Need Help with IRS Tax Problems?
If you are like many Individuals, families and businesses in Ohio, you may be experiencing IRS or State tax problems. Whether you owe back taxes to the IRS or need to stop or remove a wage garnishment, tax lien, or bank levy, the good news is that you do have tax relief options available to you that can not only help put your IRS problems behind you, but very much possibly save thousands of dollars too. To find out how you can protect your legal rights and assets and get relief from IRS debt, take a minute now to connect with the experts at Showalter CPA for a free consultation with an experienced Certified Public Accountant that specializes in resolving tax problems.
Help for IRS Tax Liens
When you owe federal taxes to the IRS or state taxes to an individual state, a tax lien may be filed as an enforcement measure against your name. This tax lien is a public record, which will appear on your credit report, making it very hard for you to sell property or secure a loan for a home, car, or many other needs.
Stop or Remove an IRS Tax Levy on your Bank or Other Assets
A bank levy is a forceful collection measure used by the IRS to collect on back taxes owed. Through a bank levy, your bank account may be frozen with the funds in your account sent to the IRS. Bank levies usually happen because many taxpayers ignore or wait too long to respond to IRS collection efforts. The IRS never goes away. They will always be on your back. We can stop this.
Stop or Remove Wage Garnishment in Ohio
A wage garnishment occurs when the IRS sends an official letter to your employer requiring your employer to withhold a large percentage of your paycheck and forward it to the IRS for back taxes owed.
Help for IRS Payroll Tax Delinquency
When employers fail to properly withhold taxes on behalf of employees, the IRS my seize company assets or the assets of the company’s owner or owners. This could include bank accounts, property, or other possessions.
IRS Collection Letters
The IRS follows a certain set of rules for contacting taxpayers and taking strong enforcement action against taxpayers, such as, wage garnishments, bank levies, tax liens and more. That’s why it is a serious problem to ignore IRS collection notices and letters. The IRS does not go away on their own. We can make them go away.
If you have received a tax collection letter or notice from the IRS, Showalter CPA’s experienced staff can assist you in finding the best solution to solve your tax problem. Our professionals will work with you to understand your unique situation and find the most favorable tax relief solution for you. It’s important to understand that tax problems never go away. They only get worse and more stressful over time, unless you take action to exercise your legal rights to get the tax relief you are entitled to.
IRS collection letters and Notices
CP 88 Notice of Delinquent Return Refund Hold
This notice notifies taxpayers that the IRS is holding the taxpayer’s refund until a tax return has been filed or a reasonable explanation is given for why it was not filed. A reasonable explanation might be something like there was a fire and records were damaged or other circumstances. We would be happy to discuss your particular situation.
CP 90 or CP 297 Final Notice of Intent to Levy and Notice of your right to a hearing
This notice indicates that the taxpayer still has a balance due on their account and that the IRS intends to place a levy on specific assets, such as bank accounts, real estate and other property unless the taxpayer takes action within a 30-day period. We can help you take that action. It’s simple, we do all the heavy lifting for you. As always, we give you a free no obligation phone consultation with an experienced CPA.
CP 297A Notice of Levy and Notice of your right to a hearing
CP 297A is a letter notifying you that the IRS has issued a Levy against your assets. This allows the IRS to seize your property, such as wages, real estate, and bank accounts.
CP 91 or CP 298 Final Notice Before Levy on Social Security Benefits
The CP 91 or CP 298 letter notifies you that the IRS intends to issue a Levy against 15 percent of your social security benefits as a result of unpaid taxes. You must pay the amount within 30 days from the date of the CP 91 or CP 298 notice or contact the IRS before they issue a levy and seize property. This is where we come in. We can contact the IRS on your behalf and find a reasonable solution that is in your best
CP 503 Second Notice Balance Due
This very serious notice informs taxpayers that immediate action is required. This IRS letter states that the IRS has written to the taxpayer that taxes are owed, but the taxpayer has not contacted the IRS to respond. The notice further states that the taxpayer may be eligible to pay through an installment agreement or payroll deduction agreement, but if the IRS doesn’t receive a response, steps will be taken to collect taxes owed. We can correct this situation. Helping you with your IRS issues is what we specialize in.
