10 Tax Debt Relief Question FAQ's
Tax Debt Relief FAQ's
10 IRS Tax Debt Relief Issues That Come Up Often
One benefit of working with me is that you'll have a tax professional who understands IRS Tax Debt Relief and can devote the amount of time necessary to achieve a successful conclusion.
However, it's not always clear when you need our tax relief services to help with IRS tax debt forgiveness.
Explore our Tax Relief FAQ by clicking on each question mark.
If you have tax debt, this will clarify why you need our help with tax debt and our tax debt services.
Your Ultimate Shield Against Bank Levies or Federal Liens:
A Collection Due Process Hearing, also known as a CDP hearing, maybe your last best chance to resolve a tax controversy and stop a bank levy with the IRS short of tax litigation.
The IRS does not allow taxpayers to request these hearings for "frivolous" reasons. That includes refusing to pay tax on religious or moral grounds.
What Are Some Legitimate Reasons to Request a CDP Hearing?
- You want to seek payment alternatives such as a payment plan or an offer in compromise. To get these plans accepted, you must file all delinquent returns.
You have a terminal illness and overwhelming medical bills. - You can't pay because you're living on Social Security or unemployment.
- You can't afford to pay with your income-the IRS has strict guidelines on this type of hardship arrangement.
Generally, the IRS must issue a Notice of Intent to Levy and Right to Request a Hearing before it sends a levy. Requesting a Collection Due Process Hearing
Complete Form 12153 Request for a Collection Due Process Hearing, and send it to the IRS at the address shown on the lien or levy notice within 30 days.
The taxpayer should check the IRS actions that he disagrees with and explain why he disagrees with such actions.
If the taxpayer receives both a lien and a bank levy notice, the taxpayer may appeal both actions.
The taxpayer must identify all reasons for disagreement, and may raise the following issues relating to the unpaid tax:
- Appropriateness of collection actions;
- Collection alternatives such as installment agreement, offer in compromise, posting a bond, or substitution of other assets;
- Appropriate spousal defenses; and
- The existence or amount of the tax, but only if the taxpayer did not receive a notice of deficiency or did not otherwise have an opportunity to dispute the tax liability.
A federal lien is a public record on your property that says you owe the IRS money. It tells creditors that the IRS has a claim on all your property, including property you buy after the lien is filed.
If a lien is attached to your property, you cannot sell that property without a clear title.
Another Frequently Asked Question Is About Filing Past Tax Returns. Filing Your Return Is The First Step In The IRS Tax Debt Relief Settlement Process. Taxpayers Must Be In Compliance In Order To Negotiate IRS Tax Debt Relief. After Your Past Due Tax Returns Are Processed, I Will Evaluate The Possible Solutions So You Can Make A Fresh Start!
Completing your income tax return carefully and accurately is the straightforward way to avoid an audit.
Particularly, make absolutely sure you double-check your arithmetic and filled out the correct forms.
If you actually think a tax deduction or credit you are claiming looks high, you may want to think considering attaching an explanation because the IRS flags things that seem suspicious.
To see what makes you a focus or target for an IRS audit read Tax Audits: Triggers and Tips.
You do not have to be liable for those taxes. The IRS offers Innocent Spouse relief to protect you.
This is one of the most frequently asked questions about IRS tax relief.
Getting an Offer in Compromise accepted is the closest one can get to have their tax debt forgiven or get IRS tax debt relief.
Although it is not easily obtained by anyone, taxpayers who get an Offer in Compromise approved can settle their debts for a
significantly lower amount. The settlement amount is based on your income, expenses, and available assets.
I begin by addressing all the immediate threats to your assets because even though this problem wasn't created overnight, we can start solving it today.
Once we establish your best course of action, an estimated timeline will be provided and updated as we progress.
As a tax professional, I use an interactive analytics software by Canopy that uses your responses to recommend the best course of actions to review.
We will go over the recommendations together and discuss options, outcomes, and other measures to qualify you for additional relief.
The IRS uses formulas rather than negotiations to reach payment plan or Offer In Compromise figures.
Negotiations with the IRS only tend to take place during audits, tax court, or Offer In Compromise appeals. Everything else is done by way of formula.
In recent years, the Internal Revenue Service (IRS) has been more amenable to working out late tax payments, usually by installment agreements.
But you have to address the problem up front, be proactive in how you negotiate, and not keep Uncle Sam waiting too long for his money.
An IRS tax levy takes immediate action against you. It requires the person receiving the levy to turn over all funds due you the IRS.
This could be the money in your bank account, the paycheck from your employer, or your accounts receivable if you are in business.
A federal tax lien is used as security for amounts owed to the IRS for the tax liability.
It says that the IRS has the right to seize the property before other creditors.
According to tax law, if the IRS has a levy against your property, they can actually take your property to satisfy that debt.
There are many options for resolving your tax debt with the IRS. Some of the most popular include:
- Offer in compromise/Fresh Start Progrm
- Lien Removal
- Levy Release
- Installment Agreement
- Penalty Abatement
- Currently Non Collectible Status