How to File an Offer In Compromise - A 5 Step Process

We filed an Offer in Compromise for a client in the beginning of February 2013.  His balance dues were less than $32,000 at the time. However, he had a few missing returns needing to be filed first. Once the returns were filed we could proceed with the financial form, collecting of supporting documentation, and subsequently the filing of an Offer in Compromise. After several months of waiting, and very close follow up once the Offer in Compromise was assigned, we were able to settle for $1,500 on $32,000.  Our client was very pleased with the results and is now in the process of paying the Offer in Compromise within the required 5 month time frame.

How did we get to the point of settling you ask? Very detailed layout, structure, preparation and follow up. The steps below outline the brief but detailed process behind filing an Offer In Compromise:

1. First and foremost conduct a compliance check to insure all tax returns are on record, find out all balance dues you will be compromising and ensure the taxpayer is compliant with estimated tax deposits. Make sure you get a collection hold to obtain enough time to file the Offer in Compromise.
2. Secondly, once the compliance check has been completed, fill out form the applicable financial form (business and/or personal) as well as the Offer in Compromise form. All attachments relative to the form must be furnished. Do not leave anything off the forms no matter how large or small financially. 
3. Third, don't forget about the fee, the 20% down payment, or down payment and monthly payments thereafter depending on the Offer in Compromise. The taxpayer may not have to furnish a fee or down payment based on their financial condition. 
4. Forth step, contact the IRS and advise them you are filing the Offer In Compromise prior to the due date initiated in step one.  Once filed, get the appropriate follow up to make sure the IRS has the Offer In Compromise in their system and has designated your case as such. 
5. Final step, negotiate the offer. Almost 90% of all Offers come back rejected, returned, or are declined for one reason or another. The IRS doesn't give much follow time once the process has been started. The offer can be negotiated with close and appropriate follow up. 

There are several other things to think about such as the filing of an appeal, negotiating the offer, etc. Those steps will be covered in another article.

Best of luck. The Offer in Compromise process is tricky and it is a privilege to file an offer rather than a right.  One must remember to cross all T's and dot all I's. As the IRS will decline the Offer in Compromise if it comes over incorrectly, incomplete, or there are compliance issues to be dealt with. Call us at 720-398-6088 for more information concerning the Offer in Compromise process as we would be happy to help. You may also find out more information regarding the Offer In Compromise on our website at www.highlandtaxresolution.com. 

Tax Resolution Testimonial!

Mike Wallen with Highland Tax Group helped me challenge amounts I owed for two tax years. I was not sure if that was even an option before I spoke with Mike, and after several attempts to reach the IRS by phone myself (which is impossible, the number provided on the notices only sent me to a message with no option to talk to the IRS), I reached out to Highland Tax. Not only did the amounts I owed for two years get reduced after working with Mike due to sending in  proof of interest paid on my mortgage, but he obtained extensions on my behalf to get me more time to send the IRS the information as I was having a difficult time getting a hold of the mortgage company.He took care of the issue right before Thanksgiving to ensure the IRS deadline was not missed. Mike is very knowledgeable about tax issues and I appreciated his help greatly.

http://highlandtaxresolution.com/testimonial/alex-k-colorado

Tax Resolution Services Offer Easy 4 Step Process!

http://highlandtaxresolution.com/tax-resolution-services/tax-resolution-service-offers-easy-4-step-process

$180,000 Tax Lien Removed!

The IRS tax lien affects your credit, ability to obtain credit, refinance, borrow, etc.  It also hinders your ability to start and operate a business. Feel free to read more about the IRS Tax Lien removal process on our webpage at IRS Tax Lien.

Our client came to us and had the IRS tax lien in place since June of 2012. The IRS tax lien removal process requires a lot of hard work, effort, and dedication.  Of course, we resolved the case completely prior to following up on the IRS  tax lien removal.  The taxpayer had been wrongfully assessed the trust fund recovery penalty, stemming from a business liability of over $500,000. We ordered all IRS documentation in relation to his case, IRS notes disclosing the federal tax assessment processes, and found out he was wrongfully assessed. We decided to file for an abatement of the Civil Penalty assessed against our client.

Once agreed to and negotiated, the assessments were reversed. Our client didn't have to pay back any of the monies owed and was given a refund of over $5,000.  Now, what do we do from here? Is the IRS going to automatically initiate the IRS tax lien removal process? Is the IRS responsible for recording the IRS tax lien removal with the county the IRS tax lien was originally recorded? We wanted to revisit the importance of following up with the IRS tax lien department in order to insure the IRS tax lien is removed.

We waited about 30 days after the penalty abatement to follow up on the IRS tax lien removal.  We called this morning and initiated the release of the IRS tax lien due to the fact the IRS tax lien removal had not been initiated as of yet.  We were able to get the IRS to fax us copies of the IRS tax lien removal and subsequently insure the taxpayer was issued copies of the IRS tax lien removal as well.

If you have an IRS tax lien in place and are looking to get the IRS tax lien removal process started, please call us directly at 720-398-6088 or visit us online at www.highlandtaxresolution.com.

