I Haven’t Filed a Tax Return in Years, is it Too Late to Fix it?

If you have not filed a tax return in several years, you may wonder if it is too late to file. We have good news; it is never too late to file your taxes.  In fact, not filing your taxes can get you into a lot of trouble with the IRS, so it is best to file previous years’ tax returns as soon as possible.

While old tax debts, penalties and interest can add up quickly; studies have shown that non-filers are more likely to have a tax return then the general population.   However, there are time limitations on tax refunds; by waiting to file, you could be throwing money away.  Start gathering your tax information and contact one of our tax specialists to help file your old taxes immediately.

First, determine how many years it has been since you last filed taxes.  It is important to gather as much income and deduction information as possible, tax documents, such as W2’s can be requested from the IRS for free.

Once you have gathered all of the important documentation, start preparing the tax documents with the help of one of our professionals.  Not only will they know the applicable tax laws for each year, but they can advocate to the IRS on your behalf if late tax payments and penalties are due.  Tax professionals will also understand the time limits on tax refunds and be able to help you if an audit is performed.

irs tax returnLate tax returns must be completed on paper; they cannot be submitted electronically.  Each tax year should be filed and submitted in separate envelopes and mailed or hand delivered to your local IRS office.  Be sure to make copies of each return before you submit them.  Keeping your returns in separate envelopes helps expedite the approval process and reduces the likelihood of your returns being mixed up.

If you find that taxes are owed upon filing your prior year tax returns, it is imperative that you pay your taxes as soon as possible.  Penalties and interest have been compounding since the taxes were due and will continue to do so until your balance is paid.  Subsequent tax refunds will be used to pay off old tax debt until your balance is eradicated.

Our tax specialists are experts in negotiating with the IRS.  We can help you work out installment payments, reduce the total amount owed or help you qualify for other tax relief programs.  Do not delay any longer, gather your tax information and contact us today.

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Posted in FAQ

What Is An Offer In Compromise?

An Offer in Compromise is an IRS program that may allow you to settle your past or present tax debt for less than what is owed. Although qualification is done at the governments’ discretion, it is possible to eliminate a substantial part of your tax debt through this program.

In order to qualify for an Offer in Compromise, you must demonstrate financial hardship, an inability to pay the amount due and show that paying the bill would create an economic hardship on yourself or your household.

Before you can apply for an Offer in Compromise, you must be current on all filings of your taxes and payments. You cannot apply while filing for bankruptcy. If you are behind on your taxes or payments, contact one of our tax specialists to get you up to date before making an offer to the IRS.

The IRS also offers an online pre-qualifier tool to help you decide if you meet the guidelines to qualify.

The first step of submitting and Offer in Compromise is to determine how much you can realistically pay to the IRS. A tax specialist can assist you in coming up with this number. It is important to be prepared before submitting your offer to the IRS. Be ready to have your financials examined and get all of these items in order ahead of time. Offer in Compromise

They will request paystubs, bank records, titles, and numerous other financial documents. Your preliminary offer will have to be based on your current assets and those that are likely to be available in the future.

When you submit your offer, you will have to include a fee and up to 20% of the offer amount depending on which payment option you choose. It is important to continue making payments while the offer is pending.

While applying for on Offer in Compromise with the IRS can save you thousands of dollars, it can also provide the IRS with information that can work against you.

Before applying, be sure that you are likely to qualify. Once they have access to your financial records, it can amplify the effort they are making to collect your back tax debt.

A qualified and experienced tax professional can provide guidance and help you determine if applying for an Offer in Compromise is the right option for you. Contact us today to have your questions answered and talk about your options for paying off your back tax debt.


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Posted in FAQ

Who Qualifies For A Tax Relief Program?

Are you one of the thousands of Americans who owe back taxes?  Or, are you worried about the upcoming tax season and where you will find the funds to pay the taxes you will owe?  If you are not in a financial situation where you can pay your taxes in a single lump sum, you may qualify for a tax relief program with the IRS.

