The tax professionals at Honest Tax Relief have over 50 years of combined tax mediation experience to get our clients results. Those who are searching for help with back-taxes and are hoping to procure a back-tax settlement choose us to achieve the best possible outcome. Currently, the IRS and State agencies recognize four different kinds of tax settlement agreements that can provide and, in some cases, eliminate tax debt. Contrary to popular belief, clients do not have to be in financial hardship to qualify for this IRS tax relief help. In fact, of the four main resolution programs used, only two are actually based in clients not having an ability to pay. The following is a list of the four main tax relief help programs that we perform here at Honest.
Offer In Compromise
The Offer in Compromise is a financial hardship program which can feel like a pot of gold at the end of the rainbow with regards to State and IRS back tax settlements and income tax settlements. With an Offer in Compromise, and for taxpayers who qualify, the IRS will agree take a percentage of what a taxpayer owes as payoff to satisfy a tax debt. The problem is, qualifying for this program is rare and unfortunately many tax settlement companies will tell clients that they can achieve this outcome. However, if and when a client’s financial situation does qualify, the client will be forced to pay the reduced amount within a time frame dictated by the IRS. Also, the taxpayer may not add on to the debt and must file on time for the next five years following acceptance into the program.
Typically reserved for taxpayers who are on a fixed income like the elderly or the disabled, this financial hardship program can essentially eliminate a tax debt. For those taxpayers who qualify, a client must substantiate that they do not have any extra income beyond basic living expenses to pay back a tax debt. Ideally, like previously stated, the taxpayer shows no ability to make any income beyond what they are currently making. If the taxpayer continues to file on time and pay what they owe if they owe, the debt will eventually expire due to the statute of limitations on collections.
Penalty abatement is a non-financial hardship program which provides taxpayers with a reduction of the penalties and interest on those penalties which have accrued on the taxpayer’s debt overtime. It is the most commonly used IRS tax settlement program and the program that seems to be the most misunderstood by most IRS tax settlement companies. In the case of this income tax settlement program, the taxpayer must substantiate some sort of dramatic life event which caused them to find behind. The IRS understands that there are significant things that may happen in a taxpayer’s life which may cause them to fall behind or worse, stop filing all together. Because of this, the IRS is willing to abate the penalties that have accrued on the debt.
Back End Settlement AKA PPIA
Although “Back End Settlement” is not an official IRS name for it, this program is a non-financial hardship program that is one of the most misunderstood tax settlements with the IRS or State. The reason behind the confusion is because many tax settlement centers don’t completely understand how the IRS statute of collections works. The IRS has ten years to collect on the date from which that liability was assessed. There are many things that can reset the statute that taxpayers, and even tax settlement attorneys, don’t completely comprehend. By playing the statue against itself, it is possible to get the tax payer on a small payment plan for the limited life of the debt, resulting in non-payment of some or the majority of the tax liability. Make no mistake, when done correctly, this program can be a very effective income tax settlement program.
Stop Harassing Phone Calls and Letters
One of the most terrifying and debilitating things a taxpayer can receive is a threatening IRS or State phone call or letter. This process is designed to get taxpayers to throw themselves on the mercy of the IRS or State. Many taxpayers will make the mistake of working directly with the IRS or State, thinking that they will be treated fairly. Or worse, some taxpayers will ignore these calls to action and end up receiving a State or IRS garnishment of bank levy. Once retained, the tax attorneys, CPAs and EAs at Honest Tax Relief, will quickly prevent and prohibit the IRS or State agencies from contacting our clients. We will put our clients’ minds at ease while we diligently work towards a swift resolution of their tax case. If you are currently receiving harassing phone calls or letters, don’t hesitate. Call us today at 833-3HONEST.