CP 504 Final Notice Balance Due
This is an IRS last call of sorts; the CP 504 is a letter notifying you that the IRS intends to issue a Levy against your state tax refund because of an outstanding tax debt. The notice adds that the IRS is seeking other assets of yours to levy such as wages, real estate and bank accounts. Additionally, the IRS may file or has filed a Federal Tax Lien on your property such as bank accounts, wages and real estate allowing them to claim it as security against your tax debt. We can help you at any stage of IRS collections. Of course, it’s better to get started early. It’s never too late. Connect with us for a free phone consultation.
CP 2000 Notice Proposing Changes to the Taxpayers Return
This notice is sent to taxpayers when the IRS receives information from employers or other entities that doesn’t match what was reported by the taxpayer on their return. This is most often from a 1099 or W2 that was not included on the taxpayer’s original return. Sometimes it’s a mistake. Based on the new information that the IRS has, they then propose changes to the return and communicate to taxpayers what they may do if they agree or disagree with the proposed changes. There is so many ways to deal with this situation. We can help when the IRS changes your tax return.
CP 521 Notice Balance Due
This IRS letter informs taxpayers that a payment is due, and that penalties and interest have been assessed and will continue to accrue until the balance is paid in full. Getting one of these in the mail is a great indication that you need help. Why not explore all your options with a free, no obligation phone consultation with an experienced tax accountant that specializes in helping individuals and businesses with IRS tax issues? You have nothing to lose.
CP 523 Notice of Default on Installment Agreement
This notice informs taxpayers that they have defaulted on their installment agreement. This notice also provides the reason for the default, describes the actions the IRS plans to take, and communicates what taxpayers can do to prevent the IRS from taking enforcement actions. Ok, so you defaulted on your installment agreement. Is this the end of the world? No. Is it serious? Yes. We can help you in this situation. The key is that you do not delay and take action right away. Connect with us for a free tax help phone consultation.
Don’t ever ignore IRS Collection Letters and Notices. Putting it off will only compound the problem.
Help with Business Tax Problems
If you are self-employed or a business owner experiencing business tax or payroll tax problems, Showalter CPA can help you with experienced Certified Public Accountants (CPA’s) and specialists in coordinating IRS settlements for businesses who are in need of protection and relief. This could not only give you much needed peace of mind, but possibly save you thousands of dollars and protect your business bank account, as well as, the personal bank account of the business owner or owners. Businesses in need of tax relief can receive their tax relief options immediately with a free tax relief consultation with a Certified Public Accountant. This is what we do. Day in, day out. We are passionate about helping business owners get on the right track and stay on that track. Protect yourself from harmful IRS action such as garnishments, bank account levies and liens.
Under Reporting Taxes or Under Reporting Income
When businesses under report taxes or under report income, there is a serious risk that the IRS could take strong enforcement action, including a bank levy, tax lien or other collection action. Keep in mind that the IRS has access to your bank account and the IRS can track your income and outgoing expenses and whether you are reporting your income accurately. Life happens and mistakes happen. We can correct this situation. This is what we specialize in. You can take steps to protect yourself, but time is of the essence. We must get started right away. Don’t delay. Get your free phone consultation today.
Failure to Pay Payroll Taxes in Ohio
If you are a business owner who has not properly paid payroll taxes for employees, the IRS may pursue you vigorously through several strong collection and enforcement avenues including seizure of company assets, bank levies, tax liens and more. Payroll tax problems can lead to IRS payroll tax penalties, payroll tax liens, or payroll tax levies that can be very stressful and costly for businesses. That’s why it is so important for business owners, both small and large businesses, to get payroll tax issues resolved amicably with the IRS. This can be achieved through Certified Public Accountants who specialize in helping businesses resolve IRS tax problems through a negotiated tax settlement. These IRS tax settlements negotiated by Certified Public Accountants can help remove stress from business owners and possibly save thousands of dollars.
Regardless of the financial condition of your business, do not ignore IRS collection letters and calls. Unfortunately, ignoring the situation is likely to make your situation go from bad to worse. Don’t wait to utilize the tax relief options you are entitled to under the law. We are here to help you navigate the options available to you to fix your payroll tax problems. Do you have a question or concern about a business tax problem or potential IRS collection action or enforcement action? We can help.
You will be very surprised to learn that you have a lot of legal business tax relief options available to you that could help remove stress, save you thousands of dollars, help protect your personal and business assets. Tax debt relief can be obtained from offers in compromise, installment agreements, back tax settlements and penalty abatement. There’s no reason to delay getting the help you need now. See your business tax relief options, find out what Showalter CPA can do to help you resolve your tax issue before it becomes far more damaging.