How to Resolve an IRS Tax Levy

IRS tax levies are issued against bank accounts, accounts receivables, wages, and other sources of income when there is a delinquent tax liability.  IRS tax levies are usually issued under a circumstance whereby the client is not current or compliant, misses a deadline, or misses a payment on an installment agreement. When one of our clients is levied by the IRS, usually against a bank account, this can severely damage a businesses ability to continue to operate. If the IRS tax levy is issued against an individual it can severely hinder one's ability to pay bills.

Most recently we had a client who missed a deadline regarding financials.  The IRS sent out a IRS tax levy about 3 to 4 business days following the actual deadline. The client was levied for approximately $3,500.

In order to expedite a release of an IRS tax levy one should always follow these steps below:

- Provide the information asked for
- Provide information concerning what expenses will not clear (especially payroll, bills, rent, mortgage)
- Provide reasonable cause as to why the levy should be released

Once these items are remitted, the IRS will entertain a release. We followed the steps above and were able to work with the Revenue Officer who issued the levy to satisfy all of her requests. We were able to secure a levy release for $3,250 to cover all the necessary payroll expenses. We are now moving forward on the next stage of the case which is resolution.  We were lucky to obtain the release of the IRS tax levy.  Usually when an IRS tax levy is in place it is tough to get it turned around. If the client met the deadline originally issued, the levy would have never taken place. To sum it up, meet all deadlines, stay current with federal tax deposits, estimated tax deposits, returns and do not miss any installment payments once an agreement is reached!!

If you have an IRS tax levy against your wages or bank accounts, feel free to call us at 720-398-6088 or reach us on our website at www.highlandtaxresolution.com.

New Testimonial!

http://highlandtaxresolution.com/testimonial/larry-rickman-colorado

Mike was referred to me by my tax accountant as they had attended a continuing education class together. She was thoroughly impressed by his background and knowledge of tax matters. I have been happy with the service and the prompt responses every time I have had a question or concern. He took the time and made the trip to meet with my wife and I at a location of our choosing. He was very thorough with us regarding the details of what we needed to do to resolve a very complicated and potentially disastrous tax situation. He has helped us beyond measure. I highly recommend him.

Larry Rickman, Colorado

IRS Tax Penalty?

Have you been assessed an IRS tax penalty? Did you pay your tax return late, fail to pay your tax, failed to remit tax deposits timely, or simply don’t know what to do when it comes to your IRS tax penalty? Good news, we are going to give a brief overview of the first time abatement clause as it relates to IRS tax penalty issues.

All too often a taxpayer may only fall behind for one year, owe a few thousand, pay it off, along with a $400 or $500 IRS tax penalty. In other situations, an employer may fail to remit federal tax deposits timely, or maybe fail to remit one deposit timely.  Most cases with first time offenders, the IRS will waive some of the IRS Tax Penalties relative to the case. The case described below is a huge win for us as it relates to IRS tax penalty issues.

In this particular case I have a client who accrued IRS tax debt while she was married. The debt was accrued in direct relation to her ex husband’s business income. None the less, she filed jointly and was assessed the liability. We called the IRS and discussed several concerns about the IRS tax penalty. First and foremost, when was it assessed? How much in IRS tax penalties are we looking at?  Finally, the IRS asked what are we ultimately going to do to get the debt resolved? A few other important factors to think about in the case were; has the taxpayer ever accrued an IRS tax penalty previously, more importantly, in the past 3 years? Has the taxpayer been current and compliant since the IRS tax penalty was accrued? Fortunately, we were able to give the IRS all the right answers.

Luckily, my client, who owed $71,000 at the time of the call, qualified for the first time abatement.  I was able to successfully abate over $10,000 in IRS tax penalties on the account under both the first time abatement clause as well as the reasonable cause criteria. Again, we are still working toward an overall settlement, however, it was a nice victory. There were no prerequisites other than those mentioned above. We didn’t have to set up a payment plan, or promise to pay the debt in full. We simply asked for an abatement of the IRS tax penalty in question.

If you or someone you know has IRS tax penalty issues, please call us directly at 720-398-6088 or visit our website at www.highlandtaxresolution.com for more information!

Government Shutdown Ends Effective Immediately!

The government will reopen effective immediately. The Senate agreed to pass the bill to extend the debt ceiling for an additional 90 days or until January 15th. Obama will sign the bill as soon as it lands on his desk tomorrow and furloughed workers are to report tomorrow. Thus, the government shut down will end effective immediately. 

Enjoy!

http://video.foxnews.com/v/2748872883001/president-will-sign-bill-immediately-to-reopen-government/

For more information feel free to call me at 720-398-6088 or check out my website at www.highlandtaxresolution.com. 

IRS Tax Lien Removed!

