Tax Debt Relief: The IRS’s Best Kept Secret

Showing posts with label It's never too late to file your back tax returns.. Show all posts
Showing posts with label It's never too late to file your back tax returns.. Show all posts

Thursday, October 22, 2020

IRS will accept an offer in compromise

Tax relief

An offer in compromise (OIC) is an agreement between a taxpayer and the government that settles a tax liability for payment of less than the full amount owed. 

Tax relief

The IRS will accept an offer in compromise when it is unlikely that the tax liability can be collected in full and the amount offered reasonably reflects collection potential. 



Tax relief


Doubt as to liability (DATL) comes into play when a taxpayer doesn’t actually owe the tax the IRS claims they do. This isn’t a question of amount or inability to pay the requisite tax, but rather a claim that a certain portion of the tax isn’t owed at all, because doubt as to liability isn’t a question of finances, you won’t need to provide any of your client’s financial information to qualify for the offer. 

Tax relief

Doubt as to collectible (DATC) is what most people associate with offer in compromise. This offer comes into play when the taxpayer doesn't dispute that the tax is owed, but has no way of paying the full amount owed. A doubt as to collectible offer will be based on what the IRS calls reasonable collection potential, or RCP. There are three components when calculating reasonable collection potential: equity, income, and allowed expenses. 

Tax relief


  • At its core, the settlement comes down to an equation:
  • Lump Sum Equation (to be paid in 5 months or less)
  • Disposable Monthly Income x 12 months + Net Realizable Equity = Settlement Amount 
  • Periodic Payment Equation (to be paid in between 6 and 24 months)
  • Disposable Monthly Income x 24 + Net Realizable Equity = Settlement Amount 


Texas Tax Attorney

The Importance of Tax Attorney




For such a long time, Texas is known to have the best reputed Dallas tax attorneys. Tax attorneys cater to the tax problems and issues of the taxpayers in a light manner. 




Meaning, these tax attorneys provide their clients the best services they can in the range of legal tax laws. There are plenty of Texas tax attorneys spread all over the region and they are often attached to the law firms which are known to be effective.


Of course, there are also a lot of private Texas tax attorney practitioners within reach. Tax resolution X-perts helps you find the best tax attorney in Texas. When problems about taxes arise, you know you will be dealing with a very stressful and complicated matter. It is not a surprising thing to figure out that numerous individuals are dealing with issues with the Internal Revenue Service on a yearly basis. Messing with your taxes is punishable by the law. So, whether you intentionally evaded your yearly taxes, incurred a minimal mistake in your computation and payment, or have missed something, the hands of IRS will get you.



Texas tax attorneys can come to your rescue especially in cases involving corporate taxes, inheritance taxes, personal income taxes, and all other types of taxes. With an efficient Dallas tax attorney acting on your behalf, these kinds of situations can be lightened. You know that you cannot handle these things by yourself and you need an expert to guide you. Ease yourself with the worries because Dallas tax attorneys are all over the state to save you. You may be worried with the expenses to be incurred for hiring an attorney, but you will realize it in the end that you can better save money if you hire one Dallas tax attorney. 

Tuesday, September 22, 2020

Tax Resolution can settle tax debt with a offer in compromise.

You don't want to mess with the Internal Revenue Service. 




For example, in recent years the IRS has increased its filing of levies, liens and wage garnishments. In fact, in 2004 alone, approximately 2.5 million levies were filed.





1. Filing too many exemptions. An exemption gives you a major tax deduction, and some taxpayers can't resist the temptation to report more exemptions than they're entitled. You can only claim exemptions for yourself, a spouse and for all "dependents." Dependents have to meet specific criteria, however, so make sure you follow the IRS guidelines so that you don't mistakenly file an extra exemption.



2. Being unaware of taxes levied for early withdrawal from certain retirement plans. If you withdraw from a retirement fund such as a 401(k) or IRA before you're 59 1/2, you may face a 10 percent federal penalty on your investments, as well as a state penalty and an income tax on the money withdrawn.



3. Not paying enough taxes when self-employed. Many people who own their own businesses don't know how much they have to pay in taxes. The tax structure for a self-employed person - what to pay, how to pay and what can be deducted - is decidedly complex, so it's easy to become confused.