Filing delinquent Tax Returns and Achieving Compliance
Honest Tax Relief prides itself on being a full-service tax resolution/tax mediation firm. Unlike some companies that offer watered down tax settlement services, Honest Tax relief employs a full-time staff of tax preparers and CPAs to ensure a quick and accurate filing of delinquent tax returns. Because the IRS or State agencies are unwilling to stop garnishments or stop levies without a client being in compliance first, it’s crucial to be able to expedite complete and accurate past tax returns as quickly as possible. Even if the client does not have a State or IRS garnishment of wages or a bank levy, the taxpayer’s submission will not be considered until they are in full compliance. Honest Tax Relief files thousands of tax returns a year and has never had a return audited. In short, we specialize in accurate and aggressive delinquent tax returns for small business, self-employed, and w2 employees.
Intervene and Resolve Payroll Tax Issues - 940's / 941's
Because Honest Tax Relief prides itself on being a small business specialist, one of the major types of tax issues that we handle for our clients are those of businesses experiencing issues with payroll taxes. This IRS only issue is caused when employers are unable to pay the taxes withheld from their employees because, frankly, they need the extra income to keep the business afloat and keep the doors open. This is the dilemma that most small businesses are facing when they come to us. The IRS shows little to no leniency when trying to repay or make accommodations to try to pay back debt from payroll. It would seem that the IRS would rather have businesses close their doors then try to keep them open to earn income to pay off the debt. Because the IRS is so aggressive with payroll debt, they often will quickly assign an IRS revenue officer who has the ability to shut down the business. As a taxpayer and a business owner, you have rights. Here at Honest Tax Relief, we will keep your doors open and keep the IRS off your back. If you are experiencing issues with an IRS payroll issue, call us today at 833-3HONEST.
Intervene and Resolve State Sales and Excise Tax Issues
Because Honest Tax Relief prides itself on being a small business specialist, one of the major types of tax issues that we handle for our clients are those businesses experiencing issues with State sales and excise tax issues. These issues are caused when a small business is unable to pay the taxes they collected from their customers or clients for a tangible good they sold or service they performed. The State shows little to no leniency when trying to try pay back the debt. Because the State’s collection power is so strong and because they have more resources and a smaller geographical area, they can be brutally aggressive. They have even been known to chain up business doors or show up with local authorities to seize assets to sell at public auction. As a taxpayer and business owner, you have rights. Our team at Honest Tax Relief will keep your doors open and keep the State off your back. If you are experiencing issues with a state sales or excise tax issue, and you are looking for a state tax settlement, call us today at 833-3HONEST.
Assistance and Controlling of Aggressive Revenue Officers
One of the most aggressive actions of collections that either the IRS or State collection agencies can take is assigning a Revenue Officer to collect against a taxpayer. Normally reserved for taxpayers with larger liabilities, as of late both the IRS and State collection agencies have been assigning Revenue Officers if they get the slightest hint that a debtor is resisting their collection efforts. Often, these officers will act on their own accord and not by the collection procedures obligated by the IRS and State. In many cases, Revenue Officers have been known to dodge calls in order to make taxpayers miss deadlines so they can take collection action like initiating a pay garnishment or bank levy. Their actions are so dubious; they have been known to do things like showing up at a taxpayer’s doorstep or even a taxpayer’s neighbor’s door step. If you currently have been assigned a Revenue Officer by either the IRS or the State, do not try to handle them on your own. Call us today at 833-3HONEST.
Audit Defense and Reassessment Defense with both IRS and State Agencies
Recently the IRS hired 5000 new audit officers to start auditing more tax returns. In addition to the hiring, the IRS has developed a new way of getting taxpayers to participate in their audits without representation with what is being called a “Substantiation” audit. In recent years, when the IRS or State audited a taxpayer, they would assign anindividual audit officer to sit down and meet with the taxpayer. And although they still do these “In- Person” audits, they have now transitioned more into audits where taxpayers are sent a letter asking them to substantiate specific expenses. These types of audits have been met with far less opposition as the taxpayer will ignorantly help IRS collections and examinations by sending in their material. The IRS will then take advantage by steam rolling and denying any expense, legitimate or not. In addition, the IRS now has the power to go back as far as six years to examine additional returns and assess liability. If you have received an examination letter, whether it be in person or via substantiation, don’t make the mistake of trying to represent yourself. Call the audit specialists at Honest Tax Relief right away at 833-3HONEST.
