How to Solve Any IRS Problem
Reach out to a Glendale Tax Attorney
IRS problems have a way of ruining all aspects of your life. They take a toll on you financially, emotionally, and physically. You can never really run away from them because they always come back each morning when you wake up!
When you owe the IRS money, you're always wondering if today might be the day when the IRS shows up at your work, your home, or your business, or if today might be the day the IRS decides to levy your bank account or garnish your paycheck. This is a heavy load to bear every day!
The only way to solve your IRS problems is to face them head-on and to have a plan of action. No more procrastinating, no more delaying, and no more pretending that the problem doesn't exist! This may sound blunt, but if you do nothing about your IRS problems, then that's exactly what will happen: NOTHING!
As you read every word of this short guide, we are confident that you will begin to feel a sense of relief knowing that there is a way of out of your IRS problems.
Contact RJB Law Offices online or call (888) 722-4046 for a free case review with a Glendale tax lawyer.
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You Are Not Alone. Relief from the IRS Is Possible!
Just imagine what it would be like to wake up every morning knowing that the IRS is finally out of your life. You no longer have to worry about what the IRS might do next to collect what you owe. How about a good night's sleep for a change…knowing that the IRS will no longer be able to threaten you and take everything that you've worked so hard for? This is what you want, isn't it?
Almost 30 million taxpayers are suffering from IRS problems. So you are not alone.
Watch Out for Scams!
If you are one of the millions of people who are in debt to the IRS and a tax lien has been filed against you or your property, please note that a recorded lien is a matter of public record. So there is a good chance that you are now being bombarded with all kinds of marketing materials from different companies offering you their services.
There are a lot of unscrupulous companies out there who hire salespeople to try to get you to fork out your hard-earned dollars while making you promises that sound too good to be true (because they often are). Most of these people are unlicensed and are not even qualified to give you legal advice. Without knowing anything about your situation, they will tell you right away that you can settle with the IRS "for pennies on the dollar."
While it is true that tax debts can sometimes be drastically reduced in negotiating with the IRS, there is a specific formula that the IRS uses in making this determination and it is not based on some set percentage of what you owe.
Be aware that there are predators out there who want to take advantage of other people's unfortunate situations.
Every IRS Problem Has a Solution
That's right! It's possible to solve any IRS problem including yours, but what will work best in a given situation is not necessarily the option that the taxpayer wants to accept. Generally, IRS problems fall under one of 2 categories:
- You are behind on filing some tax returns; and/or
- You have an outstanding bill from the IRS that you can't pay.
If you have one or several unfiled tax returns, then the first thing that you need to do is to get caught up. There is no way around this. Keep in mind that if you're not even caught up on all your filings, then as far as the IRS is concerned, you have not made enough effort to get back on track with the IRS. So why should they even talk to you? Filing late returns shows good faith on your part. How can you find a solution if you don't even know what exactly you're dealing with?
How to Start: Find Out What the IRS Knows About You
If you are so far behind that you don't even know what returns you're missing, then it's a good idea to obtain your tax transcripts from the IRS. Call them and ask them to send you a record for all the years in question. If you're in doubt about what tax years or periods are in question, then it may be a good idea to ask for more years or more periods to make sure you get it all.
Once you have your IRS transcripts, you will be able to see your history of filed returns, payments made, any liens filed, etc. Obviously, if you owe the IRS money, then the transcripts also show how much you owe for what tax year. Don't stress over it for now. The goal in getting your transcripts is to find out what the IRS has on you so that you know exactly what you have to deal with in getting your tax problems resolved.
Once you're caught up on all your filings and you know exactly how much you owe the IRS, what's next? Here are some possible solutions:
1. Reduce the Tax Liability by Doing an Offer in Compromise
This is the infamous "pennies on the dollar" program you may have heard about. Under this program, the IRS may accept less than what you owe as payment in full. This program has rigid qualification criteria and most taxpayers simply do not qualify. As I stated earlier, do not be fooled by a salesman on the phone guaranteeing that you will qualify for this option.
