asking for, or if you simply do not have the money to pay the bill, you need to act fast. Ignoring the problem will only make it worse, and you cannot simply pretend that you never pulled that fateful envelope out of your home mailbox.

If you are on the wrong end of a compliance action by the IRS, you cannot afford to leave anything to chance, and you certainly should not try to fight back on your own. The tax code is complex, and far more pages than the Bible, and like that Holy Book, many of the terms are arcane and difficult to understand.

When fighting the IRS, you need the help of a professional, and that is where a tax resolution expert comes into play. By working with a professional you can fight back on an even playing ground, and the money you save could be worth far more than the fee you pay.

Tips for Finding a Qualified Tax Resolution Firm

Tue, 28 Dec 2021 04:57:11 GMT

#1 Read Their Reviews Online

By reading online reviews you can quickly see if the tax resolution firm is reputable and stands by their clients. A lot of the big national firms will have terrible reviews but they market themselves heavily, so consumers don’t think twice about their reputation.

If you owe back taxes, waiting can cost you a lot of money and if the tax resolution firm disappears on you or doesn’t return your call, that wasted time could cost you dearly. This can easily be snuffed out by seeing if they have good online reviews about their services.

#2 Make Sure the Tax Resolution Firm Has Experience and A Proven Track Record

Negotiating with the IRS to settle your tax debt is a specialized skill that not all tax attorneys or tax professionals have. It’s important to ask about their recent case settlements and success stories. A true tax resolution professional will have proof they’ve done this before and successfully helped resolve back tax problems.

#3 What Does Their Communication Look Like Once You Sign On?

A professional and experienced firm will have systems in place to make sure you’re updated regularly on your tax resolution case. The IRS moves slow and there will likely be big gaps in time in between updates from the IRS. That doesn’t mean the tax relief firm should also have gaps in communication.

Ask how long they think it’ll take to resolve your tax problem, and how you’ll be updated even if they don’t have any news from the IRS.

#4 Avoid Big National Firms With Salespeople Who Promise The Moon But Don’t Deliver

You’ve heard their ads on the radio or TV. If you call a big national firm you’ll likely get a salesperson who knows very little about taxes or how to settle your tax debt.

Not every taxpayer qualifies for all the IRS tax debt settlement programs. However, these salespeople will promise you the moon but will fail to deliver because they didn’t take the time to understand your specific situation and they’re not actually licensed tax resolution professionals.

Make sure to ask who will be responsible for your case and try to speak with them directly before signing up. A true tax resolution expert will be happy to speak with you to make sure they can understand your case and offer you the right solution.

Need Tax Relief?

If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

Tax Deductions You May Be Eligible for as a Freelancer

Tue, 21 Dec 2021 05:22:58 GMT

1. Home Office

If you have a home office, you will be able to deduct a part of your rent or home expenses as an expense for your business. Be careful though, home office deductions may require a dedicated office space so speak to a tax consultant to find out if you qualify. In addition to your home office, you can deduct any related office supplies you used over the year. Keep the receipts for paper, ink, and any other home office supplies you've purchased. You should also be able to deduct any technology you bought specifically for work. If you have a work computer, internet, and office furniture, those may qualify for a tax deduction. Furthermore, you can deduct any expensive software programs you need to purchase for work like adobe photoshop or your word processor.

2. Insurance Premiums

If you work from home, you may be able to deduct your health insurance costs or any other insurance that is required for your job. If you have to purchase liability or malpractice insurance, that is a work-related deduction.

3. Travel Costs

If your work requires you to travel, the cost of that travel is a deduction. Hotel costs, mileage, and even food you eat during work trips are deductible expenses. However, if you are partially traveling for work and luxury at the same time you have to be careful. Any portion of your trip used for a personal vacation is not a deduction. You can only deduct expenses that are specific to your work costs.

4. Advertisement Expenses

If you've spent any money advertising your business, you can use that expense as a write-off. Any type of advertisement will qualify as a deduction whether you created online ads or utilized influencer marketing for sponsored posts. If you spent money on promoting your business, record that expense for your tax records.

5. Car Expenses

If your automobile is an integral part of your work, you can deduct expenses that are associated with it. You can itemize costs like auto insurance, gas, and any maintenance work you had to pay for. However, you can only deduct the expenses you utilized while working. If you used your business car as a personal car, you cannot deduct all of these expenses and will need to figure out the percentage of time you used your car to work.

6. Occupational Licenses

If your freelancing job requires you to pursue a license in your field then that license becomes a business expense. You may not have to renew your license annually but in the years you do pay to renew, you can deduct that from your tax costs.

Owe Back Taxes and Need Tax Relief?

While many of these tax breaks may seem incredibly appealing, filing them incorrectly can result in an audit or the IRS disallowing your deductions and charging you penalties and interest on your tax debt, making your problems worse.

4 Common Tax Return Mistakes That Could Get You in Trouble with the IRS

Fri, 17 Dec 2021 05:22:51 GMT

That said, lets jump into the 4 common tax return mistakes that could land you in tax trouble.

#1. Transposed Numbers

If the 1099 you receive shows $6300 in income and you inadvertently enter $3600 instead, the IRS may see this as a tax dodge instead of an innocent mistake. At best, transposing numbers will slow down your refund and raise a red flag with the tax agency. At worst, it could trigger an audit or further examination of your entire return.

IRS computers are very good at comparing the figures taxpayers report to the ones they receive independently from banks, brokerage firms and other agencies. Be sure to double-check and verify every number you enter and make sure it is right. Your tax software can tell you if your numbers do not add up, but they cannot catch transposed figures.

#2. Misspelled Names

It is easy to misspell a name or transpose a Social Security number when entering dependent information, but doing so could cause real problems with your return. Be sure to double-check the names, ages, and Social Security numbers of all your children before sending your return to the IRS.

Do not assume that all of that information will be transferred from a prior year return.

#3. Missing Social Security Numbers

It is easy to forget this vital piece of information, and doing so could delay your return and cause long-lasting problems. You may assume that your tax prep software will automatically enter your Social Security number, but that does not always happen.

Be sure to give your Social Security number (and that of your spouse) one last look before filing your return. That last minute check could save you a world of trouble later.

#4. Not Reporting All Your Income or Taking Too Many Deductions

The IRS will likely get notified of income you received throughout the year, and it doesn’t just include your W-2 wages. It’s important to keep track of all your income and report it to the IRS correctly to avoid any problems.

It can also be tempting to click a few extra boxes and input a few made up numbers as deductions to bring your tax liability down. DO NOT DO THIS. Just because the software lets you do this, doesn’t mean you should.

It’s not the software’s job to tell you whether or not you should be taking that extra deduction or write off, it’s the taxpayer’s job to be honest and file their tax returns correctly.

NEED TAX RELIEF?

If you made a mistake on your tax return and end up on the receiving end of an IRS notice, or if you have years of unfiled tax returns, reach out to our office . We’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

8 Ways to Get Ready for Tax Season and Avoid a Back Tax Problem

Tue, 14 Dec 2021 01:25:06 GMT

If you do get in trouble with the IRS and they claim you owe $10,000 or more, reach out to our tax resolution firm and we’ll schedule a free, no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem.

So, if you don't want to end up owing the IRS a ton of money, here are 8 ways to get ready for tax season and reduce your stress level as this annual ritual approaches.

#1 Organize your records.

Now is the time to drag out last year's tax return, pull out your most recent pay stub and get organized before the season starts.

#2 Settle any back taxes you might owe.

If you have years of unfiled returns or have a tax issue for anything besides the current year, you should get this handled now before the upcoming tax season. When April 15th comes around, your tax professional is likely swamped with returns and they'll pay less attention to your back tax debt. We recommend reaching out to a specialized tax relief firm like ours who handles complicated tax debt cases all year round.

#3 Defer bonuses and incentive pay.

If you're going to owe taxes, it might make sense to defer getting paid so you can lower your taxable income. If you can, you might want to defer any bonuses and incentive payments. You can also defer payments from retirement accounts and IRAs to save on current-year taxes.

#4 Look for additional deductions.

Now is the time to make those last-minute donations to charity, so start writing those checks and gathering up those household goods. Be sure to get a receipt and save your cancelled checks so you can substantiate your charitable giving if a question should arise later.

#5 Expand your education.

Not only can taking a class improve your business or career prospects and help you get ahead, but that additional education could also lower your tax bill. You might qualify for a generous tax credit or take a good tax deduction for investing in your future.

#6 Up your retirement savings.

The end of the year is the perfect time to increase your 401(k) contributions and make your annual IRA investment. Maxing out your 401(k) and IRA contributions is one of the best ways to reduce your tax bill while saving for the future.

#7 Sell your losers and let your winners run.

If you have substantial capital gains in your stock portfolio or crypto portfolio, selling your losers could lower your tax bill. You can use those losses to offset your capital gains and save money on your taxes.

#8 Estimate your income for tax planning.

You will not know the exact amount of income you received until all your documents are in, but you can estimate your compensation and start doing some advance tax planning. This can be key in preventing back tax debt to avoid being blindsided by a large tax bill come April 15th.

Tax season will be here before you know it, and now is the time to get ready. You do not have to wait until April to start your tax planning, and the sooner you get started, the sooner you can put this unpleasant task behind you.

Need Tax Relief?

Four Ways Freelancers and Gig Workers Can Trim Their Tax Bills

Wed, 08 Dec 2021 04:50:04 GMT

#1. Fund a Health Savings Account

If you work for someone else, there is a good chance your boss picks up part of your health insurance costs, but freelancers and gig workers do not have that luxury. These self-employed individuals face additional challenges when it comes to health care, seeking affordable policies on the open market, and saving money where they can.

One way the self-employed can save money and trim their tax bills is with a health savings account. Eligible individuals can contribute to a health savings account on a pre-tax basis, taking a serious tax deduction while making their health care more affordable. This tax savings can be a very big deal.

#2. Contribute to a Retirement Fund for the Self-Employed

Freelancers and gig workers need to look out for their own retirement, but there are plenty of options available. The annual contribution limits on retirement plans for the self-employed are among the most generous around, so you may be able to shelter a significant portion of your earnings from the tax man.

If you have a tax ID for your freelance business, you may be able to contribute to a solo 401(k). This plan works much the same as a traditional 401(k) plan, but the contribution limits could be even higher. Even if you do not have a tax ID, you can shelter part of your freelance or gig work income with an SEP-IRA or similar retirement plan.

#3. Take the Home Office Deduction

If you work out of your home, taking the home office deduction could save you a lot of money. If you are eligible for this valuable deduction, you could write off a portion of your property taxes and other home ownership costs, reducing your tax bill and keeping more money in your pocket.

There are specific rules regarding the home office deduction, so check with your tax preparer to make sure you qualify. If you can take the deduction, be sure to keep accurate records, and take photos of the office in your home.

#4. Push Income Into the Next Year

Freelance income can be notoriously unpredictable. One month is great, while the next is terrible. Yearly earnings can be just as variable, making tax planning difficult.

If you are having a particularly good year, you may be able to reduce your current tax bill by pushing some of that income into the following 12 months. When the end of the year approaches, delaying client invoices and moving income into the next year could save you money in the long run.

Once again, it is important to consult a tax professional before implementing this strategy. The IRS has established strict rules concerning income reporting, and you do not want to run afoul of the tax agency.

As a self-employed individual, you face some serious tax challenges, including the dreaded self-employment tax. That higher tax burden makes smart planning essential, and you can start that planning with the four tips listed above.

Owe Back Taxes and Need Tax Relief?

Operation Hidden Treasure: Cryptocurrency And Your Taxes

Thu, 02 Dec 2021 02:57:44 GMT

Before we jump into it, if you know you owe IRS back taxes on your crypto gains, it's important to reach out to a tax resolution firm like ours who is skilled in negotiating back tax debt with the IRS. We can help you file amended returns and get you back in compliance, while negotiating with the IRS on your behalf. Contact us today for a consultation.

What Is Operation Hidden Treasure?

Operation Hidden Treasure is a joint effort by the IRS Civil Office of Fraud Enforcement and its Criminal Investigation Unit. This operation is designed to search for unreported income from cryptocurrency.

Operation Hidden Treasure has trained agents to examine the blockchain in order to find signs of tax evasion. Blockchain is the digital ledger that tracks your cryptocurrency mining and transactions. The signs that IRS agents look for are marked as signatures that make it easier to detect further fraudulent activity.

Crypto users have found ways to skirt reporting requirements by sending multiple transactions under a certain dollar amount, or pouring their virtual currency into shell corporations, different countries, and cold storage. The IRS is also collaborating with European law enforcement agencies to tackle international fraud.

How To Protect Your Assets

The IRS considers virtual currency to be property akin to gold, rather than money, and is taxed accordingly. If your only crypto transaction this year was purchasing crypto with US dollars, then that does not need to be reported, according to the IRS FAQ on their website . However, if you sold your crypto or you traded your crypto for any goods or services, then that does need to be reported.

When you sell your crypto, keep track of its value when you purchased it, and its value when you sold it. While crypto and the IRS can both be murky subjects, your transparency is the key to protecting your financial assets from future tax audits.

To get ready for the upcoming tax season, it's important to get your portfolio organized. If you have bought, sold, or traded crypto in the past year, contact a tax accountant or a tax resolution firm like ours for advice on how to report your cryptocurrency transactions.

Need Tax Relief?

Which Tax Records to Keep and For How Long. Do This and Avoid Tax Problems Later.

Sun, 28 Nov 2021 04:54:49 GMT

We help people resolve their back tax problems and often settle with the IRS for less than the amount they owe, but in order to do this, we need to provide the right records. That is where having your tax records saved can be the difference between settling your tax debt or not.

As a result, it is important to retain your tax records and keep certain tax documents on hand just in case the IRS asks for them. Here are the most common tax records and how long you should keep them around.

