Tax Relief Blog

What is an IRS Tax Settlement?

An IRS tax settlement is an agreement between you and the IRS regarding what you owe them. It is a negotiation where you pay an amount that is less than you originally owed. The IRS is often willing to take a deal rather than to have to continue to fight to get funds owed to them. This is especially true if it isn't possible for the person or business to pay what is owed.

An IRS tax settlement also involves various penalties, interest, and fines being removed from what is owed. When all of that is added on, it can increase the overall debt dramatically. Many people don't realize that they can offer an IRS tax settlement and get out from under that stressful situation.

While they do prefer to get the full amount of money that is due to them, they are realistic about it. They don't want to be hassling people or businesses for money. They also know that you can't get blood out of a turnip. Don't ignore the IRS when they tell you that you owe them money. Instead, see what you can do through a tax settlement offer.

What is a Bank Levy?

A bank levy is a very serious incident and one that can cause great distress for you financially. This involves the IRS freezing your bank account. They can take everything that is in it. They don't care if you have $5, $500, or $5,000. They don't have to tell you that they are going to do it either.

The information for the bank levy goes right to the financial institution. As a result, you may write checks and then you don't have any money to cover them. You may need to make a cash withdrawal and find out that you can't access any of the money you thought you had in that account.

Want to reduce your unpaid IRS debt with an Offer in Compromise?

Many taxpayers with back taxes contact us on a daily basis to see if qualifying for an offer in compromise settlement can save them thousands of dollars in taxes, penalties and interest. The widely known offer in compromise settlement is an agreement between the taxpayer and the IRS to settle the taxpayer's full tax liabilities for possibly less than the full amount owed. Each taxpayer's, RCP, reasonable collection potential, is different and an offer will not be accepted if the IRS believes that the full unpaid tax liability can be paid in full as a lump sum or through a payment agreement.

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service (IRS) that settles the taxpayer's tax liabilities for less than the full amount owed. Absent special circumstances, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through an installment agreement.

In most cases, the IRS will not accept an OIC offer in compromise unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayer's ability to pay and includes the value that can be realized from the taxpayer's assets, such as real property, automobiles, bank accounts, and other property. The RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.

Updated 9/02/11 to reflect expanded federally declared disaster area.

The Internal Revenue Service is providing tax relief to individual and business taxpayers impacted by Hurricane Irene.

The IRS announced today that certain taxpayers in North Carolina, New Jersey, New York, Vermont and Puerto Rico will receive tax relief, and other locations are expected to be added in coming days following additional damage assessments by the Federal Emergency Management Agency (FEMA).

The tax relief postpones certain tax filing and payment deadlines to Oct. 31, 2011. It includes corporations and businesses that previously obtained an extension until Sept. 15, 2011, to file their 2010 returns and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter of 2011, which would normally be due Sept. 15.

When it comes to filing a tax return, or not filing one, the IRS can assess a penalty if you fail to file, fail to pay or both. Here are eight important points the IRS wants you to know about the two different penalties you may face if you do not file or pay timely.

If you do not file by the deadline, you might face a failure-to-file penalty. If you do not pay by the due date, you could face a failure-to-pay penalty.

The failure-to-file penalty is generally more than the failure-to-pay penalty. So if you cannot pay all the taxes you owe, you should still file your tax return on time and explore other payment options in the meantime. The IRS has options such as payment plans, offer in compromise, and other options.

We provide IRS tax help, tax relief, tax resolution and IRS audit representation in the South Florida Metro area of Miami, Miami Beach, Hialeah, Kendall, Fort Lauderdale, Pembroke Pines, Hollywood, Miramar, Coral Springs, Miami Gardens, Pompano Beach, Deerfield Beach, West Palm Beach, Boca Raton, Boynton Beach, Miami Dade county and Broward county of Florida.

The IRS has identified many individual and business taxpayers who fail to file income tax returns (1040 for individuals and 1120 for corporations) and employment tax returns (940 and 941) and these taxpayers have effectively stopped paying federal taxes as a serious matter to the US tax administration and the American economy as a whole. The IRS is actively pursuing non-filers owing back taxes with aggressive enforcement of the tax laws by issuing record numbers of tax levies and tax liens.

Tax Relief - Tax Debt Relief - IRS Tax Relief - Tax Relief and tax resolution

ST. LOUIS -- Victims of flooding beginning on June 1, 2011, in parts of Missouri may qualify for tax relief from the Internal Revenue Service.

The President has declared Andrew, Atchison, Buchanan, Holt, Lafayette and Platte counties a federal disaster area. Individuals who reside or have a business in these localities may qualify for tax relief.

As a result, the IRS has postponed until Aug. 1, 2011, certain deadlines occurring from June 1 to Aug. 1 that affect taxpayers who live or have a business in the disaster area. This includes the June 15 deadline for making estimated tax payments.