If you do qualify for this option, here's the good news: Usually, the IRS will settle for a lot less, but it depends on your income, expenses, and assets. The less income and assets you have, the better. Once the IRS agrees to the settlement, your nightmare is over and you get your life back, provided that you don't make the same mistakes that got you into tax trouble in the first place. In the event that you do not qualify for an Offer in Compromise, it may still be possible to drastically reduce what you owe by asking for a "penalty abatement" This means asking the IRS to cancel all the penalties.
Did you know that as much as 60% of your tax debt could be penalties that the IRS has added to the original tax amount? I know this sounds ridiculous, but it's true. The IRS has specific grounds on which you may file an application to get penalty relief and, if your application is granted, you can get the overall amount of your tax debt reduced.
2. Negotiate a Payment Plan (Installment Agreement)
The most common resolution option is a payment plan that allows you to make affordable monthly payments to the IRS to pay back taxes. These payment plans can have variable payments based on seasonal income, if necessary. In some cases, you may not even have to pay back the entire amount you owe, but simply make payments until the statute of limitations expires on the debt. This is called a "partial payment installment agreement".
3. Have the Taxes Declared "Uncollectible"
If you lack the financial resources to repay your tax debt, then it may be possible to get your tax accounts into an "uncollectible" status. The IRS will review your situation periodically to see if your financial situation improves. This status can last for one or more years and the IRS will leave you alone while you remain in this status.
4. File Bankruptcy to Wipe Out Some or All of the Taxes Owed
In some cases, personal income tax can be discharged or wiped out in a Chapter 7 bankruptcy. To be eligible for a discharge, there are three rules:
- The taxes in question are at least 3 years old as of the date of the bankruptcy filing;
- Tax returns were timely filed or if not, it should have been at least 2 years since they were filed; and
- The taxes should not have been assessed in the last 240 days.
These are the basic rules to obtain a discharge of the taxes owed. However, to get a court determination that the above requirements are satisfied, you need to file an adversary proceeding in bankruptcy court.
In other cases where taxes cannot be wiped out in Chapter 7, they can be paid through a Chapter 13 repayment plan. In Chapter 13, the penalties and interest stop accruing on the date of filing and in a lot of cases, the amount owed can be reduced.
To find out whether or not bankruptcy is a good option for your situation, contact a bankruptcy attorney at RJB Law Offices.
5. Pay the IRS the Entire Amount
This option is pretty straightforward. If you have the money, why not just pay the IRS and get them out of your life? People with substantial assets or income normally do not qualify for any of the other options, so this may be the only thing they can do to make the IRS leave them alone. For those who have no assets or income, sometimes they can borrow the money to pay the IRS in full, so they will often refinance their mortgage, borrow against their retirement plan, or get a loan from friends or family. If you are reading this guide, then you most likely do not fall under this category.
6. Do Nothing
"You can't squeeze blood out of a stone," as the saying goes, so if you own nothing and don't even have a job, then you may be tempted to just ignore your IRS problems since you are what they call "judgment proof." However, if you have a job, a business, a bank account, a home, or any other assets, then doing nothing means that IRS can just have its way with you and take whatever you have. I am sure this is not the kind of life you want to live!
Having IRS Problems Gets Old!
Every case is different, so there is no "one size fits all" solution, but chances are that your situation will fall under one of the above scenarios. You just have to find out which one is best for you. There can be no real rest and relaxation until your IRS problem is completely solved. It's hard to keep a good job or get your credit report cleaned up when the IRS continues to issue federal tax liens and wage levies.
Without a bank account, it's difficult to cash your checks or even pay your utility bills. Even if you're lucky enough to have a bank account, you always have to worry about the IRS wiping out all of your money without notice.
Some taxpayers with IRS problems have nothing but a few assets they want to hang on to… and then the IRS pulls out all the stops by seizing everything that they can. Do not underestimate any IRS employee's ability to follow through on the threat of seizure.
Imagine the IRS attacking your pension, retirement, or social security check!