Save The Tax Returns Themselves

In most cases the IRS will have up to three years to question the figures you reported on your tax return, or otherwise challenge the information you provided. You may think the tax year is over, but for the IRS the final curtain does not fall for a full 36 months.

For this reason, it is generally a good idea to keep your old tax returns for a minimum of three years. You do not necessarily have to print and retain hard copies of your tax returns - electronic documents are fine as long as you will be able to access them quickly should you need them.

If you fail to keep copies of your tax returns, you can still access them by asking the IRS for transcripts. However, it is best to keep your own records, and doing so will make your life a lot easier.

Pay Stubs and W2 Forms

As with the tax returns themselves, it is generally a good idea to keep your W2 forms for a minimum of three years. This will provide you with the documentation you need should the IRS find a discrepancy between the amount of income you reported to the agency and the figures your employer provided.

It is also a good idea to retain at least your year-end pay stubs, not only to help reconcile them with the W2 forms but also for other forms of income documentation. If you are applying for a mortgage, for instance, the lender may ask to see several years worth of tax returns, pay stubs and other income documents, and having them on hand will make the application process faster and easier.

Income and Dividend Forms

The IRS looks at all of the income you report when you complete and submit your tax returns, but the agency does not just take your word for the accuracy of those figures. Instead the IRS uses sophisticated matching programs to compare the amount of income you reported from various sources with what they receive from third party sources.

Those third party sources could include your bank and credit union, your brokerage firms and mutual fund companies and any other places that provide you with income. It is therefore a good idea to hold onto any income related forms you receive for at least three years, and possibly longer if you run your own business or earn income from gig work or freelancing.

Once again, these income documents can do double duty, serving as backup if the IRS questions the numbers on your tax return but also giving you the information lenders and others might need down the road. If you store these documents electronically you will not even need to worry about buying a file cabinet, so there is really no reason to not keep them around.

Filing taxes can be a stressful experience, but the difficulty does not end when you click send on your e-filed tax return. Even after that return has been filed and accepted, the IRS could still question, challenge, or audit your numbers, and that is why it is so important to retain the backup documentation until the challenge window has passed. Now that you know what to retain and for how long, you can rest a little easier when tax time rolls around.

If you do run into tax trouble or the IRS states you owe back taxes, reach out to our tax resolution firm and we’ll schedule a free, no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem.

Do You Owe Back Taxes? Take These Steps to Protect Yourself and Your Finances

Thu, 16 Sep 2021 20:01:18 GMT

If you think the amount the IRS says you owe is wrong, then you need to make a case for why you think the assessed taxes are wrong and back it up with proper documentation and proof. Sometimes, the letter you received from the IRS can be a result of a discrepancy, meaning there is a mismatch between what was reported on your return and the figures the tax agency received through other means. There could be many reasons for this discrepancy, and there could be an innocent and inexpensive explanation and resolution.

Getting a letter from the IRS is not fun, but it is not the end of the world either. Even if you owe the taxes the IRS says you do, you may be able to negotiate a lower settlement, sometimes a much lower one.

Step #2 - Find the Tax Return in Question

The communication you received from the IRS will reference a specific tax year, so it is important to find and review that return as quickly as possible. Hopefully you have retained records that include your recent tax returns, either in paper or electronic form. If not you can request a copy from the IRS or contact your tax preparer.

Once you have your tax return in hand, you can review it carefully, looking for the discrepancies in question and seeking out your own backup information. The problem could be something like a capital gain you forgot to report or a mis-transposed number as you were entering your income information. Gather all the information and have it ready to bring to your appointment with the tax relief specialist.

Step #3 - Do Your Own Calculations

Now that you have your tax return and your backup documentation available, it is time to do some number crunching. This can be a long and frustrating process, so we guide our clients through this process when they work with us. The clock is ticking, and interest and penalties may continue to accumulate so its best to not wait too long to respond.

There should be a deadline listed on the letter you received from the IRS. Its best to get guidance from a tax relief specialist to determine what the letter and the deadline means. Its best to not delay. The IRS is a powerful organization and to work with them alone is like going to court without a lawyer.

Step #4 - Don’t Contact The IRS Directly, Contact Our Tax Relief Firm And Get The Protection You Need

The IRS is not on your side and their primary goal is to collect the taxes they believe you owe. The IRS has a number of programs in place to lower the amount owed, but for obvious reasons they do not like to talk about them.

By seeking the services of a qualified tax relief firm like ours, you will gain access to a world of knowledge, including insider information about programs that could save you thousands of dollars and get you back on the good side of the IRS. The sooner our tax relief firm gets involved, the better off you will be.

Dealing with the IRS is rarely a pleasant thing to do but ignoring a tax due notice will not make it go away. Delaying will just make a bad situation even worse, so it is important to act quickly. The good news is that our tax relief firm exists for this very purpose, so you can settle your debt without sacrificing the rest of your financial life.

Contact Our Firm Today : We help people find tax relief and sometimes settle their tax debt for a fraction of what’s owed.

Does the IRS Disagree with Your Income Figures? 7 Critical Steps to Take Next

Fri, 10 Sep 2021 18:28:53 GMT

1. Stop panicking. Getting a letter from the IRS is enough to send your heart racing, but it is not the end of the world, and panic will not help you. Staying calm and reviewing the communication will be key, so settle your nerves and move on to the next steps.

2. Review the document carefully. The letter you received from the IRS should clearly lay out where they disagree with your figures and what they used to come up with their own math. Reviewing these figures is the critical next step, and it is one you should take your time with.

3. Pull a copy of the tax return in question. The communication you received from the IRS will tell you which year's tax return is in question, so pulling a copy of that return should be your next step. Once you have the document in hand you can start to review the figures and see where the discrepancies came from.

4. Find your supporting documents. In many cases these kinds of discrepancies are caused by simple errors like transposed numbers, so compare the figures on the supporting documents to what ended up on your return. You may find, for instance, that you reported interest of $2,150 as $1,250, and the solution could be as simple as ponying up the extra tax.

5. Contact the best tax resolution firm. If you used a professional tax preparer, you might be tempted to talk to them first. That might be ok, but if you owe a large amount of back taxes, they might not be able to help. That’s where a good tax relief or tax resolution firm can help. The best tax relief firms can actually negotiate on your behalf with the IRS and find the best resolution for your tax situation, sometimes settling for less than what you owe in taxes!

6. Review the response form. If you did make a mistake on your tax return, you can simply agree to the figures the IRS reported and pay the additional tax, along with any applicable penalties and interest. If you disagree, you can respond with the supporting documents that prove your case. Either way you will need to use the response form included with the letter, so review and complete that form carefully. We don’t suggest you do this yourself, instead, call our tax relief firm and make sure you investigate the issue in its entirety. Otherwise, you could land yourself in more trouble.

7. Follow up. It can take some time for these kinds of discrepancies to be resolved, so you will need to bring a healthy dose of patience. If you agree with the notice and choose to pay the extra tax, you can see when your check is cashed or the money is taken out of your account, documenting the situation and keeping careful records. If you disagree, you will need to wait for the IRS to respond, but make sure you don’t assume the issue is resolved unless you have documentation stating that.

If you do need to contact the IRS, keep in mind that their phone lines are extremely busy. Many people who have been through this trauma recommend calling early in the morning, right after the phone lines open, so you can get in line and get your questions answer before the lines fill up.

We NEVER suggest our clients try to contact the IRS on their own. It would be like going to court without a lawyer. The IRS is not your friend, their sole responsibility in these cases is to collect taxes they think they are owed.

Hopefully you will never be on the receiving end of a nasty letter from the IRS but it is still important to be prepared. If you do find a letter from the IRS in your mailbox, following the seven critical steps listed above could save you from further trouble.

Reach out to our tax resolution firm and we’ll schedule a free, no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem.

Key Things to Look for in a Tax Relief Firm

Thu, 02 Sep 2021 03:17:18 GMT

The Right Tax Relief and IRS Negotiation Experience.

When you hire a tax relief firm, you will be hiring experts, and it is important that the person who works on your case will be up to the task. It is important to look for specific areas of expertise, including tax resolution specialists who can help you negotiate with the IRS on your behalf.

The best tax relief agencies are not necessarily huge firms; some of the best are small operators with extensive experience. But no matter what the size of the firm, the tax resolution expertise of the person working on your case is what matters the most.

Compassion and Understanding

Dealing with the IRS is not just a financial problem; it is an emotional one as well. Getting a letter from the IRS is bound to be an upsetting and unsettling experience; and working with a compassionate and caring tax relief firm can help a lot.

You should not, of course, sacrifice expertise and capability for compassion, but there is no reason you cannot have the best of both worlds. Look for someone who cares about you and your situation as you interview tax relief firms and choose the one you feel best about working with.

Past and Recent IRS Negotiation Success Stories

The IRS is a huge agency, and the tax code is endlessly complex. That enormous complexity and ever growing structure means that past and recent experience is relevant, so look for past and recent experience with the IRS in the form of testimonials and case studies.

Chances are if they have good “wins” under their belt, they know what they’re doing and they can get you a favorable outcome. Working with these experts can give you peace of mind and make it easier for you to resolve your tax problem.

Getting a letter from the IRS can be a scary experience, but it does not have to be the end of the world. You do not have to suffer financial devastation or go bankrupt to settle the debt you owe. Now that you know how to find a great tax relief partner, you no longer have to live in fear of your next trip to the mailbox.

Reach out to our tax resolution firm and we’ll schedule a free, no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem.

How to Turn Your Side Hustle Into a Massive Tax Deduction

Sun, 29 Aug 2021 03:56:32 GMT

With the right planning and preparation, your side hustle could actually lower your tax bill, giving you an even bigger reason to keep driving, door dashing and doing whatever it takes to make ends meet. Here are some key ways to make your side hustle pay-off come tax time.

Note: If you fall behind on filing your taxes or owe back taxes to the IRS, you’re not alone and we can help. Reach out to our tax resolution firm and we’ll help you file late tax returns and negotiate with the IRS if you owe back taxes.

Start By Estimating What You Expect to Earn

It can be difficult to estimate how much you might earn from your side hustle, especially if the time you devote to it and the amount you make varies week to week. Even so, it is important to estimate your income, not only to plan for your deductions but to make advance tax payments as well.

If you expect to earn more than $1,000 from your side hustle, you should strongly consider making quarterly tax payments to the IRS. If you fail to pay ahead, you could end up with a tax penalty when you file, and possibly interest and other charges as well. If you end up overpaying what you owe, you will receive a refund when you file your taxes.

You can start estimating your earnings by looking at how much you made last year. To fine tune the figure even more, you can look at your monthly earnings to date and annualize that figure to determine how much you could earn for the entire year.

Consider a Health Savings Account

If you have a qualified high deductible health plan, either through your employer or purchased on your own, you may be eligible for a health savings account, and opening one could significantly reduce your taxable income so you can keep more of your side hustle money.

In addition to the tax savings, a health savings account can help you pay for medical expenses, both expected ones and costs that would otherwise have drained your emergency fund. Since the money you put into an HSA is fully tax deductible, this simple step can lower your tax bill quite a bit.

Open a Self-Employed Retirement Plan

If you have a side hustle, even on a part time basis, you are considered self-employed, and that means you can open a retirement plan designed for self-employed individuals. The type of account you can open, and the amount you can contribute, will be dictated by the type of business structure and your earnings, but many of these retirement plans are quite generous in their contribution limits.

If your side hustle is truly a sideline and you have a full-time job with a traditional 401(k) plan, you may be eligible for an SEP-IRA, a unique form of account designed specifically for small business owners and the self-employed. If your side hustle has gone full time, you may want to look at a solo 401(k), a retirement plan that offers high contribution limits and an enormous potential for tax savings. You will need to apply for an employer identification number (EIN) to open this type of 401(k), but you can get that number free from the IRS.

Take Advantage of Your Deductions

Having a side hustle gives you a chance to tax advantage of certain deductions, and using those deductions could significantly reduce your taxable income and boost the size of your refund.

If you run a business out of your home, for instance, you may be eligible for the home office deduction, and that will entitle you to write off part of your mortgage, utilities and other costs. You can also take a standard home office deduction based on the square footage of your dedicated workspace and the size of your home.

In addition to those deductions, you may be able to write off things like office supplies, the cost of internet access and phone service and automotive expenses if you use your car as part of your side hustle or full time business. You should always check with a tax expert before claiming these deductions, as every individual situation is unique.

Side hustles are becoming more common, and that is good news for many wallets. But when tax time rolls around, those partially self-employed individuals will need to do some serious planning to keep their bills in check, including following the steps outlined above.

Life as a freelancer or gig worker can be wonderful, but it’s not uncommon to see self-employed taxpayers land in trouble with the IRS and owing back taxes.

4 Things That Can Unexpectedly Raise Your Taxes

Tue, 13 Jul 2021 19:34:59 GMT

#1 - Cashing in Your Retirement Plan

There are many reasons not to cash in your retirement plan early, but the tax penalty is one of the biggest ones. If you take the proceeds from your 401(k) plan in cash instead of rolling it over into an IRA, you will have to pay taxes on the money you withdraw. Even worse, you will be subject to a 10 percent penalty. By the time you are done, you could lose up to half your hard-earned retirement plan to taxes and penalties.

#2 - Working as a Freelancer

Working for yourself is great, but it can trigger a tax nightmare. Freelancers and other self-employed workers are subject to the self-employment tax, which represents the combined employer and employee share of the Medicare and Social Security tax. That tax hit can be substantial, especially if you fail to plan for it and set money aside.

#3 - Failing to Take Your RMD

You cannot keep retirement funds in your account indefinitely. You are required to start pulling money from your IRA and workplace retirement plans when you turn 70. If you fail to make that required minimum distribution (RMD), you could face a hefty tax penalty. The penalty for failing to take the RMD can be substantial.