4. Not paying taxes on winnings. It is necessary to report all gambling winnings, including winnings from lotteries, casinos and horse races, as income. For people who are in trouble with the IRS, there are various programs available that can provide debt relief if a taxpayer qualifies. JK Harris helps its clients determine if they meet the requirements for one of these IRS programs. Its staff includes former IRS agents, certified public accountants, attorneys, enrolled agents and other experts that offer tax services, financial planning, small business services and other assistance.

​Tax Resolution





“People who complain about taxes can be divided into two classes: men and women”. If you are the complainant having tax disputes with the IRS, tax professionals like experienced Enrolled Agents (EAs), Certified Public Accountant (CPAs), and tax attorneys can help you reach a tax resolution. Tax resolution encompasses a wide variety of settlements  which includes IRS audits, Federal Tax Liens (IRS Liens), bank levies or wage garnishments, IRS penalty abatement, innocent spouse defense, bankruptcy discharge analysis, Offer In Compromise, un-filed or delinquent tax returns, and IRS collection statute of limitation analysis.



Internal Revenue Service tax issues can be resolved even if you owe hefty sums, and even if you haven't filed your taxes in years. If the problem is blown out of proportion, the IRS may file a federal tax lien, levy your bank account and wages, confiscate and sell your car, home or business. Reaching a tax resolution with the IRS can avert such catastrophic consequences. In some cases, you can reach a tax resolution and settle for far less than the amount you owe. This is known as an Offer in Compromise. An offer in compromise is a tax resolution settlement of a delinquent tax account for less than the original amount owed. However, you will not get such an Offer approved without specialized assistance. As per the data available, in the year 2004 only sixteen percent of Offers were actually accepted. Thus, it is advisable to seek services of professionals (like EAs, CPAs or tax attorneys) specializing in solving tax problems or negotiating a tax resolution. You should get in touch with these professionals if you are involved in tax disputes like un-filed returns, missing records, threat of levy, or, if you need a tax resolution like Installment Agreement or an Offer in Compromise, or want to be declared Currently Not Collectible.


For taxpayers, who are not able to reach a tax resolution immediately, an installment agreement can be a reasonable payment alternative. Installment agreements permit the full payment of the tax debt in smaller, more manageable amounts for the taxpayer. Currently Not Collectible is another tax resolution strategy, which implies that an individual has no ability to repay his or her tax debts. The Internal Revenue Service can affirm a person as "currently not collectible" after the IRS receives concrete substantiation that the individual has no capacity to pay. Once the IRS proclaims an individual as "currently not collectible", the IRS discontinues its recovery or collection activities, including levies and garnishments. However, the IRS sends an annual statement to that taxpayer stating the amount of tax still owed. While currently in not collectible status, the ten-year statute of limitations on tax debt collection remains in force. If the IRS cannot collect its tax dues within the ten-year statutory period, the tax debt expires.



The IRS is perennially, under tremendous pressure to recover the billions of dollars, currently outstanding. Therefore, it will seriously consider all the reasonable offers to recover its debts, and try to reach a tax resolution or close cases in all these areas. 

Wednesday, September 16, 2020

Do you owe $10,000 or more in IRS tax debt?

Owe $10,000 or more in IRS tax debt? In some cases, you can reach a tax resolution and settle for far less than the amount you owe. This is known as an Offer in Compromise


 Tax Resolution

An offer in compromise is a tax resolution settlement of a delinquent tax account for less than the original amount owed. However, you will not get such an Offer approved without specialized assistance. As per the data available, in the year 2004 only sixteen percent of Offers were accepted. 

 


Tax Resolution

If you are the having tax disputes with the IRS, tax professionals like experienced Enrolled Agents (EAs), Certified Public Accountant (CPAs), and tax attorneys can help you reach a tax resolution. Tax resolution encompasses a wide variety of settlements which includes IRS audits, Federal Tax Liens (IRS Liens), bank levies or wage garnishments, IRS penalty abatement, innocent spouse defense, bankruptcy discharge analysis, Offer in Compromise, un-filed or delinquent tax returns, and IRS collection statute of limitation analysis. 


Tax Settlement Services

Thus, it is advisable to seek services of professionals (like EAs, CPAs or tax attorneys) specializing in solving tax problems or negotiating a tax resolution. You should get in touch with these professionals if you are involved in tax disputes like un-filed tax returns, missing records, threat of tax levy, or, if you need a tax resolution like Installment Agreement or an Offer in Compromise or want to be declared Currently Not Collectible. 