When being investigated by the IRS it is important to know that they are completely through in their investigation. Whether it is collecting taxes, penalties, and/or interest; the IRS is relentless in getting what they want. The IRS will never forget what you owe and you could be hit with unexpected payments at any time. Do not think that they will not take money out of your pensions, retirement, and/or social security because they will collect all debt that is owed. If you owe the IRS money they will collect and you should not go through this ordeal alone or with people that do not understand. It can be an extremely long and intimidating process going up against that IRS.
So What's My Next Step to Get Out of My IRS Problems?
Your next step is to decide to end your IRS problems. You need to pick a day (today is a good day) when you decide that enough is enough and that you are going to finally do something about your IRS problems.
Our firm specializes in ending the misery of IRS and other debt problems! As I discussed above, there are many possible ways to end your problems but they all require that you take the first step. No one can help you until you decide to help yourself.
We will do all the talking to the IRS. We also handle all the meetings and communications with the IRS. If you have some un-filed tax returns, then we will advise you to file old tax returns to get you in current compliance with the IRS. As I already explained above, the IRS will not negotiate with anyone unless they are current with all required filings.
Once all your old tax returns are filed, then the IRS will at least listen. If you qualify, then we will help you cut a deal to pay less than what you owe. And in case you don't qualify for an "Offer in Compromise," we will see if you can at least have the IRS reduce the penalties.
Why Our Law Firm Is Different
Since 2001, we have helped more than 5,000 clients obtain relief from all types of debt including IRS debt. Because we are a full-service debt relief law firm, we offer a wider range of options for our clients than other law firms. For example, a big part of our practice is helping clients file bankruptcy when necessary as a way to get out of debt. How can this possibly help you?
Well, for instance, in some cases it may help to give the IRS what's called a "bankruptcy analysis" in order to convince them that it makes more sense for them to accept what you are offering as opposed to getting very little or perhaps nothing from you should you file bankruptcy (even though you really have no intention of filing).
Moreover, we have seen over the years how serious IRS problems can spill over into other areas of our clients' financial lives. The client's current IRS problem can simply be the end result or culmination of other accumulated debts that are beyond the client's ability to repay.
Thus, if a client cannot pay the IRS (who is the worst creditor anyone could ever have), there's a good chance that they are also struggling with other non-tax debts such as credit cards, mortgage payments, personal loans, medical bills, etc. We have seen over the years how most debt problems are interrelated. They can easily snowball, making it harder and harder to catch up with every passing month.
I realize that this may not always be the case but if it was, the client is best represented by an attorney who can provide a comprehensive solution that addresses the different financial challenges besetting the client.
We put our extensive knowledge and experience to use in handling all types of debt problems for every client who comes to us. In addition to resolving IRS debt, our law firm can help with stopping foreclosures, bill collectors, lawsuits, judgments, wage garnishments, as well as negotiating with creditors to avoid bankruptcy. If the client is a business owner and the IRS and other creditors are causing cash flow problems, we can help settle the debts to avoid bankruptcy.
Lastly, I would like to point out that we are different from other law firms because our ultimate goal for every client is TOTAL FINANCIAL RECOVERY! We have a lot of clients who are not only interested in getting out of debt but also in being able to rebuild their credit once again.
Recently, we partnered with 720 CreditScore in order to help our clients accomplish this in as little as 12 months! Check out the above website. This credit improvement program is normally sold to the public for $1,000 but if you become a client, we will give it to you free of charge!
Free IRS Debt Analysis – Now It's Your Turn!
Without cost or obligation, we would like to offer you a comprehensive one-hour consultation (normally $300) so that we can fully evaluate your case and recommend possible solutions.
If we can't help you, we'll let you know immediately. We refuse to waste your time or money. And I promise you that we will NEVER offer you false hope – only an honest assessment of your situation.
We will work very hard to help you settle your tax debt (or any other debt issues you may have) so that you can enjoy peace of mind once again.
Regardless of how you fell into tax trouble, there is a way to get out. However, the longer you wait to tackle the problem, the worse it gets and the more costly it will be to resolve. Also, keep in mind that the IRS is charging you an additional 4% interest (compounded daily) and 5% in penalties every single month!
Your tax bill is growing with each passing day! Don't allow this to continue. Call right now at (888) 722-4046 for your free, confidential one-hour consultation.