We had a client who came to us with a smaller IRS tax issue and an IRS tax lien on her credit report. She had several goals in mind as it related to the IRS tax lien and the removal of the IRS tax lien.  One of her primary goals was to repair her credit.  In order to do so we needed to work quickly on the IRS tax lien removal in order for her to initiate the process of repairing her credit.  When dealing with removing an IRS tax lien there are several items needing to be completed:

- First and foremost we set up a payment plan for the debt to be paid over 72 months - this is called a streamlined agreement 

- Secondly, we set up the plan to be paid via direct debit installments, therefore the IRS would actually go in and debit the account on the date we selected for payments to be made 

- Finally, we applied for a lien removal once we were sure the payment plan was set up and we had at least applied for direct debit program 

The process from start to finish took about 8 months. However, we were able to successfully implement the removal of the IRS tax lien and now our client is on her way to getting her credit repaired. Her secondary goal is to purchase a home.  Once her credit is repaired, she will qualify for a loan, and thus get herself into a home.  She was very pleased with our work and is one of the testimonials on our website at www.highlandtaxresolution.com.  The IRS tax lien can be removed, however, there are several steps to take in order to get there. We were very pleased with the results and more than happy to share. 

If you are in need of an IRS tax lien removal and are unsure on how to go about getting the IRS tax lien removed call us at 720-398-6088 or check our our website at www.highlandtaxresolution.com. 

IRS not issuing liens or levies, enforcement actions limited, during shutdown

IRS not issuing liens or levies, enforcement actions limited, during shutdown

Interesting Article regarding lien and levy issues.

Enjoy!

Government Shutdown and the Effects on the IRS

IRS has announced on its website (irs.gov/uac/Newsroom/IRS-Operations-During-The-Lapse-In-Appropriations) that its operations have been scaled back due to the government shutdown. However, it emphasized that taxpayers must nonetheless continue to meet their tax obligations as normal.

Background on the shutdown. Due to the House and Senate's failure to pass a short-term spending bill to keep the government funded, the government was shut down on October 1. In the days leading up to the shutdown, the House passed several versions of the spending bill, each of which contained a provision that would eliminate funding for, delay significant provisions of, or otherwise make changes to Obamacare. The Senate, in turn, rejected the House-passed versions of the bill and repeatedly sent a "clean" version of it back to the House.

The government shutdown will continue until Congress can reach an agreement.

Effect on IRS operations. The shutdown affects nearly all governmental agencies, including IRS. In anticipation of the potential shutdown, the Treasury Department had released its 63-page long "FY2014 Shutdown Contingency Plan (Non-Filing Season)" for IRS on September 27. On October 1, IRS issued a release on the shutdown's effect on its operations. Highlights follow.

 *   Keep filing returns and making deposits on time. Individuals and businesses should keep filing their tax returns and making deposits with IRS, as required by law. Individuals who requested a 2012 income tax filing extension should file their returns by Oct. 15, 2013, and all other tax deadlines-including those covering individuals, corporations, partnerships, and employers, as well as payroll taxes-remain in effect. IRS will accept and process all tax returns with payments, but will be unable to issue refunds during the shutdown. IRS encouraged taxpayers to file electronically since most of those returns are processed automatically, noting that the processing of paper returns will be delayed until full government operations continue.

 *   No in-person or live phone assistance. No live telephone customer service assistance will be available during the shutdown. However, most automated toll-free telephone applications will remain operational. IRS walk-in taxpayer assistance centers will also be closed. IRS's website will remain available, although some of its interactive features may not be available.

 *   Certain appointments presumed cancelled. While the government is closed, people with appointments related to examinations (audits), collection, Appeals or Taxpayer Advocate cases should assume their meetings are cancelled. IRS personnel will reschedule those meetings at a later date.

 *   Automated notices will continue. IRS won't be working any paper correspondence during the shutdown, but automatic notices will continue to be mailed.

http://www.irs.gov/uac/Newsroom/IRS-Operations-During-The-Lapse-In-Appropriations

Please keep an eye out for more information. You may find additional information at www.highlandtaxresolution.com. 

Offer In Compromise Saves Client $65,000!

Our client came to us with an unpaid trust fund balance totaling over $100,000 before we filed his offer in compromise.  The debt stemmed from a business he ran that accrued over $300,000 in payroll tax debt. We assisted him with the closure of the business, thus leading us to the determination we would file an offer in compromise for him. When he came to us he was over the age of 80 years old. Between him and his wife, they had plenty of money in both the equity in his home as well as her retirement account to fund full payment of the liability. This case was going to be a tricky one in order for us to get an offer in compromise filed and accepted.  Usually when you show the IRS via offer in compromise you can pay the IRS in full, they expect payment in full.

We decided to file a effective tax administration offer in compromise. An effective tax administration (ETA) offer in compromise is filed under the premise that even though the taxpayer has the ability to fully pay the tax debt in full, doing so would create a hardship. An ETA offer in compromise requires financial data as well as factual data based on the facts as to why the taxpayer cannot fully fund the tax liability. Therefore, we put together the offer in compromise with all financial data as well as reasoning showing the taxpayer was 82 years of age, needed all of his retirement rightfully so, and even though his wife could fully fund the liability with the equity in the home, she was not responsible for the tax liability.

