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