Owe Back Taxes
Our staff includes Board Certified Tax Attorneys, Certified Public Accountants, Former IRS Agents, Managers and Enrolled Agents that can resolve your back tax issue and problems today.
Over 25 million taxpayers owe back taxes to the Internal Revenue Service. Call us today to discuss any of the options to settling back taxes.
It is imperative to act on any and all IRS notices that you receive. Contacting a professional firm will provide you with significantly better results.
The IRS has a number of tax programs to help you deal with your situation. All these programs are based on your current financial situation. As you read below you will find out the best way to resolve your tax problem on your back taxes.
IRS Enforcement Tools.
IRS files over 3.8 million tax levies and files over 900,000 tax liens each year.
If you fail to act on your final IRS notice the following enforcement actions will follow. IRS will:
1. File a Bank Levy which completely seizes all money out of your bank account
2. File a Wage Garnishment or Wage Levy which is a continuous levy on your wages
3. File a Federal Tax Lien
IRS files over 3.8 million tax levies and files over 900,000 tax liens each year. If you fail to act on a IRS Final Notice and Right to Hearing you can expect the IRS to use enforcement action to collect back taxes that you owe.
This is the final notice the IRS sends before seizure:
Notice Of Intent To Levy And Notice Of Your Right To A Hearing
Please Respond Immediately
We previously asked you to pay the federal tax shown on the next page, but we haven’t received your payment. This letter is your notice of our intent to levy under Internal Revenue Code (IRC) Section 6331 and your right to appeal under IRC Section 6330.
We may also file a Notice of Federal Tax Lien at any time to protect the government’s interest. A lien is a public notice to your creditors that the government has a right to your current assets, including any assets you acquire after we file the lien.
If you don’t pay the amount you owe, make alternative arrangements to pay, or request an appeals hearing within 30 days from the date of this letter, we may take your property, or rights to property. Property includes real estate, automobiles, business assets, bank accounts, wages, commissions, social security benefits, and other income. We’ve enclosed Publication 594, which has more information about our collection process; Publication 1660, which explains your appeal rights; and Form 12153, which you can use to request a Collection Due Process hearing with our Appeals Office. To preserve your right to contest Appeals’ decision in the U.S. Tax Court, you must complete, sign, and return Form 12153 within 30 days from the date of this letter.
How we resolve your IRS problem on your back taxes owed.
AZ Tax Agents will settle and negotiate your case with the Internal Revenue Service using the following steps:
1. We will immediately send a power of attorney to the IRS letting them know we are now your tax representative. You will never have to speak to the IRS. We handle all IRS tax negotiations and settlements.
2. We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant. We can pull tax IRS transcripts, file and prepare your tax returns within days, even if you lost your tax records.
3. The IRS requires a current financial statement. We will secure a required 433-A or 433F (IRS financial statement), verify the income and expenses and work out a settlement agreement. The IRS will require a closing settlement method for each case.
4. We review with our clients how they want to settle their case. We get them an agreement based on their current financial needs.
5. There are five different settlements techniques on back taxes, the list below are the ways IRS will close your case off of the IRS enforcement computer.
IRS settlement options
1. Hardship Settlements. The inability to pay your taxes at the current time. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently non collectible. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship. IRS will require a detailed financial statement with supporting documentation to support your hardship condition on your back taxes.
2. Payment Agreements, Installment Agreements or Payment Plans – Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required. Depending on the dollar amounts IRS has programs fitting all needs on back taxes.
3. IRS Offer in Compromise. There are three types of OICs:
The IRS may accept an Offer in Compromise based on three grounds:
A. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
B. Doubt to Liability – The IRS incorrectly set up a tax liability again you.
C. Effective Tax Administration / Exceptional Circumstances – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
4. The Filing of a Bankruptcy – Yes taxes can be discharged in a Bankruptcy proceeding. There are some basic rules in order to have your taxes discharged.
The general rules that govern dischargeability are:
a. the taxes must be three years or older
b. the return(s) must be filed for at least two years
c. the returns must be assessed for at least 240 days
5. The running of a statute of limitations.
Each taxpayer’s case is very different and many different events could have occurred during the statute period. As a general rule, the statute of limitation period is ten years from the date of assessment. It is best to have a true tax professional pull a transcript and conduct a detailed research to determine the correct statute period.
IRS policies can be complicated and burdensome, but with the proper knowledge, these policies can be easily navigated. If you owe back taxes to the IRS call us today for a free tax consultation.