While tax relief programs will not completely eliminate the taxes you owe; the IRS will sometimes allow you to make payments or eliminate a portion of your tax debt.  Qualifying for these tax relief programs is best done with the guidance and assistance of a tax professional.

The federal government offers a few tax relief programs to citizens experiencing financial hardship or extenuating circumstances.  The Fresh Start Initiative allows for extensions, payment plans and offer in compromise.  For individuals making less than $100,000 per year, with a tax debt less than $50,000; the IRS allows for penalty relief and a six month extension on taxes.

IRS Tax Relief ProgramThis option is great for those that need just a little extra time to pay federal taxes.  If you need longer to pay off your tax debt, you can apply for installment payments.  Generally an individual will need to have less than $50,000 in back tax debt, be able to make minimum payments of $25 each month, and plan to have the full amount paid back in six years.

An Offer in Compromise can eliminate some of your back taxes due; financial hardship must be demonstrated and the application process can be complicated.  The IRS will analyze your income and liquid assets to determine how much of your back tax debt they determine you are able to pay.  An Offer in Compromise can also be combined with an installment plan once you have settled on the amount owed.

There are also other tax relief programs offered by the federal government.  Innocent Spouse Relief is available to divorcees who may have tax discrepancies or under reported income during the time they were married.  Income averaging relief is also available to those whose income varies from year to year.  In this program, the IRS uses an average of your past income to determine your current year tax liability.

In addition to federal tax relief programs, many states and counties offer relief programs to homeowners, veterans, seniors and others experiencing financial hardships.  Contact one of our qualified specialists today to learn more about the tax relief programs that you may qualify for in your area.

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Posted in FAQ

What is the Fresh Start Initiative?

If you have been struggling to pay your back taxes and or penalty taxes on time, the Fresh Start Initiative can provide some relief.  The IRS introduced the Fresh Start Initiative in 2011 to help small businesses and individuals with tax debt.  There are a few components of the Fresh Start Initiative.

First, the initiative provides relief from tax penalties.  If you have been unemployed for 30 or more consecutive days prior to the 2013 tax season, you can be awarded a six month extension on your due date without accruing tax penalties.

To qualify for this relief as a self-employed taxpayer, you must demonstrate a twenty-five percent reduction in business during 2012.  Income requirements also must be met; individuals cannot report over $100,000 in earnings and they must have a tax balance less than $50,000.

tax relief highwayThe second part of the Fresh Start Initiative is the option for installment payments.  This option is for taxpayers who cannot pay their entire tax debt at one time, and do not qualify for other options within the Fresh Start Initiative.  The threshold for installment agreements has been raised from the previous $25,000 amount to $50,000.

In addition, the IRS has extended the maximum term for installment agreements from five years to six years.  This option can reduce the amount of money you will pay in penalties, but interest will continue to accrue while installment payments are being made.

An Offer in Compromise (OIC) is the third component of the Fresh Start Initiative.  If you cannot pay your full IRS tax debt, this option allows you to reach an agreement with the IRS to settle for an amount less than what you actually owe.

The IRS will analyze a taxpayers’ income and assets to determine what amount the taxpayer should actually pay.  In general, the IRS will not settle if they determine the original amount can reasonably be paid in a lump sum or following an installment plan.  Our professionals are here to help you determine if you qualify for an OIC with the IRS, contact us today for more information.

The Fresh Start Initiative has also increased the Federal Tax Lien filing threshold from $5,000 to $10,000.  The IRS has the right to place a tax lien on a taxpayers’ property including real estate, vehicles, and other assets if they fail to pay taxes.  Liens can make borrowing and establishing credit difficult.

Want to learn more about the Fresh Start Initiative and see if you qualify for any of its programs?  Contact our tax resolution specialists today for more details.

