If you owe over $50,000 including interest and penalties, call Plano Tax Prep and schedule a free in person consultation. We will work to stop aggressive liens and wage garnishments and lay out your options for a tailored solution that you can afford. You may qualify for a Partial Payment Installment Agreement, Currently Not Collectible Status or an Offer in Compromise.
National tax resolution companies are all over talk radio and late night television. But who are these tax relief companies? Can you trust them?
A salesperson will tell someone that they qualify for an “Offer in Compromise” and can settle their tax debt for “pennies on the dollar” when they clearly do NOT qualify. Most of these firms are a revolving door for high pressure salesmen. At Plano Tax Prep, we do not hire sales people. You will deal only with a tax professional licensed to practice before the IRS.
Plano Tax Prep is your local Plano Texas based tax resolution boutique. We offer a variety of personal tailored tax resolution solutions for individuals and small businesses.
We will stop aggressive IRS collections like levies and wage garnishments. We utilize state of the art case management software so we can stay on top of your case. Nothing will fall through the cracks.
Our fee structure is simple and straight forward. Request a free telephone consultation today.
Unfiled Tax Returns
Statutory, Streamlined and Partial Installment Agreements
Currently Not Collectible
Offers in Compromise
Payroll Tax Debt Relief
Not filing your taxes is a serious tax problem. We have clients who have not filed in years that come to Plano Tax Prep for tax help. We file for them the unfiled returns which are accepted with no legal complications. Then we seek an installment agreement, after we determine the amount of the back taxes.
If you do not file your tax return when due, the IRS, in many instances, will file returns for you. These substitute for returns (SFR). When we see an SFR against a taxpayer we know we stand to do a lot of good; especially if they are self-employed. Why? When the IRS files SFR’s for your unfiled returns, they will ignore the cost of doing business and only include your income. When they do that, their concern is not about your accurate return but about a tax assessment that will create a tax debt they can begin to go after with all the collection arsenals that they have. Their arsenal include actions such as a bank account levy, an IRS seizure of assets and of course the well-publicized and heavily utilized tax lien.
An IRS account transcript is your record of account that keeps track of all of your tax liabilities and your payments for every year you have filed (or should have filed), and paid (or should have paid) taxes. Plano Tax Prep can pull your record of account for you and interpret what the IRS knows, what the IRS can do and what the IRS is likely to do if you owe back taxes or have unfiled tax returns.
Setting up an IRS Installment Agreement is one of the most frequently used strategies to resolve back taxes.
Plano Tax Prep utilizes a variety of strategies to structure IRS payment plans. They all start with an evaluation of your transcript of tax account to see what the IRS sees and to work out a tax resolution strategy that you can live with.
The American Jobs Creation Act of 2004 created the Partial Pay Installment Agreement. This is a negotiated Installment Agreement that requires a collection information statement on Form 433-A be filed with the IRS. It is easier for most taxpayers to qualify for this plan vs. an Offer in Compromise. Taxpayer’s who qualify, are subject to financial reviews every two years and payments may be increased or the agreement terminated in the taxpayers financial situation improves.
If your economic circumstances have deteriorated and you have too little money left after you pay for the essentials of living: rent, utilities, groceries, etc., you may qualify as Currently Not Collectible (CNC) – which means that the IRS will stop trying to collect back tax debt from you, whether or not you have a payment agreement with them. Getting CNC status will cease collection activity and give you some breathing room, but it only defers payment, it won’t make your tax debt go away, and it will not stop interest and penalties from growing on the unpaid tax debt.
The IRS uses published standards for how much a taxpayer is allowed to pay for rent, utilities, groceries, commuting, etc. that are adjusted for factors like family size, marital status and region of residence. Nothing is simple under the tax law and it would be prudent to get a sense from a qualified tax professional whether you qualify as Currently Not Collectible before you try to make this assertion to the IRS.
Is the IRS coming after you for tax debt that started when you filed a joint return with a spouse, and you don’t know WHAT your spouse (or then-spouse) did? Call Plano Tax Prep to see if you qualify for innocent spouse relief.
What If You Owe the IRS Back Taxes, Interest and Penalties and Can’t Possibly Pay It?
You may make an offer to the IRS to settle your back tax bill for a single payment or a series of payments over a 24 month period that you could afford, even if that amount is much lower than your total IRS debt – if you can make a well-supported case that:
1. You don’t really owe the tax in the first place; or,
2. There is little chance that you could pay the total tax bill (after you pay reasonable living expenses); or,
3. If the IRS DID collect the total tax bill from you, it would be an economic hardship for you, or would be unfair under your circumstances.
The IRS is very aggressive about collecting payroll tax and will pierce the corporate veil and go after the individual owners if the business does not have enough liquid assets on hand to seize. Stiff penalties and interest begin to accrue immediately. If the IRS can make the case that the failure to make the deposit was not inadvertent, that it was done knowingly and intentionally, you could be looking at criminal prosecution.
IRS penalties and interest, in some cases can go up to almost 50% more than the original tax owed.
The types of circumstances that can qualify are the occurrence of a natural disaster, a serious health problem for the taxpayer or the need to care for a family member, the death of a family member, bad financial advice from a professional on whom it would be reasonable to rely or lost or destroyed financial records.
Get off the tax delinquency treadmill, call Plano Tax Prep today.
Plano Tax Prep is a member of the American Society of Tax Problem Solvers, a Non-Profit Professional Association.