Services

Offer in Compromise

An Offer in Compromise is an agreement between a taxpayer and the government to settle a tax liability by paying less than the full amount owed, often implemented when the entire tax liability cannot be collected. The government’s goal with an offer in compromise is to obtain what is reasonably collectible at the earliest possible time and incur the least amount of cost. There are three bases under which an offer in compromise may be accepted:

Doubt as to Collectability – If the IRS believes that the amount owed can never be paid back they will be willing to take a portion of what is owed.
Doubt as to Liability – If there is doubt that the actual debt exists, the government may accept an offer in Compromise.
Effective Tax Administration – Even if the IRS or State feels the tax owed is valid and that you have sufficient assets and income to pay the entire debt, the taxpayer can show that due to exceptional circumstances, it would be unfair and inequitable to demand full payment of the tax debt: for example, such a collection could put you and your family on the street.

If an offer and compromise is accepted, payments can be made in one of three ways:

Cash within 90 days of approval
Short term deferred payment plan
Long term payment plan

Abatement of Penalties and Fees

For those that have the ability to pay their tax debt in full, IRS tax penalties and interest that make up the bulk of the delinquent tax bill are often the main causes of an unmanageable tax problem. However, several IRS provisions help taxpayers get relief. The most common reasons for penalty abatement include:

Reasonable Cause
Correction of Service Errors
Administrative Wavers
Statutory Exceptions

Under reasonable cause, the IRS will first thoroughly assess the initial situation that resulted in penalties. Relief will be granted on the basis of reasonable cause if the taxpayer exercised ordinary business care and prudence in determining their tax obligations but was unable to comply with those obligations. Other factors that can determine penalty abatement are:

Unable to Obtain Records
Serious Illness
Loss of Household Provider
Incorrect Advice from Tax Advisor
Incorrect Advice from Service
Natural Disasters
Service Error

If you do qualify we can assist in you in getting some or all of your penalties and interest removed, or even in obtaining refunds directly from the IRS.

Wage Garnishment

When the IRS or State has failed repeatedly to collect taxes and they attach wages it is termed “wage garnishment”. Garnishment rules vary, but the IRS basically takes a portion of your paycheck each pay period and applies the amount garnished to your outstanding tax debt.

Having your wages garnished is a stressful and financially debilitating experience; We will immediately contact the IRS to attempt to release your wages from garnishment, and then structure a solution to resolve the underlying tax liability—whether that is an Offer in Compromise, Statute Expiration, or an Installment Agreement.

Audit Representation
Have you received an IRS audit notice? While millions of taxpayers are audited every year, the concept that the IRS would like to take a closer look at your taxes can be nerve-wracking.

Even taxpayers that have nothing to worry about because they have filed their taxes in a timely and honest manner may be frightened of an impending IRS audit. We can help ease the anxiety of an IRS tax audit.

It is important to note that not all audits are done face-to-face; in fact, the majority of IRS audits are correspondence audits, done through the mail. Even if you have not been selected for a face-to-face audit, we can help you assure that you are filling out additional paperwork completely and correctly, an important step to the audit process. Click here for more about your audit.

Bank Levy

When the IRS or state has failed repeatedly to collect taxes, they begin to seize assets. This process is called a “levy.” The taxing authorities can legally seize bank accounts, demand payment from accounts receivable, take control of property for auction, and assume title on vehicles. Virtually anything of value can be seized to satisfy the outstanding debt.

IRS Payment Plans

If you can’t pay your back taxes in full but could potentially pay them back over time, you can negotiate a reasonable monthly payment plan with the IRS. Once an IRS Payment Plan (also known as an Installment Agreement) is established, the IRS will not enforce collection action, including the levy of bank accounts or wages, as long as the taxpayer remains current with all filing and payment obligations.

Delinquent Tax Returns

To qualify for an IRS payment plan or Offer in Compromise tax settlement to resolve your back taxes, you need to file all delinquent tax returns with the IRS. Regardless of what you have heard, you have the right to file your original tax return, no matter how late it’s filed. Until you have filed all legally required tax returns, the IRS will not entertain any type of tax settlement or payment plan to settle your back taxes.

Expiration of Back Taxes: Statute of Limitations on IRS Collections

This can be one of the most effective ways to eliminate back taxes, especially if they have been assessed against you years ago. The IRS is prohibited, by law, from collecting on expired back taxes. Generally, the IRS has 10 years from the date of assessment (usually close to the filing date or audit assessment date) to collect back taxes. We can help resolve your back taxes and other IRS problems by performing a Collection Statute Expiration Date (CSED) analysis. We can determine on what day you will be free of this obligation. We accomplish this by obtaining and analyzing your IRS Tax Transcripts and Records of Account. If the expiration date is nearing, many times it is advantageous to the consumer to just “do nothing”. However, you need an expert to guide you through this process due to the many exceptions and obstacles that can get in the way.

Innocent Spouse Tax Relief

If you owe back taxes due to your spouse’s (or ex-spouses) actions, you may be eligible to obtain tax relief by qualifying as an innocent spouse. This means that if you can prove you are an innocent spouse, as defined by the Internal Revenue Code, the IRS can relieve you of this debt and obtain tax relief, you may not be subject to the taxes caused by their spouses or ex-spouses.

Payroll Tax Problems

If you owe back taxes on delinquent payroll and employment taxes, it is important to resolve payroll tax debt problems swiftly to protect the future of your company since the IRS assigns a higher priority to collecting employment taxes than income taxes.

At Tax Matters, we understand how hard you have worked for your money, your possessions and the security of your family, and we will react immediately to remove or block seizure of your assets. In many cases, we can get a lien or levy released in 24 hours.

Call Us Today!! 915-581-1040 We Can Help

Tax Matters, Inc. | 220 Thunderbird, Suite R | El Paso, Texas 79912

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IRS CIRCULAR 230 DISCLOSURE

TO ENSURE COMPLIANCE WITH REQUIREMENTS IMPOSED BY THE IRS, WE INFORM YOU THAT ANY TAX ADVICE CONTAINED IN THIS COMMUNICATION (INCLUDING ANY ATTACHMENTS) WAS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF (1) AVOIDING TAX RELATED PENALTIES UNDER THE INTERNAL REVENUE CODE OR (2) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.