#4 - Skipping Your IRA Contribution

If you are used to making an annual IRA contribution, skipping that contribution could cost you money. Before you skip your IRA contribution, take the time to run the numbers and see how the decision will affect your tax bill.

Owe Back Taxes?

If you know you’ll have outstanding tax debt and owe more than $10k to the IRS or state but can’t pay in full, contact our firm today . We help people find tax relief and sometimes settle their tax debt for a fraction of what’s owed.

Made a Mistake On Your Tax Return? Here’s What To Do.

Wed, 16 Jun 2021 17:50:54 GMT

3 Major Types Of Mistakes

There are many red flags the IRS looks for on each tax return, but here are 3 common ones taxpayers make.

1: Not reporting all your income. No matter how much or little you make, report everything. In some way or another, unless you run a strictly cash business (another red flag), all of your income is reported to the IRS. W2, 1099 and other forms you receive are duplicated and sent in to the IRS. If your reported income doesn't match theirs, that's a red flag.

2: Overstating business expenses. You might be tempted to write off just a little extra. These might be genuine deductions. But don't try to deduct something that's not on the approved list and don't claim deductions way outside the norm. Check with your tax professional and stay up to date with tax laws so you’re not padding your tax return with write offs.

3. Math errors. Whether you file electronically or still file paper forms, your information gets entered into a computer. And one thing computers are very good at is doing math. If things don’t add up, or there was an honest mistake in inputting the information, it can raise a red flag. A math error won't necessarily get you an audit, but it will get attention you may not want. Make sure to double check your returns and have a qualified tax professional assist you and keep you out of tax trouble.

Filing an Amended Return - The 1040X

Individual income tax returns filed with the IRS can be amended up to three years after the due date of the original return by filing IRS Form 1040X.

On a 1040X form, the IRS only asks to be shown what was originally filed, what the corrected details are and the reason why you need to make changes. The form also includes a section where you get to change the personal exemptions that you've claimed on your tax return -- just in case you make a mistake listing your dependents.

A few tips on filing your 1040X form

● For each year that you need to make corrections for, you need to use a separate 1040X form and mail it in, in its own envelope.

● Each form should have the return year mentioned at the top.

● On the second page of the form, you need to explain the changes you've made and your reasons for them.

● Any schedules, forms or anything else that are affected by your change need to be sent in with the form.

● If the corrections made to your federal form affect your state taxes, you need to send in a corrected return for that as well.

However, we strongly suggest consulting a tax resolution professional to help with your amended return. They can often file multiple years of unfiled tax returns, help you settle for a fraction of what you owe, and at the very least save you a headache.

You Have 3 Years

Many tax filers only notice a mistake on a tax return only when they look at it after preparing their taxes the following year. Mistakes may come to their attention in one of several ways. They may share something with their tax preparer that they may have neglected to mention in a previous year. The tax preparer, then, may notice the need for amendments to a previous year's return, as well.

There is no set time period within which you must correct your return. You can do it any time you notice it. A general rule that the IRS follows, though, is to entertain corrections for 3 years after an original return is filed.

The 1040X can be electronically filed

As of August 2020, the IRS started taking electronically filed forms 1040X. Prior to August 2020, you had to mail the amended tax return to the IRS for filing. That has now changed. Now, you can electronically file the 1040X just like other tax returns.

If Correcting Your Mistake Results In More Taxes Owed, You Should Still Amend Your Return

If your tax return contains a mistake that shortchanges the IRS in a more serious way, chances are good that the IRS will discover it. For instance, if you made money off a freelancing job that you didn't file a 1099 form for, the IRS could find out and you could end up paying interest for a few years for the tax owed. If you catch it yourself, you'll save on interest at least because many times it takes the IRS a year or two to notify you of the error.

If you know you’ll have outstanding tax debt and owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief and sometimes settle their tax debt for a fraction of what’s owed. Contact us today.

Lucky Day at the Casino? Don't Forget About the IRS

Tue, 01 Jun 2021 17:43:36 GMT

So as you celebrate your big win, do not forget about your taxes; if you do, the IRS is sure to come calling. If you have any tax issues, or find yourself owing a large amount in back taxes, reach out to our tax resolution firm and we’ll help you navigate any obstacles.

Ask About a W2-G

One of the first things you need to know about winning big at the casino is that the IRS will receive notice of how much you won. If you try to fudge the numbers or not report the win at all, chances are you will soon be on the wrong end of a tax bill.

It is important to report all of your gambling winnings, even smaller jackpots that may not warrant a W2-G, the form on which those monies are recorded. And if you do win a substantial jackpot, ask the casino workers about how and when the tax forms will be issued.

Understand Withholding

When you have a lucky day at the casino, it is easy to blow your winnings, especially if you have never been so lucky before. But before you spend your last dollar, you might want to keep some in reserve for when tax time rolls around. If you fail to keep that money available, you could be in for an unpleasant surprise, and a big tax bill, when you file.

Casinos know that their customers may have trouble paying taxes on their winnings, and that is why many of them will automatically withhold a portion of the jackpot. If you do win a substantial jackpot, make sure you understand whether, and how, this withholding will take place.

If you are concerned about having the money to pay the taxes due, you may be able to ask the casino to do the withholding for you. Not all casinos will be willing to do this, but it never hurts to ask.

Track Your Losses

The fact that you have to pay taxes on your gambling winnings may seem unfair and arbitrary, but the IRS is not entirely heartless. You may be able to write off some of the money you lost in pursuit of your latest jackpot, but only if you can back up those numbers with hard data.

Tracking your losses is never a fun thing to do, especially if you are a regular casino visitor. Even so, it is important to keep track, and many casinos will do the work for you.

If you carry a casino loyalty card, you may be able to log on or request a report showing how much you spent, and how much you won while your card was in use. This is not a perfect solution, but it can be a good first step if you plan to write off your losses in hopes of reducing your final tax bill.

Having a lucky day at the casino feels good no matter who you are, as does leaving the casino with a stack of cash and a big jackpot to your name.

But the next time Lady Luck smiles on you, make sure you leave a little for Uncle Sam.

If you owe back taxes of more than $10,000, contact our firm . We’ll schedule a no-obligation confidential consultation to explain your options to potentially settle your tax debt for less than what you owe.

Self Employed? Smart Strategies for Minimizing Your Taxable Income

Fri, 21 May 2021 21:39:21 GMT

Being self-employed is great in many ways. You can enjoy the freedom and flexibility of working from where you want when you want, and you can build your own client list and keep all the profits from your hard work.

All that is great, but there is a significant downside to being self-employed, one that can take a bite out of your wallet. That means if you are self-employed, you have two jobs - delivering a quality product to your clients and minimizing your own taxable income. Here are some strategies for keeping your taxes as low as possible.

Shelter Income with a Self-Employed Retirement Account

One of the biggest perks self-employed men and women have is the chance to shelter significant sums of money through specialized retirement programs. Aimed directly at the self-employed, these retirement plans offer enormous benefits, and the chance to sharply reduce your taxable income.

Opening an SEP-IRA is one of the simplest ways to shelter your self-employment income and save for the future. The SEP-IRA works just like a traditional IRA; the main difference is that this program is designed specifically for the self-employed.

If you are willing to do a bit more work and keep a few extra records, you can shelter even more of your self-employment income with a solo 401(k). The solo 401(k) is basically the self-employment equivalent of the traditional 401(k) you are used to, but you control the money and how it is invested. Best of all, the contribution limits for solo 401(k) plans are even higher than those for traditional 401(k) plans and maxing out could sharply reduce your tax bill when filing season arrives.

Contribute to a Health Savings Account If You Can

One of the biggest challenges self-employed individuals face is how to pay for health care. The price of privately purchased health insurance plans can be quite high, and that can make affordability a real issue.

One way to save money is by purchasing a high deductible healthcare plan, and many self-employed people choose that option. If you do purchase such a plan, you may be able to reduce your taxes with a health savings account, or HSA.

To be eligible for a health savings account, you must have a qualified high deductible health plan in place. Medicare recipients are not eligible for health savings accounts, but you can contribute pre-tax money and enjoy tax-deferred growth all the way up to age 65.

Push Payments into the Following Year

Compared to their traditionally employed peers, the self-employed have a great deal of control over their income and how they are paid. This control can extend to when you receive payment for services rendered, so consider deferring those end of year payments to reduce your current year taxes.

If your clients are willing to go along and the timing is right for you, deferring payments until the next calendar year is one more way to reduce your taxable income. You will need to settle up with the IRS eventually of course, but this strategy can work well if you expect next year's income to be significantly lower than the current year.

Shift Investment Income into Tax Sheltered Accounts

If you earn investment income as well as self-employment income, shifting those funds into tax sheltered accounts could lower your taxes and let you keep more of what you earn.

Keeping income generating investments like bond funds and dividend paying stocks in your IRA, for instance, is a good way to reduce your taxable income. This strategy will not work if you need the extra income now, but if you can live without it, you can save money on your taxes.

Working for yourself can be great, but it can also be quite taxing. If you want to cut the high cost of self-employment while still enjoying the freedom and flexibility, the tips listed above can give you the best of both worlds.

OWE BACK TAXES?

If you’re going to owe money to the IRS after filing your return that you won't be able to pay, it’s important to note that only experienced firms like IRS Tax Fighters are able to handle tax debt cases since negotiating with the IRS requires specialized skills that often fall outside of the scope of most conventional accounting, tax, and tax law firms.

The Procrastinator's Guide to Surviving Tax Day

Fri, 07 May 2021 15:52:03 GMT

Communicate With Your Tax Professional Early

Getting a jump start on tax filing season starts with communicating with your tax professional early. If you wait until the last minute, they’ll likely have less time for you and you’re leaving too many chances to make a mistake on your tax returns which can often cause more trouble in the future.

Gather Forms as They Arrive

Facing the tax deadline with a stack of papers is daunting even for the non-procrastinator. For those with procrastination tendencies, that mountain of paperwork can induce a sense of dread and even panic.

Instead of waiting until everything is ready to go, gather each tax form as you receive it and save it in a special folder on your computer.

Find Your Tax Return for Last Year

It is very important to have your prior year's tax return available, so find it before you begin. Nothing is more frightening for a procrastinator than trying to find this vital form at the last minute, so make sure you have it before you need it.

The tax return you filed last year will be required to verify your identity, an important step the IRS implemented in the face of growing identity theft and tax filing fraud.

If you haven’t filed for the previous year, now is the time to do it. You already will likely owe penalties and interest so procrastination makes the debt even worse.

If You Miss the Deadline

As a procrastinator, you know that things do not always go as planned. Last minute snags do happen, and despite your best efforts, you might still miss the tax filing deadline.

The good news is that you can file an extension. Whether you are using tax prep software or filing your return online, you can request an extension and instantly get six additional months from the original due date to file.

That does not mean, however, that you can avoid paying what you owe. If you think you might owe money to the IRS, you still need to pay the tab, and that is where last year's return will come in handy.

You can avoid penalties if you pay at least as much as you owed last year, so verify the numbers and act accordingly. And now that you have an additional six months to file, it is time to stop procrastinating and get moving.

Being a procrastinator can have its benefits. Sometimes a decision made deliberately and slowly is preferable to one made in haste, something procrastinators know very well. But when it comes to filing taxes, procrastination can make an already stressful time even worse. If you want to survive tax filing season with your sanity, and your wallet intact, you need to work smarter, not harder, starting with the tips listed above.

A tax resolution firm like ours has years of experience helping taxpayers just like you resolve IRS and State tax problems and negotiating the best deal on your behalf. If you’ll owe the IRS money for 2020 or prior years, contact us now for a consultation to learn about your options. Contact IRS Tax Fighters today.

The good news is the IRS has several debt settlement options including their Fresh Start Initiative and is generally willing to settle with taxpayers who have been blindsided by a surprise tax bill and can’t pay it off in full.

Hopefully, tax filing season will bring the big fat refund you are expecting, but it is important to be prepared for the unexpected. The new tax bill has unleashed a host of unintended consequences, including smaller refunds and surprise tax bills. By being prepared, you can reduce the pain of a surprise tax bill, so you can get on with the rest of your life.

Avoid These 5 Common Tax Filing Mistakes That Can Get You In Tax Trouble

Thu, 29 Apr 2021 23:10:12 GMT

These are sometimes honest mistakes that if not caught early, can trigger red flags and have the IRS sending you letters of balances due.

No one knows your financial situation better than you do so it’s important you double check your return so you’re not blindsided with an unwanted surprise.

#2 - Waiting Until the Last Minute

Filing taxes is stressful enough. You do not need to make things worse by waiting until two minutes before midnight on your tax due date to get your return filed. Give yourself plenty of time to gather all the necessary documents and complete your return.

Keep in mind that unexpected problems could interfere with your last-minute tax filing plans. Getting your taxes done early is the only way to protect yourself from unforeseen circumstances that can delay your tax filing.

#3 - Failing to File on Time

If you cannot file your return on time, you can ask for an extension by filling out a single form. Even if your documents are in disarray, there is no excuse for not filing on time. Filing an extension gives you six more months from the original due date to get everything in order and complete your return.

Keep in mind that you will still need to estimate the tax you owe and make your payment, even if you file an extension. Filing an extension extends the amount of time you have to get your return to the IRS, but it does not provide a reprieve from your tax debt. If you wait to make your tax payment, you will get hit with penalties and interest.

#4 - Not Making a Backup or Keeping Good Records

Making backup copies of your tax returns, income documents and schedules is an essential part of tax planning and preparation. Set up a folder or file box and use it to store your tax documents as they come in, and then scan each one before you put it away.

Once you have completed your return, be sure to make copies of every document, including your W-2 form and tax schedules, before sending the return to the IRS. If you file electronically, be sure to save a PDF copy of your return before completing the final step. Save all of those electronic tax documents on your computer or cloud storage device. Ordering a lost copy of a past year's return from the IRS is time-consuming and expensive. You can save time and money by making your own backup copies. If the IRS audits you or requests more information from you, all your records will be extremely helpful in the process.

