IRS Tax Problems
When individuals or businesses owe a tax debt, they should seek out a professional to get the proper representation. If the taxpayer does not make arrangements to satisfy their debt, the IRS will take certain measures to collect on the taxes due. There are tax problems that can be handled easily with a simple phone call to the IRS, but once a tax liability reaches a certain dollar amount, taxpayers often lack the ability to pay and the IRS can become very aggressive.
The IRS may use enforced collection actions against a taxpayer to collect a tax debt. Once this process begins, it can be devastating to a taxpayer’s finances. Collection actions include:
- IRS Tax Liens: The IRS will place a claim against a taxpayer’s property or person as collateral for a tax debt. The IRS will not release a lien without the tax debt being paid in full. There are exceptions for certain situations.
- IRS Bank Levies: This allows the IRS to seize funds from a taxpayer’s bank account(s) or accounts receivable for an IRS tax debt.
- IRS Wage Garnishments: The IRS will seize a portion of a taxpayer’s wages, paycheck, or salary to satisfy a tax debt. This includes social security payments as well.
These collection actions affect a taxpayer’s finances and credit, making it difficult to borrow money through loans from the bank, or other financial institutions, buy or sell a home, or even rent property. Due to a pres-set of allowances, the IRS can leave a taxpayer without a sufficient amount of money to live, and even worse, sentence a taxpayer to jail.
IRS Tax Solution
Palm Beach Tax Group makes it a point to educate our clients about the many possibilities made available to taxpayers to resolve an IRS tax problem. A taxpayer must be in compliance, or up to date with all tax filings and payments, before the IRS will consider any resolution solution. We have the experience needed to navigate the many tax solutions allowed by IRS rules and regulations, including:
- Installment Agreement: A contract between the taxpayer and the IRS where the taxpayer agrees to make regular monthly payments to the IRS. It can be a full pay agreement or a partial pay agreement.
- Offer in Compromise: An agreement between the taxpayer and the IRS that allows the taxpayer to settle their tax debt for less than the amount owed. There are certain requirements necessary to for an Offer in Compromise. The IRS has up to two years to accept or reject an Offer in Compromise.
- Penalty Abatement: An IRS program where the IRS removes some or all of the accumulated penalties from the tax debt. A taxpayer must provide reasonable cause as to why the penalty should be abated.
- Innocent Spouse Relief: An IRS tax relief program through which a spouse can claim ignorance of an understatement of due taxes. There are other situations where a spouse may claim an injured spouse, or prove the tax liability belongs to the other spouse.
- Currently Not Collectible: Known as a CNC agreement, this resolution works well for taxpayer who are experience economic hardship.
- IRS Appeals: When a taxpayer disagrees with the assessed tax debt amount or an IRS’ determination, the taxpayer has appeal rights which will allow a second opinion.
The solutions listed here are not all-inclusive and each case is unique on its own. Contact us to let us help you understand your rights and provide the tax defense you deserve!
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