Tax Problems

Unfiled
Tax Returns.

The value of having an attorney review your tax returns could save you hundreds if not thousands. We pull your master file directly from the IRS and verify exactly what has been reported as income to the IRS. The IRS will not allow you to get into any type of resolution without having your tax returns completed properly and filed. Having your tax returns prepared is the first step to resolving your tax issues.

Tax Lien.

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:

• Assesses your liability;
• Sends you a bill that explains how much you owe (Notice and Demand for Payment); and
• You neglect or refuse to fully pay the debt in time.
• 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.

How a Lien Affects You

• Assets – A lien attaches to all of your assets (such as property, securities, vehicles) and to future assets acquired during the duration of the lien.
• Credit – Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit.
• Job – A lien may make it harder to get a job and hurt, if not ruin, your chance of getting security clearance.
• Business – The lien attaches to all business property and to all rights to business property, including accounts receivable.
• Bankruptcy – If you file for bankruptcy, your tax debt and lien may continue after the bankruptcy.

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.

Wage Garnishment.

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.

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.

Bank Levy.

The worst feeling is when you go to use your bank account and realize that you have no funds available because the IRS has issued a bank levy. If the IRS levies your bank account, your bank must hold funds you have on deposit, up to the amount you owe, for 21 days. After 21 days, the bank must send the money plus interest, if it applies, to the IRS. This holding period allows time for TaxSmith to resolve this issue and get your funds released. The IRS can levy funds from any institution, business, individual or bank account that bears the name of the taxpayer. Our team of tax professionals have stopped and successfully negotiated numerous bank levy releases.

State Taxes.

The majority of taxpayers that owe the IRS, usually have a state tax debt issue. State tax agencies tend to be more aggressive in the collection process than the IRS. Each state has its own set of regulations and options for resolving state tax debt. Please contact us today to see if we can help you with your state tax debt issue.

Tax Penalties.

What really angers a lot of taxpayers are the additional penalties and interest added on top of the IRS debt. There are so many different penalties that many people find it difficult to decipher what each one means. The two most common penalties are failure to pay and failure to file penalties. What makes matters even worse is that the IRS will charge interest on top of those penalties. While the penalties and interest continue to grow the tax debt continues to grow but there are a range of reasons why the IRS would abate those penalties.

Payroll Tax.

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.

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.

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.

Revenue Officer.

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.