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Posted in FAQ

Common IRS Tax Penalties

So have you failed when it comes to paying back your IRS debt? Do you find yourself charged with tons of IRS tax penalties? Would you like to learn what they are and why you’ve been charged before you clear off your debt? If so, you’re in the right place.

In this article, we’re going to talk about some of the most common IRS tax penalties in detail and how you can work with/around them.

The IRS is allowed to impose a tax penalty on any citizen if he/she is deemed to have debt unpaid to the IRS. The exact nature of the penalty imposed and how it affects the individual’s personal life is dependent on the debt owed, the number of years returns have been filed and the volume of financial transactions in between.IRS Tax Penalties

But in the worst cases, all the IRS cares about is the original outstanding amount. If you can prove to the IRS hat you can only afford your original debt and not the penalties and reach a compromise with them, they may waive off all the penalties. It happens to many people. However for this, you need a tax resolution specialist to plead your case properly.

With that said, here are some of the most common IRS tax penalties…

1. Failure to file penalty

The failure to file penalty is a penalty imposed when you fail to file your returns with the IRS and the IRS believes you to have crossed the income tax limit for that specific year.

You see… not everyone is required to file penalties at all costs. However, it’s recommended for every adult individual as it helps keep their credit score balanced. But you can’t expect a beggar to file his/her returns every single year.

So the IRS only looks closely into cases where people have received money enough to cross the basic income tax bracket but have failed to file their returns. A 5% penalty on the total amount owed if you miss the deadline. If you file your returns after 60 days, the IRS imposes a penalty of minimum $100. The total penalty percentage can go up to 25% for repeated failures to file.

2. Information reporting penalty and frivolous return penalty

The IRS imposes a variety of penalties for supplying inaccurate information. There are mainly 2 types – the information reporting penalty and frivolous return penalty.

The Information reporting penalty applies if you’ve made a genuine mistake when filing your returns initially and make a correction to it after the due date has passed. The penalty ranges from $15 – $50 depending on when you’re applying to make the correction.

For example, if you make your corrections within 30 days, the penalty is $15. If it’s over 30 days, it’s $30. If it’s past August 1st, you are liable to pay $50.

The frivolous return penalty is applicable when you’ve intentionally provided incorrect information that has made it difficult for the IRS to assess your liability. If the IRS proves that you’ve done so, you’re charged a minimum of $500. However, the IRS may also want to try you in a formal civil court as well if it deems necessary.

3. Late Tax Penalty

If you’ve failed to file your returns on time, the late tax penalty will be applicable to you along with the failure to file penalty. The late tax penalty involves a 1% charge on your existing unpaid tax. The amount can also increase depending on the duration for which you’ve left your taxes unpaid.

If you’re currently in a bad financial situation and cannot make payments, please submit the Automatic Extension of Time to File IT Return form with the help of a certified tax resolution specialist. This may stop the IRS from creating a tax lien on you.

4. Inaccuracy Penalty

Now… the IRS is perfectly cool with small inaccuracies in taxes. It allows you to make the payments later in case you calculated them inaccurately up to 10% or $5000 (whichever is greater).

But if you’ve purposefully understated your tax and failed to comply with the regulations set by the IRS, the IRS will impose a 20% penalty on the total amount due and may also try you in a criminal court for failure to comply with IRS regulations.

Whatever your situation may be a tax resolution specialist can help you with any of your tax needs.


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IRS Tax Problems And How They Affect Me?

Do you want to get rid of your IRS tax problems? Do you find yourself in a serious debt situation with the IRS? If so, pay close attention here.

Leaving debt unpaid to the IRS is one of the worst things you can do. The IRS seems passive at first when compared to your typical creditors such as banks and other financial institutions. However, they shouldn’t be taken lightly.

The IRS is the most powerful financial institution in the United States and it has more power than any other institution over you.IRS Tax Problems

The IRS can send you to prison, take away your property or sell your assets if they deem it necessary. Normal creditors such as banks and credit card companies cannot do that. They have laws that they have to work around.

