#1 Request by taxpayers!

The #1 thing we hear in the world of taxes from people who are looking to resolve their tax problem is "can I get my liability lowered." Now sometimes this may mean they want to offer a lump sum or they may just want the penalties and interest waived.

The IRS has several guide lines that must be followed when doing either of these things. Both are dependant on each individuals case and the circumstance surrounding the details. The IRS does not like to waive anything so keep in mind the process will be detailed and take some time.

Penalty abatement (waiving the penalties and interest) needs to meet certain criteria to be considered by the IRS. The letters need to be submitted with the returns. There can be an appeal process to go through if denied. The process can take several months.

The offer in compromise (lump sum offer) is the other most commonly asked question. This solution is very detailed. The are many things to consider when looking at this avenue. The IRS will look at assets, ability to work in the future, statues on the liability, payoff dates, etc.... You will also need to put 20% of the lump sum down and $150 to start the offer process. Offers can also take several months to work through and will also extend you statue dates.

The best advice would be to seek help when trying to resolve any tax liability. The IRS has guidelines and rules that they will not volunteer when you call in. Their main goal is to get you into a payment plan to get the liability paid. Do research and get help. Putting it off will only make it worse and the IRS will not just go away.

Melissa, Effectur

Top 10 Important Tax Terms

1. SFR - Substitute for return : The IRS will file a return on your behalf. They will file based on what information is reported. You can file a regular return to try to reduce the liability.
2. Levy - when the IRS issues a bank or wage seizure of property in order to satisfy a tax debt
3. Lien - when the IRS issues a legal claim to your property as a security of payment for your tax liability.
4. Compliance - paying taxes and filing all returns on time. IRS requires that tax payers file the last five years plus the current year and pay all estimated taxes up to date in order to enter into a solution. After an agreement is met, the taxpayer must maintain compliance or the agreement is broken.
5. Estimated Tax Payments - these are payments made to the IRS through out the year on April 15, June 15, Sept 15, and Jan 15 of the following year. These payments are to be made by those taxpayers that do not have taxes withheld from their paychecks (example 1099 employees) Also if you ended up owing over $1000 at the end of the year last year, you need to make these payments.
6. Statue of Limitation - the IRS has set time frames on certain activities that will expire
7. Stay on Collection - the IRS will work with you to give you time but ONLY ONCE
8. Offer in Compromise - option put in place by the IRS that if you qualify, you may be able to settle the debt for less than the amount you owe
9. Audit - The IRS will request you to provide specific documentation as proof of items that you reported on your return. You must show the documentation or it could be taken off the return. Some audits may be in person or by mail.
10. Revenue Officer - this person is specifically assigned to your case and generally lives in your area. This is the highest level of the IRS. Their main agenda is resolve the tax liability issue.

Melissa, Effectur

Letter Changes

The IRS is cracking down on the collection process. They have decided to shorten the process. You will no longer have 30 days to wait betten your final chances. TEN DAYS!!!! One you receive that CP504 notice, they are sending out the final notice before they are going to hit you levies. This is when serious action on your part is needed.

Tax Consultants, like mysef, get this information first hand. We know their tricks and changes that take time to get to the public. So make sure you read the letters that you get from the IRS because the wording is changing and get help.

Also they are not wanting to give you very long to make decisions! That time frame has shorten. Get the forms filled out and back in quick!!!!

Melissa, Effectur

DIVORCE? ME!

Yes divorce! I have heard it all and divorce is a common thing. The most import part is to figure out how is it going to be settled. If you are already being haunted by the IRS this needs to be decided quick. There are several things you need to know and it is all about paper work.....

1) Is all of the liability joint?
2) Are you sure you are going to divorce? When is it going to happen?
3) If it is happening, you will need legal separation papers.
4) Do you want to split the joint liability or will one spouse pay it all. GET IT IN WRITING!
5) When will the spouse move out?

Divorce is a rough time for everyone and the IRS does not make it easy. They will still want their money in full no matter the circumstances. If you receive letters concerning the IRS while going through the divorce and separation you will need to follow up. You only have certain periods of time to react to certain notices depending on the situation.

Make sure you consult a tax attorney or tax lawyer while going through the divorce to ensure that things are handled properly. You can also seek professional IRS help when trying to resolve matters with firms that will help guide you. You have different rights and solutions that you might not know or understand.

The biggest thing to know is how to prevent that wage levy from happening or hitting and getting your marriage to that level. Trust me when I tell you there are tax consultants and account executives out there that do this for a living that do want to help! We are on your side to protect you and educate you to see the light.

I hope this helped and please check out the other links. They may help as well and good luck!

Get help!

Let's face it we all have to pay taxes. We don't like it but we do. The IRS is out there to make sure we do. I hear it day after day that people have not filed in years. I am hear to tell ya that it is only time before the IRS will catch up to you.

For those of you that the IRS is contacting now, there are companies out there that can help. It can be very stressful to have them at your door wanting a payment and you don't know what options you have. You do have options that can help depending on your circumstances but you have to seek them and act fast. Ignoring the problem will only make it worse.

My goal in creating this blog is to help people who need some advice on how to get started. Maybe you have just getting letters, maybe you have gotten several letters, maybe no letters, or maybe you just got a wage levy. No matter where you are in the process, companies are designed to help you resolve the situation.

Everyone's situation is not the same so be careful when choosing the best thing for you. It is a stressful time so the first thing you hear might seem appealing but might not work for you. Always keep in mind that a mess is easy to get into but harder to get out of, so a simple solution may not always work.

Companies are set up to look into your information and recommend what to do in your best interest. If you go to the IRS and try to resolve the matter on your own, they do what is in their best interest. Get a payment! Companies look at your situation currently and see what options you have. The options the IRS does not want you to know about.

My best advice for this post is to get help when it comes to the IRS. Self representation is no representation. Companies can help. When choosing a company for this representation it is like anything in life - research it.

I have been in sales/consulting most of my career. I researched the companies I went to work for before I represented their products. I am sure you have done the same. It will make all the difference. Wal-mart, Gateway, Time Warner, and Effectur are among the companies and I can say I have been pretty happy.

Melissa, Effectur