The IRS initially rejected the offer in compromise indicating the taxpayer could refinance, or obtain a reverse mortgage in order to fully pay the liability. However, after much research, we concluded if the taxpayer decided to refinance or obtain a reverse mortgage there were not only too many risks involved but the costs associated with obtaining the $100,000 to fully fund the tax liability would encroach on the wife's portion of the equity.  We also argued reverse mortgages are not the best for a taxpayer given the risks associated with a reverse mortgage.  Certain risks such as high interest rates, higher closings costs, as well as potential foreclosure if one spouse dies and the other continues living in the home are just some of the risks associated with the process.

After our arguments and showing the IRS our offer in compromise should be accepted, the IRS finally agreed to an offer amount of $35,000. The taxpayer has already paid $7,000 and therefore has $28,000 remaining to be paid within the next 5 months. Once the taxpayer has paid the $28,000 he must remain current and compliant for a period of 5 years, the IRS will snag any refunds due on the 2013 and 2014 tax returns, and he must not accrue any additional debt through another business entity.

At Highland Tax Group, Inc. we are proud to say the ETA offer in compromise was accepted. Check us out at www.highlandtaxresolution.com or call me at 720-398-6088 to see if you qualify for something similar!

IRS Releases Announcement Regarding Severe Storms in Colorado

The IRS is providing tax relief to individual and business taxpayers impacted by severe storms, flooding, landslides and mudslides in Colorado.
 

The IRS announced today that certain taxpayers in the counties of Adams, Boulder, Larimer and Weld will receive tax relief, and other locations may be added in coming days following additional damage assessments by the Federal Emergency Management Agency (FEMA).

The tax relief postpones certain tax filing and payment deadlines to December 2, 2013. It includes corporations and businesses that previously obtained an extension until September 16, 2013, to file their 2012 returns and individuals and businesses that received a similar extension until October 15. It also includes the estimated tax payment for the third quarter of 2013, which would normally be due September 16.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.

Practitioners located in the covered disaster areas who maintain records necessary to meet a filing or payment deadline for multiple taxpayers outside the disaster area may contact the IRS to identify such clients using the procedures described on the IRS website. The relief typically applies to taxpayers in collections, dealing with a Revenue Officer, Audit, Appeals, Offer In Compromise, or in another collection matter concerning the 

The IRS encourages taxpayers and tax practitioners to monitor the Tax Relief in Disaster Situationsin IRS.gov for updates.

If you have further questions please call me at 720-398-6088 or www.highlandtaxresolution.com. 

This article was provided by the following organization: 

National Association of Tax Professionals (NATP)
PO Box 8002
Appleton, WI  54912-8002
800.558.3402www.natptax.com

Highland Tax Group, Inc. is Open for Business!!

Highland Tax Group, Inc. September 9th, 2013

Highland Tax Group, Inc. is Open and Operating!!   KW & Associates, Inc. is now dissolved and I have opened Highland Tax Group, Inc. Please expect all future emails, blog posting, and correspondence to come from Highland Tax Group, Inc. directly.  My new contact information is below: Highland Tax Group, Inc. P.O. Box 140310 Denver, CO 80214 p. 720-398-6088 f. 855-660-6830 Stay tuned for information concerning Highland Tax Group, Inc., news concerning the IRS, successful resolutions, and more!

Thank you for reading and I look forward to working with you in the future.

State of Colorado Garnishment Reduced!

Garnishment in place? State of Colorado debt? Look no further. Highland Tax Group, Inc. can and will help you! We traveled to the State of Colorado Department of Revenue on behalf of a client today. Previously our client was getting garnished for $516 monthly, which attributed to about 25% of his pay. We were able to take down financial documentation to prove the garnishment was creating a hardship. The end result? We were successful with a reduction to $37 monthly! That is right, the client will is now only paying $37 dollars monthly! Great things are happening here at Highland Tax Group, Inc. Check out our website at www.highlandtaxresolution.com for more information regarding our services.

IRS Tax Debt Resolved!

Many times when our clients hire us to resolve their outstanding IRS tax debt, they are usually up against a wall. Either their bank accounts have been levied, wages garnished, or the IRS is knocking at their door.

One of our clients came to us in January of this year with a levy against his bank accounts and wages as it related to his IRS tax debt of $11,000.  There was not a lot of work to complete however, the work necessary to get the levy released was crucial.  We needed to contact the IRS ACS division immediately, which is a collection division of the IRS.  We contacted the IRS and after we were on hold for awhile, we spoke to a gentleman who was willing to assist us with the IRS tax debt problem.  The clients bank accounts were levied for $7,800 at the time of the levy (savings and checking included). His wages were also being garnished to the tune of 25% of his gross wages in order to fully pay the IRS tax debt.

At the time of the call we did not have financial data to offer or a payment plan to offer to resolve his IRS tax debt.  Further, the IRS collection statutes were going to expire come July of this year.  We knew the statutes were close to expiring as it related to the IRS tax debt and this information was crucial to resolving the outstanding debt for our client. Therefore, we didn't want to give too much information, nor did we want to set up a payment plan the client could not afford.  What we offered the IRS was a 60 day full payment deadline to handle the IRS tax debt. Therefore, we had a call back date of March 1st to provide financial information and a payment plan proposal. The levies against the bank accounts and wages were released immediately and faxed to the appropriate parties. The client was ecstatic. 