Often confused with an audit, the IRS will also do a tax “Reassessment” of a taxpayer’s previous year’s tax return. A reassessment happens when there is a discrepancy between what income reported to a taxpayer’s social security number or EIN, and what income was reported on the taxpayer’s tax return. This results in the taxpayer receiving a letter stating they owe a certain amount for a certain tax year. In most cases, the taxpayer has no idea how it happened and may have even received a refund for the tax year in question. In many cases, the taxpayer forgot to report additional income resulting from various activities like liquidating a retirement account, gambling winnings, debt forgiveness, and improperly filing a tax return on a sold property. Coincidently, there has also been a rise in identity theft where a taxpayer’s social security number has extra income reported to it in which taxes were never collected. If you believe your tax return has been reassessed, call us today at 833-3HONEST for a free tax consultation.
Stop State and IRS Wage Garnishments and Bank Levies
Has the state or IRS recently garnished your wages at work or levied your bank account? This action is one of the IRS and State’s most aggressive collection efforts against taxpayers. The more time a taxpayer waits to do something to stop a garnishment or to get tax levy help, the worse it gets. If you are currently being garnished or levied, and are wondering how to stop a garnishment or how to stop a tax levy, call us today. We will quickly throw resources at your case to ensure the quick release of your garnishment or levy, and quickly get you back on your feet. But time is of the essence, so call us today at 833-3HONEST so we can make that bank levy and garnishment stop!
Negotiation of Affordable and Practical Payment Plans
One of the most dubious things the IRS and State agencies can do is to make taxpayers believe that they will put them on an affordable payment plan. Often times, they will agree to a certain amount, but then ask taxpayers to provide financials so the IRS can review them. They assure that the payment amount will stay the same as long as the provided financials line up. Problem is, the financials never do. If the taxpayer knew that the IRS doesn’t allow expenses beyond what the national standard of expenses, they would be reluctant to provide this info. The goal of the IRS is to get their hands on your financials. That way, when they come back and tell the taxpayer they do indeed have the ability to pay more, there is no argument because they have full financials that tell a different story.
Here at Honest Tax Relief, we often get calls from consumers looking for a reduction of their tax debt, but a handful who have been through this deceitful IRS game, hire us just to negotiate a great and affordable payment plan on our client’s terms. We argue expenses and make the IRS and State accept expenses they wouldn’t normally, and our clients walk away in a much better position than they would have on their own. If you believe that your payment plan is too high and you are having trouble paying each month, give us a call. We will be happy to give an honest assessment of your situation and see if we can be of help.
Tax Lien Subordination and Tax Lien Release
One of the worst things that the IRS or State can do in their collection process is to attach a tax lien to a taxpayer’s credit or to their property. By attaching a tax lien, the IRS and State are not just guaranteeing that they will get paid, but the lien will also inhibit that taxpayer from completing any large financial transactions. Taxpayers will be prohibited from getting any kind of credit or loan. Nor will they be able to sell any piece of property that may have a lien attached to it. Unfortunately, once a tax lien is applied, there is little that can be done to remove it unless some sort of value can be brought to the table. If that is the case, Honest Tax Relief can assist taxpayers with a tax lien subordination.
A tax lien subordination is a temporary removal of a lien so that a large financial transaction can go through in which the IRS or State will benefit. For example, if a taxpayer is trying to sell a piece of property that has equity in it but has been burdened with a tax lien, the IRS will position themselves in escrow as the first position recipient and will remove the lien for escrow to close. This can also be done when a taxpayer is looking to modify their current loan if this action allows more monthly funds to be freed up for the IRS or state to be paid.