We can remotely file your personal or business tax returns. Current and prior year returns can be filed remotely without having to make an office visit. Remote tax preparation by a Certified Public Accountant. You can rest assured, that you will get the best possible tax return filed that puts you first. We work for you, not the IRS. We have clients nationwide and have filed for individuals and businesses in all 50 states.
We have had the pleasure to serve clients in the following Ohio Cities
Columbus Cleveland Cincinnati Toledo Akron Dayton Parma Canton Youngstown Lorain Hamilton Springfield Kettering Elyria Lakewood Cuyahoga Falls Newark Middletown Euclid Mentor Mansfield Beavercreek Dublin Cleveland Heights Strongsville Fairfield Findlay Grove City Lancaster Warren Westerville Delaware Huber Heights Reynoldsburg Lima Marion Hilliard Upper Arlington Gahanna Stow Brunswick Boardman Fairborn North Ridgeville Mason Westlake Massillon North Olmsted Bowling Green North Royalton Kent Austintown Garfield Heights Shaker Heights Wooster Xenia Medina Barberton Troy Green Zanesville Riverside Sandusky Athens Trotwood Centerville city Avon Lake Marysville Wadsworth Solon Avon Willoughby Oxford Maple Heights Hudson Alliance Chillicothe South Euclid Perrysburg Piqua Sidney Lebanon Ashland Portsmouth Rocky River Parma Heights Pickerington Oregon Miamisburg White Oak Painesville Norwood Broadview Heights Sylvania Twinsburg Whitehall Berea Mayfield Heights Brook Park Forest Park Niles Ashtabula Eastlake Steubenville Springboro Tiffin Tallmadge New Philadelphia North Canton East Cleveland Defiance
Don't see your OH city? Connect with us for a FREE phone consultation and we will add your city to the list!
Call 605-646-3585 for a free phone consultation
Do You Have a Federal Tax Lien or IRS Notice of a Federal Tax Lien?
IRS Tax Liens can really take your perfect life and make it miserable! When your taxes are unpaid, the IRS and or the State files a lien against all your assets. This gives them the legal right to collect taxes from the sale of your assets, which includes literally everything you own including your bank account, vehicles, and home. Tax liens may be filed against you, your spouse, or your company depending on how the tax liability was incurred. Everything you own is in jeopardy of becoming property of the government. Never ignore a notice from the IRS – it can have very serious consequences.
To make matters worse, tax liens filed against you show up on your credit report and often prevent you from opening a checking account or borrowing against any assets, like your home. If a lender is willing to approve a loan for you, the interest rate will be higher when a lien appears on your credit report. Buying or selling real estate is would be very difficult as well. Remember, the IRS can place a lien on your property, home, vehicle, or wages or even go as far as seizing your property to collect the back taxes. Contact our Nationwide Tax firm immediately so we can begin to negotiate on your behalf. When you work through an accounting firm, it can show the IRS that you are trying to resolve the issue quickly.
The good news is, unlike most local tax firms, we specialize in solving tax problems and we can help get you back in compliance and remove any liens that you have on your assets. We have helped a lot of happy clients get back on track with the IRS and we can help you too!
We can help remove tax liens!
Tax liens can be removed once the government is satisfied that you are compliant, so getting compliant is step number one in the process. That could be filing back tax returns, setting up an installment agreement, or enrolling in one of the other IRS settlement programs. The good news is once your tax problem is solved we can get tax liens erased from your credit report! If you have a tax problem and need our help call us today at (605) 646-3585.
Once you become our client you will not have to speak to the IRS anymore. If they want information or to talk to you, they will have to go through us. The first step to getting a tax lien removed is calling us at (605) 646-3585 and scheduling a free no obligation case evaluation with one of our Certified Public Accountants. During this meeting we will discuss the details of the case and make plans to start the investigation. During the investigation phase of your case we will be gathering information, pulling transcripts, and finding out what the IRS knows about you.
We can help, but not until you call (605) 646-3585.
Unfiled Tax Returns and Late Tax Returns
Having many years or even one year of unfiled tax returns is not a situation to take lightly, failing to file your tax returns is a criminal offense that the IRS takes very seriously. If you do not file, you can be prosecuted and punished, possibly with jail time and have to pay hefty fines. The possible jail times are up to one year for each year not filed. Do not put your valuable freedom on the line over failing to file your tax returns with the IRS.