#5 - Ignoring Letters From The IRS After You File Your Taxes.

Sometimes the IRS will send follow up correspondence, especially if you owe money to the IRS. It can be easy to ignore the first few letters. Even if you have the intention of paying your taxes soon you should still take action and either get on an installment agreement or reach out to a tax relief firm if your financial situation requires it.

OWE BACK TAXES?

Our firm specializes in tax problem resolution. We serve clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. Contact us today!

The Challenges Freelancers Face When Proving Their Income - and How to Overcome Them

Wed, 31 Mar 2021 23:38:00 GMT

Use an Online Payment Service

It can be hard for freelancers and other independent contractors to document their income, but using an online payment service can make it easier. Online payment providers like PayPal keep careful records of who they pay, how much money is disbursed and where the money is coming from.

If you receive your freelance income through such a service, proving your yearly income could be as simple as printing off a report or emailing it to the lender. You may still need to provide additional documentation to your tax professional or the IRS, including bank statements but the payment report will be a good start.

Ask Your Bank for an ACH Report

For freelancers who are paid directly, an Automated Clearing House (ACH) report can serve the same purpose as a ledger from an online payment service. The ACH report will show when payments were made, along with the amount of each payment.

If you know you will need to prove your income, be sure to keep copies of your bank accounts for at least the past 12-24 months. Maintaining paper copies of bank accounts and saving electronic copies to your computer will ensure those critical documents are available when you need them.

Keep Your Past Years Tax Returns

As a freelancer or other self-employed individual, you have a responsibility to report all of your income, whether or not you receive a formal 1099 form. It is important for freelancers to keep careful track of their income and expenses, as this will make tax filing season much easier.

Once your taxes have been filed, you will want to keep copies of your returns for at least the last three years, but having more documentation is always better. Keeping copies of your tax returns is a great way to make sure your income is reported accurately year in and year out.

If you have years of unfiled tax returns, call our office. We can help file multiple years of returns.

Keep Your 1099 Forms

A single freelancer may have dozens of clients over the course of a year, and keeping track of all those payments can be a real challenge. If you want to make your life easier, setting up a filing system for all those 1099 forms is a good place to start.

Scanning each 1099 form as it is received and saving it to your computer or cloud account will make accounting a lot easier, but it will also simplify the process of applying for a loan or mortgage. Having this information at your fingertips will make it much easier to prove your income, so you can qualify for the loan you need.

Average Your Monthly Income

For freelancers life is often feast or famine, with tons of work one month and nary a lead the next. That can make their income highly volatile, further complicating the loan qualification process.

These peaks and valleys in freelance income can be disconcerting, but over time experienced freelancers may detect a pattern that underlies the chaos. Freelancers who hope to qualify for a loan or mortgage should track their monthly income carefully, averaging out the numbers to reflect their true annual earnings.

This income averaging can be very useful when talking to lenders, especially when accompanied by documentation to back up those earning claims.

It’s Your Responsibility

Life as a freelancer can be wonderful, but it does make proving your income a bit more difficult and it can make tax season more complicated. One thing to always remember as a freelancer is that it’s now your responsibility to file and pay your taxes on time. We’ve helped freelancers who find themselves behind on their taxes because they failed to plan properly. We hope this article will help you stay on track but if you need help with back taxes, want tax relief, or need to file past years of tax returns, contact us today!

Our firm specializes in tax problem resolution. We can represent you before the IRS and can serve clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. Contact us today!

Self-Employment Taxes and The Common Traps To Avoid So You Don’t Owe Back Taxes

Tue, 23 Mar 2021 22:12:58 GMT

Definition of Self-Employment

The IRS considers you to be self-employed if you work as a contractor, freelancer, small business owner or are otherwise in business for yourself. If you earn income directly from clients and you don’t have an employer that withholds money from your pay for tax purposes, you are self-employed.

Tax Withholding and Estimated Taxes

If you work as an employee, your employer automatically takes a certain amount of money out of your pay each month to cover your tax obligations, which is called tax withholding.

Self-employed workers do not have an employer to withhold income for tax purposes, so they are responsible for paying their own taxes to the IRS through estimated tax payments. Estimated tax payments must be sent to the IRS on a quarterly basis if you expect to owe at least $1,000 in income tax at the end of the year.

The due dates for estimated tax payments are April 15, June 15, September 15 and January 15. Failure to plan properly and pay enough estimated taxes during the year can result in a tax penalty and a large surprise tax bill. If you pay at least 90 percent of the tax you owe or 100 percent of the total tax you owed from the previous year, the IRS typically will not assess a tax penalty.

Self-Employment Taxes

Self-employed workers must pay the self-employment tax (SE tax) which goes toward Social Security and Medicare in addition to normal income tax. Employees split the cost of paying into Social Security and Medicare with their employers, but self-employed workers must pay the full amount themselves.

We always recommend hiring a professional to handle your taxes and stay compliant, but we especially recommend hiring a qualified tax relief firm if you find yourself behind on any taxes or you’re hit with a large tax bill you can’t afford to pay.

Do I Have To Report Side-Income If I Have A Normal Job As Well?

Individuals with self-employment income must file an income tax return if they have net income from self-employment of $400 or more. In addition, you must report any self-employment income you make during the year on your taxes even if you hold down a normal job.

For example, if you work as an employee year round but you take on small contract jobs on the side to make extra cash, that money must be reported as self-employment income when you file your tax return even if you don’t make enough extra cash to warrant paying estimated taxes.

It’s a common misconception that you don’t have to file or report income if it’s “cash” or if it’s from a side hustle. Not reporting it could lead to more trouble than it’s worth and the IRS will add penalties and interest on top of the taxes owed.

OWE BACK TAXES?

If you’re going to owe money to the IRS after filing your return, it’s important to note that only experienced firms like ours are able to handle tax debt cases since negotiating with the IRS requires specialized skills that often fall outside of the scope of most conventional accounting, tax, and tax law firms.

Our firm specializes in tax problem resolution. We can serve clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. Contact IRS Tax Fighters today.

Filing Your Taxes When You Know You Will Owe Money to The IRS

Sun, 10 Jan 2021 05:51:32 GMT

Report All Your Income

One of the biggest reasons people get in trouble with the IRS is their failure to report income. Oftentimes it’s an honest mistake and they simply forget about income they have made throughout the year.

Did you take on a consulting gig? Your client might have filed a 1099 reporting your income.

Did your savings and investments earn interest? You’ll likely need to report that income as well.

The stock market has been on a wild ride, and breaking records despite COVID-19. If you sold stock and cashed in on the gains, these gains are reported to the IRS and it means that a lot of Americans might get an unexpected tax bill.

It’s wise to take inventory of where your income came from this year so you can stay on top of any tax forms you might get outside of your normal W2.

Run The Numbers Ahead of Time

Some people like surprises but when it comes to taxes, it’s best to avoid them.

You do not have to wait for tax filing season to estimate how much you might owe. Be proactive about consulting with your tax advisor and estimate your tax liability based on how you did for the year.

They’ll be able to suggest tax strategies before the year ends that can save you thousands of dollars on your tax bill.

Set Money Aside to Pay Your Taxes

Taxes are inevitable. If you know for certain you will owe money to the IRS but don’t have the money to pay all of it up front, it’s best to set at least some money aside early so you can pay as much of your tax bill upfront as possible.

The IRS can be more lenient if they see you are trying to honor your responsibilities and settle your tax debt.

Learn About Tax Relief Options

The IRS has the authority to levy your bank account, garnish your paycheck and seize your assets if it has to, but they also have many tax relief options to help taxpayers in need.

Things like settling your tax debt for a fraction of what you owe, installment plans, penalty abatements, and more, can all be viable tax relief options depending on your situation.

If you owe money to the IRS and can’t afford to pay, you have options. It’s best to reach out to a tax relief firm like ours to learn more about them.

Don’t talk to the IRS, talk to us first.

If you do get hit with a surprise tax bill and lack the money to pay it, you need to settle your tax problem as soon as possible. The IRS wants their money, and they have unbridled authority to get it, so simply avoiding the tax bill will not make it go away, but make it worse. A lot worse.

However, dealing with the IRS is often intimidating for most taxpayers. Talking to the IRS and trying to resolve your own tax problem is like going to court without a lawyer, you’ll most likely get crushed.

A tax resolution firm like ours has years of experience helping taxpayers just like you resolve IRS and State tax problems and negotiating the best deal on your behalf. If you owe the IRS money either for 2019 or prior years, contact us now for a consultation to learn about your options.

Did You Make Money with Cryptocurrency? How to Get Right with the IRS

Sat, 28 Nov 2020 20:41:53 GMT

There has already been some movement on the cryptocurrency taxation front, and it is only a matter of time before the IRS takes notice of your holdings - and your profits. The tax agency has recently obtained data from major cryptocurrency exchanges, and letters are going out to large holders of these virtual currencies. But you should not simply wait for the IRS to contact you. The best approach is to do your homework now and make your plans for paying what you owe. Here are some simple tips to help you get right with the IRS.

Note: If you already have tax troubles or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today . We help people find tax relief, file years of unfiled tax returns, and sometimes settle their tax debt for a fraction of what’s owed.

Learn the Rules

There has been a lot of confusion over how cryptocurrencies were to be taxed, and the IRS itself has issued a number of different rulings in that regard. With so much conflicting information, it is no wonder so many cryptocurrency investors chose to avoid the whole thing.

Studies suggest that only a small percentage of cryptocurrency investors have reported their holdings to the IRS. Some holders of cryptocurrency did not believe they were required to report their investments, while others assumed their transactions were anonymous. Now that the IRS has proven that neither contention is correct, it is time to learn the rules and follow the reporting requirements.

The IRS may have been slow to categorize cryptocurrencies, but the tax agency now has firm rules in place. If you hold cryptocurrency or have profited in the past, now is the time to learn the rules. Whether you do your own homework or seek out expert advice, the more you know the better off you will be.

Estimate Your Gains

Once you know the rules, the next step is to estimate your potential gains. The rules governing cryptocurrency profits are complex, but you should still be able to estimate the possible tax hit.

It may take some time to reconstruct the purchases and sales you made along the way, so take your time and gather as much information as you can. If you are missing some information, you may be able to find what you need through your favorite cryptocurrency exchange. Many major exchanges keep detailed records of purchases, sales and other cryptocurrency transactions. Once you know how much you made on those cryptocurrency transactions, you can work to calculate the taxes you might owe.

Work with a Cryptocurrency Tax Relief Expert

Tax calculations are not for the faint of heart, and it is easy to make a mistake. If you want to avoid problems with the IRS and head off any penalties and interest, you will need expert help and guidance.

The cryptocurrency market is still relatively new, and the current IRS tax treatment of these virtual assets is even newer. Even so, some tax experts have already started to specialize in these alternative investments, and seeking their expertise could help you pay what you owe while avoiding penalties and interest.

If you already have a tax preparer, start by asking about their experience with cryptocurrency investments. If your current tax advisor is not a cryptocurrency expert, it is time to shop around for someone who understands these unique assets and how they are taxed. It may take some time, but it is important to find an expert you can trust.

The IRS may have ignored the early days of the cryptocurrency revolution, but the tax agency is making up for lost time. Some early adopters have already received notices from the IRS, while others are scrambling to calculate their profits and pay what they owe. The tips listed above can help you develop a payment plan, so you can get right with the IRS before it is too late.

OWE BACK TAXES?

What is a Levy?..... IRS and Other Asset Levies Explained

Mon, 05 Oct 2020 16:32:01 GMT

Other types of levies

Private creditors may issue a levy against your bank account with a court order. Court orders are not required for levies by government agencies. The creditor must notify you of the upcoming levy at least 21 days before removing any funds from your account. You may not withdraw money or close the account during this waiting period.

Funds earned from child support, social security, unemployment, workers' compensation settlements and certain other types of government agency payments may be exempt from private creditor levies. The rules in each state differ, but most states exempt these types of income from private creditors. You must request the exemption and offer proof of the source of the funds. These types of income sources, however, are generally not exempt from federal and state back tax levies.

Wage Garnishments

Government agencies may also garnish an employee's wages for back taxes, child support and other delinquent payments required by law.

The IRS has the authority to levy up to 85 percent of the employee's paycheck. The levy notice will be sent to your company's payroll or human resources department. The employer must then withhold the appropriate amount of money from the employee's paycheck and send it to the IRS or state tax board. The employee must provide a wage garnishment release to release the levy.

If you are behind on your taxes, the IRS may levy most payments from federal agencies. This includes railroad retirement benefits, Medicare supplier and provider payments, payments on contracts between your company and a government agency, federal retirement annuities and travel reimbursements.

You may apply for a hardship exemption if the levy will cause your company undue financial distress. Companies going through bankruptcy proceedings are automatically exempt from IRS levies.

Seizing Your Assets

The IRS may also seize your real estate and personal property such as a car or boat. You will receive a 30-day notice indicating that seizures will follow if you do not pay your outstanding taxes or contact the IRS to make payment arrangements. This authority also extends to property and money you own that are being held by another party, such as life insurance cash value. The government sells its seized property at auction to recover some of the funds owed by delinquent taxpayers.

What To Do If You Have An IRS Levy

Back taxes don’t just disappear if you ignore them long enough. Putting your head in the sand will cause the problem to get worse.

If you have back tax debt, we highly recommend you reach out to our firm first. Our clients never have to talk to the IRS, and tax resolution through our firm can save you money and time in the long run. You might also be eligible for other IRS relief programs or get your penalties reduced or removed. Reach out to our firm today for a free consultation.