Finally, Honest Tax Relief can also be helpful in the withdrawal and discharge of a satisfied or expired tax debt lien. When a tax liability is paid off or satisfied, or it expires via the statute of limitations, the IRS or State agencies are in no hurry to remove it off the credit of the debtor. In some case, the removal of a satisfied or expired debt can take up to a year if unassisted. Those taxpayers looking to accelerate this process have turned to us to help expedite the withdrawal process and the removal of a lien. If you have a tax lien and are wondering what can be done with it, give us a call today to discuss at 833-3HONEST.
Execution of IRS Innocent/Injured Spouse Relief
Many taxpayers that are looking for tax relief help or tax settlement help owe taxes because they filed jointly with an ex-spouse. This action caused the both parties to acquire a tax liability. When this happens, the IRS or State will mirror the account, making both parties responsible for the full amount of the debt until the amount is paid in full. Because of this unfair collection practice, many taxpayers seek help via a program called innocent spouse or injured spouse. Both of these programs have the ability to alleviate one spouse of the full or modified amount of the liability, and put it on the non-participating spouse. If you are looking for federal tax help or state tax help with a liability caused by your ex-spouse, give us a call today for a free consultation at 833-3HONEST.
Scrutinize and Validate State and IRS Tax Statute of Collections
One of the major questions that we get from taxpayers looking for State or IRS tax debt settlement help, tax debt relief help, or State or IRS tax problem help, is how long does the State or IRS have to collect against debtors? States vary, but the short answer for the IRS is ten years. Unfortunately, it is not that simple and gets to be a bit complicated. The IRS has ten years from which the liability was assessed to collect on a back-tax debt. That means if a taxpayer filed a return three years late, the liability from that return would then expire thirteen years after the tax year it was from. In addition, there are things that a taxpayer can do to reset or stall the statute. Filing an amended return, being audited, or being reassessed, will all reset the statute and add another ten years from the new liability date.
Sometimes the IRS isn’t perfect in their assessment of a liability. In many cases, the legitimacy of a debt after the ten-year mark can be questioned. Perhaps the taxpayer owes because their identity was stolen, etc. No matter the tax problem, our tax settlement department and forensic accountants will get to the root of the issue and make sure the liability is legitimate. If the State or IRS is claiming you owe taxes and you question the validity and you are seeking tax help, give us a call today at 833-3HONEST.
Assistance with IRS Stolen Identity
As of recent, identity theft in the IRS has become a dilemma. The general public has no idea how wide spread the issue is. Our office gets calls every day of people asking why, how, and for help with IRS, for help with back taxes, for help IRS tax, for help with IRS tax debt etc. But what they don’t realize is that someone in another state has stolen their social security number and is using it to collect a paycheck cut to them, not the taxpayer. Once this happens, the taxpayer receives a letter in the mail stating that they owe for a specific year or multiple years, even if they received a refund for that year. To correct the issue, the burden of proof is now on the owing taxpayer to show that they are the victim of identity theft. One would think that this is an easy process but,unfortunately, it is not.
Honest Tax Relief can help anyone if they have been a victim of identity theft. We will quickly substantiate your location, find the root of the incorrect income, and set the record straight. So, if you believe that you are a victim of identity theft and find yourself searching for income tax debt help, call us today at 833-3HONEST.
The Honest Guarantee
Honest Tax’s 10 day Refund Policy applies only to cases that do not require immediate collection responsive action. Immediate collection responsive actions can be defined as cases in which Honest Tax must address cases that have in place, or a threat in place, an IRS or State wage garnishment, bank levy, or a tax lien. Immediate collection action also applies to cases in which an IRS or State Revenue officer has been assigned. As well as cases in which there is a potential that Client’s business is in jeopardy of being shut down, Clients’ assets have been sized, or Client is currently incarcerated due to delinquent taxes. Further, Client understands that Honest Tax’s 10 day refund Policy does not apply to cases in which Honest Tax was retained for audit representation.