Regular Post
Written by Scott Allen

Tax Debt Advisors help—What is an Offer in Compromise?

Tempe AZ IRS Offer in Compromise

An Offer in Compromise (OIC) is an offer to pay less than what you owe to the IRS and receive a complete settlement of all past tax debts, including interest and penalties.  The OIC program is only one of several ways to settle your Tempe AZ tax debt for less than what you owe.  IRS Form 656 and Form 433-A are the OIC accepted forms for individuals.  IRS Form 433-A Worksheet calculates the amount that needs to be offered.  The terms and conditions of the OIC include filing and paying on time your taxes for the next five years.  If you cannot file your individual tax return (1040) by April 15, you must request an automatic extension and file and full pay by the extension deadline.  The IRS approves only a small percentage of the offers submitted.  In 2004 only 16% of the OIC’s were accepted.  In 2010 the percentage was 24%.

It is a big mistake to file an OIC unless you are fairly certain you will have acceptance.  Interest and penalties continue to accrue as well as the statute of limitations.  If it takes the IRS 2 years to reject you OIC, you will come out of the process in much worse shape than when you submitted your OIC.

Tax Debt Advisors is next doors to Tempe AZ and has the experience to properly calculate and submit an OIC with a high degree of success.  Tax Debt Advisors has been assisting clients on Tempe AZ IRS problems for over 45 years.

 

IRS Appeals, IRS Problems, Offer In Compromise, Tax Debt
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Regular Post
Written by Scott Allen

Work w/ Scott Allen E.A. near Tempe AZ if you get an IRS CP-2000 letter

IRS CP-2000 Letter in Tempe AZ

If you forget to include income on your tax return that was reported to the IRS, you will get a Tempe AZ CP-2000 letter.  Unless someone has stolen your Social Security number, the income items are generally correct.  What is not taken into consideration are any deductions that can be matched against the income.  A good example is a stock sale.  Say for example you did not report a sale of Ford Stock for $15,000 you would get a CP-2000 with a tax bill of $3,000 plus interest and penalties if you are in a 20% tax bracket.  But if you paid $20,000 originally for the Ford stock, you actually lost $5,000 and would be due a refund.  Many Tempe AZ CP-2000 notices are coming for forgiveness of debt issues on credit cards and foreclosed home.

If you received a CP-2000 Notice in Tempe AZ, call Scott Allen E.A. and get a professional opinion on what is your best option to minimize the liability and prevent the IRS from levying your bank accounts or garnishing your wages.  Scott offers a free consultation and can be reached at 480-926-9300.

Arizona’s Premier IRS Tax Problem Service Advisor

Serving: Phoenix, Mesa, Tempe, Scottsdale, Chandler, Gilbert, Glendale, & Peoria Arizona

 

IRS Problems, IRS Tax Attorney, IRS Tax Audits, IRS Tax lien problems
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Regular Post
Written by Scott Allen

Call Scott Allen E.A. if your IRS Tax Debt in Tempe AZ keeps going up

Tempe AZ IRS Tax Debt

If your Tempe AZ IRS tax debt keeps going up despite making monthly payments, perhaps you need to consider a different option.  This is where an IRS resolution professional with expertise in settling IRS debts can really help and bring you peace of mind that you are doing the right option.  If you IRS debt will expire shortly because of the IRS statute of limitations is about to wipe out your IRS liability, don’t worry that the balance is going up.  Just continue making your payments.

Scott Allen E.A. near Tempe AZ offers a free consultation to evaluate your current situation and will advise if there is a better option for you to consider.  Scott can be reached at 480-926-9300 and will make your consultation appointment a great day for you!

 

BACK TAX RETURNS, IRS Problems, IRS Tax Payment Plan, Tax Advisor
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Regular Post
Written by Scott Allen

Tax Attorney in Tempe AZ to Help with my IRS Payroll Taxes?

