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IRS Tax Relief Helpline

How to plan for IRS tax relief

We Take Care of All the Audit Work

Our IRS Audit Defense includes:

  • Communications and meetings with the IRS from the first notice to complete the audit.
  • Attending all audit appointments.
  • A review of your tax return for additional areas of concern.
  • A review of your documentation before is presented to the IRS.
  • Making all audit phone calls.
  • Handling all audit correspondence.
  • Preparing requests for appeals.

Don’t even have to meet with the IRS.

If you have been contacted by the IRS, the State or a Local Taxing Authority, regarding a possible tax audit, do not panic. Simply contact us as soon as possible for assistance in representing and defending you from further action. .

Fast Act

For the sake of clarity, a ‘seriously delinquent tax’ is an unpaid federal tax liability of more than $52,000 that has been assessed and has become legally enforceable.

  • For which a Federal tax lien has been filed under Section 7345(b)(1)
  • For which the taxpayer’s right to a hearing under Sec.6320 has lapsed or been exhausted.
  • For which a levy has been issued under Sec. 6331

The $52,000 threshold is deceptively low considering that the amount is made up by aggregating:

  • All current tax liabilities
  • All penalties and interest on balances due

If The IRS Wrongfully Revoke Your Passport

  • If the IRS mistakenly notifies the State Department to revoke your passport, they have to issue a reversal notification as soon as is practicable.
  • In all other events (such as the satisfaction of a lien) it has to be done within 30 days.

I Only Found Out About This Passport Business Today

  • Your CPA or tax lawyer must first review all the collection notices issued to you
  • After this review, he will be able to ascertain whether the revocation was applied correctly.
  • Sometimes the State Department will not renew or issue a new passport to you (in terms of notice CP90). In other cases, they may revoke your current passport.

Problems & Ramifications Of Passport Revocations

  • Despite the good intentions, the power to revoke the passports of citizens is very burdensome and affects their rights.
  • Mistakes happen, and the damage can be severe. Sometimes administrative errors on the part of the IRS will lead to the revocation of a taxpayer’s passport.
  • It has been suggested that the IRS provide 30 days notification before certification (and 90 days for taxpayers outside the U.S.).
  • What is more, notices of passport revocation is not being sent to taxpayers’ representatives since according to the IRS the specific representative might not have been in the service of the taxpayer for all the represented tax periods.
  • However, even third-party representatives who hold full power of attorney including all tax years comprising the “seriously delinquent tax debt” is not receiving these notices.

Prevention Is Better Than Cure

If you come close to the threshold of $52,000, you have to use every option available to prevent further action by the IRS.

  • Come to an installment agreement with the IRS
  • Comply with settlement through the department of justice
  • Consider innocent spouse relief
  • Make an offer in compromise to the IRS
  • Pay the debt in full or at least pay enough to reduce the debt below the $52,000 threshold.
  • Request a due process hearing

Finally

Always respond to all the correspondence and notices from the IRS. Prevention is the only cure.

How to plan for IRS tax relief

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Don’t Ignore Any Notice

Ignoring any notices that you received from the IRS is the absolute worst thing you can do.

Understand Your Rights

Even though you owe money, the IRS does not have the right to treat you poorly.

Consult a Tax Expert

If you are going to an interview with an IRS revenue officer, take the time to consult with a tax specialist on the matter.

What is an Offer in Compromise?

An Offer in Compromise (OIC) is an agreement between the taxpayer and the IRS, which allows the person who owes money to the tax authority to settle their debt for less than the full figure due. It is only applied when the individual cannot pay the full amount or if paying that amount will put them in unreasonable financial hardship. In order to make a decision on any OIC application the IRS looks at the applicant’s ability to pay, their income, expenses and assets.

How to Qualify?

In order to be eligible to apply for Offer in Compromise your tax returns must be up to date, as well as your tax payment requirements. Also, you must not be in bankruptcy proceedings. If you cover all this, wait to celebrate. Even if you qualify by the rules, that doesn’t necessarily mean that your application will be accepted and you will be granted an OIC.

The most common mistake people do when calculating their equity is that they put a figure that is too high for the IRS to consider Offer in Compromise as an option. But below you can find some pointers on how to successfully get your application approved.

Take advantage of the Fresh Start Initiative

In order your offer to be accepted it needs to correspond to the realizable value of your assets in addition to your future income. With the Fresh Start initiative, for amounts that would be paid in 6 months or less the IRS will only look at your future income one year ahead. For debts that will be paid over a period of 6 to 24 months, your future income for the next 2 years will be taken into consideration.

Make Sure Your Taxes are Current.

If you have any old tax returns that you have not filed, you must do that before you even think of applying for OIC. Failing to do that will be the easiest and quickest way to get rejected.