Ultimately, we set up a small payment plan for $118 monthly and the client paid $118.00 monthly on his IRS tax debt until July of this year.  As of right now, the statutes have expired and the client no longer needs to pay on any type of payment plan. Ultimately, he saved over $10,000 on his IRS tax debt.  He was grateful for the work we did.  Of course, if you are in trouble with the IRS and owe IRS tax debt please see our website for more information at www.highlandtaxresolution.com or call me directly at 720-398-6088. 

What Is An Enrolled Agent?

I attend a lot of events in the Denver area and most people who don't happen to work in tax prep, law, or accounting constantly ask me, "What is an Enrolled Agent?" or "What do you do exactly". Below is a brief definition of what an Enrolled Agent is, who authorizes us to practice, and what we specialize in.

An Enrolled Agent (EA) is a federally-authorized tax practitioner who has technical experience in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections and appeals.  EAs are the only tax professionals who may represent clients in any part of the country.

Enrolled Agents advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts and any entities with tax-reporting requirements.  Enrolled Agents’ expertise in the continually changing field of taxation enables them to effectively represent taxpayers audited by the IRS.  EAs adhere to a strict code of ethics and professional conduct and are required by the IRS to complete annual continuing professional education.

Check out our website at www.highlandtaxresolution.com for more information!

Tax Resolution Services Offered By Highland Tax Group, Inc.

There are various tax resolution services offered and many ways to handle your tax matters.    The tax resolution services offered at Highland Tax Group, Inc. vary depending on your circumstances. Regardless of what your situation is we offer a 4 step process to simplify dealing with your outstanding tax matters.

- First and foremost we will file a Power of Attorney on your behalf and within the first 24 hours we contact the taxing authority in order to obtain a stay of enforcement, or collection hold, to allow for time for us to work with you so you can get the most out of our tax resolution services

- Secondly, we will complete a cross check with the IRS or State to find out balance dues, order transcript records to figure out exactly what you owe to the penny, see if there are any missing returns, and let the IRS know we will be back in touch with them by our collection hold deadline. We complete this portion of the work within the first 24 hours of engaging our tax resolution services

- Third, whether it is business taxes or personal taxes that are owed we will review the appropriate financial form as it pertains to your situation . We will let you know what is needed to satisfy the IRS deadline as well as work with you to determine the next steps toward realizing what our tax resolution services have to offer

- Finally, we will determine the most beneficial and financially mutual agreement between you and the taxing authorities. We will discuss with you what your proposal will consist of, an expected timeline on an answer, and let you know what you should be doing in the interim while our proposal is reviewed

When considering Highland Tax Group, Inc. check our our website at www.highlandtaxresolution.com for a full list of the tax resolution services we offer. You may also reach me directly at 720-398-6088. 

Federal Tax Levy?

Have you ever had an Federal tax levy?  Has the IRS frozen your bank accounts, wages, or accounts receivables? Has the State ever done the same?  I am going to explain some preliminary steps to ensure how you can keep a Federal tax levy from happening again, but also work on getting it released!

First and foremost pay attention to any and all IRS notices as they come to you in the mail. By law the IRS has to follow strict procedures before issuing a Federal tax levy. They also have to issue several notices prior to issuing a Federal tax levy notice to your bank, employer, or accounts receivables. If the Federal tax levy has been issued in error, or you feel the IRS did not take the proper steps to inform you they may levy, there are corrective measures that can be taken to fight the levy based on procedure.

Secondly, ensure you have met all IRS deadlines,  have all tax returns filed, as well be sure you have made all Federal Tax Deposits or Estimated Tax Deposits. Don't forget you must also be current with any and all installment obligations if you have a payment plan in place. .  If you are not current or compliant, take the necessary steps to get compliant. Now I know what you are going to ask, "How can I pay my current taxes if the Federal tax levy has my money tied up?" . As if the IRS hasn't heard this before, a lot can be negotiated by way of a release with a promise to get current and compliant, use levied funds to make your back installment payments, or use the funds to make a lump sum payment to the IRS.

Lastly, if you have met all of the requirements, and the Federal tax levy is still creating a hardship, start putting together the following:

- How much did the Federal tax levy capture per source?

- Put together a list of expenses that will not clear if the Federal tax levy remains in place

Once all of the items are put together attempt to negotiate a release of the Federal tax levy based on hardship. It is possible to negotiate a release of the Federal tax levy but there are a lot of requirements that need to be met, and a lot of negotiating to be done. In other words, if you have been levied, the IRS is trying to catch your attention so they can resolve the case. Whether it is by collecting on the IRS balance dues by way of an Federal tax levy, or working with you directly to set up an installment agreement, the IRS wants to collect as much money as quickly as possible.

If you have been levied previously, or have a current Federal or State tax levy against your accounts, please call us today as we can put our experience to work for you! We will gladly assist you in your time of need.  You can reach us at 720-398-6088 or on our website at www.highlandtaxresolution.com.