IRS Tax Attorney in Tempe AZ

No, your payroll taxes are not a legal matter and does not necessarily require a Tempe AZ IRS Tax Attorney.  If you are self-employed and have employees, you are required to make certain withholdings of a portion of wages and pay those to the government along with your portion as well.  These withholdings include federal income taxes, Social Security and Medicare taxes and in some states, there is city as well as state taxes that need to be withheld.

Social Security and Medicare taxes are withheld from every employee paycheck. You as the employer are required to match these amounts up to certain limits.  If you do not pay these taxes in on time there are severe penalties.  Failure to make these tax payments can cause the IRS to eventually close down your business.  If you have not paid in your payroll taxes or paid them in late, you definitely need at least a consultation with a seasoned IRS payroll tax professional.  Scott Allen E.A. is qualified to help you work out a payment plan with the IRS that will not burden your business operations.  He is available for a free consultation at 480-926-9300.  Please consider him as a second opinion over a Tempe AZ IRS Tax Attorney.

Thank you.

 

IRS help by city, IRS Tax Attorney, Payroll Tax Problems
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Regular Post
Written by Scott Allen

The IRS has taken my money: Call Tax Debt Advisors today

Do I Need a Tempe Arizona IRS Attorney to Release a Wage (payroll) or Bank Levy?

The release of a wage or bank levy is not a legal matter and does not require the need of an IRS Tax Attorney in Tempe AZ.  The release of a wage or bank levy will require filing financial information about income and expenses to determine if a payment plan or a non-collectible status is appropriate.  Experience needed to obtain a wage or bank levy is best filled by someone who has done this procedure with the IRS many times.  Scott Allen E.A. has done many wage and bank levies resulting in no payment (non-collectible status) and installment arrangements at the lowest amount allowed by law.

Save yourself a bundle of money and call Scott Allen E.A. for a free consultation at 480-926-9300.  He will be able to tell you what amount he can negotiate with the IRS before he calls to negotiate your IRS installment arrangement or IRS non-collectible status.

Often times, the IRS will grant a partial or a temporary levy release with quick action and response to a resolution on your account with them.  Call and talk with Scott today to see if you qualify.  You will quickly notice the difference in his services verses calling an IRS Tax Attorney Tempe AZ for help.

Thank you. www.stopIRSaction.com

 

IRS Levy, IRS Tax Attorney, IRS Wage Garnishment, Unfiled Tax Returns
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Regular Post
Written by Scott Allen

IRS Tax Tempe AZ Attorney Not Necessary For Extension Of Time To Pay Taxes

IRS Tax Tempe AZ Attorney

Don’t confused IRS form 4868 which is an extension of time to file your return, with IRS form 1127 which is to request an extension of time to pay your taxes.  Here are some of the differences:

* IRS form 4868 gives you an additional six months to file your return.  You do not have to give any explanation.  It is automatic.  Here in Arizona it also extends the time to file your Arizona return.  IRS form 4868 must be filed by April 15.

*IRS form 1127 Allows you to delay paying your taxes until August with interest but no penalties.  But the guidelines for this delay have strict requirements.  This form must be filed by April 15th.

IRS form 1127 requires you to provided complete details of your assets and liabilities at the end of the previous month and an itemized list of money your have received and spent over the last three months.  The IRS wants to verify that your are unable to pay and the reasons why you are unable to pay.  You will have to provide documentation that you are unable to pay the money.  It must be legitimate “undue hardship,” not just an inconvenience.

It is important to know that the failure to pay penalty is 1/2% per month (form 1127), and the failure to file penalty is 5% per month initially (form 4868).  Taking this into consideration, it is 10 times more important that you file IRS form 4868 than IRS form 1127.  Even though it is possible to delay paying your tax liability, take into consideration the additional cost (1/2% per month) with the chances the effort needed to file IRS form 1127 and the chance that the IRS District Director might deny your request.

To appropriately evaluate your situation, consider a free consultation with Scott Allen E.A. at 480-926-9300.  It is doubtful that an Tempe AZ IRS Tax Attorney would even know what your are talking about if you inquire about filing IRS form 1127.