Don’t Put Your Tax on Hold

It’s a common scenario with many people to acquire more debt during the collection process. It is a mistake and not only increases the amount you owe, but it also decreases your chances of getting an OIC.

Do Proper Due Diligence

If you decide to get your application done quickly without being too careful about the numbers you put in, you are making a big mistake. The IRS is not interested in seeing any rough figures, they want exact numbers and proper calculations. You need to get it right from the first time because if you don’t, an application rejection is guaranteed and you will have to start all over again, paying the application fee and putting another down payment. That’s already getting your financial situation worse.

Don’t skip the fees

Speaking of the fees you need to pay, it is very important you don’t forget to include the application fee $186 and the non-refundable initial payment because they will directly affect your tax liability. In your application, you can specify which tax year and debt you want to apply the fees to.

Don’t Try to be Comfortable

Another common mistake is applying for Offer in Compromise for the sake of not putting too much pressure on their current financial situation if they paid the debt in full. If the IRS knows that paying what you owe is not going to put you in bankruptcy or leave you and your family in financial distress, you will not be granted OIC. This option is reserved for people who genuinely have no way of paying their debt, even after they’ve taken loans from friends and relatives. Your chances of being approved are highest when you can prove that you’ve done all you can do but your income is not enough to cover your basic living needs.

Your Reasons Matters

It is crucial for your application to provide good reasons as to why you need your Offer in Compromise to be approved. Unfortunately, things like “we are in recession” and “my business is not doing so well at the moment” will not get you the outcome you desire. IRS officers will look at the probability of your financial situation bettering in the future and base their decision on that. However, if you quote reasons like dependent care, substance abuse, reduced possibility of increasing income due to old age, disabilities and serious health problems will be considered as valid reasons for granting you an OIC.

Don’t do it Yourself

If you are in a really hard financial situation it looks like the most logical thing is to try and deal with the application yourself without seeking professional help with it. In reality, though, those few buck you will save on a good CPA charges, can cost you a lot more if you get things wrong. And not only that, even if you manage to get your application on point, don’t forget that the IRS officers will always put the interest of the government before yours. They are well-experienced in pressuring taxpayers to their limits when it comes to collecting debt, so you are better off having a professional financial adviser on your side who will not be easily intimidated by the IRS workers.

We hope this gives you a base on where to start from if you want to write off some of your debt. If you need more clarification and help with your application, you can always contact us for best results.

Check Our DIY Webminars

In our webinar you will learn step by step how to carry out the procedures to solve your tax problems.

Why Should You Apply For Installment Agreement?

Many people who can’t afford to pay their tax debt try to get an Offer in Compromise (OIC). However, as we’ve written before, this process is complex and you must cover specific requirements to be granted an OIC. In reality the figure shows the number of cases resolved through an Offer in Compromise is very low only 0.37%. In some other cases (15%) the tax debtors will be deemed Currently Non-Collectible (CNC) for any particular case. CNC is only awarded to taxpayers who are broke, living under the poverty line. After 10 years, their tax debt is extinguished.
You can also ask for a longer term monthly payment plan or installment agreement. A $149 user fee applies to monthly payment plans or installment agreements that can be reduced to $31 if payments are made by direct debit.

How To apply For An Installment Agreement?

  • First, you need to know exactly how much you owe in total. That figure is formed by your due tax, in addition to any penalties and interest charges. You can find out the total amount by calling IRS number 1800-829-3903 and requesting copies of your tax returns. Make sure you are current and compliant.
  • Your next step would be to file Form 9465.
  • You can also use the online payment agreement application, which can be found on the IRS website (link here please). Another option would be to request an IA over the phone by calling 800-829-1040 or the number shown on your tax bill.
  • Indicate the type of Installment Agreement you want to apply for and prepare all the necessary documentation for all included periods and tax types.
  • Set up a payment plan by choosing how, when and how much you want to pay every month. Keep in mind that if you decide to set up a direct debit you will be charged an one-off fee of $31 and if you opt for a payment plan without a direct debit it will cost you $149. You must also remember to make the payment on the same date as indicated in your application every month. You are required to pay the minimum amount as agreed on your plan, but you can top it up at any point. There are various methods of payments, such as money order, automated withdrawals from your account, credit card, check and federal online payment system EFTPS.gov.
You may also be able to qualify for online payments if:
  • You are an individual who owes $50,000 or less in total and are current on all your returns.
  • You are a business that owes $25,000 or less in payroll taxes and are current on all returns.

Check Our Video Presentation And Learn How to apply for an IRS Tax Relief

Check Our Free Masterclass How to plan For IRS Tax Relief and Installment Agreement

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Thanks to FAS & CPA Consultants and Fulton Abraham Sanchez, CPA, I was able to resolve a debt of $479,677.71 that I had with the IRS.

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