The news is not good. Notices of federal tax liens reached an all time high in recent years at 965,000. IRS Tax levies soared to 3.4 million. With the U.S deficit spiraling out of control, collection of tax revenue is one of the quickest ways the government has to generate income. Combine that with the recent slow down in the economy, many American taxpayers are falling behind and are in need of a defense against IRS problems. It does not matter if you’re a taxpayer behind on federal returns facing back taxes or IRS levies you need help.
The stress and worry associated with owing back taxes makes many Americans with IRS problems stick their heads in the sand. It’s understandable. A tax problem is a very specific, personal type of problem and many people do not know where to turn for help. Many just suffer in silence and procrastinate while they try to figure out what to do, or try to find the money to pay the government. Many people faced with IRS tax problems are simply embarrassed, ashamed and depressed. After all, who wants to walk around being followed by the strongest collection agency in the world?
Ignoring letters from the IRS does not mean your IRS tax problems will go away; the IRS will only step up their enforcement efforts. In fact if the IRS is still writing you regarding your back federal taxes that’s a good sign – it means they are still willing to talk to you before taking action. Once the IRS decides to place tax levies on wages they stop sending letters, instead they will deliver a wage garnishment notice to your place of employment.
After the wage garnishment is received at work your employer is required to send a large piece of your paycheck to the IRS. It is one thing to be embarrassed and quite another to be issued a paycheck that’s been chopped up due to back taxes, which may lead to an eviction notice and other ill effects.
In order to receive the tax help required to release a wage garnishment a taxpayer must be in full compliance. This simply means all tax returns must be filed. Once the IRS agrees that all returns are filed they will establish an installment plan to repay the back taxes and release the wage levy. An important point to note is if a taxpayer owes the IRS less than $25,000 a streamlined agreement can be set up. You will not need to subject yourself to a financial autopsy by disclosing information such as assets (401K), banking information with account balances, and monthly income.
However taxpayers with IRS debt of $25,000 or more are not so lucky. They must complete a financial statement indicating their ability to repay delinquent taxes. Form 433-A is the document that the IRS uses to determine if a taxpayer is entitled to a monthly installment agreement. Taxpayers use this form to disclose their assets, liabilities, income and expenses. This process is more complicated but nevertheless a tax solution can still be achieved. For this reason, taxpayers with unpaid taxes of $25,000 or more should seek professional tax help in dealing with IRS. Be forewarned, once the IRS has a better understanding of where you assets are there is a greater likelihood that they will escalate their enforcement efforts.
For immediate personal and confidential advice, contact my office for a free tax help consultation. When you call us request a free report “5 Tips Taxpayers Must Know Before Speaking with The IRS”.
Our systematic approach takes the stress out of this process. Once your financial form is complete, our firm will negotiate one of the following:
- An affordable payment plan that takes into consideration your current living expenses such as food, clothing, shelter, transportation, insurance and pension contributions
- A financial “time–out”, an agreement to NOT make payments because your income is less than your personal expenses
- Submit an Offer In Compromise, which reduces the tax, penalty and interest associated with your tax debt.
We are Nationwide Tax Solutions, a CPA firm with over 20 years of experience solving IRS problems all across the country. We are highly skilled in negotiating with the IRS. As a professional services firm, we are licensed and required to uphold ethical standards. And our clients never have to meet with the IRS. If you are behind on federal tax returns and are facing an audit or a lien, contact www.nwtaxsolutions.com for help.