Four Things Your Tax Preparer Won't Tell You (and How It Can Get You In Tax Trouble)

Sat, 26 Sep 2020 20:14:14 GMT

Tax time will be here (again) before you know it. If your tax return is a simple one, you may be up to filing the return yourself. But if your situation is somewhat complicated, seeking the help of a qualified professional is probably the best move.

Our firm specializes in helping people resolve their back tax problems such as filing years of unfiled returns, settling your back taxes with the IRS, or negotiating favorable payment plans often unknown to the common taxpayer.

There are millions of people getting threatening letters from the IRS every year and we can help. But how did these mostly honest people end up in trouble in the first place?

When you hire a professional to do your taxes, you assume that the person doing your taxes is an expert, with years of training, the right licenses and certifications and the expertise needed to do the job and do it right. In many cases, that blind trust is not too bad, but you cannot simply pick any old tax preparer.

The fact that the person you hire is allowed to do taxes is no guarantee of quality, or even of qualifications. Here are five things your tax preparer may not tell you, and how they can leave you with an unwanted tax bill at the end of the year.

Note: The COVID-19 tax relief, forgivable loan programs and stimulus checks all have different and unforeseen tax consequences that you’ll need to consider. If you have any tax trouble or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief. Contact us

#1. A Lot Of Tax Preparers Have No Tax-Specific Training or Expertise

The fact that an individual, or an employee of a large tax preparation company, is allowed to complete tax returns means almost nothing. The tax preparer is not required to have tax-specific training or expertise to obtain the paid preparer tax identification number (PTIN) they need. The only requirement for getting the required PTIN is the completion of a simple form - one that takes about 15 minutes to fill out.

Before you hire any tax professional, you should ask about their specific training, qualifications, and expertise. Find out how long they have been doing taxes, ask about audits they have been involved in, and share your personal tax situation. Above all, do not hire anyone until you feel comfortable with their ability to handle your tax return properly.

A CPA is your best bet when looking for qualified tax professionals. We hear horror stories from our tax relief clients all the time where the tax preparer messed up something on their tax return or didn’t give the client the right tax strategy, so they ended up with a burdensome tax bill.

#2. They Won't Be Preparing Your Return

It is an open secret in the world of tax preparers that returns are prepared in stages. That means the owner of the firm or the most experienced professional will probably not be the one who initiates your return.

Instead, a junior associate will likely enter your income information and other relevant data, identify potential deductions and tax credits and give your return a quick review. Once that is done, a senior advisor or tax preparer should look at the return, verify that it is correct and sign off on it.

This can often cause a communication breakdown causing issues that could land you with a large tax debt. Most taxpayers blindly trust their tax pro and don’t thoroughly review the deductions and tax return draft.

If you are not comfortable about this multi-step process, it is important to share your concerns with your preparer. The sheer number of tax returns large firms handle during a busy season makes this multi-step process necessary, but it is important to know how things work and what you can do to ensure the right level of attention.

It is also extremely important to review the return in full detail to avoid any unwanted surprises, audits, or unforeseen tax debt.

#3. They May Not Research Unusual Deductions and Tax Breaks

Professional tax preparers tend to be a pretty conservative bunch, and that is good news when it comes to your chances of being audited. It can be bad news, however, for your overall tax bill.

Your tax preparer will no doubt apply the most common deductions and tax credits to your return, things like the deduction for educational expenses and health care costs and the earned income and retirement tax credits. What they may not do is research more unusual tax credits and deductions, even if they could potentially save you money.

If these special circumstances apply to your return, you should discuss the situation with your tax preparer and look for ways to include them with your filing. You may need to pay an extra research fee or renegotiate the cost of preparing and filing your return, but the tax savings could be worth the extra cost.

#4. Tax Preparer Does Not Mean Tax Relief Pro

When clients get into tax trouble or get behind on paying their tax debt, they often turn to the very same tax preparer that prepared the return. Unfortunately, most tax preparers are not skilled in tax relief.

Tax relief means they know all the available programs the IRS has to settle your tax debt or give you favorable payment terms that don't drown you in penalties and interests. Even if they think they know, they often aren’t experienced in negotiating with the IRS on your behalf.

If you have back tax debt, we highly recommend readers to reach out to our firm first. Our clients never have to talk to the IRS, and tax resolution through our firm can save you money and time in the long run. You might also be eligible for other IRS relief programs or get your penalties reduced or removed. Reach out to our firm today for a consultation. Contact us

Bankruptcy Frequently Asked Questions for Individuals

Tue, 18 Aug 2020 17:52:23 GMT

Filing for bankruptcy is a difficult and draining process. People often feel ashamed, scared, or confused. If you find yourself with no other options, bankruptcy can be a good way to clear out old debts, change financial patterns, and most importantly get a fresh start. Here is everything you need to know about filing for bankruptcy.

Note: Depending on what type of taxes you owe, you might not be able to wipe out your back taxes in bankruptcy proceedings. Our firm specializes in tax resolution and back tax debt settlements with the IRS. So if you’re considering bankruptcy in part because of your back tax burdens, reach out to us today for more information on how you can get tax relief . Contact us

Who Should File for Bankruptcy?

If you owe money to a creditor and cannot repay it, you can file for bankruptcy. Businesses and individuals are eligible; however there are caveats. If you have filed for bankruptcy once before, there is a waiting period before you may file again. After filing for Chapter 7 bankruptcy, you cannot claim bankruptcy again for eight years. After filing for Chapter 13 bankruptcy, you must delay a second claim for at least two years.

What Types of Debt Can I Discharge Through Bankruptcy?

You can discharge most types of debt through bankruptcy, including medical debt, credit card debt, payday loans, and mortgage debt.

Certain types of debt cannot be discharged through bankruptcy, meaning that you will still need to repay these debts even if everything else is forgiven. Debts that cannot be wiped out in bankruptcy include spousal support, child support, student loans, and back taxes in most cases .

Any debt you take on after you've filed for bankruptcy is ineligible to be discharged through the filing, since you did not have the debt when you asked for debt relief.

Why is Filing Bankruptcy Helpful?

Bankruptcy can help when you can't keep up with the bills, and you're under a high level of stress. However, bankruptcy is never a first option for people; many have tried things like getting extra jobs, selling unwanted possessions, or asking family members for loans before arriving at bankruptcy as their best option for debt relief.

By wiping out debts, bankruptcy reduces stress immediately. Collectors are not allowed to come after individuals who are going through bankruptcy, so threatening phone calls and letters will end immediately.

A Chapter 13 bankruptcy can promote good financial habits, because in this form of bankruptcy, some amount of debt is repaid under a plan. By helping to increase financial literacy and instilling good financial habits, this partial repayment can keep people in the black once debts are discharged.

The biggest downside to filing for bankruptcy is that it impacts your credit, so you may find it difficult to take out loans for up to ten years after the bankruptcy. Your credit score also impacts things like the interest rate offered on loans and your ability to pass a tenant screening, so there are other ramifications to consider.

If you're not sure whether a certain debt will be forgiven or which type of bankruptcy is right for you, there are resources to help you explore your options, such as credit counselors. If you are thinking of filing for bankruptcy, it's helpful to get a counselor's opinion on your specific circumstances and what to expect after filing.

Considering Bankruptcy to Get Rid of Your Back Taxes? Three Alternatives to Explore Before You File

Fri, 07 Aug 2020 21:07:45 GMT

If you are drowning in debt and working harder and harder to make ends meet, you may think a bankruptcy filing is the only way out, but that is not necessarily the case. Filing for bankruptcy is one solution, but it is a drastic step that should only be taken as a last resort.

This is especially true if you owe back taxes to the IRS or state. Depending on what type of taxes you owe, you might not be able to wipe out your back taxes in bankruptcy proceedings.

It is important to weigh all your options and get a clear picture of your financial situation, so in this article, we share with you 3 smart steps to take before declaring bankruptcy.

Depending on how much you owe, who your creditors are, and how the rest of your financial life looks, you may be able to dig yourself out of the hole and take back control without having to declare bankruptcy. Here are three smart alternatives to consider before calling a bankruptcy attorney.

Three Alternatives to Explore Before You File

1. Contact A Tax Relief Firm

Most bankruptcy attorneys are not familiar with the complex tax laws, so they will not accurately be able to assess your tax situation.

A tax relief firm like ours can help you assess your back-tax situation and often help you settle your back-tax debt with the IRS. If you owe a substantial amount of back taxes, this may be a good way to reduce your overall debt burden. This can also be a good first step to getting back on track with your finances.

2. Request a Lower Interest Rate on Other Debts

When you are paying 18% or more in interest, it can be hard to keep up with the charges, let alone make any headway on the outstanding balance. Credit card interest rates are among the highest around, and those outrageous rates have trapped many consumers in a spiral of ever-increasing debt.

How different would your finances look if your interest rate were cut in half? Would you finally be able to get ahead of the interest charges and start paying down your balance? If so, it is time to get your credit card issuer on the line.

Even if you do not think your credit card issuer will be receptive, it never hurts to ask. And when the credit card company finds out that you are thinking about filing bankruptcy, they may be more willing to negotiate than you think.

For tax debt, the IRS can sometimes remove penalties from your tax debt, so it is important to reach out to our firm to see what your options may be.

3. Refinance Your Debt

Even if your credit card issuers and lenders are not willing to budge on the interest rates, you could still save money and avoid bankruptcy. Refinancing your existing debt through a home equity line of credit, a personal loan or other means could lower your interest rate substantially and slash your monthly payments.

If you do decide on this strategy, it pays to shop around. The more you can lower your interest rate, the more money you can save - and the faster you will be able to pay off your debts.

But it is incredibly hard to refinance your debts if you have an IRS tax lien or wage levy. Our firm can get these released and help you get on financial track.

A bankruptcy filing can provide a fresh start for those in dire financial circumstances, helping them recover and rebuild their shattered monetary lives.

Even so, bankruptcy is not the only way out, and it is important for those considering this solution to research the alternatives first. The three bankruptcy alternatives listed above can also give you the fresh start you need, without the stigma or long-lasting impacts of a bankruptcy filing.

IMPORTANT: We highly recommend readers to reach out to our firm first. Our clients never have to talk to the IRS, and tax resolution through our firm can save you money and time in the long run. You might also be eligible for other relief programs or get your penalties forgiven. Reach out to our firm today for a consultation. https://www.irstaxfighters.com/schedule-free-irs-tx-fighters-consultation-houston

IRS Collections Is Starting Back Up. What to Do If You Owe Back Taxes.

Thu, 30 Jul 2020 17:56:35 GMT

2020 threw a huge wrench into everything and the IRS collections proceedings are no exception. With the tax deadline pushed until July 15th and a lot of the IRS closed under shelter at home orders due to COVID19, to the IRS being tasked with sending millions of Americans their stimulus checks, the IRS collections proceedings took a backseat.

If you owe back taxes you might just assume you got some breathing room. However, things are starting to pick back up.

According to the Taxpayer Advocate, as of late June 2020, the IRS generated more than 20 million notices, yet these notices were not mailed to anyone. The IRS is once again starting to send threatening notices to taxpayers who owe back taxes.

In this article, we share a few things you must do in order to get out of tax trouble and settle your back-tax debt.

IMPORTANT: We highly recommend readers to reach out to our firm first. Our clients never have to talk to the IRS, and tax resolution through our firm can save you money and time in the long run. You might also be eligible for other relief programs or get your penalties forgiven. Reach out to our firm, IRS Tax Fighters, today for a consultation by calling 281-962-0070.

FILE BEFORE JULY 15th

Before we talk about any tax relief options, you must first get into compliance. That means being current on all your tax return filings, including your 2019 tax return.

If you missed the deadline, you must still file as soon as possible before you begin exploring tax relief options. If you have multiple years of unfiled tax returns, reach out to our firm for help today.

PENALTIES AND INTEREST

Any time you do not pay your taxes, the IRS first hits you with a club called penalties and interest. Under normal circumstances, these penalties start accruing from day 1 after the tax deadline. Because of COVID19, The IRS is providing additional time to respond before interest or penalties apply.

If your tax bill already has penalties, our firm might be able to help remove some of the penalties by negotiating with the IRS on your behalf.

OFFER IN COMPROMISE

You might have heard advertisements about settling with the IRS, or the IRS Fresh Start program. Not everyone qualifies for it, but if your income or business was drastically affected by COVID19, there is a chance you can qualify now. This means the IRS will reduce your tax debt to a fraction of what you owe.

It is important to hire a tax relief firm like ours to walk you through this process and properly represent you before the IRS. Talking to the IRS before talking to us would be like going to court without a lawyer.

DON’T TALK TO THE IRS IF YOU OWE $10k OR MORE.

Even though things are tough right now, the IRS’s main job is still to collect the taxes it thinks you owe them. That by nature pits them against you. Often talking to the IRS can be a treacherous path and you risk the chance of saying something self-incriminating. Save yourself the headache, time, and money by reaching out to our tax relief firm today. You would not go to court without a lawyer and you definitely do not want to approach the IRS without expert representation. Call IRS Tax Fighters at 281-962-0070 today.

Haven't Received Your Stimulus Check? You May Have Mistaken It for Junk Mail

Mon, 08 Jun 2020 16:40:04 GMT

The IRS continues to send out stimulus checks, also known as economic impact payments, but many Americans say they still haven’t received their share. The problem, we’re finding, may be that the IRS is sending payments through debit cards, and people are mistaking them for junk mail.

According to the IRS, approximately 4 million people are being sent their stimulus check through prepaid debit card instead of a paper check.

Why is the IRS Sending Economic Impact Payment (EIP) Debit Cards?

The decision to send out EIP cards instead of paper checks was made by the Bureau of the Fiscal Service, the unit of the Treasury Department that’s working with the IRS to manage the stimulus payments.

The prepaid debit cards do offer some advantages. They can be used to:

• Withdraw cash from in-network ATMs

• Purchase items online or at stores that accept Visa cards

• Transfer money to your bank account

You can also check your balance online, by phone or through the mobile app.