Showalter CPA have helped thousands of people file unfiled returns. Let us give you peace of mind by helping you get into compliance with the filing requirements of the IRS. If you voluntarily file your delinquent returns, you will likely avoid further problems other than having to pay the interest and penalties. If you wait for the IRS or State to file your returns for you, they will be prepared in the best interest of the government. The IRS will not include exemptions, deductions, or credits that could reduce the tax amount. This is called a substitute for return and it is never in your best interest. In most cases, you will likely owe taxes, interest, and penalties after the returns are filed. Once we see how much is owed, we will put together a plan of action to resolve the penalties, interest and taxes that is owed to the IRS. Let us help you get those unfiled returns filed. Call (605) 646-3585 today.
We can help with unfiled or late Tax Returns!
Most of the time, we can prepare and file unfiled returns avoiding the risk of such harsh penalties. In a lot of cases, the IRS has already prepared a return for you and assessed the tax based on that return which the IRS calls a substitute for return. These IRS prepared returns will include all the income items that the IRS knows about and will not include any deductions, exemptions or credits you are entitled to claim for yourself. The tax assessed based on the IRS prepared return will always be higher than the amount that we determine using all the available deductions, exemptions, and credits that you are entitled to in your particular situation. If you have a tax problem and need our help call us today at (605) 646-3585.
Once you become our client you will not have to speak to the IRS. In fact, we do not want you to. If they want information or to talk to you, they will have to go through us. The first step to getting tax problem help is calling us at (605) 646-3585 and scheduling a free, no obligation tax case evaluation with a Certified Public Accountant.
Have You Missed Paying Payroll Taxes? We Can Settle Payroll Tax Debts
If your business pays income to employees, you must withhold payroll taxes from their wages, including Medicare, Social Security, and federal income taxes. You are also responsible for depositing the income tax withheld and filing quarterly payroll tax returns with the Internal Revenue Service.
If you are late depositing payroll taxes or filing your return, the IRS will impose 941 late payment penalties. The IRS can be very aggressive in collecting the tax debt, not only from your business but also from the owners and officers. They can even garnish your business accounts and file tax liens against your assets. To lift these penalties, you need the help of a tax accountant with years of experience settling payroll tax debts for employers like you.
Payroll Tax Problems
The absolute most serious of all tax problems is the failure to collect and pay to the government any payroll taxes that were withheld from employees. These payroll taxes are referred to as trust funds and are strongly collected by the IRS. When the IRS detects stacking of payroll taxes through the continued payment of net wages and the continuing failure to remit the related payroll taxes, they will not hesitate to seize assets and close the business down. If you are delinquent in the payment of payroll taxes, it is extremely important that you tackle the issue at the earliest possible time.
We can help with Payroll Tax Problems!
At Showalter CPA, we are payroll tax problem experts! We have worked with hundreds of businesses over the years get back on track and stay in business. Timing can be very important in payroll tax problem cases, and you need to contact a tax accountant today. Call us today at (605) 646-3585.
When you become our client, you will not have to speak to the IRS anymore. If they want information or to talk to you, they will have to go through us. The first step to getting tax problem help is calling us at (605) 646-3585 and scheduling a free, no obligation case evaluation with one of our tax accountants. Let us help with your payroll tax problem. Call (605) 646-3585 today.
When Are You Required to Deposit Payroll Taxes?
If your business reported a total of $50,000 or less in tax liability for the prior four quarters, you must deposit taxes each month by the 15th day of the following month. If you reported more than $50,000 in taxes, you must deposit biweekly (once every two weeks) depending on your payday.
If payday falls on a Wednesday through Friday, you must deposit taxes by the following Wednesday. If payday is Saturday through Tuesday, you must deposit taxes by the following Friday.
Late Deposit Penalties for Payroll Taxes
If your payment is less than 5 days’ late, the IRS charges a penalty of 2 percent of the unpaid tax. Deposits made 6-15 days late are charged a 5 percent penalty. If your payment is more than 16 days late, the IRS charges a 10 percent penalty. You will also accrue interest on any unpaid balance.
When and How Must You File your Payroll Taxes Form 941?
