Few things threaten your well-being like the harassment and anxiety of persistent tax problems.
Most people make 3 mistakes that get them in trouble with the IRS:
1. They procrastinate;
2. They attempt to represent themselves; and
3. They retain sub-par representation and now are in MORE need of help than ever before.
These are some of the services a Federally-Authorized Tax Practitioner may be able to assist you with: Offer in Compromise Cases; Penalty Abatement Petitions; Full Audit Representations; Preparation and Filing of Past Tax Returns; Stop IRS wage and bank levies (garnishments); Have property liens lifted; Get affordable installment agreements; Have penalties and interest forgiven; and Determining the IRS’ time to collect has expired (CSED).
OFFER IN COMPROMISE
The IRS’ Offer in Compromise program allows taxpayers to settle their tax debt. An Offer in Compromise, if accepted by the IRS, settles your tax liability for less than the full amount owed, providing you can prove you don’t have the ability to pay. Depending on economic situation, you really can sometimes pay very little in comparison to the amount you owe in taxes, and have your tax nightmare go away forever.
If it is done correctly, this option could save you an enormous amount of money, and may be a strategy that is right for you. You should use extreme caution though. You should use a professional with knowledge of the IRS’ procedures, and who can determine the least amount that the IRS will accept from you. If the Offer is not submitted correctly it will be rejected, or you may be required to pay more than is necessary.
STATUE OF LIMITATIONS ON DEBT COLLECTION
Although an Offer in Compromise may save you a considerable amount of money, it is not an appropriate option for everyone. However, do you know that the IRS only has a limited time to collect your back taxes? It’s true. The Collection Statutory Expiration Date (CSED) is generally 10 years from the time the liability was assessed, however, that time can be extended if certain actions are taken on your account (called “tolling”). Let a Federally-Authorized Tax Practitioner CAREFULLY evaluate exactly when that time period to collect your taxes will run out. If the IRS’ time has run out, or if it will run out soon, your troubles may be over.
Once the IRS is out of time, they MUST stop ALL collection action against you.
The IRS MUST release all property liens
TAX RETURNS – FAILURE TO FILE
Many people fail to file Individual Income Tax Returns for a variety of reasons. Some reasons are innocent, although the most common is the fact that people can’t afford to pay the taxes.
When this happens it becomes difficult to get back into the system. “I filed for 1998. I couldn’t pay for 2000, so I did not file. Then I was afraid to file for 2001. I haven’t filed since then. What can I do now?”
Did you know the penalties are more for failing to file than for not paying? It’s true.
Some IRS penalties can be as high as 100% to 150% of the original taxes owed. Even if you could pay the taxes owed, the extra penalties will make it impossible to pay off the entire balance.
The IRS imposes penalties to punish taxpayers and keep them in line. The IRS does forgive penalties. Before you pay the IRS any penalty amounts, you may want to consider requesting the IRS to not punish you because it wasn’t your fault.
Have a Federal Tax Issue that is stressing you? The Neighborhood Christian Legal Clinic – Low Income Taxpayer Clinic can consult with you to provide advice regarding your IRS tax issues, and/or potentially act on your behalf for FREE if you qualify for assistance (come to a clinic intake session)!
Jim Floyd is the Staff Enrolled Agent at the Neighborhood Christian Legal Clinic – Low Income Taxpayer Clinic.
As an Enrolled Agent, Jim is a federally-licensed tax practitioner with unlimited rights to represent clients before the Internal Revenue Service. This means he is unrestricted as to which taxpayers he can represent, what types of tax matters he can handle, and which IRS offices he can represent clients before. Enrolled agent status is the highest credential the IRS awards.
To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits, and adhere to a stringent code of ethics.