Frequently Asked Questions
What are the fees associated with tax resolution services?
Before we begin representation, we will be in agreement with an appropriate fee for tax resolution services. Our fees are based on the work and negotiation services that need to be done to fully complete your file. Our initial consultation is free and we will not take your case unless we are confident that we will get a favorable outcome.
Can we represent tax payers in all 50 states?
Yes. Our licensed advisors are qualified to represent taxpayers in all 50 states before the state taxing authorities and the IRS. State and Federal collection agents appreciate our knowledge of the internal revenue manual and collection procedures. Due to their case load they prefer prompt communication by the way of phone, fax and sometimes email.
Is it true that you can settle my back taxes for pennies on the dollar?
It is true our advisors have helped individuals receive great settlements using the program a called Offer in Compromise, every individual case is different. Understand that you must qualify for the program using a specific formula provided by the IRS. Never pay for an Offer in Compromise without doing an in-depth review of your financial circumstances to reveal if you can submit an “adequate offer proposal”. We will do an in-depth review of your financial circumstances to find out if an Offer in Compromise is the most appropriate resolution strategy which will provide you with the greatest chance for a settlement that may be drastically less than you owe.
I have received a notice of Federal or State tax lien what does that mean?
Often times this is the first step in aggressive collection procedures. It usually means that the taxing authorities are gearing up to pursue other collection alternatives such as wage garnishments, bank account levies, account receivable levies on a business and sometimes assets seizure. It is important that a competent advisor who is experienced in federal and state collection procedures review your file to be sure adequate communication is being made with the taxing authorities so they know you are moving towards a resolution of the liability or collection enforcement may be imminent.
My wages are being garnished what can I do now?
All is not lost, we will need to move quickly in order to get the wage levy (wage garnishment) released. Our advisors have handled countless wage garnishments and will take the necessary procedures to get you relief immediately.
What is an Enrolled Agent?
An Enrolled Agent is a federally-authorized tax practitioner who has technical expertise in the field of taxation. While CPA’s and attorneys may or may not focus on tax and tax resolution, only Enrolled Agents after passing a rigorous enrollment examination are empowered by the U.S. Department of the Treasury earning the privilege of practicing, representing taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals. An Enrolled Agent’s main focus is tax and tax resolution. The National Association of Enrolled Agent’s is a good resource for learning more about Enrolled Agents.
How long does the resolution process take?
Each case is unique and depending on the complexity of your file the process will take months.The average time is currently 7 months. Due to the nature of the IRS and its processing times, along with administrative procedures our licensed advisors may have to initiate, to protect your rights such as collection appeal request, collection due process hearings, taxpayer advocate request, and seizure appeal request, upon others. The resolution process does take time. You will be informed as to the status of your file. Our goal is to give you peace of mind and keep you protected while we are working toward the resolution.
Once we have power of attorney can the IRS still contact me?
After power of attorney is on record all contact with the IRS should now come through our office. You should not have to worry about dealing with collection calls from the IRS. The IRS will send a copy of any mail correspondence to our office. You will still receive notices via mail.
Do I have to appear before the IRS in person?
No! One of the benefits of hiring our firm, in most situations, you will not have to meet with the IRS in person. In fact, you should not receive another phone call!
What can I do if I cannot pay all of my tax liability at once?
Most people can’t. Most likely this is the reason that you have not dealt with it to this point. Our firm will determine the true tax liability and explore opportunities for penalty abatement and Offer In Compromise.
Will an Offer in Compromise show up on my credit report?
No. Unlike a Bankruptcy or a credit card charge off, an Offer in Compromise will not negatively affect your credit report. The IRS may have already filed a tax lien which does affect your credit score. In time, the lien can be removed.
How is the amount of an Offer in Compromise calculated?
There are two parts to the formula. The first is based on a percentage of the equity in assets. The second part is based on the available disposable income above the allowable expenses, multiplied by a factor of either 12 or 24.
If a debt has been satisfied, can I get the IRS to remove the lien?
Yes.Once the debt has been satisfied, the IRS has up to 30 days to remove the lien. Unfortunately, this is not always an automatic process and you may need some help to push the process along.
After the debt is settled, will I be in good standing with the IRS?
Yes. For the next five years, you will be required to remain in compliance. Compliance means that you will be required to timely file your return, adjust withholdings to avoid balances due and timely make estimated tax payments, if required.
Is the IRS required to give me a payment plan?
If your debt is under $10,000 and you are in compliance (all returns filed), can pay the debt within 5 years, you have a legal right to a payment plan. The IRS also has a streamlined plan if your debt is under $25,000; you are in compliance and can pay within 5 years. This plan is not a legal right; however, it is IRS policy. Above the $25,000 and outside the 5 year payoff is open for negotiations and is much more difficult to obtain. A word of caution, payments plan negotiations can be fraught with dangers, you need to be aware of the information that is being provided and possibilities associated with an installment agreement.
What can I do about all of the IRS penalties and interest?
In some cases our firm can argue for an abatement of the penalties and the associated interest.