You must file Form 941, the business quarterly tax return, by the last day of the month that follows the end of the quarter. For example, if your quarter ends in May, you must file a return by June 30 to avoid 941 late payment penalties. If you fail to file your quarterly tax return by the deadline, the IRS will assess a series of penalties.
Late Filing Penalties
For each month or partial month that you are late filing Form 941, the IRS imposes a 5 percent penalty, with a maximum payroll tax penalty of 25 percent of the unpaid tax due. The IRS also adds a 0.5 percent tax for each month or partial month you are late in paying the tax.
How to Pay Late Payroll Taxes
To pay late payroll taxes, use the Electronic Federal Tax Payment System, or EFTPS. If you do not have an account, you can create one by providing business details including employer identification number, bank account information, and routing numbers at eftps.gov/eftps/.
Once the IRS has verified your information you will receive a letter five business days later. You can then make your late payment including penalty using Form 941. To avoid penalties for late payroll taxes, you need a tax relief accountant who can assess your financial situation and create the best tax solution for you. Even if you are not eligible for penalty abatement, you can settle your payroll tax debt for less than the original amount with an Offer in Compromise or by negotiating a payment plan.
IRS Bank Levy
The IRS uses several collection activities to get back tax debts owed by taxpayers. A bank levy can cause a lot of damage for people who fail to pay their state and federal taxes. In a bank levy, the IRS seizes your bank account funds to cover your tax debt. Usually, the IRS will first contact your bank to notify it about your tax debt. Then your bank will freeze your account for 21 days from the time of the notice.
If you do not take any action to resolve your tax debt during that period, the bank will send the money taken from your account that you owe to the IRS. This could be your entire account balance. An IRS bank levy is typically considered the last line of attack by the IRS. You will only be subject to this collection method if the IRS has contacted you several times without getting any response.
We Help You Find the Best Tax Solution
At Showalter CPA, we understand that IRS tax problems can significantly affect your day-to-day life, business, and most importantly, your financial stability. If you have received a bank levy notice, we will carefully evaluate your overall financial situation and come up with a solid plan to help you find the best tax solution. We do our best to have your bank levy released using several effective tax resolution methods to avoid the seizure of your bank account. The many different options include:
Applying for a Fresh Start Program
Preparing an installment agreement
Preparing a partial payment agreement
Preparing an Offer in Compromise
Negotiating for an affordable payment plan
Releasing the bank levy
Call for a Free Consultation at (605) 646-3585
If you feel that an IRS bank levy is likely to create a financial crisis, or you learn that the IRS has already frozen your bank accounts, you should seek immediate tax relief help. If a bank levy would cause significant financial hardship, the IRS may release the levy. Our dedicated and caring bank levy accountants will work with you to assess your financial situation and present your case to the IRS to get the bank levy released.
At Showalter CPA, we always encourage potential clients to resolve their tax debts as early as they can. Do not let the IRS take away your bank accounts. Talk to our knowledgeable tax resolution accountants to help you find the most reliable solution to end your tax debt problems. Call our office at (605) 646-3585. Request a free consultation to discuss your bank levy concerns today.
IRS Interest and Penalty Removal
If you have not paid taxes and related penalties, or even not filed tax returns, you could be relieved of IRS tax penalties and interest in the form of an IRS penalty abatement. The main way to attain penalty abatement is to show that the failure to comply was due to reasonable cause. Under this IRS penalty abatement program, you can get a reduction or removal of penalties and interest charged on your tax debt. Showalter CPA is here to help you make a request for penalty abatement.
Important Information about IRS Interest and Penalty Removal
If you have unpaid taxes, the tax debt you owe the IRS increases with every new month by adding more IRS penalties and interest. Any tax debt that is not paid in full by the tax filing deadline is subject to those penalties and interest. IRS penalties can add up and compound very quick. These penalties and interest are typically charged to encourage taxpayers to pay their tax debts in full as early as possible. The longer you wait, the bigger your tax liabilities continue to grow. You may qualify for IRS penalty abatement if you did not file returns, pay taxes, pay penalties, or pay interest because of a situation that was out of your control.
