Do you offer free initial consultations?
Yes, contact us and let’s schedule a time to meet for a consultation.
What industries do you specialize in?
We have primarily done work for the manufacturing, distribution, and construction industries, as well as individuals.
Do you provide financial services for individuals?
Absolutely, give us a call!
I have tax liability that I need to take care of. How long does the tax appeal process take?
Every tax problem is unique. Depending on the complexity of the issue some tax problems can be taken care of online in minutes. Other tax issues can take years to fix. It depends on the type of tax, size of liability, and complexity of solution. There are no definite timelines with resolving anything with the government. Standards are set, however, with legal holidays, time to review files, financial information reviews, and normal government bureaucracy, it is very rare that the government can tell us exactly how long anything takes.
What’s the difference between a tax lien and a tax levy?
A tax lien gives the government a legal claim to your property as security or payment for your tax debt. It negatively affects your credit report. A tax lien can be appealed. A tax lien is typically a precursor to a tax levy. A tax lien is usually filed to begin the enforced collection process.
A tax levy is a legal seizure of your property to satisfy a tax debt. Tax Levies are different from tax liens. A Tax lien is a claim used as security for the tax debt, while a tax levy actually takes the property to satisfy the tax debt. A tax levy may be appealed by filing a Collection Due Process appeal. A levy must be preceded by a Final Notice of Intent to Levy.
Can the IRS audit me at anytime?
No. There are limitation periods on when the IRS or the State can audit your taxes. They usually cannot go back in time indefinitely.
I have received an IRS letter/IRS notice? What should I do?
This depends on the nature of the correspondence. The IRS sends many kinds of notices about tax debt, but there are basically two types:
- The first type is informational. Statements that inform the taxpayer of penalty and interest accruals, statements saying back taxes are owed , contact them in regard to the tax liability, etc. If you are receiving these types of notices, and if you are comfortable making the call for these notices, feel free to call the IRS revenue officer listed in the correspondence. Communication is the first step in solving any sort of tax problem.
- The second type of IRS notice/IRS letter is threatening. These IRS letters will come via certified mail and will have deadlines associated with them. It may be a Notice of Federal Tax Lien (IRS Form 668), an IRS letter 1058, Final Notice of Intent to Levy, a summons to appear, or a summons for information, or a CP-529, Notice of Default of an IRS Installment Agreement. These letters have legal implications for you, and must be treated as a threat. Note the date of the letter and the deadline immediately. If you are receiving certified mail, it’s an indicator that the tax problem may be out of control. Enforced collection always begins with certified mail. If you are seeking clarification, give us call. It’s free and you will have a full understanding of the IRS Letter/IRS Notice and what your options are at that point.
If the IRS correspondence requires you to contact them, then you should always contact the IRS in the time required. If you would prefer us to contact the IRS on your behalf, then please call us right away and we’ll be able to take care of that for you.
What if I can’t pay back the taxes I owe?
If you cannot pay your back taxes, you need to work with the taxing authorities to enter into an arrangement to resolve the balance due. In some cases this might be a payment plan (aka an installment agreement), in other cases you might be able to settle the debt for less than what you owe (aka offer in compromise or a partial payment installment agreement) and in still other circumstances you might be able to negotiate for penalties to be abated. Which solution is best for you and your business is determined by a number of factors and requires a thorough analysis by a tax debt specialist.
If I haven’t paid my payroll taxes, do I need a lawyer?
This depends on where you are in the collection process. If you haven’t paid your employees withholding taxes to the government you need to make arrangements to resolve the matter. You may do this yourself. However, if you are receiving certified mail, or they are threatening you, it may be time to assume a more defensive posture. There is no law that requires representation, however, you are always permitted representation. The Attorney, CPA or Enrolled Agent you hire should be familiar with the collection division of the taxing authority and be in the position to exercise your rights as a taxpayer.
To what extent can the IRS take my wages from me?
The amount for a wage garnishment is determined by how much you make, how often you are paid and how many exemptions you are allowed to claim for tax purposes. Often people think the government can only take a certain percentage of a taxpayer’s paycheck. There are no percentages involved with a federal wage garnishment. Wage Garnishments can be avoided by addressing the tax problem using an installment agreement, offer in compromise, or other tax solution.
Will filing for bankruptcy cure my tax problems?
Not likely, although bankruptcy will often stop enforced collections (a bank levy or asset seizure) for a period of time. Many of our clients’ tax problems are not dischargeable in bankruptcy. Filing for bankruptcy stops the statute of limitations from running. This means the IRS or State Tax Authorities may elect to wait for you to complete a bankruptcy, and then resume their collection efforts. If you are considering filing a bankruptcy for tax purposes only, there is almost always a better solution. Avoid a bankruptcy if you can. Some 1040 tax liabilities may be dischargeable in bankruptcy. Give us a call to figure out what your next steps should be.
Can the IRS take over or shut down my business?
Yes. Most people have seen the large yellow tax seizure stickers that IRS places on the front door of a business. They just never thought it would be theirs. The IRS certainly has the right to seize assets, levy bank accounts and levy accounts receivable. That is why professional representation is often necessary. We often get involved after this has occurred, but we much prefer to get involved prior to that, so we can proactively prevent the IRS from shutting down your business.
We have never encountered an instance where the government tried to bamboozle a taxpayer or pull the wool over someoneís eyes. At the same time, if you donít know the rules of the game you are playing, you often wonít see “it” coming and it might feel like the IRS or state are taking advantage of a bad situation.
A common sentiment is “if they shut me down because of my tax problem, then they will never get paid.” This is not true in the IRS Revenue Officerís eyes. By shutting down a business, they stop a tax problem from growing. They also have the legal ability to pierce the corporate shield and hold you, the individual taxpayer, personally responsible for the business taxes owed as well. Once a business owner is personally assessed with the trust fund portion of the taxes, the IRS then has the right to collect from the individual simultaneously for the next 10 years.
Can corporate tax liens affect personal assets?
Corporate tax liens should not affect personal assets. A business that is incorporated means that business is a completely separate entity from the individual with a different tax ID number. A lien filed against the corporationís employer identification number would not encumber anything belonging to the individual owners of that corporation. If a business and individual commingle funds, if a corporate officer does not pay themselves a reasonable wage for work done for the business or if the tax in question is a trust fund tax the government can take steps to make the business liability (in whole or in part depending on the circumstances) a liability of the individual. However, in any of those cases, a new tax lien would be filed against the individual directly.