An unsecured loan creditor cannot take away your assets in the event that you fail to pay your loan.

The creditor could sue you in a formal court and based on the judgment, they can take over your assets.

But the IRS can claim ownership on your assets without even the court’s involvement through tax liens.

That’s why IRS tax problems must be avoided at all costs by filing your returns and paying what you owe on time. But if you’ve failed to do so and find yourself in this station, don’t worry.

Fortunately, there are some effective ways to eliminate or reduce your IRS tax problems…

1. File your returns

If you haven’t filed your returns or are avoiding it because you know that you owe tons to the IRS, stop letting anxiety get you. The anxiety of the IRS coming knocking is more than enough to freeze you and keep you from filing your returns. But actually, this is one of the worst things you can do.

You can’t fool the IRS by not filing the returns. At any given point of time, the IRS will know how much you really owe them. They just don’t come knocking so often. However, be warned – the IRS is aware of each and every single transaction that a U.S. Citizen is involved in.

So stop hesitating with anxiety. Just go and file your returns even if you can’t pay the money right now. There are ways to negotiate the payment of the amount you owe. Just calculate and file the returns. If you need help, contact a tax resolution specialist.

2. Make your payments by borrowing

Once you’ve calculated your taxes, make a payment to the IRS at the earliest for the amount you owe. Try and make a complete payment if you have the money with you. If you don’t have the money, we suggest that you either sell one of your existing assets or mortgage them and use the loan proceeds to pay back.

The IRS debt has the worst impact on your credit score. So the sooner you clear all of your outstanding debt, the better.

Now… since you haven’t filed your taxes in a while, the IRS may require you to pay additional fees/penalties as well. Paying them is necessary. However, it can be avoided if you can get your tax resolution specialist to plead your case with the IRS.

If you can show to the IRS that you can only pay back the original amount you owe and paying the additional fees/penalties will cause you to have a financial hardship, the IRS may choose to be lenient on you and let you off. For this, you need an effective tax resolution specialist.

3. Pay through installments or reach an offer-in-compromise

If you can really prove that you’ll be undergoing financial hardship when you make these payments, there are two ways to negotiate your IRS tax problem situation: Reach an installment plan or an offer-in-compromise.

An installment plan is where the IRS plays the role of a creditor and breaks down the total amount you owe along with interest into small monthly installments. You’re required to pay this amount each and every month until all your debt is paid.

An offer in compromise is where the IRS chooses to cancel of a portion of the debt you owe because you just can’t afford the money right now or your family may go through a financial hardship. This is only when you show evidence to the IRS.

Negotiating such a deal cannot be done on your own. That’s why we recommend that you consult a tax resolution specialist to help reduce your IRS tax problems.

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Posted in FAQ

Why Your IRS Tax Audit Is Not The End Of The World

The possibility of an IRS tax audit looms with almost all of us. Even the most dutiful taxpayer, if honest, will admit to this fear. If you are going to be audited, it is important to remember to stay calm. People, unfortunately, get audited all the time, and we are still able to carry on. While the process is no picnic, it is possible to get through with minimal stress and any long term scarring.

 

                                                                                 Are All Audits Created Equal?

 

IRS Tax AuditNo, in fact they are not. There are three different types of audits, and some are better than others.

 

●   If you have a correspondence audit, everything happens through the mail. The IRS makes a request of you, like to prove some deductions, and you mail it out.

 

●   For an office audit, you head to your local IRS office and an agent will go over your

documents there.

 

●   In the event of a field audit, an agent will come to where you live.

 

What Should I Do If I Am Audited?

 

All of us are likely to experience some tax problems in our lives. While an IRS tax audit is not ideal, it can be made less cumbersome when you talk to a professional, the person who filed your taxes, or experts employed at tax resolution services. These people are trained to assist you so that you don’t have to endure the situation alone.