IRS Tax Debt? Consider Partial Payment!

If you or someone you know has IRS Tax Debt, pay attention.  Recently we were successful with implementing a $52 per month payment plan for one of our clients.  How you ask? Simple, follow instructions, file and pay all current IRS Tax Debt, and let Highland Tax Group, Inc. handle the rest.

Our client came on board in February this year after his Offer In Compromise was denied by the IRS. His offer was denied for several reasons; first, he didn't offer what his assets were worth nor what his income and expense discretionary amount was worth, two, he had a bankruptcy attorney prepare his offer for him, and three, his bankruptcy attorney did not fill out the forms correctly.  He has been dealing with the IRS Tax Debt for several years without a solution in sight. After he came to Highland Tax Group, Inc. we immediately proceeded to discuss the situation with the IRS and decided the Offer In Compromise was not the best way to go for our client at this time.  Given the fact our client owes an IRS Tax Debt of $70,000, we figured a partial payment plan may be the best option.

After a review of the necessary financial form with our client we initially determined our client could not afford to pay the IRS Tax Debt at all.  However, we wanted to offer something at this time so our client could at least resolve his IRS Tax Debt for now.  We had to present a lot of information backing up the data listed on the financial form.  Information such as a letter from his parents securing a note, a letter from his parents for a child care expense, and a note from him employer regarding a past due debt, etc.  We also presented bank statements, pay stubs, utility statements, a copy of his lease, and; the IRS even allowed our client an expense for our fee.  If you have IRS Tax Debt you too can get our fee allowed as an expense on the financial statement form.

After 2 or 3 calls with the IRS we successfully set up a 2 year partial payment plan for $52 dollars a month to be applied toward our client’s IRS Tax Debt.  Of course, we are still seeking to file an Offer In Compromise, however, our client needs to make some significant changes to his financial situation, at our direction, in order to qualify.

Another satisfied client as we were able to successfully negotiate a plan to meet his needs and budget as it relates to his IRS Tax Debt.

Please see more about our services at www.highlandtaxresolution.com or call me at 720-398-6088 for a free consultation. 

Tax Assistance Program For The Self Employed!

Most businesses look for the IRS to refund monies by way of a tax assistance program. Other businesses that may owe taxes look for taxes to be lowered.  However, when we you are taking a look at the real benefits of owning a business, the tax assistance programs lie within the business deductions themselves. The article below titled (10 Tax Benefits for the Self Employed) points out the real benefits of owning your own business.  After all, who wants to pay the IRS MORE money than they did last year right? 

Some of my favorites include: 

- The Home Office Deduction - One of the more common tax assistance program deductions taken; don't forget to map out your home to get full credit for the space used. And remember the burden of proof is on the taxpayer, so be sure to keep accurate records of every penny spent.

- Meals and Entertainment - Another very common tax assistance program deduction taken falls under meals and entertainment; keep meticulous records, who was the meal shared with, for what purpose, what was discussed, etc.  Remember, the deduction is limited to 50% and can become a red flag for an audit. As long as your meals and entertainment expense isn't over half of your gross income you should be fine. 

- Education - Continuing Education, Continuing Legal Education, and Continuing Professional Education all qualify as another tax assistance program that is tax deductible.  Schooling for your profession is also allowable, however all courses taken must relate to the profession, or relate to a degree program mandatory for the profession or job. Keep receipts, keep educational material, and keep anything relating to the course to prove it relates directly to your profession. 

Remember, the IRS doesn't have to give you a refund, settle on the taxes you owe, or promise to lower taxes for you to qualify for a tax assistance program.

http://www.investopedia.com/articles/tax/09/self-employed-tax-deductions.asp

Check out our website at www.highlandtaxresolution.com for more information! Or, feel free to call us directly at 720-398-6088. 

Federal Tax Levy Notices. Are You On The List?

Do you wish the IRS would remove you from their federal tax levy list? Do you continue to get federal tax levy notices from the IRS? Do you receive other notices from the IRS and want a chance to unsubscribe? There are several notices the IRS sends out to delinquent taxpayers and each notice is relevant in some way.  First piece of advice we are offering is to open and read each and every notice. The first mistake taxpayers make is not opening and reading the mail.  The mail will give you instructions on how to proceed.  Mostly the notices are intended to catch your attention with words such as "Notice of Intent to Levy", "Federal Tax Levy", "Notice of Levy", "Notice of Seizure", "Notice of Balance Due", etc.  Secondly, there are specific timelines to be adhered to with each notice.  Therefore, if you have received any of the notices mentioned, especially a notice related to an federal tax levy, pay attention, read the notice, and consult with KW & Associates, Inc.

The most important notice referencing a federal tax levy is the "Final Notice of Intent to Levy".  The particular notice comes with both a 30 day timeline giving the taxpayer the ever important appeal rights. The notice usually arrives certified and you must sign for it.  The Final Notice of Intent to Levy is important for the reason it is your last and final warning prior to a federal tax levy being issues against your bank accounts, accounts receivable,  or wages. If you have received a final notice please contact us immediately. Further, if an appeal can be filed within the timeline appropriated, time will be granted to pursue resolution.