Tax Settlement Services

For taxpayers, who are not able to reach a tax resolution immediately, an installment agreement can be a reasonable payment alternative. Installment agreements permit the full payment of the tax debt in smaller, more manageable amounts for the taxpayer. Currently Not Collectible is another tax resolution strategy, which implies that an individual has no ability to repay his or her tax debts. The IRS can affirm a person as "currently not collectible" after the IRS receives concrete substantiation that the individual has no capacity to pay. Once the IRS proclaims an individual as "currently not collectible", the IRS discontinues its recovery or collection activities, including levies and garnishments. However, the IRS sends an annual statement to that taxpayer stating the amount of tax still owed. 

IRS offer and compromise

While currently in not collectible status, the ten-year statute of limitations on tax debt collection remains in force. If the IRS cannot collect its tax dues within the ten-year statutory period, the tax debt expires. The IRS is perennially, under tremendous pressure to recover the billions of dollars, currently outstanding. Therefore, it will seriously consider all the reasonable offers to recover its debts and try to reach a tax resolution or close cases in all these areas. 
IRS offer and compromise

Friday, September 11, 2020

Trucker Tax Help


  1. Keep your receipts – a credit card statement and bank statement is not enough to prove an IRS tax deduction. If you buy fuel at a gas station the IRS does not know if you purchase food, beer or fuel without the receipt. The fuel receipt will prove that you purchased fuel. Therefore your receipt is evidence of your purchase. The IRS requires the credit card statement or bank statement and the Keep all of your receipts. 


  1. Receipts fade over time make copies of your receipts. Many stores today give receipts that fade over time and once they fade they cannot be read. If you have a receipt that has faded you have lost your IRS evidence to prove your tax deduction. I strongly recommend that every few weeks you take the time to copy all of the receipts that could possible fade. Copy as many receipts as you can fit on a page and then staple the original receipts to the copy. Therefore if you original receipt fades the copy of the receipt qualifies as IRS evidence of your purchase. Make copies of your receipts. 

  1. Best Evidence for a tax deduction – The best evidence for any tax deduction is a copy of a canceled check with the bank statement and the receipt or a copy of the credit card statement and the receipt.

  1. Do not pay for business expenses in cash – Try to pay all of your expenses with a credit card or check and get a receipt because this creates a paper trail to prove your tax deduction. If you have to pay in cash get a receipt and be aware that if you lose the receipt you lose your tax deduction.

  1. File your tax return even if you do not have the money to pay the IRS tax – The IRS imposes a Failure to File penalty and a Failure to Pay penalty. Therefore everyone should file the tax return even if you do not have the money to pay the tax to avoid the Failure to file penalty which can increase your tax liability by up to 25% over time. Remember you can always set up a monthly payment play with the IRS to pay the tax. So file your tax return on time. Keep in mind that if you do not pay your tax on time you will incur interest charges and Failure to pay penalty charges.

  1. Form 1099 for contract labor – The IRS requires that form 1099 be issued to any contract labor that is paid over $600. Therefore if you pay lumpers over $600 you are required to issue a form 1099. I strongly recommend that you obtain a copy of the lumper’s driver’s license, copy of their social security card and a receipt from the lumper. Also pay lumpers with a check not cash. If you do not get this information from the lumper your tax deduction for this expense will not be allowed by the IRS.

  1. Expenses under $25 – The IRS does not require a receipt for expenses that are under $25, however you are required to keep a diary and list what was purchased, the price and the name of the store that you made the purchase. If you do not keep a diary then get the receipt.

  1. Keep a Diary – Keeping a daily dairy is an excellent way to keep track of your expenses, locations of your overnight travel for your Per Diem and a summary of your business. Having a diary is a huge help for you to remember things during an IRS audit. You can also list purchases that are under $25 so you do not need a receipt. I strongly recommend that you maintain a daily diary for your business.

  1. Truck Expenses – Almost anything that you purchase for your truck is a tax deduction this includes but is not limited to: TV, microwave, coffee maker, computer, printer, car vacuum, pillow, bed sheets, tools, cleaning materials, load chains, GPS unit, jumper cables, air cleaner, CB radio, heater, fan, etc. keep in mind that these expenses add up to a lot of money over the year but if you do not keep track of your expenses you lose them Go to TAXRESOLUTIONXPERTS.com for your free list of over 200 Tax Deductions for Truckers.