The prepaid cards themselves aren’t the problem. The problem is the way in which the IRS is mailing these payments.

Check Your Mail Carefully

If the IRS doesn’t have your banking information on file and your tax returns were processed by the Austin, Texas or Andover, Massachusetts IRS Centers, you should receive an EIP card in the mail.

If you haven’t received your payment yet, it’s important to check your mail carefully to make sure you don’t mistake it for junk mail.

Here’s what you need to know:

• EIP cards are being delivered in plain white envelopes.

• The envelope will say that it’s from “Money Network Cardholder Services.”

• The card will have the Visa logo on the front of the card.

• The back of the card will say MetaBank, N.A., the name of the issuing bank.

• Information will be included with the card explaining that it’s your EIP card.

You can find more information about these cards at EIPcard.com . If you receive a piece of mail that matches the description above, it is not a scam. This is your economic stimulus payment.

EIP cards will be sent to the most recent mailing address the IRS has on file.

What to Do if You Accidentally Throw Out Your Card

If you accidentally threw out your EIP card, you’re not alone. Many Americans assumed the cards were a scam or junk mail and tossed them in the trash.

Here's the good news: you can get one replacement.

The EIP Card website says that you may receive one free replacement card if you discarded or destroyed the original.

To order a new card, you will need to call the customer service line at 1-800-240-8100 . Choose the “lost or stolen” option and follow the prompts. The original EIP Card will be deactivated and a new one will be mailed to your address.

Once you request a replacement, be on the lookout for your card in the mail. Any additional replacement cards will cost you $7.50. If you need your card urgently, you can pay an additional $17 for priority shipping.

The IRS has issued one set of stimulus relief checks and is considering more relief, but ultimately in order to get the stimulus payments, tax returns need to be filed. Call IRS Tax Fighters today at 281-962-0070 for help with filing back taxes and getting your stimulus payments.

Employee Retention Credit

Mon, 01 Jun 2020 01:30:39 GMT

Many businesses are trying their best to survive the negative impact COVID-19 has had on the economy. The government recognizes this and is trying their best to help. One type of assistance is the Employee Retention Credit. It’s a payroll tax credit that has been created via the CARES Act law. The Employee Retention Credit reduces the employer’s share of the social security payroll tax and is refundable so if the credit exceeds the amount of taxes owed for a particular quarter, then the IRS will refund the overpayment.

The credit is available for eligible for-profit businesses or tax-exempt organizations that:

1) Fully or partially suspend operations during any 2020 calendar quarter due to COVID-19 governmental orders, or

2) Experiences a reduction in gross receipts by 50% in a quarter in 2020 when compared to the same quarter in 2019.

The credit equals to 50 percent of qualified wages paid by an eligible employer any time from March 13 through December 31,2020 up to $10,000 of wages per employee. The definition of qualified wages differs based upon whether the business had more or less than 100 employees on average in 2019. If the business had more than 100 employees on average in 2019, then the qualified wages would include wages, compensation, and allocable health plan expenses paid by the business for the period of time the employee was not providing services due to a partial or full suspension of operations because of government COVID-19 orders.

If the business had on average less than 100 employees in 2019, then the qualified wages include wages, compensation, and allocable health plan expenses paid by a business during a partial or complete shut down ordered by a governmental authority, or during a period of 50% reduction in gross receipts in 2020 when compared to the same quarter in 2019.

For example:

1) A business pays Employee A $2,000 for payroll paid from March 13 through the end of the second quarter, March 31, then the business’s employee retention payroll tax credit is $1,000 for that quarter.

2) The business then pays Employee A $10,000 in the third quarter, then the employee retention payroll tax credit is $4,000 because the wage limit for the credit for each employee is $10,000 and $2,000 was paid in the previous quarter.

The significant decline in gross receipts ends in the quarter that follows a quarter where gross receipts exceeds 80% of the same quarter in 2019. Also, qualified wages does not include wages paid to related individuals as normally defined by the IRS such as a child, sibling, step-siblings, parent, niece, nephew, uncle, aunt, and in-laws.

The Employee Retention Credit is an attempt by the government to encourage and help employers retain employees by reducing the employer’s social security matching payroll tax during a time of economic hardship of the employer. However, there are limitations and exceptions to the rules for the credit. For example, an employer that receives a Paycheck Protection Program loan cannot receive the Employee Retention Credit, and a person who recently bought a company in 2019 or early 2020 can use the gross receipts of the previous owner to determine if they suffered a significant decline in gross receipts. To read further about the Employee Retention Credit click on the below link:

https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act

All About the Stimulus Check (Economic Impact Payment)

Mon, 27 Apr 2020 02:44:13 GMT

The Coronavirus and the disease it causes, COVID-19, has wreaked havoc on our economy and our lives. In order to combat the negative effect it has had on the economy, the US government has enacted the CARES Act. The CARES Act provides for Economic Impact Payments which are commonly called stimulus checks.

The IRS is working on issuing payments as soon as possible to all who qualify. They are sending payments out now even though the Economic Impact Payment is really an advance payment of a 2020 credit that will appear on our 2020 tax return when we file them in 2021. The credit will reconcile what we received to what we should have received. If we were under-paid, we will get more payment via a larger refund. However, if we were over-paid, we will not have to pay it back because there is no provision in the CARES Act for repayment.

The Economic Impact Payment also is not subject to federal or state debt owed except child support. So, even if you owe the IRS or the state, you will get your full stimulus check. The IRS will not withhold it to pay off prior federal or state debt unless it is child support.

You can check the status of the payment by going to IRS.gov and clicking the rectangle labeled “Get My Payment.” The IRS is working to issue the payments as quickly as they can and the information changes as your payment goes through the payment process. Therefore, it is best to check the “Get My Payment” section on IRS.gov periodically for changes until you receive your payment. The things you can do with “Get My Payment” are:

1) Check your payment status

2) Confirm your payment type as either direct deposit or check

3) Enter your bank account information for direct deposit if the IRS doesn’t already have your direct deposit information and if the payment has not already been issued.

As the IRS moves through the payment process for your payment, certain sections of the “Get My Payment” will become available. For instance, the ability to enter your direct deposit information may not be available today, but it may be available tomorrow based upon how far along the IRS is in processing your payment.

If you have moved and fear that the IRS will mail your check to the wrong address, then filing a change of address with the US Post office may allow you to get your check at the correct address. However, the best way to ensure getting your check is to file a 2019 tax return with the correct mailing address and direct deposit information. If your 2019 tax return has already been filed and the information on the 2019 tax return has changed, unfortunately, the IRS will issue a payment based upon the information on the 2019 tax return.

The IRS is calculating the amount to pay each person depending on the most recent tax return filed, 2018 or 2019. The people who are eligible are:

1) U.S. citizens,

2) Permanent residents or

3) Qualifying resident alien

The payment amounts are $1,200 for individual or head of household filers, and $2,400 for married filing jointly if they are not a dependent of another taxpayer and have a work eligible Social Security number with adjusted gross income up to:

$75,000 for individuals
$112,500 for head of household filers and
$150,000 for married couples filing joint returns

An additional $500 is provided for each dependent a taxpayer has that is under the age of 17 years old.

Taxpayers will receive a reduced payment if their Adjusted Gross Income (AGI) is between:

$75,000 and $99,000 if their filing status was single or married filing separately
112,500 and $136,500 for head of household
$150,000 and $198,000 if their filing status was married filing jointly

The amount of the reduced payment will be based upon the taxpayers specific adjusted gross income.

Eligible retirees and recipients of Social Security, Railroad Retirement, disability or veterans' benefits as well as taxpayers who do not make enough money to normally have to file a tax return will receive a payment. This also includes those who have no income, as well as those whose income comes entirely from certain benefit programs, such as Supplemental Security Income benefits.

Retirees who receive either Social Security retirement or Railroad Retirement benefits will also receive payments automatically in the manner in which they normally receive their monthly payments.

A person who normally does not have to file a tax return because their income is too low, can go to the IRS.gov webpage and click on the rectangle labeled “Non-Filers: Enter Payment Info Here” to provide the IRS with their payment information.

The Economic Impact Payment or stimulus checks are an attempt by the US government to alleviate the severe difficulties many people are facing due to COVID-19. The IRS is trying its best to get the payments to all who qualify as quickly as possible. The best way to monitor your individual payment status is to click the “Get My Payment” rectangle on www.irs.gov.

Is Filing a Tax Return Voluntary?

Tue, 10 Dec 2019 17:50:17 GMT

We do have a voluntary system of taxation in the United States. We voluntarily report our annual income received and we voluntarily pay the amount due. However, the word “voluntary” in this sense does not mean that it is not required. The Internal Revenue Code establishes that filing a tax return is required. The voluntary nature of the filing is that we do it ourselves. The government, generally, does not prepare and file tax returns for us.

There are some people and groups who argue that requiring us to file a tax return is unconstitutional and who advocate not filing a tax return or filing grossly incorrect tax returns. The IRS takes these types of activities very seriously and has a Frivolous Return Program that addresses these types of taxpayers’ claims. This department will assess large penalties such as:

$5,000 Frivolous tax return penalty per year filed
Accuracy-related penalty—20 percent of the underpaid tax;
Civil fraud penalty—75 percent of the underpayment attributable to fraud;
Erroneous refund claim penalty—20 percent of the excessive amount.

These penalties are in addition to the late filing and late payment penalties that the IRS normally charges if appropriate. So, if you feel that the filing of a tax return is unconstitutional, then it is ok to feel that way, but file your tax return and file it correctly.

We are legally required to file tax returns if our gross income is above a certain threshold and not filing a tax return can be subject to civil and criminal penalties.

For Self-employed individuals

*If you have net self-employment income of over $400, then you are required to file a tax return.

What does net income of $400 mean?

Does it mean that if you have a net loss, that you don’t have to file a tax return? So, for instance, if you had revenue of $100,000 and expenses of $110,000 for a net loss of $10,000 do you still have to file a tax return? Yes! You must tell the IRS what expenses you have or else they may prepare a tax return for you with zero expenses. Also, you will want to file a tax return so you can use that loss to offset income in a future year, or a previous year, if appropriate.

It is best to file all tax returns accurately. The under-reporting of income for self-employed people can have unforeseen consequences such as the reduction of future Social Security income and the inability to get loans. A self-employed person must file a tax return in order for the Social Security Administration to know that the person has income and therefore give them credit for that income. If no return is filed, then the income is not reported to the Social Security Administration and the person does not get credit for the income.

Also, tax returns are normally required when getting loans. i.e. mortgage loan, school loans, etc.

It is best to file tax returns accurately and to use legal methods provided by the IRS to reduce annual tax debt.

If you are not self-employed, then you need to file a tax return for 2019:

IF your filing status is . . .

And at the end of 2019

you were…

Then file a return if your gross

income was at least…

Single

Under 65

65 or older

$12,200

$13,850

Married filing jointly

Under 65 (both spouses)

65 or older (one spouse)

65 or older (both spouses)

$24,400

$25,700

$27,000

Married filing separately

Any age

Head of household

Under 65

65 or older

$18,350

$20,000

Qualifying widower

Under 65

65 or older

$24,400

$25,700

**Gross income means all income you received in the form of money, goods, property, and services that isn't exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it).

Don’t include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time in 2019, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly).

Essentially, for Social Security recipients, if your total income is more than $25,000 for an individual or $32,000 for a married couple filing jointly, you must pay income taxes on a portion of your Social Security benefits. Below those thresholds, your benefits are not taxed.

Also, you may want to file a tax return even if you do not meet the thresholds listed above because there are credits that are available only if you file a tax return.

Call IRS Tax Fighters today at 281-962-0070 for your tax preparation needs. We resolve and prevent tax problems with the ultimate goal of helping you increase your wealth, move toward financial freedom, and reduce your annual tax debt.

Vote No to State Income Tax in Texas by Voting Yes for Proposition 4!

Wed, 23 Oct 2019 02:56:46 GMT

A person earning $100,000 annually pays:

New York City:

State income tax $5,538 annually or $461.50 per month plus

Local tax $3,441 annually or $286.75 per month

Los Angeles:

State income tax $6,144 annually or $512 per month

Local 0.00 (zero)

Chicago:

State income tax $4,851 annually or $404.25 per month

Local 0.00 (zero)

Houston:

State income tax 0.00 (zero)

Local 0.00 (zero)

Some people say we need state income tax in order to reduce our property taxes. Let’s compare:

New York City:

Cost of property taxes for a home costing $250,000 is $2,192, but the median home price in New York City is $669,500 and the property tax at that price level is $12,888 annually.

Los Angeles:

Cost of property taxes for a home costing $250,000 is $1,921, but the median home price in Los Angeles is $696,900 and the property tax at that price level is $5,526 annually.

Chicago:

Cost of property taxes for a home costing $250,000 is $5,341, but the median home price in Chicago is $227,900 and the property tax at that price level is $4,579 annually.

Houston:

Cost of property taxes for a home costing $250,000 is $5,309, but the median home price in Houston is $189,900 and the property tax at that price level is $4,290 annually.

The above figures are courtesy of www.smartasset.com and www.zillow.com .

So You Have Started a Business and Hired Employees….Now What?

Thu, 29 Aug 2019 03:42:30 GMT

There are payroll taxes and payroll tax returns that need to be filed and paid regularly. The most significant of these taxes tends to be the 941 payroll tax deposit and the 941 payroll tax return. This tax is the one that is the downfall of many companies, but it doesn’t have to be. The tax is 7.65% of your gross payroll, but it is easy to think that it’s larger than that.

For example:

If you hire someone at a pay rate of $10 per hour and that person works 40 hours, then you owe them $400. (40 x $10) However, you don’t pay them $400 because of withholding.