Lastly, if you haven't been able to respond to the Final Notice of Intent to levy, be assured a federal tax levy will be issued.  A federal tax levy will freeze your assets, monies, bank accounts, wages, and keep you from being paid.  If the IRS has gone this far, they are willing to go further as the next step would be actual seizure of real property assets, vehicles, etc.  When a federal tax levy is issued, its time to take action.  Don't sit and wait for the IRS to do anything, as the IRS will not take any action to release the levy.  The IRS will simply wait to collect the monies owed to them.  In fact, the IRS will continue to issue federal tax levies until your account has been paid in full. 

If you have started to receive final notices indicating a federal tax levy will go out, or you have been levied please contact us immediately at 720-398-6088 or check out our website at www.highlandtaxresolution.com.

Tax Trouble? Consider Currently Non Collectible!

Are you currently unemployed? Do you have tax trouble due to Income Tax? Did your business shut down because of the taxing authorities or other creditors? Are you left with nothing but a large trust fund tax bill?  If so, consider currently non-collectible.

Currently Non Collectible is a great option for individuals out of work, or working as a wage earner, self employed, or individuals on disability.  The IRS will require a financial review to consider currently non collectible.  The individual must fall under the national standard guidelines as far as expenses are concerned, must have limited equity in assets, and if one does have equity in a home or retirement account prove they cannot access the equity. If you are in tax trouble the IRS will recognize  the necessity for you to get back on your feet, start working again, and revisit your financial statement in 1 to 2 years.  It is a great option for individuals seeking relief, seeking a different resolution such as an offer in compromise but may not be ready to file yet, or those in the middle who's financial position may change for the better or worse down the road. 

At Highland Tax Group, Inc. we specialize in helping individuals and businesses in tax trouble.  We look for the best possible route to fully resolve the case.  However, sometimes CNC or Currently Non Collectible is the best way to go in order to put a "band-aid" on the situation until the taxpayer is ready to resolve their issues at a later date. As always, if you are in tax trouble feel free to call us at 720-398-6088 or check out our website for further details at www.highlandtaxresolution.com. 

IRS Late Payments Will Cause Your Payment Plan to Default

We have had to revisit installment agreements for various different reasons. A few reasons have been for IRS late payments, accrual of additional taxes, failure to remit payment in full, and so forth. What is important to remember is the installment agreement usually can be reinstated rather quickly. The appropriate and following steps must be taken:

- Contact Highland Tax Group, Inc. right away and fax any and all notices to our attention regarding your IRS late payment or defaulted installment agreement

- Have the professionals at HTG read the notices (if they have not received copies already) and dictate next steps to you such as how to make up your IRS late payment

- Once the next steps are determined and or your IRS late payment has been made up, make sure all notices are calendared and appeal rights are adhered to if the agreement cannot be reinstated immediately by phone

- A financial statement form or IRS collection information statement may need to be revisited to determine if the installment plan can be reinstated at the same amount as before, lowered, or increased

Usually the IRS will reinstate the agreement, charge a user fee, and you will need to start making payments immediately. It is important to remember that once an installment agreement is reached, pay close attention to the terms of the agreement. The following must be maintained throughout the duration; staying current and compliant, filing current returns timely, paying current taxes timely, and paying installment payments on time and in full by the due date.  Further, please take notice of any addition or increase to the agreement, be mindful of a 1 or 2 year financial review once the agreement is set up, make sure you pay any and all notices if additional tax, penalty, or interest amount is accrued.  Lastly, inform HTG of any actions taken on the account. 

Remember, IRS late payments will cause the agreement to default, contact us by phone at 720-398-6088. Or feel free to check out our website at www.highlandtaxresolution.com. 

5 Tips For Getting Your Money's Worth When Hiring A Tax Professional

The link at the bottom of the page explains some tips for getting your money's worth out of your CPA or Enrolled Agent. When you are in IRS trouble it is equally as important to consider the same tips when choosing your tax representative.  The 5 tips are as follows: 

- Build a Relationship: As with anything in life building a relationship with your representative will help you deal with your problems.  Isn't it easier to tell someone about your problems when you trust them, when you have dealt with them for awhile, or know them on more of a personal level?   At HTG we are focusing on the customer experience and as advisers we want to make sure the customer experience is unparalleled to any other. Of course, it won't be a massage at a 5 star resort in the Bahama's, but we promise if you are in IRS trouble, we will foster a relationship with you so you feel comfortable working with us. 

- Be Organized: We cannot stress this enough when you are in IRS trouble.  Be organized and stay organized throughout the process.  One of the educational pieces we offer to our clients is to get and stay organized. It will help lower costs, help us understand your situation better, and help us stay organized as far as putting together an eventual proposal on your behalf. Again, it will cut costs for you, save you time, and save us time thus helping you with resolving your situation when you are in IRS trouble. 

- Don't Make Assumptions: This goes for anything in life, but especially when you are facing IRS trouble.  For example, if you receive a notice don't assume it has been taken care of, fax it over to us, talk to us about it so everyone is on the same page.  Communication is vital when dealing with your IRS issues. 