  1. Consider hiring a bookkeeping service – Want to avoid all the hassles of keeping track of your business expenses and receipts, hire a bookkeeping service. You can find a bookkeeping service for under $100 per month and this service could save you thousands of dollars in taxes. Consider buying a Fujitsu Scansnap iX500 high speed scanner for about $400 to scan all your receipts into your computer and you can email the receipts to your bookkeeper. Even if you do not have a bookkeeper this scanner is an excellent way to keep track of your receipts and business documents.


Tax Lawyers in Chicago

Looking for a tax attorney near you? 


The tax relief maze is complicated and difficult to maneuver, which is often difficult for taxpayers. Tax Resolution Xperts represents individuals and businesses before the IRS and the Illinois Department of Revenue. Our experienced team of tax lawyers assist clients with unfilled tax returns and all types of unpaid tax liabilities and penalties. 

                                                           



Release of Wage or Bank Levies

A wage or bank levy can leave you financially devastated if you do not take immediate action. Whether you have received a Notice of Intent to Levy or you are currently under a wage levy or bank levy, IRS Tax Resolution Experts can help. Tax Resolution Experts has obtained the release of thousands of wage and bank levies for their clients, helping solve their tax problems and financial woes. 

IRS Installment Agreements & IRS Fresh Start Program

If you live in Chicago IL and owe money to the IRS, but cannot pay it all right away, tax resolution experts can determine if an installment agreement is right for you. An installment agreement allows a taxpayer to pay his or her liability over time in convenient monthly payments. There are new exciting programs under the IRS Fresh Start Program that offer different types of installment agreements that might work for your personal situation. Let Tax resolution experts help you negotiate the most affordable payment plan.

IRS Offer in Compromise

With an IRS Offer in Compromise, sometimes you only pay “pennies on the dollar” on your tax debt. Not all taxpayers are eligible, but an Offer in Compromise will allow you to pay less than what you actually owe. Tax resolution experts perform a thorough financial analysis to determine your eligibility for an Offer in Compromise and will then negotiate with the IRS on your behalf. 


Wednesday, August 26, 2020

Don’t Delay In Managing Tax Debt forgiveness. Call (877) 541-6901 for tax consultation. If your debt is very large, you can apply for an Offer in Compromise with the IRS.

IRS Tax Debt Relief Center specializes in helping Americans with tax debt. 



But while death and taxes are the big two inevitability, those with serious tax problems should know that it is possible to negotiate with the IRS to reduce past-due tax penalties and payments Many Americans feel alone and under stress when faced with the crisis of tax problems. Fortunately, the tax experts at Freedom Tax Relief are available to be your dedicated resource to save you the most money while resolving your IRS debt in the shortest amount of time possible. 




Determine the best method for managing and eliminating the tax debt. Negotiate with the IRS to settle on an agreed course of action and resolve the debt. While facing and handling tax debt can be painful, last year's bankruptcy reform legislation made it even more crucial for consumers to act. Historically, consumers in severe IRS debt might file for Chapter 7 bankruptcy protection or wait for the 10-year statute of limitations on tax liability to expire. 




Now, people are much more limited in the ability to obtain Chapter 7 filings. The bill's new "means test" leads many consumers instead to file Chapter 13 bankruptcy, which establishes a repayment plan, rather than wiping out all debt. Consumers with tax debt may find it much less costly and simpler to work with a tax debt resolution firm's, which allows individuals to set up tax payment plans while avoiding court fees, attorney fees and bankruptcy judgments on their records. 

Call (877) 541-6901 for tax consultation. If your debt is very large, you can apply for an Offer in Compromise with the IRS.




Friday, July 17, 2020

Understanding Tax Resolution

Tax

Attention: Going Crazy Understanding And Filing Taxes? Make Sure You Read This Page Before Losing Out On Your Sanity…! 



Filing Income Taxes

Does The Mere Thought Of Filing Your Taxes Gives You Nightmares? Lost Sleep Thinking About How To Manage Your Returns? Feeling Like You Have Lost Your Way In A Jungle With No One To Help Out? Are You Super Confused And Don't Know Where To Even Start?



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Introducing! The Secrets To Understanding Taxes Filing Like A Pro!

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