 

The IRS examines financial records and therefore ensures that you are reporting all of your deductions and exemptions properly. When you are audited, you should do the following:

 

●   Make sure you only give the IRS precisely what they need. If you give too much, you could be risking more troubles for yourself.

 

●   Make sure it is organized. If the process is streamlined and sensible, your agent will be able to work with you more effectively.

 

●   Ask questions so you know what is expected of you.

 

●   Research your issues at the IRS site.

 

●   Don’t lie.

 

●   Don’t volunteer information.

 

●   Know your rights, which you can see when you read the Taxpayers’ Bill of Rights.

 

●   Ask for a postponement if you need more time.

 

Last year, roughly 1.5 million Americans were audited by the IRS. If you want to avoid one, know your risk. Keep your records for three years, and be wary if you are self-employed and claim your business is operating at a loss “of any size.”  If you need help dont hesitate to contact a qualified tax professional.

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What Are Tax Resolution Services?

 

Have you struggled with your taxes now or in the past? Do you worry about what to do in the future? Are you concerned about the IRS? What about an IRS tax audit? If you answered yes to any of these questions, consider the expert help and advice of tax resolution services. These services can help you with many of the following situations:

 

●   Settling back taxes

●   The IRS garnishing your wages

●   Delinquent tax returns

●   Investment fraud representation

●   Offshore bank account

●   Payroll tax problems

●   IRS tax liens

●   Expiration of back taxesTax Resolution Services

 

If your taxes are giving you a headache, don’t wait any longer. Call the expert, friendly professionals today who are waiting to help you. Tax resolution specialists know what it takes to get the job done right so you don’t have to worry. You shouldn’t have to lie awake at night worry about your tax problems.

 

What Can I Expect From These Services?

 

One thing to remember is that some of your issues will be resolved quickly, but others may take more time. This is to say that it is possible all of your tax woes will not disappear over night, but you will be on the road to a more worry-free situation.

 

First, you will be consulted regarding your tax information. A highly-trained consultant will let you know what your options are once you have displayed all of your information. If you decide to let us work for you, we will do our best to make sure the IRS no longer contacts you, but instead contacts us.

 

A team of professionals, led by one person who will speak with you directly, will work on your case to decide the most effective resolution for you. Everyone’s situation is unique, so this is why we feel it is important to talk with you extensively. No one wants to encounter something like an IRS tax audit, so trust that we are on your side.

 

Once we begin the tax resolution process, you will be informed the whole time of what the circumstances are. Our goal is to achieve IRS compliance for you. If you have incomplete records, we will work with you to using our developed methods to make sure you can prepare tax returns.

 

A tax resolution will be reached after the settlement negotiation. Sometimes this is a long process, but ultimately acceptance will come. Get started today with us and put your tax worries to rest.


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Posted in FAQ

Get Tax Relief Help Now

Do you desperately seek tax relief help? Do you find yourself owing tons of money to the IRS? Do you feel that you may be audited by the IRS anytime soon? If so, keep on reading..

The IRS is one of the most ruthless and brutal collection agencies on the planet. Leaving debts unpaid to the IRS will not only have an impact on your credit score but can also limit your freedom.

If you’re in a serious situation with a significant risk of being audited by the IRS, here are some things we recommend that you do…

tax relief highway1. Always file your taxes on time

It doesn’t matter whether you think that your income crosses the tax threshold or if you don’t have money to pay to the IRS. Make sure that you always file your returns. You still have the right to file your return no matter how late.

But the IRS can charge you with a 25% penalty if you fail to file your returns regularly. Don’t wait for the IRS to create a substitute return for you. Make sure that you file your returns immediately and on-time from now on without any delays.

2. Hire a certified tax resolution specialist

Regardless of whether you owe very little or loads of money, we strongly recommend that you get in touch with a certified tax resolution specialist. A tax resolution specialist can provide you the tax relief help you need by representing you with the IRS.  Just fill out the form at the top of the page.

