Do you owe back taxes? An Offer in Compromise is not your only option

Offer-in-Compromise

Many American citizens have been negatively affected by the economic downturn that this country has had over the past several years. This means that more people had to stretch their finances to make ends meet and provide for their families. Sometimes this has meant not paying taxes for one or several years. Eventually the IRS is going to come calling for the taxes that you need to pay. Many people really don’t know what options are available for them when it comes to dealing with back taxes and the IRS.

Most people have heard of the Offer in Compromise (OIC) program. DoggedbyIRS has been dealing with the IRS for years now and we can tell you rather quickly if an Offer in Compromise is a viable solution for your tax problems and if it is, we can assist you with an OIC. While this is certainly an option and might drastically reduce the amount of money that you will need to pay to the IRS, it is not the only solution available.

Another option that is widely available for people who owe back taxes is an Installment Agreement. If you do enter into an installment agreement with the IRS they will label that taxpayer as compliant. This will severely reduce the amount of letters and phone calls that you will get from the IRS and shows the IRS that your willingness to cooperate with them. With any solution there are always Pros and Cons, it always helps to consult an expert when reaching any agreement with the IRS, and here is another example of where Jay Allen Finn of DoggedbyIRS can help you.

Yet another option is to file an amended return with the IRS. Filing an amended return can result in a reduced liability to the IRS. But in order to properly go down this route you need to have good knowledge of the tax code and the statute of limitations.

For assistance with any of the above options with back taxes call Jay Allen Finn at DoggedbyIRS and get the IRS off of your back.

How to Remove an IRS Tax Levy

The IRS may issue a tax levy if you fail to pay any of your tax debt. Typically, you will receive a Notice of Intent to Levy and if this is not complied with, the IRS will take action in the form of a bank levy or wage garnishment. The three types of federal levies most commonly used by the IRS are wage garnishments, bank levies and federal or state payment levies.

Bank Account Levies

Your bank will first be notified from the IRS with a Notice of Intent to Levy. Your bank will then be legally obligated to freeze funds in all accounts: checking, savings, CDs, etc in the form of a bank levy. If your name is on an account, it will be frozen.

Funds will be held by your bank for 21 days, providing you a three week grace period to pay your back taxes. After the 21 days, the funds that are frozen in your bank account will be sent to the IRS as an IRS tax levy. These funds now belong to the IRS even if you try to remedy the situation by entering an offer in compromise after the money is gone.

IRS Wage Levy

An IRS wage levy is a continuing occurrence against your wages, as opposed to the bank levy which is a one-time freeze of funds in your bank account.  This will continue until all your back taxes are paid off. Your employer will be notified via a Notice of Intent to Levy when the IRS decides to issue a wage levy, or wage garnishment. Your wages will then be garnished promptly from your next paycheck. This means the IRS will receive payment before you receive your own wages.

Wage garnishments are immediate. Once the IRS issues the notice they will begin with the wage levy.

State or Federal Payment Levies

The Federal Payment Levy Program is another means of satisfying the IRS in regards to your back taxes. The IRS will issue a tax levy on any payments that are owed to you, including Social Security benefits and Medicare payments.

The IRS may also issue a tax levy on your state tax refund through the State Income Tax Levy Program.

This is why if you have received a Notice of Intent to Levy from the IRS over your unpaid back taxes, you need to consult a tax professional. Jay Allen Finn, CPA is a former IRS Revenue Agent with an excellent track record in resolving tax levies. He has an A+ rating from the Better Business Bureau in Houston, Texas.

Incredible results! Read these recent client success stories..

IRS Bank Levy

A large audit case representing over $400,000 in to the IRS for unpaid back taxes over a several year period and was sent to collections originally slated to turn into an Offer in Compromise. We handled the case and provided proof of the inability to pay off their steep payment requests. This case involved a major portion of our staff and we were successful in the resulting ‘closing’ of the case. We just received notice from the IRS titled CASE CLOSED – CURRENTLY NOT COLLECTABLE. (See letter below)  It’s important to note that this amount is not necessarily absolved. This just means that the aggressive collections pursuit by the IRS has been closed. The taxpayer is now able to decide on their own about how and when to make payments against the delinquent tax bill. This allowed our client to produce the 20% down for their $60,000 offer to pay down their delinquent taxes.

Another returning client who has utilized our professional tax services in the past came to us with an IRS Bank Levy. This is important to note that bank levies are hard to overturn, despite our successes doing so. The levy was released and turned into a two year payment plan, which was very reasonable for our client and now does not bear the burden of the IRS controlling their bank funds.

These are just samples of success stories that frequently occur throughout the year. Jay Allen Finn is a former Revenue Agent with the IRS. He understands the inter-workings of the tax collection system and is a professional tax accountant and CPA in Houston, Texas. His incredible record is also proven by his A+ Better Business Bureau rating.

 Offer in Compromise

A Brief Understanding of IRS Offer in Compromise

IRS-Offer-in-Compromise

An offer is compromise is a method which lets you pay your tax debt in an amount less than the original amount that you are supposed to pay. This is the best option for those who are unable to pay the full tax debt amount or for those who may have serious financial issues if they pay the full tax. 

The IRS offer in compromise has been designed taking into consideration vital points such as tax payer’s income, his ability to pay, his monthly expenses and asset equity.

However, you must realize that the offer in compromise is not given to everyone. It is advisable that you hire a tax professional before you think of filling for it. Also ensure that you check his/her qualifications before hiring him. You would never want to go for a tax advisor who himself is short on information.

IRS offer in compromise - You should also ensure that you are eligible for the offer. The IRS always sees that you are updated with all your payments till now. If you are in a bankruptcy proceeding, IRS will not at all consider you eligible for filing for the offer in compromise. It is better that you go for the Offer in Compromise Pre-Qualifier for confirming you eligibility.

If you are eligible for getting the offer, then you must understand the further procedures and rules by visiting the IRS official website.

More information about IRS offer in compromise, get it on - www.doggedbyirs.com