The IRS put together a program aimed at taxpayers owing less than $50,000 to help streamline the burden of the collection process for both the taxpayer and the IRS. The guidelines offer some very attractive tax savings for qualifying taxpayers. It is highly recommended to have a trained IRS tax lawyer work with you through this program to guarantee you obtain the result you desired. The program focuses on three components: Releases of Federal Tax Liens, streamlined Installment Agreements, and the Offer in Compromise.
The majority of taxpayers seeking assistance with their tax debt want to go down this path. The OIC program is geared towards taxpayers in financial hardship or with certain exceptional circumstances that would create financial hardship if required to pay the past due tax. The process can take on average between 4-8 months, but the result of a fresh start is worth the wait. Over 150 clients have already saved over $4 million dollars using the tax professionals at Hillhurst Tax Group. We prepare all the required forms after verifying a taxpayer qualifies for this program.
CURRENTLY NOT COLLECTIBLE (“CNC”)
This is a very popular option for those taxpayers who can’t afford monthly payments but may have assets of value that they do not want to sell or have taken from them. If your current monthly income is less than your monthly expenses, this is a good place to start when choosing a resolution path. Use Form 433-F to calculate your monthly income and expenses and show that you have no disposable income at the end of the month.
Most taxpayers can resolve their tax debt with this option. Most of the time the total tax debt is paid in full, but the burden of paying a large amount at one time is shifted over a number of months without threats of collection. There are many different types of IA’s, usually depending on the amount of tax debt you owe and your compliance history. Setting up an IA can prevent you from having liens filed as well as remove previously filed liens, as long as you agree to the terms of your IA. The IRS may require that the payment be made by direct debit.
This is usually the best option for taxpayers with high net worth due to the fact that they will not qualify for most of the other hardship programs offered by the IRS. It is best to have the tax debt paid in full before petitioning for abatement because even after an abatement is accepted, new penalties will be added to the debt if the taxes are not yet paid in full, leaving taxpayers in the same position. The IRS will abate penalties if a taxpayer can show a reasonable cause. Submit a well-written penalty abatement letter along with Form 843 to the correct IRS address.
RELEASE OF FEDERAL TAX LIEN
The IRS will file a tax lien once a taxpayer owes more than $5,000. A lien can be viewed similar to an “I owe you” to the IRS. This is to protect the government’s interest in collecting the debt owed to them. A lien can only be removed once the tax debt is paid in full, unless you qualify for release under the provisions of the IRS Fresh Start Program. You can request a hearing before your lien is filed if you respond to your notices.
IRS WAGE GARNISHMENT RELEASE
A continuous garnishment on your paycheck that remains in place until your employer receives notice of release. A wage garnishment can only be released by submitting full financial information. Once released, consider entering into an installment agreement to avoid future collections.
IRS BANK LEVY RELEASE
The IRS issues a one-time levy to your bank account and has rights to all of the funds in your accounts, up to the total balance due. A bank levy can only be released within 21 days from the date it was issued. If you have a bank levy please call us ASAP due to the strict release deadlines.
TAX RETURN PREPARATION
Many taxpayers simply need to file missing tax returns to become compliant again with the IRS. The professionals at Hillhurst Tax Group can prepare any tax return, personal or business, from the simplest wage earners to the most complex partnerships and corporations. Many taxpayers who owe for older tax years usually have many years that have not been filed and the IRS has decided to file for them and assess a tax balance.
Taxpayers who are self-employed are most likely to use this service. The accounting professionals at Hillhurst Tax Group can get your business back on track, or keep your current business from getting off track. Fees will vary based on the type of services required for your business.
This can be useful for any taxpayer, although this service is aimed at those high net worth individuals who are making big business decisions. Whether you are selling your business and need to add/remove members in the most tax efficient way, or want purchase the entire Las Vegas strip, the professionals at Hillhurst Tax Group are masters in taking aggressive pro-taxpayer positions in tax planning.