She/he will go over your financials and create an effective argument to negotiate an offer in compromise to the IRS.  Do not put off hiring a tax resolution specialist. Even if you’re broke and have no money, make sure that you hire a specialist. The specialist will be able to plead your case and nullify the debt you owe and protect you from losing your freedom.

3. Negotiate payment plans with the IRS

If you feel that you won’t be able to make your payment in full to the IRS, don’t worry. The IRS offers three different payment plans to U.S. citizens that owe taxes. Payment plans include: Typical, Streamlined and Partial.

The most effective way to negotiate a payment plan is by consulting a tax resolution specialist. Don’t think for a moment that you can win the case on your own (unless you’re a tax specialist yourself).

A typical payment plan is a monthly payment plan that IRS offers if you demonstrate that you have a substantial income but no substantial assets.

A streamlined payment plan is offered if you owe less than ten thousand dollars in taxes and prove that your current financial circumstances make it impossible for you to pay the tax amount.

A partial payment plan involves deduction of a certain percentage of the amount that you owe to the IRS and you’ll be required to make monthly payments for the new amount. This happens if the IRS deems that you’re incapable of earning an income that will enable you to pay the tax that you owe.

Whatever your situation is, you can always work it out so get some tax relief help now.


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Am I Eligible for Innocent Spouse Relief?

Have you been filing joint returns with your spouse? Has your spouse failed to make the appropriate tax payments? Do you find yourself in a position where the IRS is demanding more money from you because your spouse’s wrong doings?

If so, don’t worry. If you’re completely unaware of the erroneous information provided on the tax return by your spouse, you may be able eligible for innocent spouse relief. If it is granted, you will be relieved of taxes that the IRS says you owe.

The IRS may relieve you of the entire amount of tax you owe or reduce it by specific percentage depending on the circumstances. Innocent Spouse Relief can be claimed depending on your situation. The method for claiming it is dependent on whether you filed your returns incorrectly or if you filed your returns correctly but failed to make the payments due. With that said, here are the different methods available for you to claim for innocent spouse relief…

1. Type #1 (Understatement of Tax)

You have an understatement of tax if the IRS claims that you owe more taxes than what is shown on your tax returns. The understatement amount is the difference between the total tax that the IRS claims you owe and the amount you’ve stated on your returns.

The IRS offers innocent spouse relief in the event of an understatement if certain conditions are met.

innocent spouse reliefConditions include but are not limited to:

- A joint return was filed

- The understatement of tax exists mainly because of the spouse’s wrong doings (omission of income, over claims of exemptions, overstatement of deductions, etc)

- You claim and prove that you were unaware that you were signing an understatement of tax – You demonstrate circumstances and facts that make it inequitable to hold you liable for the tax owed

- You claim for relief within two years of the date of IRS’s first collection activity against you

2. Type #2

An innocent spouse relief can be claimed if you filed a joint return with your spouse in the past but have now legally separated from the individual and haven’t been the member of the same household for the last 12 months (as on the day you are claiming for relief).

This is a spouse relief for individuals that are divorced or not living together. The relief is granted if the following conditions are met:

- You were aware that you were signing the return of understatement of tax

- Your spouse transferred assets into your name as a method of tax avoidance

3. Type #3

The third type of relief can be claimed if neither of the above mentioned methods is applicable to you and it is deemed to be inequitable to hold you liable for the unpaid tax. The IRS grants relief under type #3 if the following conditions are met:

- You’ve legally separated from your spouse and haven’t been living in the same   neighbourhood for the last 12 months (as on the date you are claiming relief)

- You did not know and were unaware of the fact that your spouse left taxes unpaid

- You may suffer from hardship if the relief is not granted

While claiming for innocent spouse relief, we strongly recommend that you work with an experienced tax resolution specialist.


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