IRS Tax Debt Relief FAQ's
Offer in Compromise
- Q: What is an
"Offer in Compromise"?
A: When the amount you owe
exceeds your ability to realistically pay off the debt, the IRS may be willing to settle
for a considerably reduced amount. Depending on your
situation, this could literally
mean "pennies on the dollar." If applied for
correctly, the Offer in Compromise program will save the average taxpayer
thousands of dollars off their tax debt and bring an end to
the anxiety associated with IRS collections.
This program, however, is very specific.
Any miscalculation and the Offer will likely be
rejected and,
even worse, the IRS will then have all the details of your
financial life at their disposal. Because we know
the formulas and guidelines that the IRS uses, we are able to
assess the lowest possible amount the IRS will accept before
your Offer is ever submitted, eliminating the guesswork and
worry. When you call, your tax specialist will walk you
through the procedure, answering any questions you may have
and providing a free, accurate evaluation of your case.
Penalty Abatement
- Q: What is a "Penalty Abatement"?
A: If there were circumstances
beyond your control that prevented you from paying your tax
debt and led to delinquency, we can challenge the penalties
that have built up and negotiate them down, possibly even
eliminate them altogether. There are many valid reasons for which the IRS might forgive this
additional debt: divorce, theft, illness, prolonged
unemployment, fire, and bad accounting advice are just a few. If applied for correctly, Penalty Abatement
could mean a savings of thousands of dollars on your tax debt.
This program involves a great deal of skill to successfully
navigate the IRS protocol and bring resolution. Our staff of
tax professionals has years of experience and knows the
secrets of this program. When you call, your personal tax
specialist will cover the intricate details of a penalty
abatement, accurately explaining why you would or wouldn't be
a candidate for this relief.
Wage or Bank Levy
- Q: What is a "Wage or Bank
Levy?"
A: When the IRS or State has
been repeatedly unable to collect back taxes from someone,
they begin to seize assets. This process is called a Levy and
is generally intended as motivation for the taxpayer to come
clean. They will garnish wages, seize bank accounts, demand
payment from your business’s accounts receivable, take
control of property for auction, demand title on vehicles and
still come back for more.
Virtually anything of value can be seized to satisfy the
outstanding debt.
Levies are the most crippling and humiliating of all
collection tactics. They’re a punitive action designed to force taxpayers into
compliance. Thankfully, our staff has years of experience
lifting Levies quickly and painlessly. Depending on the type
and severity of the Levy, it usually takes only 2-10 business
days for us to successfully get a Levy released.
Lien Subordination
- Q: What is a "Lien Subordination"?
A: If there is a Tax Lien on
your home or property, we can petition the IRS to make the
Lien secondary to another obligation in order to obtain some form of financing.
This solution is especially useful if you plan on using equity in
a property to pay off a negotiated settlement, and can also be
a smart option to take advantage of favorable interest rates
and market conditions.
Payment Plans
- Q: What is a "Payment Plan"?
A: When a person has a
large tax debt but they can’t afford to pay it off in a
single lump sum, then it is often possible to set up a
“Payment Plan” that allows the debt to be paid off in
monthly installments. The most important factor in such a
situation is determining a monthly amount that will be
acceptable to the IRS and also reasonable enough that the
taxpayer can maintain the payments without
defaulting. #1
Tax Relief can help you determine this amount and submit a proper
proposal to the IRS so that you can pay off your debt without
incurring a hardship due to unreasonably high payments.
Payroll Tax Issues
- Q: What is "Payroll Tax?"
A: When a person owns a business which employs
others, the IRS assesses to that business what it calls 941
taxes (also referred to as employee withholding taxes.) This
tax is due quarterly, and if left unpaid penalties and
interest begin to accrue, considerably increasing the size of
the debt. If
these taxes are neglected long enough, the business can be
closed and all assets seized to satisfy the debt.
Depending
on the variables of the case, the taxes can usually
be negotiated down to a settlement, and the associated
penalties and interest abated.
As these cases vary substantially in intricacy, your
tax specialist will provide a detailed assessment of your
situation and show you the most affordable solution possible.
Other Frequently Asked Questions
- Q: Who qualifies for a relief program?
A: Whether an individual taxpayer or a small
business, almost everyone will qualify for some form of
relief. The IRS has certain rights and resources available to
it, and it happily utilizes all of them in order to collect
past due tax debts. Taxpayers have rights as well, but the
problem is that they are buried deep within the IRS code and
so few people are really aware of them.
Our tax specialists know these rights and understand
the relief you are entitled to. From quickly releasing a wage
garnishment to writing an air-tight Offer in Compromise
proposal, #1 Tax Relief will provide a fast, accurate solution to your
tax issue and protect your rights as they were originally
intended by the Law.
- Q: How long does it take?
A: Because the specifics of
each case are so different, resolution can range from one week
to six months. If you have time sensitive issues, make sure
and tell your tax specialist as they can tailor a program to suit your
particular circumstances.
- Q: Will the IRS continue collecting once I'm represented?
A: If you decide to take advantage of our
representation services, all collection activity will stop.
That means no more harassing phone calls or threatening
letters. All correspondence is directed through our office so
that you can handle your own affairs while we resolve your tax
issue. Once your case is accepted and settled, Tax Liens, IRS
debt and collection action will be out of your life.
- Q: Is it "Guaranteed"?
A: The IRS uses specific formulas to evaluate relief
based on a national cost of living index. When applied for
following their guidelines, resolution is quick and efficient.
Since #1 Tax Relief uses individual analysis of
each case, relying on the information our clients provide to us
and taking into consideration this cost of living index, we
are able to accurately assess the best solution available. In
the event that your Offer is refused, it is our policy to
appeal it at no additional cost.
We aim to have your case resolved the first time
through, but we will continue to fight for you until you get
the relief you deserve!
- Q: What options are available?
A: Many of our clients will qualify for a relief
program called an Offer in Compromise. Depending on the
circumstances, this option may settle a taxpayer’s debt for
literally pennies on the dollar!
If a person does not qualify for the OIC, there are
still many other options which could mean huge savings,
including: eliminating penalties and interest, removing Liens
from property, stopping Wage Garnishments and releasing
Levies. We can also negotiate affordable Payment Plans to
prevent financial hardship.
No matter what your particular difficulty, odds are
there’s a program that will help you.
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