Tax & IRS Problems

IRS Tax Notices & Letters

Why was I notified by the IRS?

The IRS sends notices and letters for the following reasons:

You have a balance due.

You are due a larger or smaller refund.
We have a question about your tax return.
We need to verify your identity.
We need additional information.
We changed your return.
We need to notify you of delays in processing your return.

Dealing with the IRS may appear daunting and sometimes very confusing. During my years dealing with the IRS and assisting clients, the best way to resolve any issue is reading the letter carefully, following their instructions and responding promptly. You don’t have to navigate through the IRS system alone.

Remember: we work for you, not the IRS. Through careful planning and legitimate tax strategies, we save our clients many times the fee in reduced tax liability.

Non-Filed or Past Due Tax Returns

If the IRS files a substitute return, it is still in your best interest to file your own return to take advantage of all the exemptions, credits and deductions to which you are entitled. The IRS will generally adjust your account to reflect the correct figures.

If You Owe More Than You Can Pay?

If you cannot pay what you owe, you can request an additional 60-120 days to pay your account in full through the Online Payment Agreement application no user fee will be charged. If you need more time to pay, we can request an installment agreement or you may qualify for an offer in compromise.

Why You Should File Your Past Due Return Now?

Avoid interest and penalties
Claim a Refund
Protect Social Security Benefits
Avoid Issues Obtaining Loans

IRS Liens & Levies

Lien vs. Levy

A lien is not a levy. A lien secures the government’s interest in your property when you don’t pay your tax debt. A levy actually takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in.

A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. A federal tax lien exists after:

The IRS:

Puts your balance due on the books (assesses your liability);
Sends you a bill that explains how much you owe (Notice and Demand for Payment)

You:

Neglect or refuse to fully pay the debt in time.

How to Get Rid of a Lien?

Paying your tax debt - in full - is the best way to get rid of a federal tax lien. The IRS releases your lien within 30 days after you have paid your tax debt.

When conditions are in the best interest of both the government and the taxpayer, other options for reducing the impact of a lien exist.

An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.

If you receive an IRS bill titled Final Notice of Intent to Levy and Notice of Your Right to A Hearing, contact us right away.

If you receive an IRS notice of levy against your employee, vendor, customer or other third party, it is important that you comply with the levy.

Offer in Compromise

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship. The IRS considers your unique set of facts and circumstances:

Ability to pay
Income
Expenses
Asset equity

The IRS generally approves an offer in compromise when the amount you offer represents the most they can expect to collect within a reasonable period of time. We can explore all other payment options before you submit an offer in compromise. The Offer in Compromise program is not for everyone.

You're eligible to apply for an Offer in Compromise if you:

Filed all required tax returns and made all required estimated payments
Aren't in an open bankruptcy proceeding
Have a valid extension for a current year return (if applying for the current year)
Are an employer and made tax deposits for the current and past 2 quarters before you apply

Tax & IRS Problems

IRS Tax Notices & Letters

Why was I notified by the IRS?

The IRS sends notices and letters for the following reasons:

You have a balance due.

You are due a larger or smaller refund.

We have a question about your tax return.

We need to verify your identity.

We need additional information.

We changed your return.

We need to notify you of delays in processing your return.

Remember: we work for you, not the IRS. Through careful planning and legitimate tax strategies, we save our clients many times the fee in reduced tax liability.

Non-Filed or Past Due Tax Returns

If the IRS files a substitute return, it is still in your best interest to file your own return to take advantage of all the exemptions, credits and deductions to which you are entitled. The IRS will generally adjust your account to reflect the correct figures.

If You Owe More Than You Can Pay?

If you cannot pay what you owe, you can request an additional 60-120 days to pay your account in full through the Online Payment Agreement application no user fee will be charged. If you need more time to pay, we can request an installment agreement or you may qualify for an offer in compromise.

Why You Should File Your Past Due Return Now?

Avoid interest and penalties

Claim a Refund

Protect Social Security Benefits

Avoid Issues Obtaining Loans

IRS Liens & Levies

Lien vs. Levy

A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. A federal tax lien exists after:

The IRS:

Puts your balance due on the books (assesses your liability);

Sends you a bill that explains how much you owe (Notice and Demand for Payment)

You:

Neglect or refuse to fully pay the debt in time.

How to Get Rid of a Lien?

Paying your tax debt - in full - is the best way to get rid of a federal tax lien. The IRS releases your lien within 30 days after you have paid your tax debt.

When conditions are in the best interest of both the government and the taxpayer, other options for reducing the impact of a lien exist.

An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.

If you receive an IRS bill titled Final Notice of Intent to Levy and Notice of Your Right to A Hearing, contact us right away.

If you receive an IRS notice of levy against your employee, vendor, customer or other third party, it is important that you comply with the levy.

Offer in Compromise

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship. The IRS considers your unique set of facts and circumstances:

Ability to pay

Income

Expenses

Asset equity

The IRS generally approves an offer in compromise when the amount you offer represents the most they can expect to collect within a reasonable period of time. We can explore all other payment options before you submit an offer in compromise. The Offer in Compromise program is not for everyone.

You're eligible to apply for an Offer in Compromise if you:

Filed all required tax returns and made all required estimated payments

Aren't in an open bankruptcy proceeding

Have a valid extension for a current year return (if applying for the current year)

Are an employer and made tax deposits for the current and past 2 quarters before you apply