If you need help requesting IRS penalty abatement for failure to pay, failure to file, or failure to deposit penalties, you should get a free consultation with Showalter CPA. We help you figure out whether you should apply for penalty relief depending on your individual circumstances. The IRS and State both increase the amount a taxpayer owes by adding penalties and interest to the unpaid tax. In many cases, a taxpayer could pay the tax, but thanks to the penalties and interest, the ever-expanding balance quickly becomes unmanageable. Penalties and interest might be reduced or eliminated if you can demonstrate reasonable cause and prudent action. We may be able to pair your Penalty Abatement with an Installment Agreement or an Offer in Compromise and get you back on track with the IRS.
To ensure the request for penalty and interest removal is successful, we will create an estimate of your IRS tax penalties and interest, assess the facts about your financial situation, evaluate the circumstances that prevented you from paying your tax debt and create a solid plan to get the best IRS penalty abatement resolution possible. After we get the IRS penalties and interest removed, we will help you settle your tax debt through either an Offer in Compromise or an affordable tax payment plan that suits your financial situation.
Once you become our client you will not have to speak to the IRS anymore. If they want information or to talk to you, they will have to go through us. The first step to getting tax problem help is calling us at (605) 646-3585 and scheduling a free, no obligation case evaluation with a Certified Public Accountant. During this meeting, we will discuss the details of the case and make plans to start the investigation phase of your case by gathering information, pulling transcripts, and finding out what the IRS knows about you.
The Penalty and Interest portion of IRS tax debt can be quite significant in many tax debt cases. If you are facing penalties for not filing or paying your taxes on time, you may be able to get those penalties removed through penalty abatement or penalty adjustment. Abatement refers to eliminating an assessed tax liability and an adjustment refers to reducing or altering an assessed tax liability.
If there is a reasonable cause for abatement or adjustment, the IRS may be willing to review the penalties which created a tax liability. Reasonable cause could be that you lost your paperwork, or it was stolen from you by a spouse or a disgruntled former partner. Reasonable cause could be that there was a death in the family, or you were a victim of a crime.
We can work with you to make payment arrangements that the IRS will allow. If there were circumstances beyond your control that prevented you from paying your tax debt and led to delinquency, we can challenge the penalties and interest that have built up. Relief from penalties falls into four different categories: Reasonable Cause, Administrative Waivers, Statutory Exceptions and Correction in Service Error.
We have the education and experience to provide tax penalty abatement in your tax debt case. We would love to discuss your options with a free tax consultation at 605-646-3585.
Offer in Compromise
Get Help with Your Offer in Compromise
Life can be very unpredictable. Through no fault of your own, losing your job, unemployment, changing business income, huge medical bills, and other unexpected monthly expenses can result in a huge tax obligation that you cannot pay in full. Luckily for you, those who want to pay their taxes but cannot afford a lump sum now have several potential solutions. You might qualify for one of the major tax relief solutions, an IRS settlement offer known as an Offer in Compromise. An Offer in Compromise is one of the most underused and misunderstood IRS tax relief options, but it can be the perfect solution for IRS tax relief. At Showalter CPA, we will work closely with you so that you understand your tax situation and how to resolve it. We will provide all the Offer in Compromise assistance you need, starting with whether you qualify for the program and the details of the low-income certification guidelines.
What is an IRS Offer in Compromise?
An Offer in Compromise is an IRS tax relief settlement between the taxpayer and the IRS, when the IRS usually accepts less than the entire tax debt owed. If you qualify for an IRS settlement offer, all your tax debt can be cleared. In only 2018, the IRS accepted nearly 30,000 offers which resulted in around $287 million in tax relief.
Reduce Your IRS Debt with an Offer in Compromise
Qualifying for an offer in compromise settlement can save you thousands of dollars in taxes, penalties and interest. An offer in compromise is an agreement between a taxpayer and the IRS to settle the taxpayer’s tax due for less than the full amount owed. Without special circumstances, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. For example, if you owe the IRS 25,000 and make 250,000 per year – you would not qualify for an offer in compromise.
Beware of unscrupulous advertisers that claim tax debts can be settled through the offer in compromise program for pennies on the dollar. The offer in compromise program is very complex and time consuming, sometimes taking up to two years to complete. Showalter CPA has the expertise and experience in working with the IRS to help expedite and take the stress out of the process.
Types of Offers in Compromise
Lump-Sum Offer. This requires a taxpayer to pay an agreed upon reduced amount to the IRS within five or less months from the date that the offer is approved. You must pay a 20% down payment when you submit the offer and an application fee to the IRS unless you qualify for a hardship. An offer in compromise can be quite complex so it is essential to receive Offer in Compromise help to complete the specifics of this offer. We have successfully submitted many offers in compromise that have allowed our clients to get their lives back on track and the IRS off their back.
