a You do not have to wait until a tax problem arises to contact Taxsmith. We are here to prepare your tax return(s) before you have a tax problem with the IRS or the state. Staying current on filing your tax returns is one of the most important steps in working with the IRS and the state.  Whether you have no other issues with the IRS, you are required to file taxes each year as a citizen in America.  Often the IRS will waive this obligation if your income is of a certain type of is below a threshold amount, but even then, filing a tax return can be a good way of obtaining a refund. If you do have back tax debt, then filing new returns and staying current is part of the deal in working with a tax resolution.  Many offer in compromises, settlements, and other various deals with the IRS are denied because the taxpayer failed to remain current on their tax filings.

 
There are normally two deadlines each year for income tax filings, in April and October.  If you filed an extension to file your returns by October, you do not have to wait until October to file and can have these returns filed anytime between April and October.  However, if you are late and miss the October filing deadline, then penalties and interest will accrue on your tax debt and eventually a substitute for return may be filed on your behalf by the IRS.

If you need older years filed, Taxsmith can order your master file for each individual year.  While the statute of limitations for a refund is three years, to be compliant with the IRS, and therefore to be able to enter a resolution, the last six years of returns must be filed. Please contact Taxsmith for all of your tax preparation needs now and in the future.

a A Federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. A Federal tax lien exists after the IRS:

m Assesses your liability; m Sends you a bill that explains how much you owe (Notice and Demand for Payment); and m You neglect or refuse to fully pay the debt in time. m The IRS files a public document, the Notice of Federal Tax Lien at your local county courthouse, to alert creditors that the government has a legal right to your property.

a How a Lien Affects You

a There are many different solutions to getting a tax lien resolved. Please contact us today so that we can review your case and establish a game plan.

a One of the most common collections methods the IRS will utilize is a wage garnishment. This occurs when the IRS notifies a taxpayer’s employer of your unpaid tax debt and then requires the employer by law to deduct and send a portion to the IRS to recover the monies that you currently owe. For self-employed taxpayers, the IRS can garnish the business’ accounts receivables. For anyone receiving social security or military retirement benefits are subject to a 15% levy. Wage garnishments remain in effect until either the taxpayer’s debt is paid in full or a resolution is negotiated with the IRS.

a The IRS will not stop collection activity with just a wage garnishment and may also issue a bank levy. At Taxsmith we have released numerous wage garnishments and understand the possible embarrassment and strain that any garnishment puts on one’s ability to provide not only for themselves but also their family. Immediately after contracting with Taxsmith we start negotiations with the IRS to release your wage garnishment. Please contact Taxsmith so that we can establish a game plan for your resolution and for releasing your garnishment.

a Social security and Medicare taxes are more commonly known as payroll taxes or 941 taxes. Employers are required to withhold employment taxes from their employees’ and pay those over to the IRS. An employer is quarterly required to file a form 941, Employer’s Quarterly Federal Tax Return and to annually file a Form 940, Employers’ Annual Federal Unemployment Tax Return if the business has employees. When business owners are unable to meet these obligations, a Trust Fund Tax liability is assessed. The IRS does not budge when this type of tax debt is created and will not allow the trust fund tax to be discharged in bankruptcy no matter what.

a The IRS will usually assign a Revenue Officer to collect on payroll tax debt. Revenue Officers will attempt to collect the entire payroll debt and if a business does not correct the issue the Revenue Officer could force the closure of the business and liquidation of the business assets.

a Once a business owner is in compliance with payroll tax regulations, Taxsmith will assist the taxpayer in reaching a resolution for the past due payroll liability and help the business become compliant with IRS regulations.

a If a Revenue Officer has been assigned to your case then you are at the highest level of the IRS collection process. Revenue Officers are by definition “collection officers.” Their objective is to collect the taxes that are owed as quickly as possible and to have the account paid in full. Only when automated methods have failed to collect a tax is the matter assigned to an individual for collection. Any information you give a Revenue Officer may be used against you. You have the right to contact professionals to represent you with your battle against the IRS. Through Taxsmith’s help you can avoid unknowingly providing information that may be detrimental to you. We understand that it can become even more intimidating once a Revenue Officer is assigned to your case and we are here to battle the IRS on your behalf. Once you contract our services the Revenue Officer must deal directly with us instead of you.

By contacting Taxsmith you will regain confidence that professional experts are working on your behalf.