How To Solve IRS Tax Problems | IRS Tax Problem Help

How To Solve IRS Tax Problems With Simple Steps

STEP ONE

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Discovery

This is a one-on-one virtual meeting where we will discuss the details of your tax problem, explore how I can assist you, and outline the next steps

STEP TWO

Protect

We provide immediate IRS tax problem relief—stopping collections and protecting your assets from levies during negotiations.

STEP THREE

Fight

We file any unfiled returns and bring you into compliance, ensuring you qualify for the best tax relief options available by law. We provide comprehensive tax problem help to guide you through the process.

STEP FOUR

Resolve Tax Problems

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IRS Tax Problems

Frequently Asked Questions About IRS Tax Problems

If the IRS has filed a tax levy or placed a federal lien against you, there are several steps you can take to address the situation:

1. Understand the Situation

  • Tax Levy: A levy allows the IRS to seize your assets, such as bank accounts, wages, or other property, to satisfy your tax debt.
  • Federal Tax Lien: A lien is a legal claim against your property, including real estate and personal property, indicating that you owe the IRS money. A lien does not involve immediate seizure but affects your ability to sell or borrow against your property.

2. Review IRS Notices

  • Carefully review any notices you’ve received from the IRS, particularly the Final Notice of Intent to Levy and Notice of Your Right to a Hearing (Letter 1058 or LT11). This notice informs you of the IRS’s intent to levy and provides you with the right to request a Collection Due Process (CDP) hearing.

3. Request a Collection Due Process (CDP) Hearing

  • If you receive a final notice, you have 30 days to request a CDP hearing. This hearing allows you to challenge the levy or lien and discuss alternative solutions, such as an Offer in Compromise, installment agreement, or innocent spouse relief.
  • Requesting a CDP hearing will temporarily halt the IRS’s collection actions, including levies, until your case is reviewed.

4. Negotiate a Payment Plan

  • If you cannot pay your tax debt in full, you may negotiate an Installment Agreement with the IRS, allowing you to make manageable monthly payments.
  • Partial Payment Installment Agreement (PPIA): If you qualify, this agreement allows you to pay less than the full amount owed over time.

5. Submit an Offer in Compromise (OIC)

  • An OIC allows you to settle your tax debt for less than the full amount owed. The IRS may accept an OIC if they believe that the amount you offer is the most they can collect within a reasonable period.

6. Seek Lien Withdrawal or Discharge

  • Lien Withdrawal: If you have paid your tax debt or entered into a Direct Debit Installment Agreement, you may request a lien withdrawal, which removes the lien from public records.
  • Lien Discharge: If you are selling a property, you can request a lien discharge, which removes the lien from that specific property, allowing the sale to proceed.

7. Appeal IRS Actions

  • If you disagree with the IRS’s decision to levy or place a lien, you can appeal the action through the IRS’s Appeals Office. This process provides an independent review of your case.

8. Explore Collection Alternatives

  • If you’re facing financial hardship, you may be eligible for Currently Not Collectible (CNC) status, which temporarily suspends IRS collection efforts until your financial situation improves.

9. Consult with a Tax Professional

  • Given the complexities involved, consulting with a tax professional, such as a CPA or tax attorney, can help you navigate the process, protect your rights, and explore the best options for resolving your tax issues.

10. Consider Filing for Bankruptcy

  • In some cases, certain tax debts may be dischargeable in bankruptcy. However, this is a complex area of law, and you should consult with both a tax professional and a bankruptcy attorney before pursuing this option.

Taking prompt action when a tax levy or lien is filed is crucial. By exploring these options, you can work toward resolving your tax debt and mitigating the impact on your financial situation.

Legitimate reasons to request a Collection Due Process (CDP) hearing include the following:

  1. Dispute Over the Tax Amount Owed: If you believe that the IRS has incorrectly calculated the amount of tax you owe, a CDP hearing gives you the opportunity to challenge the IRS’s determination.

