Frequently Asked Questions
Yes, we can help. The penalties for unpaid employment taxes are staggering. In addition, the IRS has the ability to hold individuals personally liable for large portions of the debt owed by LLCs, corporations and partnerships (Trust Fund). There are several solutions that must be considered. How voluntary payments are made can make a significant difference. Don’t make mistakes, contact us today.
The IRS can take the money out of your bank accounts, stocks or other accounts. The IRS can take your wages or take your accounts receivable. The IRS can seize your real estate or your personal property (cars, boats, etc.) The fact is that the IRS usually goes for the cash first. Banks, wages and your customers are almost always the first targets.
No two people are alike. The same is true for their tax problems. This is why it is important for us to sit down and discuss all your tax problems and your financial circumstances before approaching the IRS. Our fee is based upon your specific tax problems and the plan of action you choose to resolve them. We thoroughly discuss the fee with you at our initial meeting.
Before initial communications with the IRS begin, we file a Power of Attorney with the IRS to advise them that you have an attorney and we represent you. We deal with the IRS for you. You will not talk with the IRS again. We file all required forms and documents necessary to address your IRS problem. We begin communications on your behalf, prepare and file necessary documents, and any appeals necessary. We discuss any plan of action with you before we take that action.
The trust fund penalty may be assessed against persons who are “willful or responsible” with regards to the non-payment of employment taxes, usually for a corporation, LLC or partnership. If you have received this notice, you only have a short time to file an appeal and protest the proposed assessment. Failing to respond can mean that you will be assessed a very large tax, which can lead to liens and levies. This is a very serious matter and should be handled with care.
Trust fund taxes are the amounts of money that are held out of an employee’s pay for payment of that employee’s income tax, social security, and Medicare. These amounts are required to be sent to the IRS, along with the company’s payment of its share of social security and Medicare. Failing to pay/deposit these amounts as required may cause the IRS to seek payment from individuals connected with the Company.
Trust fund penalties have been assessed against officers, accountants, lawyers, bookkeepers and even secretaries. Trust fund penalties may be assessed against multiple individuals for a single amount owed. The IRS is notorious for throwing out a wide net which catches many persons who are probably not legally responsible for the trust fund penalty. That is why it is vitally important to file an appropriate appeal within the deadlines prescribed. Trust fund taxes are never dischargeable in bankruptcy. We represent many individuals who have been caught up in this net.
There are many methods for requesting a lien release. Each method is based on your particular circumstances.
If you fully pay your debt, the lien must be released. If you still owe the IRS, you may request a release or discharge subordination based on your circumstances.
Maybe! It depends on the type of tax you owe, how long it has been since you filed your return, how long it has been since the IRS formally assessed the amount you owe, and what type of bankruptcy you file.
Trust fund taxes cannot be erased through bankruptcy. Income taxes may be erased through bankruptcy under certain circumstances. Filing bankruptcy too early or filing the wrong type of bankruptcy can be devastating. We can show you whether bankruptcy is a viable option for you.
Many lenders will refinance your home if you are able to secure a subordination from the IRS. This subordination allows the lender to have a first lien on the property. I have helped many clients obtain subordination so they could refinance their home.
Yes. Unfiled returns is one of the most common mistakes that we see. When you don’t file tax returns, the IRS will file a “Substitute for Return” (SFR). The SFR will usually result in you owing much more than you should. Trying to file the old tax return through regular channels will probably not help you. The proper procedure is to file your tax return as an audit reconsideration through the SFR department of the IRS and request that your tax return replace the SFR filed by the IRS. Doing this properly may save you many thousands of dollars. It could resolve your debt completely. But, be careful, you usually have only one chance to have your tax return accepted in this manner.
Not filing tax returns is a criminal offense. Further, most solutions to your IRS problem are not available to you unless you have filed all of your tax returns.
When your bank receives a levy from the IRS, they are required by law to hold any and all funds that are in your account at the time of the levy for 21 days. This is the time frame we have to work out acceptable options with the IRS.
DO NOT LET THE IRS TAKE YOUR BANK ACCOUNT!!!
A Final Notice of Intent to Levy must be sent to you before the IRS can take money from your bank. This is done by Certified Mail. Quick and appropriate action (within 30 days) can stop the IRS. If you have received this type of notice, you must take immediate action to prevent garnishments and levies.
Yes, I can get a wage garnishment released. But usually I must first get financial and other pertinent information from you so that I can offer alternative options to the IRS. If you do not act promptly, the IRS will continue to take your wages. I will also need the contact person in your payroll department, their telephone and fax numbers. This will assist me in effectuating a release of garnishment of your wages.
DON’T LET THE IRS TAKE YOUR WAGES!
A Final Notice of Intent to Levy must be sent to you before the IRS can take your wages. This is done by Certified Mail. Quick and appropriate action (within 30 days) by contacting a tax lawyer can stop the IRS. If you have received this type of notice, you must take immediate action to prevent garnishments and levies.
On October 25, 2004, the IRS issued a consumer alert advising taxpayers to beware of anyone claiming settlement of tax debts for ‘pennies on the dollar’ through what is called the Offer in Compromise Program (now called the ‘fresh start’ program by sales people).
Because most Offers in Compromise are filed by companies who make outrageous promises, more than 90% of all Offers in Compromise filed in the U.S. are rejected by the IRS.
Reality: It is possible that your tax debt can be settled for less than what you owe. Sometimes the settlement is dramatically less. The IRS has set very strict guidelines for the Offer in Compromise Program. To determine whether you qualify for an Offer in Compromise, I must review and evaluate the specific facts of your personal case and your financial circumstances. This is why I offer a free consultation so we can meet face to face and discuss the nature of your specific problem. Then I will be in a better position to tell you what options are available to you.
Many companies will try to convince you that they can settle your taxes for pennies on the dollar. The truth is, no one can make this claim unless they have reviewed your personal circumstances and determined that you qualify. Companies rarely qualify for an offer in compromise without going out of business.