Periodic Payment Offer. This offer must be paid within 6 to 24 months. In addition to application fees, the first payment is the same 20% down payment required for lump sum cash offers. Showalter CPA offers free consultations to make sure you do not waste time and money submitting offers that are rejected by the IRS because you checked the wrong box or missed an item on one of the many forms.
Qualifications for an Offer in Compromise
For the most part, the IRS considers your unique set of facts and circumstances to determine if you qualify including your:
Ability to pay your taxes
Assets and equity
To qualify for an IRS settlement offer, the IRS must determine that one of the following conditions exist:
You cannot afford to pay the full tax amount due. The IRS will assess your situation and determine if you cannot afford to pay the full tax debt before the statute of limitations ends which is generally 10 years.
Economic hardship. Paying your full tax debt would cause you economic hardship. In most cases, you must already be working full time which is considered 30 hours per week for at least the next 3 months and still be unable to meet your basic needs if you pay your full tax debt owed. For example, you owe 100,000 but are working a minimum wage job.
Doubt over the tax debt you owe. When there is doubt over whether you actually owe the tax or there is doubt about the accuracy of the amount owed, the IRS may offer a settlement instead of using the time and money required for an in depth tax audit.
To be eligible for the any of the above IRS settlement offers, taxpayers must be sure that they have filed all their required tax returns on the appropriate forms and be current with estimated tax payments for business owners and self-employed individuals while keeping track of federal tax deposits for businesses with employees. The tremendous amount of paperwork that must be completed with perfect accuracy is enough to keep many taxpayers from settling with the IRS, but this does not have to be you. We have your back and can take on all the hard work.
Why not take advantage of the Offer in Compromise program that allows you to pay an amount you can afford to satisfy your entire tax liability, and it even includes the penalties and interest. Remember, the amount you pay is based on what you can afford and not on the amount you owe. The offer in compromise program allows any eligible taxpayer to pay what they can afford to pay regardless of the amount they owe. The Offer in Compromise is truly a fresh start. When an offer is accepted by the IRS and paid the taxpayer is then current with all their tax liabilities.
IRS Payment Installment Plan
What is an IRS Payment or Installment Plan?
An IRS payment installment plan allows taxpayers to take care of their tax debt through monthly installment payments. The total amount of your plan is determined by the amount you owe and how long the IRS will wait to collect the debt. This can be an option for those who do not qualify for an Offer in Compromise. If you cannot afford to pay your tax debt in a lump sum, the IRS offers a partial payment installment agreement depending on your ability to pay and IRS financial standards. To properly create an IRS payment plan, you need the best IRS tax accountant who will thoroughly evaluate your tax debt and calculate the lowest monthly amount that the IRS will accept from you.
Do I Qualify for an IRS Payment Installment Plan?
If you owe the IRS $100,000 or less, you may qualify for an IRS tax payment plan. Under the current IRS Fresh Start Program, you may qualify to pay your tax debt with 72 or 84 monthly installments. Though, you must be current on this year’s tax obligations. IRS installment plans also have certain disadvantages. Penalties and interest continue to accrue until you pay your debt in full. Combining tax debt with IRS penalties can result in interest rates as high as 10% per year.
Do not try to negotiate an IRS Installment Payment Plan by yourself. At Showalter CPA, we know that a large tax debt can create many problems. We will help you complete a Collection Information Statement, create a payment plan you can manage, propose a monthly amount you can afford and decide the best way to make payments once your plan is approved. Do not put it off anymore. We simplify the whole process for you and carry the burden of the rules and paperwork so that you can get away from the stress. If you are wondering whether you can qualify for an IRS tax payment plan, do not hesitate to contact our experienced tax relief accountants. Your IRS installment payment plan must be submitted accurately by an experienced tax accountant or your plan could be rejected by the IRS. Take the first step toward resolving your looming tax concerns. Contact us today for a free consultation at 605-646-3585.
We can secure for you an installment agreement with the IRS to allow monthly payments on your tax liability. The agreement keeps the IRS or the State from levying if the payments are paid as agreed. Without an installment agreement, the IRS or State may take all but a small amount of your paycheck through a wage garnishment. They could also levy bank accounts and file liens on all your assets including your vehicle or home. We may be able to combine an Installment Agreement with a Penalty Abatement to save money and get time to pay the rest.
