IRS Tax Settlement Attorneys
Phase 1: Investigation
To begin our work on your case and to protect you and your assets from IRS Collections, we need our clients to complete, sign, and return four(4) forms:
1) Power of Attorney Form; 2) Investigation Phase Payment Authorization Form; 3) Services Agreement Form; and 4) Financial Profile 433A Form.
Upon our receipt of the above forms, we will immediately do the following:
1) Your assigned attorney will contact the IRS to investigate into your complete taxpayer history dating back to 1990, as required, to determine:
2) Which years you have filed tax returns,
3) Which years you have not filed tax returns,
4) Which years the IRS has filed tax returns on your behalf because you did not file them yourself (the IRS will file Single 0 with no exemptions – thus
significantly increasing your liability),
5) The balances you owe on self-filed or IRS-filed tax returns,
6) The statutory expiration dates of your tax return balances; (the IRS has a certain amount of time to collect on a liability, ranging from 10-20 years),
7) The deadlines, regulations, statutes, and requirements imposed by the IRS to resolve your specific case, and
8) Whether any legal action has already taken place on your account, including bank levies, wage garnishments, or property liens being filed against you.
In addition to the above, we will:
9) Order all transcripts, records of account, and income information on file with the IRS so that we have a clear understanding of what the IRS has on file for you,
10) Protect you and your assets by advocating on your behalf to place a hold on all IRS collection activities, including the prevention of a wage garnishment, bank levy, or home lien being filed against you if it has not been done so already, and
11) In the case that the IRS has already began collections against you, we will advocate on your behalf so that the IRS reverses some or all of the negative effects of your tax situation in order to provide you time to resolve your tax issues. This includes but is not limited to releasing any current wage garnishments or bank levies.
The services outlined above are all included in our Investigation Phase. Upon completion of the Investigation Phase, we will first provide you with a detailed report of our findings and advise you if we were able to place a temporary hold on IRS collection activities. Second, we will identify the years for which the IRS requires you to file your unfiled tax returns (Tax Preparation Phase). Third, we will discuss with you your current financial information by reviewing your completed 433A form. Fourth, based on
your financial information, we will discuss with you the various IRS resolution programs available to your specific situation and explain why we recommend specific courses of action (Resolution Phase). And lastly, we will provide you with our Tax Preparation and Resolution fee to execute our plan.
Phase 2: Tax Preparation
As referenced above, after we complete the Investigation Phase, we will have identified the years for which the IRS requires you to file your unfiled tax returns. Our accountants and tax professionals will contact you to obtain all of the information they need in order to make sure that you are in filing compliance with the IRS. Our accountants will prepare your unfiled tax returns and we will file the federal returns on your behalf.
Phase 3: Resolution
This is our last phase of services and the most important. After finalizing the Investigation Phase and preparing all of your unfiled returns, we will then be able to analyze your financial situation and arrange a favorable resolution for you with the IRS. The Resolution Phase will extend our power of attorney for you. By extending our power of attorney to cover this Resolution Phase, we will continue protecting you and your assets as we reach a resolution with the IRS. We will make sure that the IRS does not levy your bank or garnish your wages while we work on obtaining a resolution that is acceptable to you. We have attorneys that resiliently advocate for our client’s best interests. We will not stop until you have received the best resolution possible.
POSSIBLE RESOLUTION OPTIONS
Once we have conducted the investigation, prepared your unfiled tax returns, and analyzed your financial situation, we will then be able to determine which of the resolution options below work best for you.
1) Installment Agreement (IA):
There are two types of Installment Agreement Programs.
a) A Negotiated Installment Agreement is an agreement between the you and the IRS to pay the liability in full; however, we argue for a payoff term of up to six (6) years, making the monthly payments much easier for you to make. The IRS requires you to pay the balance you owe immediately and liquidate all of your assets in order to do so, including obtaining a loan or selling assets. However our position is that we try to push out the duration of time you have to pay the balance, up to a maximum of 6 years.
b) The second type of installment agreement is a Hardship Installment Agreement. Here, we contend that due to your financial situation, you can only pay a relatively
minimal amount per month. The monthly payment is calculated based upon what we propose to the IRS that you can afford to pay each month. We will be looking at
your income and comparing that to your expenses to develop a strategy to begin negotiations with the IRS. The IRS does not allow most expenses you have in your daily life. The IRS’ position is always that you are paying too much for certain expenses and that they require you to change your living habits to repay the IRS. However, what we do is develop a strategy to take the initiative against the IRS and put forward the position that you can only afford to pay a certain amount per month, and that after a period of time, most of the balance remaining will expire and leave you with no further obligations to the IRS.
2) Currently Not Collectible (CNC):
This program suspends and stops IRS collection activities due to your economic hardship. We will have to argue and prove that you are in economic hardship and cannot pay anything to the IRS. If this battle is won, the IRS agrees to suspend collections (i.e. the IRS releases all wage garnishments and bank levies that are currently in place while also refraining from issuing any new wage garnishments or bank levies) so long as your income remains the same in the future and that you file and pay your yearly taxes on time moving forward. This is a unique program that allows you to pay nothing to the IRS.
3) Offer In Compromise (OIC):
This program allows you to settle your entire tax debt for a lower amount based entirely on what you can afford to pay. For this resolution, the IRS requires full disclose of all income and expenses and an analysis of net equity in assets. In addition, supporting documentation of income and expenses are required. An OIC typically takes about nine months for the IRS to process. Please note: Few of these offers are accepted by the IRS. We will determine if you are eligible for an OIC after we have completed the Investigation and reviewed your financial information.
4) Penalty Abatement (PA):
In addition to the three resolution programs described above, advocating for a penalty abatement is an additional service we automatically provide for you. We will advocate on your behalf to provide you with instant relief on some of the penalties you have incurred to date. A penalty abatement can be advocated for while entering into any of the three resolution programs listed above. Depending on the your previous filing compliance with the IRS, we will argue that the IRS grant an abatement (reversal) of penalties. These abatements can range anywhere from $50 to close to $10,000 depending on the size of penalties and your good-compliance history. We automatically advocate for you in obtaining a penalty abatement while we enter into any of the three resolution programs described above.
We welcome you to our firm. We are committed to providing you with exceptional service as you look forward to resolving your tax issues.
IRS Tax Settlement Attorneys
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