  2. Innocent Spouse Relief: If you are seeking relief from a tax debt that was incurred by your spouse (or former spouse) without your knowledge or involvement, you can request a CDP hearing to present your case for innocent spouse relief.

  3. Offer in Compromise: If you cannot pay the full amount of your tax debt, you may use a CDP hearing to propose an Offer in Compromise (OIC), which is an agreement to settle your tax debt for less than the full amount owed.

  4. Request for Installment Agreement: If you need more time to pay your tax debt, a CDP hearing is an opportunity to request an installment agreement, allowing you to pay your debt in manageable monthly payments.

  5. Incorrectly Filed Lien or Levy: If you believe that a tax lien or levy has been wrongly imposed, you can request a CDP hearing to contest its validity.

  6. Collection Alternatives: You may request a CDP hearing to explore other collection alternatives, such as currently not collectible status (CNC), where the IRS temporarily suspends collection efforts due to financial hardship.

  7. Procedural Errors by the IRS: If you believe that the IRS failed to follow proper procedures in assessing or collecting your tax debt, you can raise these issues during a CDP hearing.

  8. Statute of Limitations Concerns: If you believe that the statute of limitations on collecting the tax debt has expired, a CDP hearing is an appropriate forum to present this argument.

  9. Doubt as to Collectibility: If you can demonstrate that you are unable to pay the full amount of the tax debt due to financial hardship, a CDP hearing allows you to present this evidence and possibly negotiate a reduction in the amount owed.

Requesting a CDP hearing based on any of these legitimate reasons can provide you with an important opportunity to resolve your tax issues with the IRS before further enforcement actions are taken.

If you're unable to pay your tax bill in full, there are several options available to help you manage your tax debt:

Request an Installment Agreement: You can apply for an installment agreement with the IRS, allowing you to pay your tax debt in monthly installments. There are different types of installment agreements, including short-term plans (up to 120 days) and long-term plans (more than 120 days).

Submit an Offer in Compromise (OIC): An Offer in Compromise allows you to settle your tax debt for less than the full amount owed. The IRS considers your income, expenses, assets, and ability to pay when deciding whether to accept your offer.

Apply for Currently Not Collectible (CNC) Status: If paying your tax debt would cause significant financial hardship, you may qualify for Currently Not Collectible (CNC) status. This temporarily suspends IRS collection activities, although interest and penalties will continue to accrue.

Seek Penalty Abatement: If you’ve incurred penalties due to circumstances beyond your control, you may be eligible for penalty abatement. This can reduce or eliminate the penalties added to your tax debt.

Explore Taxpayer Advocate Services: If you're experiencing financial hardship or facing issues with the IRS that you cannot resolve through normal channels, the Taxpayer Advocate Service (TAS) may be able to help. They offer independent assistance and can help negotiate with the IRS on your behalf.

Consider Tax Relief Programs: Depending on your situation, there may be other tax relief programs available to you, such as the Fresh Start Initiative, which provides more flexible terms for installment agreements and offers in compromise.

Consult with a Tax Professional: A tax professional, such as a CPA or tax attorney, can help you evaluate your options and guide you through the process of negotiating with the IRS.

Taking action as soon as possible is important to avoid additional penalties and interest, and to prevent the IRS from taking more severe collection actions, such as levies or liens.

Understanding a Federal Tax Lien:

A federal tax lien is a public record that indicates you owe money to the IRS. This lien notifies creditors that the IRS has a legal claim on all your property, including any assets you acquire after the lien is filed.

If a lien is attached to your property, you will not be able to sell it without first clearing the title.

If you're dealing with past-due tax returns and IRS tax problems, the first step toward relief is filing your overdue returns. Compliance is essential to negotiating any IRS tax debt relief.

Schedule a consultation today to explore your options. Once your past-due returns are filed and processed, I will assess the best possible solutions to help you make a fresh start.