Do You Have Tax Problems With the IRS or State? Do You Owe Money? – We Can Help
How To Begin The Tax Resolution Process
In most cases, tax resolution begins with the IRS or the state sending collection or notice letters of intent to levy. This means that the IRS or the state is threatening to seize the assets of the taxpayer. The tax resolution process begins by having a tax professional analyze whatever situation that the client happens to find themselves in. It is important to note that before any resolution can begin the taxpayer has to be compliant. This means that all the back taxes need to be filed.
For resolution to occur, the taxpayer also has to be current with all the estimated payments. If these two requirements have not been met, tax resolution is not possible. If you have been told otherwise, you have been deceived.
Many companies will try to trick you into paying fees, yet they never tell you what is required to start the tax resolution process. We are highly experienced in this area and have an excellent track record of resolving IRS and state tax matters. We have prevailed in 99% of the cases we have represented. If you want to know more about what other clients have said, please read our google reviews for “Idaho tax and bookkeeping LLC Boise Idaho” by clicking here.
We are here to help you, and yes we can prevent IRS Liens, Levies, and wage garnishments.
Common Tax Resolution Questions and Answers
Below you will find the most common tax resolution questions that come up when trying to resolve a tax issue. Please note these are only general guidelines. Because every situation is different, please contact us at (208)608-5653 so we can discuss your specific set of circumstances and provide advice tailored to your situation.
I owe IRS money and have received a notice of “intent to levy.” How can you help me?
If you owe IRS money and you cannot afford to pay the full balance, we can help. We can assess your situation and find out what can we do for you. We have options to get an installment agreement, partial installment, a non-collectible status, or an offer in compromise.
What does an Installment plan mean for me?
An Installment is an agreement between you and the IRS to pay the balance within certain amount of time. The balance is going to be paid in full during the term of the agreement. This agreement usually lasts 72-120 months depending on the date of assessment. Usually the Internal Revenue Service has 10 years to collect from the date of assessment. The agreements for balances less than 50,000 are handled differently than the ones over 50,000. Our office would love to go into more details with you when we meet to go over your case.
What is a Partial Installment?
Partial Installment is an agreement that allows you to pay what you can afford during the time of the installment period. This is when you pay up to the point that the statute expires. For example, let’s say that you owe the IRS $25,000 and you have five years left on the statue before this amount will expire. However you can only pay $100 a month after you have provided financial statements to the IRS. This will be $1,200 per year times five years; it comes to $6,000. Then out of $25,000 you end up paying only $6,000 because that’s all you can afford. We will more than happy to assess your situation and determine if you qualify for a Partial Installment.
What if I can’t pay anything towards my delinquent taxes (AKA: Non-Collectible Status)?
Non-Collectible Status is a zero payment installment. After you complete financial statements, the Internal Revenue Service will place your account in the Non-Collectible Status. This gets reassessed each year and if your situation changes than the IRS will seek payments.
However if your situation does not change, in 10 years this delinquent tax will expire. Because of the possibility of having to pay if your financial status changes, this is usually referred to a “the sleeping dragon” that can wake up any year that your status changes. Any liens that were placed on your property will stay in place. As soon as your situation does change an offer in compromise is advisable.
What is an offer in compromise (OIC)?
An Offer In Compromise (OIC) is a delinquent tax settlement with Internal Revenue Service. After completing the Offer In Compromise paperwork, the IRS will assess and decide if you qualify. An Offer In Compromise is done under the IRS “fresh start program” and is voluntary on the part of the IRS. To have a successful offer, it is absolutely critical to have an experienced professional representing you. Much like you must be represented in court by a good lawyer if you want to win.
There are many ways to structure an offer to the IRS and we are more then happy to explain them to you. This is where you have the opportunity to settle for pennies on the dollar if you do it correctly. For the last five years we have handled successful OIC cases whether the the case was small or big and we have an excellent track record. As of today we have not lost a single offer that we have presented to the IRS.
The Offer In Compromise process is much like the legal processes and it is not guaranteed. However, if we guide you and prepare all the paperwork that documents your current financial standing to the IRS, there is a high likelihood that the offer will be accepted.
I am being audited and/or having an examination, what should I do?
If you receive an audit/examination letter from the state or the IRS the best thing to do is to get a professional with experience in audits to guide you through the process. You will need to get representation much like a court case to make the process as painless as possible. After our initial consultation, the first step is for us to get the power of attorneys (2848 form or State POA’s) for your tax account and we will commence communication with the auditors to advocate on your behalf. In this communication we will find out exactly what the IRS or the state is looking for. We will work with the requesting agency to determine the size and the scope of the information necessary. As we work to provide the requested information, we also work to confine and reduce the scope of the audit so that it does not take up all your time and resources.
Because of the open communication we provide, auditors will usually let us know where to focus our efforts and that will save you time and money. At that point we come up with a strategy of records presentation. Depending on the situation some records will need to be re-created, and having an audit specialist in your corner is the best way to make sure everything is completed as specified in the audit.
We have prevailed in 99% of the audits we have handled for our clients. If you are facing an audit, we look forward to talking about your specific circumstances. We fight for our clients and leave nothing to chance. An audit is not something you want to face without experienced representation.
Do you prepare back taxes and current taxes so I can become current?
Yes, we can help you file all taxes and become current so you can take advantage of an Offer In Compromise or other tax resolution. We prepare personal taxes, business taxes, trusts, estates, and nonprofits. Filing all of your taxes is an important part of any tax resolution and we are here to help you through the entire process and work with you to make it as painless and stress free as possible.
If you have any questions about your situation please call us at (208)608-5653 so we can discuss your specific set of circumstances and provide advice tailored to your situation.