You may withhold:

$65.00 for federal income tax

$ 5.80 for Medicare (1.45%)

$24.80 for Social Security (6.2%)

$95.60 Total withholding

This means you will pay the employee after one 40 hour week $304.40. ($400 – 95.60 = $304.40)

So, let’s say you do this 4 times because most 941 deposit payments are required to be paid monthly, and now you need to file your form 941 return and pay your 941 tax deposit.

You, therefore, need to make the following 941 payroll tax deposit.

$95.60 1st weeks’ employee withholding

$95.60 2nd weeks’ employee withholding

$95.60 3rd weeks’ employee withholding

$95.60 4th weeks’ employee withholding

$122.40 Employer matching of the Social Security and Medicare, or 7.65% of gross pay.

$504.80 Total 941 Deposit needed

$504.80 doesn’t seem so bad, but what if you have more employees. Let’s look an example with 5 employees paid instead of one.

$504.80 X 5 employees = $2,524

This amount, $2,524, can seem like a large tax, but in reality, $612 is the tax and $1,912 is your employees’ pay that you withheld from them for their federal income tax, Social Security, and Medicare. The true tax that the employer pays is 7.65% of total gross pay to match the amount the employee paid for Social Security (6.2%), and Medicare (1.45%). (6.2% + 1.45% = 7.65%).

Therefore, in order to budget to pay the 941 we recommend budgeting for the total gross payroll plus 7.65% of the total gross pay.

For example:

If you have 5 employees whose pay rate is $10 per hour and they work 40 hours per week, then budget:

$400 x 4 weeks = $1,600.00 (1 employees pay)

$1,600.00

5 employees

$8,000.00 Gross pay

Budget:

$8,000.00 Gross pay

+ $612.00 7.65% of $8,000 (7.65% X $8,000.00)

$8,612.00 Total amount needed to pay payroll and 941 deposit .

This is how we recommend budgeting to pay your form 941 deposits and payroll. It is an easier way to conceptualize 941 deposits. Thinking that the entire 941 deposit is the tax can lead to frustration and unpaid 941 payroll taxes.

Do you have unpaid payroll taxes? Call IRS Tax Fighters today at 888-959-2671 .

We resolve and prevent tax problems with the ultimate goal of helping you reduce your annual tax debt and increase your wealth.

Can the IRS Take Your Passport?

Thu, 17 May 2018 16:00:00 GMT

Yes, the IRS can ask the State Department to take your passport for seriously delinquent tax debt. If you owe more than $51,000 to the IRS and have not made arrangements to satisfy the debt, then the IRS can ask the State Department to either deny or revoke your passport. It can happen when you are in the US or while you are traveling abroad.

If you feel you are in jeopardy of getting your passport denied or revoked, call IRS Tax Fighters today at 888-959-2671 for relief!

Should You Do It Yourself?

Tue, 20 Mar 2018 16:00:00 GMT

We are seeing some people who are attempting to do different financial and tax set ups themselves. We certainly encourage everyone to learn and do their own research, but caution everyone when attempting to do things on their own.

For example, some business tax arrangements can be relatively simple to set up, but what happens after it is set up. How do you maintain it? How do you use it to get the best benefit for you? How do you use it to reduce your annual taxes by the largest amount legally possible? It is important to get good guidance in both the initial set up and afterwards when adopting new tax arrangements. Many times the fee avoided by setting it up yourself is much less than the benefit gained when hiring someone to do it for you. Call IRS Tax Fighters today at 888-959-2671 to get help with the setup of your tax arrangements.

Some tax arrangements are complex and we definitely caution against doing them on your own without professional guidance because the IRS’ penalties can be very large when things are done incorrectly, and in some cases incorrectly managed tax arrangements can lead to audits. It is best to get good guidance when making these changes.

The same is true for individual tax arrangements. Many times the increased monetary benefit and the time saved are worth much more than the cost of hiring IRS Tax Fighters to do it for you. There are things that IRS Tax Fighters will know that an average person will not know because of the amount of cases we have handled previously. And because of this, we tend to get a much better result.

Call IRS Tax Fighters today at 888-959-2671 for your financial and tax arrangement needs.

We resolve and prevent tax problems with the ultimate goal of helping you reduce your annual tax debt, increase your wealth, and move toward financial freedom.

Does the IRS Really Settle Debt for Pennies on the Dollar?

Sun, 18 Mar 2018 16:00:00 GMT

Yes, they do. You can totally resolve your IRS debt for a payment that is a very small percentage of what is owed, if you qualify. The IRS program that allows this is called an Offer in Compromise. Generally, acceptance of an offer in compromise depends on your ability to repay the debt.

If the IRS agrees that the amount offered is the most they will be able to collect on the debt, then they will accept the offer. This generally depends on 4 factors:

1) Income. How much income do you make per month?

2) Expenses. What are your monthly expenses?

3) Assets. What do you own?

4) Liabilities. What debt do you have? What do you owe?

Also, the IRS sometimes will consider extenuating circumstances that affect your ability to pay such as an illness of you, illness of your spouse, etc.

This is a simplified explanation of an offer in compromise. Everyone’s situation is different because of differences in family size, family makeup, work types, differences in types of expenses, etc.

IRS Tax Fighters completes thorough calculations and analysis to determine prior to filing an offer in compromise whether you are a candidate for an offer acceptance, and we aggressively pursue and defend offers in compromises. Because of this, we have a high acceptance rate for offers in compromises.

We encourage you to call IRS Tax Fighters today at 888-959-2671 to determine if you are eligible for an offer in compromise. We are encountering people who are eligible for offer acceptances who thought they were not good candidates. Is it possible that it’s the same for you as well? IRS Tax Fighters has a lot of experience with IRS negotiations, and we can help you. Call today, IRS Tax Fighters 888-959-2671 .

Does the IRS Really Come to Your House?

Wed, 07 Mar 2018 16:00:00 GMT

Yes, the IRS will come to your house, and if you are a business owner, the IRS will come to your business as well as your home. Most IRS debt cases do not result in home or business visits, and most communication is through the mail. However, home and business visits do happen. The agents that most frequently come to your house to collect money are called Revenue Officers. Call IRS Tax Fighters today at 888-959-2671 if you have a revenue officer.

Revenue Officers are individual agents that are specifically assigned to your case. They are supposed to be assigned to cases with debts of $250,000 or more for individual tax debt and $20,000 or more for business payroll tax debt, but we have seen revenue officers assigned to cases where the debt is as small as $8,000 for an international taxpayer and as small as $20,000 for a US resident individual income tax debt.

The revenue officer many times will initially be very nice, and make you feel very comfortable, but normally while this is happening they are working on levying you. The IRS has to do certain things before they can issue a levy. The revenue officer is normally making sure those things are done. The revenue officer does this because their primary job is to collect money. They are collectors. If they can’t collect it from you voluntarily, they will collect it from you involuntarily via a levy.

Normally, the levies are wage garnishments, bank levies, and for business owners, accounts receivable levies. These levies are brutal. The wage garnishments take a certain amount of your wages based upon your family size. For example, if you are a single person getting paid biweekly, the IRS will allow you to keep about $400 and they will take the rest. For a bank levy and an accounts receivable levy, all the money is taken. The amounts taken cannot exceed the total amount owed to the IRS, but normally the amount seized is less than what is owed.

Levies do not have to happen. IRS Tax Fighters prevents levies. Call IRS Tax Fighters today at 888-959-2671 .

What is a Levy and How to Prevent a Levy?

Sun, 25 Feb 2018 16:00:00 GMT

A levy is a legal involuntary seizure of your assets to satisfy a debt. The IRS can garnish wages, take money from your bank or other financial account, seize and sell your vehicle, real estate, business and other personal property. The most common types of levies are bank levies, wage garnishments, and accounts receivable levies for business owners. Levies do not have to happen.

The IRS sends multiple letters before they levy or involuntarily take money or assets from you. The best way to prevent a levy is to understand what each IRS letter means and to hire a good tax resolution firm. All IRS letters are serious, however, some indicate that a levy is imminent while some are simply notifying you that you have a debt, and to pay the debt or make arrangements. It takes a while before they send serious letters that indicate a levy is imminent.

Each IRS collection letter normally has a code that identifies the letter. The code is normally found in the top right corner of the letter while a few letters have the code at the bottom of the letter. The more serious letters have code CP503, CP504, Letter 1058, LT11, CP 90, and CP 91.

The only exception to this is when your IRS debt is old and these letters have already been sent. In those cases, a seemingly less serious letter can actually be very serious.

A levy does not have to happen. IRS Tax Fighters prevents levies. Call IRS Tax Fighters today at 888-959-2671 .

How 2017 Hurricane Disaster Area Residents Can Get A Higher EITC

Thu, 15 Feb 2018 16:00:00 GMT

Many people feel they do not qualify for the Earned Income Tax Credit so they do not apply. The IRS is encouraging people to apply, especially those people who lived in the areas affected by Hurricanes Harvey, Irma and Maria.

The IRS is allowing those people who lived in the areas affected by the hurricanes and whose income decreased in 2017 to calculate their EITC in a special way. The IRS is allowing these people to use either their 2017 or 2016 earned income to determine their Earned Income Tax Credit on their 2017 income tax return, and use whichever results in a higher EITC. So if you lived in the areas affected by the hurricanes and your income decreased in 2017, then you would calculate your 2017 EITC twice, once with your 2017 earned income and once with your 2016 earned income. You would then use whichever one resulted in the highest EITC.

The EITC is available to those people whose income is $53,930 or less and meet other IRS eligibility requirements. The EITC can result in a refund as high as $6,318 for a working family with qualifying children, and a refund as high as $510 for an individual with no qualifying children.

The person must have “earned” income in order to qualify for the credit. The earned income can come from working for someone, self-employment, running a business, or running a farm.

In order to get the EITC, you must file a tax return even if you don’t owe any taxes. The EITC is a refundable credit which means that you can get a refund as a result of the EITC even if the refund is more than the amount of taxes you owe for the year.

Call IRS Tax Fighters today at 888-959-2671 for your tax preparation and tax relief needs.

We resolve and prevent tax problems with the ultimate goal of helping you reduce your annual tax debt, increase your wealth, and move toward financial freedom.

How to Pay Less Taxes and Prevent Tax Problems

Thu, 18 Jan 2018 16:00:00 GMT

Every person’s situation is different because of their stage of life, family dynamics, income size, age, etc. Because of this, the way to pay less taxes and prevent tax problems differs as well. It is important to use a tax preparer that can advise for both tax reduction and tax problem prevention. Not every tax preparer can help with this. The less skilled tax preparer may charge slightly less for their tax preparation fee, but ultimately cost you much more in missed opportunities for both tax reduction and tax problem prevention.

It is also important to prepare your tax returns early even if you decide not to file the tax return until later in the year because some tax reduction and problem prevention strategies can only be implemented early in the year.

Call IRS Tax Fighters today at 888-959-2671 for your tax preparation needs.

We resolve and prevent tax problems with the ultimate goal of helping you reduce your annual tax debt, increase your wealth, and move toward financial freedom.

Don’t forget the 1/31/18 due date!

Wed, 03 Jan 2018 16:00:00 GMT

Many tax return deadlines were extended to 1/31/18 due to Hurricanes Harvey, Irma, and Maria; and the California wildfires. The tax return deadlines that are extended are based upon the relief period designated by the IRS.

If the tax return deadline is during the relief period designated by the IRS for your storm or fire and location, then the new tax return deadline is 1/31/18.

It is important to start working on the tax return well before the extended deadline to avoid getting assessed an IRS late filing penalty which can be quite large. i.e $10,000, $12,000, etc.

Please see the dates for your particular hurricane and location, or fire below.

What type of tax returns does it include?

It includes most tax returns including individual, corporate, partnership, S corporation, payroll, employment, certain excise tax returns; estate and trust income tax returns, gift, and generation-skipping transfer tax returns as long as an extension was filed on time if the original due date of the tax return was prior to the IRS relief period.

For example, if you filed a timely extension allowing you to file your Form 1040 Individual Income tax return by 10/15/17, then you will have until 1/31/18 to file without incurring a late filing penalty.

Another example is if your business paid payroll and you were required to file a Form 941 by 10/31/17, then the deadline to file that return has been extended to 1/31/18.

Who is covered?

Those individuals and businesses whose principal place of residence or principal place of business is in the federally declared disaster area.

Any individual or business whose records that are needed to meet the IRS deadline are located in the federally declared disaster area.

Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in the federally declared disaster area.

If you feel you or your business should be covered, but don’t necessarily meet the above guidelines, then call IRS Tax Fighters at 888-959-2671 for help.

Do you need to do anything to get the extended deadline?

The IRS’ computer system will automatically make the adjustment based upon the mailing address of you or your business. However, if the address of you or your business is not in the federally declared disaster area and you feel you qualify for the extended deadline, then call IRS Tax Fighters at 888-959-2671 .

The IRS is normally very good in determining who should and should not receive a late filing penalty in these instances. However, sometimes mistakes are made. If you receive a notice of penalty and you feel you qualify for the postponed deadline, call IRS Tax Fighters at 888-959-2671 .

It’s really a good idea to start working on completing the tax returns now. January 31 may seem like a long time from now, but time passes quickly and the penalties for late filing can be extremely large. i.e. $10,000, $12,000, etc. Call IRS Tax Fighters at 888-959-2671 for your tax preparation needs.

We resolve and prevent tax problems with the ultimate goal of helping you reduce your annual tax debt, increase your wealth, and move toward financial freedom.

Is Damage from a Storm Tax Deductible?

Tue, 26 Sep 2017 16:00:00 GMT

Yes, damages from a storm that are not reimbursed are tax deductible. They are deducted on schedule A on the individual income tax return form 1040 and for businesses are deducted on the appropriate business tax return with other expense items. In order to take the deduction, you need to know the items that were lost, their original cost or other basis, the fair market value immediately before the loss and the fair market value after the loss.

