Despite where you or your business are in the IRS collection process, if you do not address your outstanding issues with the IRS your tax problems will only get worse. Below are a limited list of the common problems that we solve for our client’s on a daily basis.
Unfiled Tax Returns: A threshold requirement in reaching any tax debt resolution with the IRS is being compliant. Compliance means that all required tax returns are filed, payroll exemptions are correct, and that estimated tax payments (if required) are made. Without being compliant a taxpayer will not be able to negotiate one of the many tax debt settlements available. It is critical that you become compliant. Fortunately, we have several trusted bookkeepers, CPAs, and Tax Return Preparer’s in our referral network that give substantial discounts to our clients.
Levies: The IRS has broad powers when it comes to collection enforcement. A levy gives the IRS the power to seize the property of a taxpayer with an outstanding tax liability. Common Levies include bank levies, wage garnishments, and social security benefit levies. In addition, the IRS can seize physical assets too. Once a levy is issued a taxpayer has 21 days to request a release of levy so it is important not to ignore a Notice of Levy in the mail. Our tax professional’s have years of experience negotiating Release of Levies for our clients. Most importantly, we can prevent embarrassing levies from even being issued.
Federal Tax Liens: A Notice of Federal Tax Lien is filed in the county recorder’s office where a taxpayer lives. The two main reasons the IRS uses this collection enforcement tool is as follows: (1) A Notice of Federal Tax Lien protects the governments interest by publicly notifying creditors that the IRS has priority in collecting it’s debt; and (2) to encourage a taxpayer to come to the table and begin to resolve his/her tax liability. Once a taxpayer has a Federal Tax Lien filing, their credit score will be affected by 50-100 points. This negative impact on credit increases the cost of borrowing, and can prevent the ability to borrow/enter into contracts like leases. Do not ignore a Notice of Federal Tax Lien it is a serious matter especially if it is signed by a local Revenue Officer.
Payroll Tax/Trust Fund Recovery Penalty: Time and again, we see employers fall behind with their payroll deposits. There are many reasons for this, equipment failure/unforeseen circumstances, bad receivables, timing of cash flows, and a general decrease in sales. Whatever the reason, falling behind on payroll tax deposits is a very serious matter. When this situation arises, the IRS can and usually will look for responsible parties to assess the trust fund recovery penalty against so that they can collect against the both business, and the person responsible for willfully neglecting to remit the payroll deposit. We defend against the trust fund recovery assessments and the negative consequences associated with payroll tax problems.