If you do not qualify for the offer in compromise program, an IRS Installment Plan may be the best way to resolve your tax debt problem. Setting up a payment plan with the IRS allows time to pay your tax debt. Sadly, the IRS continues to add penalties and interest to any unpaid balance. The greatest benefit of an IRS payment plan is that the amount of payment will consider your living expenses and provides protection from additional enforced actions. The IRS will release levies they have filed once your payment plan is approved and they will not file any new levies if you make the agreed upon payments.
The IRS may agree to let you pay your back tax debt off gradually in monthly installments if you cannot pay your tax debt in full.
The IRS may be a difficult and demanding agency to work with, but it is also highly practical and straightforward. The IRS understands that it simply cannot take money that doesn’t exist. If you don't have the money, you can't pay. Allowing taxpayers to pay back tax debt over time can often be the easiest and best way for the IRS to collect all the money it is owed.
Installment plans are great options that work well for both the IRS and the taxpayer. Though you will usually have to pay penalties and interest, setting up a payment plan through successful tax resolution can get you back on a track so that you can become free of your tax debt.
An installment agreement can be either formal or informal. In an informal installment agreement, the taxpayer promises to make monthly payments in an agreed amount which will pay off his balance within two years. A formal installment agreement is a written agreement in which the taxpayer promises to make, and IRS agrees to accept, monthly payments in a specified amount. A taxpayer can allocate payments, such as against the trust fund portion of employment taxes, under an informal installment agreement but not under a formal installment agreement.
The IRS is very reasonable when it comes to accepting an installment plan for back tax debt. Their goal is the same as yours. To move on and put this behind you. Take the first step and let us set up a payment plan that works in your favor. Call us for a free tax consultation at 605-646-3585.
IRS Currently Not Collectible
What can you do if you can no longer pay your outstanding tax liabilities?
Showalter CPA can help you get a much-needed break from the horrible stress of the IRS on your back by getting you placed on IRS currently not collectible status. This status is only gained after the IRS evaluates your financial situation and determines that you cannot afford to pay off the tax debt in your current situation in full through an installment agreement.
What Happens to You When You Have IRS Currently Not Collectible Status?
When the IRS closes your case and determines you have currently not collectible status, the IRS stops its collection activities immediately. Although, any penalties and interest owed will continue to build on top of your tax debt. If and when your financial situation improves over time, your tax account will be taken off the Currently Not Collectible status which allows the IRS to start collecting the tax debt through either full payment or an installment agreement. If you are currently in no position to pay your taxes, our experienced and professional tax accountants will work with you to ensure you are placed on IRS currently not collectible status. We will carefully assess your financial situation to ensure you meet the qualifications for an IRS currently not collectible status. We will work with you to show the IRS that you are undergoing sufficient financial hardship. For example, we may need to prove to the IRS that you have no extra income at the end of each month for the IRS to close your case with a finding of currently not collectible.
If there is absolutely no way for you to pay your tax debt, and no way for the IRS to collect the money owed by the more traditional forms of tax resolution options, you can file for “currently not collectible” status.
“Currently not collectible” means exactly how it sounds. The IRS will not be able to collect any owed taxes or penalty charges if:
Your wages cover no more than your necessary living expenses so that there is no amount the IRS can garnish
You have no assets worth levying. Remember that the IRS cannot seize an asset if you have less than 20 percent equity in the item or if the expenses involved in seizing and selling it are more than the equity is worth. This makes the IRS seeking another form of tax resolution unlikely.
Just because you have nothing worth the IRS taking from you is not exactly a great position to be in, but it can help in dealing with them. If your account is deemed to be uncollectible, the IRS will stop the collection process until your financial situation improves and another form of tax resolution becomes more realistic. Interest and penalties will continue to build up against you, and you will have to provide financial statements each year to show whether or not you are still currently unable to pay.
The IRS collection process will resume if your financial statements show that your situation has improved enough.
But if the 10-year statute of limitations for back taxes expires while you have currently not collectible status, the tax debt itself will become permanently not collectible and no other form of tax resolution will be needed.
We have the education and experience that you need to put you in the best possible position in negotiating with the IRS. Call us today for a free consultation. 605-646-3585.