 

IRS Problems, IRS Tax Attorney, IRS Tax Payment Plan, Tax Attorney Arizona
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Regular Post
Written by Scott Allen

IRS Tax Penalties: Can they be removed?

Be Leery of Promises of Tempe AZ IRS Tax Attorneys to remove IRS Penalties

The only penalties that always get removed or lessened occur automatically when you file an amended return that shows a lower balance due or when you file a return to correct an IRS substitute for return and the tax due is lower.  You do not need any resolution work to lower the penalties.  If a taxpayer has had a “track record” of always filing on time and has a good reason for missing a filing deadline such as an illness, the taxpayer can request that the penalties be removed after any tax liability has been paid in full.  If the taxpayer has a habit of filing late, it is unlikely the IRS will removed penalties.

To remove penalties, the taxpayer files IRS form 843 and requests a refund of the penalties previously paid.  The IRS will want to see that there was a reasonable cause and not willful neglect.  Other probable causes for requesting a refund of penalties paid could include hospitalization, incarceration, severe depression, or serving in the military and out of the country during the time the return or the extension needed to be filed.  A Tempe Arizona IRS Tax Attorney can do this work but it is not necessary.  An Enrolled Agent or a Certified Public Accountant can file the necessary paperwork for you if you need assistance.  It is always best to consult with a professional before filing the paperwork to determine if you have a unique enough case to get penalties removed.

Other than the reasons mentioned, it is unlikely to get penalties removed.  This is especially true for returns that are filed years after the due date.  Most legitimate reasons would apply to the current year only.  In seeking penalty abatement, it is not necessary, nor will it increase your chances of success to use an IRS Tax Attorney in Tempe AZ.  If you would like a free consultation to see if your penalties can be removed, call Scott Allen E.A. at 480-926-9300.  He will be able to provide additional information not included here that will increase your chances of getting penalty abatement for legitimate reasons.

 

BACK TAX RETURNS, IRS Problems, Tax Attorney Arizona
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Regular Post
Written by Scott Allen

How many years do I need to file delinquent returns? From Tax Debt Advisors, Inc.

File Delinquent Tax Returns Tempe AZ

This period has varied over the last 44 years.  It has been as many as 10 years and as short as 6 years plus the current year.  We will determine though discussions with the IRS how many years they requesting if we are working with an Agent.  If we are dealing with the Automated Collection System and you have income that has been reported to the IRS, this information is kept on their computers for 10 years and they may require you to file back tax returns for all of them.

Scott Allen, E.A. – Tax Debt Advisors, Inc helps file delinquent tax returns Tempe AZ

www.TaxDebtAdvisors.com

 

 

BACK TAX RETURNS, Income Tax Preparation, IRS Problems, Unfiled Tax Returns
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Regular Post
Written by Scott Allen

What is a hardship status with the IRS?

IRS Hardship Status Tempe Arizona

The IRS will stop collection action if you can show economic hardship.  That doesn’t mean that the tax or the interest and penalties on the tax go away.  You still owe the IRS, they are just not requiring you to make any payment towards the debt owed.  Currently not collectible is referred to as status 53 at the IRS.

To qualify for IRS hardship status Tempe Arizona the IRS will collect financial information about your monthly income and expenses.  If your income and monthly expenses are close to being equal the IRS will consider you currently not collectible.  However, the IRS has certain amounts that they consider reasonable for expenses.  For example, the IRS feels that you car payment should be $588 per month or less.  If your car payment is $800, the IRS will not allow you to be put on a hardship status.  To be fair, the IRS can’t allow someone with a nice car be on a hardship status while the taxpayer with a car within their acceptable limit be required to make monthly payments on their IRS debt.

Qualifying for IRS hardship status Tempe Arizona is rather common.  If the statute of limitations is close to running out, being put on status 53 is an excellent settlement strategy.  The statute of limitation runs for 10 years from the time the taxes were assessed.  We have had many clients that have stayed on currently not collectible status for the full ten years.  To stay on this status one must file and full pay their current taxes every year.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.scottallenea.com

 

IRS Levy, IRS Problems, Tax Advisor
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