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Articles For Knowledge Sharing » Business-management » Finance-management » Taxation » Resolving Your IRS Tax Problems.

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Resolving Your IRS Tax Problems.

Depending on what type of tax problem you are facing, there may be more than one tax relief option available to you. You may be looking to file tax returns for one or more years and then be set up on an installment agreement. You may owe taxes for several years, do not have the means to pay the tax debt in full, and would like to propose a settlement or participate in a tax amnesty program. You may already be facing collection action due to unpaid taxes and must have a levy or garnishment stopped. Whether you fall under one of these categories or find yourself in an entirely different situation, a qualified tax relief professional can evaluate your case and determine the best possible course for resolving your tax problem.

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Bank Levy.

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A levy is a legal seizure of your property to satisfy a tax relief. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.

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If you do not pay your tax debt (or make arrangements to settle your debt), the IRS may seize and sell any type of real or personal property that you own or have an interest in.

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Penalty Abatement.

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Provided there was reasonable cause for the delay in payment, attorneys can get the IRS to remove the penalties and even some of the interest on those penalties. Penalties and interest are not taxes they are statutory additions that are negotiable by nature. Providing the taxpayer made an honest mistake, the IRS is often willing to grant penalty abatements in order to allow the taxpayer to pay back the penalty over time.

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The last thing that you must keep in mind, when applying for a Penalty Abatement is that after the case is submitted to the IRS, it will be reviewed by an IRS examiner. This person often has the ability to grant or deny your request completely at his or her own discretion, so it is of the utmost importance to be able to provide as much proof as possible for the reasons of falling behind.

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Offer in Compromise (OIC).

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IRS Audit.

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The IRS can audit you for any year and determine that you owe additionally to what you had originally paid in. When you are audited for one year and inconsistencies are found, you typically will be audited for two more years.

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Handling an IRS audit on your own can lead to mixed results and is an extremely difficult task. Tax attorney assigned to your case will go through all of your audit documentation, represent you before the IRS, and make sure you get the best result possible. When the audit is over, if it is determined that you have an additional tax due, your attorney will handle the rest of your case, reaching a tax resolution that you can afford.

Types of OICs

The IRS may accept an offer in compromise if any of these factors prove to be true:

1. Doubt as to Collectibility - Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.

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2. Doubt as to Liability - A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include: (1) the examiner made a mistake interpreting the law, (2) the examiner failed to consider the taxpayer's evidence or (3) the taxpayer has new evidence.

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3. Effective Tax Administration - There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.

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4. Identity Theft - The taxpayer was a victim of identity theft, did not earn the income that was reported to the IRS and should not be liable for the underlying tax debt.

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State Taxes.

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Tax attorney also offers programs which allow assistance and relief in paying your state taxes. Since, often those who the IRS, also owe state taxes. And since the state's taxpayer pool is smaller than that of the IRS their tactics are more aggressive in their collection efforts. Although every state varies with agencies and collection branches, the IRS's established tax relief programs have given us the opportunity to familiarize ourselves with the general process. Our tax attorneys and professionals feel the utmost confidence in assisting our clients to move forward on such actions as State OICs and Penalty Abatement.

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Source http://www.taxadvisoramerica.com

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