- Consult With Your Tax Professional: We cannot emphasize this enough when making important financial decisions, buying a car, buying a home, selling a home, etc. It is important when dealing with an IRS tax problem to face all financial issues together with your tax professional. 

- Don't Lie to Your Tax Professional: This goes without saying when dealing with IRS trouble, lying will not get you anywhere close to resolving your problems. Further, if and when a client does lie to us, we are no longer able to represent them fully before the IRS. 

If you are facing IRS trouble call us directly at 720-398-6088 or at www.highlandtaxresolution.com.

Is Hiring A CPA Worth It? 5 Tips For Getting Your Monies Worth

Tax Resolution Services Offered Include Reinstatement of Defaulted Agreements

As a premier company offering tax resolution services we have had to revisit installment agreements for various different reasons. A few reasons have been for lack of payment, accrual of additional taxes, failure to remit timely payments, penalty and interest accruals, and so forth. Most importantly the installment agreement can usually be reinstated rather quickly by Highland Tax Group, Inc., Your Denver Tax Resolution Services Company. The appropriate and following steps must be taken:

- Contact Highland Tax Group, Inc. right away and fax any and all notices to our attention
- Fax or email a copy of the notices to HTG (if they have not received copies already) and have HTG dictate the next steps that should be taken
- Once the next steps are determined, make sure all IRS default notices are calendared and appeal rights are adhered to, if a deadline is missed there is nothing we can do as a tax resolution services company to reinstate it immediately, but we can work with you to determine the next steps to getting a new payment plan in place (a much longer process, do not wait!)
- A financial statement form may need to be revisited with your tax resolution services company, filled out and turned in, but many times a call will resolve the situation

Usually the IRS will reinstate the agreement, charge a user fee, and you will need to start making payments immediately. It is important to remember that once an installment agreement is reached, pay close attention to the terms of the agreement. As a tax resolution services company we are obligated to give you any and all details regarding the reinstatement of the installment agreement.

The following must be maintained throughout the duration of the agreement; staying current and compliant, filing current and future returns timely, paying current and future taxes timely, paying installment payments on time and in full by the due date, taking notice of any addition or increase to the agreement, there may be  a 1 or 2 year financial review once the agreement is set up, and paying any and all notices if additional tax, penalty, or interest amount is accrued and informing the IRS as such. Keeping your tax resolution service company informed of the agreement, terms, and any hiccups is imperative to avoiding a default, as well as helping get your agreement in good standing if it does default.

Feel free to contact us at 720-398-6088 or check out our website at www.highlandtaxresolution.com. 

IRS Wage Garnishment Released!!

Quick status update for a Friday. We had a client who signed with us on Monday. They came to us with a IRS Wage Garnishment in place. No IRS payment plan or installment plan arranged. And had missed 3 previous deadlines due to poor representation tactics. Here's how it all went down:

- Just spent 4 hours on the phone with ACS (Automated Collection Systems/IRS) negotiating the release
- We were able to get the IRS Wage Garnishment released and faxed to our client's employer
- We were able to get a payment plan proposal input as pending at $500 monthly (the IRS previously requested $2,900 monthly)
- We were able to obtain a collection hold (NO MORE LEVIES)
- The client is satisfied headed into the weekend and promised to write a testimonial for us

We love our work here at Highland Tax Group, Inc. and it shows! Great things happen to great people. If you or someone you know owes back taxes or has an IRS Wage Garnishment call us now at 720-398-6088 or check our our website at www.highlandtaxresolution.com. 

IRS Letter CP2000 - What Is It? How Do You Deal With It?

IRS mail can be scary.  I receive IRS mail relative to the Enrolled Agent designation (EA) and every time I feel a pit in my stomach when I receive one, even though I know it’s probably nothing more than an EA notice. Now, think of our clients knowing they owe money, the simply tend to delay opening the mail. Or, bury it somewhere in their desk, briefcase, or in the backyard. Gut wrenching.

We received a CP2000 notice on behalf of our client recently.  The IRS Notice CP2000 is a proposed change to your tax return.  Proposed, meaning it is not final.  However, the IRS notice looks like a collection notice. Very intimidating.

The CP2000 notice can be very confusing.  A few things to think about:

- The amount due is PROPOSED!!! DO NOT PAY IT until you fully understand the accuracy of the notice

- The amount due can be agreed to, partially agreed to, or 100% challenged

- The IRS collects MILLIONS OF DOLLARS every year from taxpayers who may not owe the entirety of the    proposed change

In other words, if you receive a CP2000 notice from the IRS take note of the date.  You will have 30 days to agree, partially agree, or challenge the notice you received. If you have questions on the notice do not hesitate to contact the IRS to ask questions.  Have a full copy of the notice, a full copy of the tax return for the year the IRS is proposing the changes, and have any and all documentation relative to preparing the return in hand. Seek out advice from Highland Tax Group, Inc.! We can be reached at 720-398-6088 or at www.highlandtaxresolution.com.