The best way to do this is to make a list of all items lost or damaged, and assign values to each item. You can refer to lists like the Salvation Army Donation Value Guide to help with assigning fair market values. However, keep in mind that the Salvation Army list is just a suggested valuation. Many items vary greatly in original cost and therefore may have different valuations. There are also online resale websites that can be used for valuation. Taking pictures of the damage to support your list is helpful as well. However, the list is the most important item to have. If you have receipts, or can get copies of receipts showing the original cost of some of the more expensive items, then that is good to keep for your records as support for your deduction in case of an audit. For individuals, the tax deduction is subject to 10% of your adjusted gross income which means that the amount of deduction the IRS allows is the amount that is higher than 10% of your adjusted gross income. For businesses, the items deducted will be items that still had a basis above zero because not all of the original expense was deducted on a previous tax return.

The IRS allows individuals and businesses to take losses sustained in federally declared disaster areas in either the year prior to the year the loss was sustained or the year the loss was sustained. So, for those losses sustained with Hurricanes Harvey and Irma, the prior year is the 2016 tax return and the year of loss is the 2017 tax return.

Casualty loss deductions can be a good way to recover some money lost due to catastrophic or theft losses that are not covered by insurance or reimbursed by any other organization.

Call IRS Tax Fighters today at 281-962-0070 or toll free 888-959-2671 for your tax preparation needs.

We resolve and prevent tax problems with the ultimate goal of helping you reduce your annual tax debt, increase your wealth, and move toward financial freedom.

IRS Postpones Deadlines for Hurricane Harvey Victims

Thu, 14 Sep 2017 16:00:00 GMT

Hurricane Harvey created devastation for many people and businesses. Because of this, the IRS has made adjustments to help those people and businesses by postponing the filing deadline for those tax returns that were due on or after 8/23/17 and before 1/31/18. The new deadline is 1/31/18.

What type of tax returns does it include?

For example, if you filed a timely extension allowing you to file your Form 1120S S Corporation tax return by 9/15/17, then you will have until 1/31/18 to file without incurring a late filing penalty.

Who is covered?

Those individuals and businesses whose principal place of residence or principal place of business is in the federally declared disaster area.

Any individual or business whose records that are needed to meet the IRS deadline are located in the federally declared disaster area.

Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in the federally declared disaster area.

If you feel you or your business should be covered, but don’t necessarily meet the above guidelines, then call IRS Tax Fighters at 888-959-2671 for help.

Do you need to do anything to get the extended deadline?

Even though the IRS has postponed the deadline to 1/31/18, it’s really a good idea to start working on completing the tax returns now. January may seem like a long time from now, but time passes quickly and the penalties for late filing can be extremely large. i.e. $10,000, $12,000, etc.

Call IRS Tax Fighters at 888-959-2671 for your tax preparation needs. We resolve and prevent tax problems with the ultimate goal of helping you reduce your annual tax debt, increase your wealth, and move toward financial freedom.

Has An IRS Agent Knocked On Your Door?

Mon, 17 Jul 2017 16:00:00 GMT

When an IRS agent comes to your home or place of business, it’s time to get representation. The IRS agent may look and act like your favorite aunt, uncle, or friend, but they have fangs and claws that will appear.

We have been getting calls from people who have waited a long time before getting representation and are either getting levied or are about to get levied. All IRS agents are bill collectors. They may seem very nice and friendly, but their ultimate goal is to collect from you. If they can’t get it from you voluntarily, then they will take it from you involuntarily in the form of levies or seizures. A levy can be very devastating. This does not have to happen. IRS Tax Fighters prevents levies and seizures .

We are seeing people who are waiting a long time before calling us because the IRS agents seem nice. They are nice, but they will be nice one day and levy you one week later.

Don’t delay. Contact IRS Tax Fighters today .

Are You Sure Your Tax Return is Correct?

Tue, 30 May 2017 16:00:00 GMT

Tax preparation can be very intimidating and we do recommend hiring a tax professional. However, we are seeing many poorly and in some cases fraudulently prepared tax returns that were completed by paid tax preparers.

Please remember that you are still ultimately responsible for what is on your tax return even when you hire someone to prepare it for you. We have had several cases where a clients’ previous preparer completed the tax returns badly, the return was then audited, and adjusted by the IRS resulting in large balances due. Some cases resulted in prosecution and imprisonment of the tax preparer. However, even in those cases, the balance was still owed by our client. This is because the taxpayer is ultimately responsible for what is on his or her tax return.

Because of this, we advise everyone to review their tax return before allowing their tax preparer to electronically file the return. Yes, we know that you won’t understand everything, but you will understand some things, and if something is really wrong, then it is likely that you will see it.

For example, we had a client who was being audited after her tax preparer was tried and convicted of fraud. There were several errors on the return, but one thing really seemed unusual. Her tax return indicated that she donated $30,000 to a church. We asked her if she did donate $30,000. She said, “No.” She also said she had never heard of the church that was mentioned on the tax return. She did donate some money to another church, but it was only $100. The end result was that she owed the IRS over $18,000 including interest and penalties.

It really is a good idea to review your own tax return for accuracy. You may not understand everything, but you should be able to see large errors which can prevent future problems.

Call IRS Tax Fighters today at 281-962-0070 or toll free 888-959-2671 for your tax preparation needs. We resolve and prevent tax problems with the ultimate goal of helping you reduce your annual tax debt and increase your wealth.

What Is My Tax Rate?

Thu, 30 Mar 2017 16:00:00 GMT

Occasionally our clients ask us this question, and we caution that the answer is deceiving. We could say 15%, 25%, 28%, or 33%, etc., but what that means is not what many people think it means.

The United States does not have a flat tax rate system. We have a graduated tax rate system that includes 7 tax brackets so most of us have more than one tax rate that is applied to our income earned. Our income is divided into portions and each portion is taxed at the applicable tax rate.

So for example, if you were single and earned $100,000 in 2017, you would be taxed at 4 different tax rates to determine your total tax due for the year. Your income from $0 to $9,325 would be taxed at 10%, your income from $9,326 to $37,950 would be taxed at 15%, your income from $37,951 to $91,900 would be taxed at 25% and your income from $91,901 to $100,000 would be taxed at 28%.

The answer to the question for this person would be 28% since that is the highest tax rate for this person, but as you can see, that answer does not accurately describe the tax rates applied to this person’s income.

The income thresholds differ based upon your filing status: Single, Head of household, Married filing jointly or qualifying widow, or Married filing separately. Below are the 2017 tax rates and income thresholds for each filing status:

Our goal at IRS Tax Fighters is to advise our clients in a way that leads to increased wealth and financial freedom. Call IRS Tax Fighters today at 281-962-0070 or toll free 888-959-2671 to see how we can help you reduce your annual tax debt, increase your wealth, and move toward financial freedom.

Does my mortgage truly reduce my tax debt?

Mon, 30 Jan 2017 16:00:00 GMT

Many clients have asked us if they should buy a home and hold a mortgage to reduce their tax debt. Our response is that they should buy a home if they want it for home ownership reasons and not for tax reduction purposes. Most people pay rent if they are not paying a mortgage and are, therefore, helping someone else gain equity or ownership of the property. So, for that reason, yes, it’s a good idea to buy a home. It’s better to help yourself own something rather than help someone else own it.

However, it is generally not worth the reduction in tax debt to hold onto a mortgage because the tax reduction that it provides is just a small percentage of the real estate interest paid. So, for instance, a payment of $10,000 in mortgage interest and $5,000 property taxes will lead to a tax reduction of $2,250 if a straight tax rate of 25% and the standard deduction for a single person is used. The tax reduction is even less for head of household and married filing jointly filing statuses since the standard deductions are higher for those filing statuses. We do not recommend paying $10,000 in mortgage interest in order to get a tax savings of $2,250. That’s a net loss of $7,750! That money can be better spent, and there are other tax reduction strategies that can be used.

We know that not everyone has the ability to pay their mortgage in full immediately, but we just provide this information to say that working towards paying off the mortgage is generally better than holding onto the mortgage to get a tax reduction. Some people opt to take out a 15 year mortgage rather than a 30 year mortgage. Some people pay one additional monthly payment per year with instructions to the mortgage company to apply the payment to principal to help pay off the mortgage quicker.

$9,000 IRS W-2 penalty!! Why??

Thu, 29 Dec 2016 16:00:00 GMT

Why did the IRS charge me a penalty of $9,000? They say that I didn’t file my W-2. What do they mean?

Many small and medium sized businesses provide extremely good services or products to their customers and their community. However, they may not initially know what filing requirements are needed for their type of business and for their employees. Initially, the business needs to decide if it has employees based upon the IRS’ definition of an employee. The IRS’ rules help to distinguish between an employee and contractor.

If based upon the definition, you do have employees, then there are a few filing requirements. One of the requirements is to provide your employees with a Form W-2 letting the employee know how much they earned for the year. This is the requirement most people know. However, what some people do not know is that you also need to provide the same W-2 information to the IRS by filing it with the Social Security Administration (SSA). The SSA will then give that information to the IRS. It is free and very easy to file the information online by going to the Social Security Administration’s website, www.ssa.gov . You do, however, need to register on www.ssa.gov before using it so keep that in mind.

Starting for the 2016 tax year, the due date to provide your employees and the SSA the W-2 is the same. The due date for both is January 31st. A W-2 is considered delivered to an employee by January 31 if it is mailed and postmarked by January 31st. The same is true if you opt to provide the SSA with the information via the mail rather than on their website. However, we highly recommend submitting the information to the SSA electronically. In fact, there is an extra form that is required if the W-2 information is mailed. It is a form W-3. It simply summarizes the figures of all the W-2’s onto one page. When the W-2’s are filed online, the system generates the W-3 automatically so you don’t have to do it yourself.

Call IRS Tax Fighters today at 281-962-0070 or toll free 888-959-2671 if you did not file your W-2’s with the SSA in prior years and received a letter notifying you of a $9,000 penalty so that we can negotiate with the IRS for you, and allow you to continue providing great service and products through your business.

Are IRS auditors bill collectors?

Tue, 29 Nov 2016 16:00:00 GMT

Auditors can be very nice and their conversations with the taxpayers can make the taxpayer feel that what they are doing is not that serious, and will have very little consequence financially to you. They are not garnishing your wages or levying your bank account. They don’t do that so everything can seem somewhat fine. You are busy with life and they say that this difference will only increase your taxes by say $2,000 here, $1,500 there, etc.

The auditor might have mentioned that they may decide to look at other years, but that’s not worrisome because they only said they may look at other years. Don’t be fooled. If you have an error on one tax return, and your circumstances surrounding that error are the same on your other tax returns, then there is a very high chance that the auditor will audit additional years.

Also, what the auditor does not tell you is that the increase in tax is only one portion of the amount you will have to pay. They will charge interest and penalties as well, and there is an extra penalty when the taxpayer error is over 15% of the original tax claimed on the tax return. So yes, auditors are bill collectors. They just don’t do the actual collecting, but they are just as much involved.

Do not let the auditor lull you into a false sense of security and make you feel as if what they are doing is not that serious. It’s very serious, and it’s best to try to get the best result possible. If you are very well organized, have great financial records, understand the tax code, and have the time, then sure you can represent yourself. Is it best to do so? No. It’s best to get great representation who will give you the personal attention you need to get the best results possible. Call IRS Tax Fighters today at 281-962-0070 or toll free 888-959-2671 .

(We recently saved our client over $103,000 in penalties by fighting for and reducing the additional tax proposed by an IRS auditor.)

Paying Estimated Tax Payments Form 1040-ES

Fri, 28 Oct 2016 16:00:00 GMT

Generally, the people who need to pay estimated tax payments are people who are self-employed. People who are employees and receive a W-2 annually have their taxes withheld and sent to the IRS for them throughout the year.

For example:

A person who works 40 hours for an hourly rate of $10 earns $400 for that week. However, their employer does not pay them $400 at the end of the week. The employer pays them less than $400 because the employer withholds a portion for the employee’s income taxes, Social Security and Medicare. The employer then pays the withheld portion to the IRS on behalf of the employee.

When a person is self-employed, they have to “withhold” and pay the IRS themselves via estimated tax payments which are also known as form 1040ES payments . The form 1040ES payments are due four times per year: April 15, June 15, September 15 and January 15 of the following year. A person can pay more frequently than four times per year, but should pay at least four times per year if they feel they will owe taxes. Some people may think, “Why do I have to pay form 1040ES estimated tax payments throughout the year rather than on April 15 when my tax return is due?” This is because taxes are actually due throughout the year, and not on April 15. The tax return we file on April 15 is simply a reconciliation to see if we paid too much taxes during the previous year and are due a refund, or paid too little taxes during the previous year and need to pay more.

One question that’s frequently asked is, “How much form 1040ES estimated tax payments do I need to pay?” Well, the answer to that is not going to be perfect. A good gauge is to look at how much you owed on the previous year’s return and pay that if you feel you are earning about the same amount of money. You would simply divide your previous year’s tax by four and pay that on the 1040ES due dates. Be careful when checking your previous return to see how much taxes you paid. Some people mistakenly use the amount owed figure which simply is the amount underpaid during the previous year. The amount of taxes you paid is on a line that has the sentence, “This is your total tax”. It’s on line 63 of the form 1040 2014. You would then reduce this figure if you were allowed credits like the earned income credit and additional child tax credit. These credits are listed below the “This is your total tax” line.

Another question that is frequently asked is, “What do I do if I can’t afford to pay the correct 1040ES estimated tax payment amount?” Call IRS Tax Fighters at 1-888-959-2671 . The last frequently asked question is, “How do I pay form 1040ES estimated tax payments?” There is more than one way to pay, but an easy way and the way most of our clients seem to prefer is to just write a check and mail it to the IRS. Make sure you write your Social Security number and “1040ES and the appropriate year” in the memo section of the check. Also, write your name and address on the check if it’s not already on the check.