The Internal Revenue Service today encouraged business taxpayers, associations and other interested parties to submit to the Industry Issue Resolution (IIR) Program tax issues for resolution involving a controversy, a dispute or a potentially unnecessary burden on business taxpayers. You can contact a licensed IRS problem solver such as an EA Enrolled Agent, CPA, tax attorney or a tax lawyer.

You can contact Mike Habib, EA at 1-877-788-2937, he is an experienced IRS tax problem solver and can represent taxpayers in all 50 states. The objective of the IIR program is to resolve business tax issues common to significant numbers of taxpayers through new and improved guidance. In past years, issues have been submitted by associations and others representing both small and large business taxpayers, resulting in tax guidance that has affected thousands of taxpayers.

IRS Reminds Taxpayers that the Aug. 31 Deadline Is Fast Approaching for the Second Special Voluntary Disclosure Initiative of Offshore Accounts

U.S. taxpayers hiding income in undisclosed offshore accounts are running out of time to take advantage of a soon-to-expire opportunity to come forward and get their taxes current with the Internal Revenue Service.

The IRS today reminded taxpayers that the 2011 Offshore Voluntary Disclosure Initiative (OVDI) will expire on Aug. 31, 2011. Taxpayers who come forward voluntarily get a better deal than those who wait for the IRS to find their undisclosed accounts and income. New foreign account reporting requirements are being phased in over the next few years, making it ever tougher to hide income offshore. As importantly, the IRS continues its focus on banks and bankers worldwide that assist U.S. taxpayers with hiding assets overseas.

Christian tax relief, IRS back taxes help, IRS audit representation from Christian based firm Mike Habib, EA

CHRISTIAN IRS TAX SETTLEMENT- IRS TAX PROBLEMS - PAYROLL TAX PROBLEMS - STATE TAX PROBLEMS - CHRISTIAN TAX RESOLUTION FIRM

The following is a summary of the most important tax developments that have occurred in the past three months that may affect you, your family, your investments, and your livelihood. Please contact us for more information about any of these tax relief developments and what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable.

Standard mileage rates increase for last half of 2011. The IRS has announced that the optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) is increased 4.5¢ from 51¢ to 55.5¢ per mile for business travel from July 1, 2011 to Dec. 31, 2011 to better reflect the real cost of operating an auto in this period of rapidly rising gas prices. This rate can also be used by employers to reimburse tax-free under an accountable plan employees who supply their own autos for business use, and to value personal use of certain low-cost employer-provided vehicles. The rate for using a car to get medical care or in connection with a move that qualifies for the moving expense also increases 4.5¢ for the last half of 2011 from 19¢ to 23.5¢ per mile.

We provide IRS tax help, tax relief, tax resolution and IRS audit representation in the Inland Empire area of Riverside County, Cathedral city, Corona, Hemet, Indio, Jurupa Valley, Menifee, Moreno Valley, Murrieta, Palm Springs, Riverside, Temecula. We also serve clients in San Bernardino County, Apple Valley, Chino, Chino Hills, Colton, Fontana, Hesperia, Highland, Ontario, Rancho Cucamonga, Redlands, Rialto, San Bernardino, Upland, Victorville and Yucaipa.

The IRS has identified many individual and business taxpayers who fail to file income tax returns (1040 for individuals and 1120 for corporations) and employment tax returns (940 and 941) and effectively stop paying federal taxes as a serious concern to the US tax administration and the American economy as a whole. The IRS is actively pursuing non-filers owing back taxes with aggressive enforcement of the tax laws by issuing record numbers of tax levies and tax liens.

IRS OIC Johnson, (2011) 136 TC No. 23

The Tax Court has upheld IRS's determination to reject an individual's proposed offer in compromise (OIC) and sustain collection action against him. IRS's determination, which was in part based on the inclusion of certain dissipated assets in the taxpayer's reasonable collection potential (RCP), wasn't an abuse of discretion.

Under Code Sec. 7122, IRS will consider an OIC offer in compromise where: (1) the taxpayer is unable to pay the tax; (2) there is doubt as to the taxpayer's liability for the tax; or (3) a compromise would promote effective tax administration because collection of the full amount of tax would cause economic hardship for the taxpayer, or compelling public policy or equity considerations provide a sufficient basis for compromising the liability.

Most taxpayers assume that they need a tax attorney or a tax lawyer to respond to an IRS notice or letter. Taxpayers with tax problems should consider EAs (Enrolled Agents) who specialize in tax relief and tax problem resolution.

Looking for a tax relief attorney? Our firm is headed by Mike Habib, he is an EA who specializes in tax relief and can resolve your tax problems such as releasing tax levies, stopping wage garnishments, IRS audit representation, 941 payroll tax matters, etc. Tax attorneys and criminal lawyers should be considered by the taxpayers facing criminal charges. The vast majority of tax problems in need of tax relief are civil matters, and our firm can represent you before all administrative levels of the IRS. You will need a tax criminal attorney if you've been visited by a criminal or special agent.