Ideal Tax Solution Is Informing Taxpayers That The IRS Can No Longer Ruin Their Credit

COSTA MESA, Calif.Ideal Tax Solution, a leader in the tax resolution industry, is sharing great news with U.S. taxpayers, especially those saddled with a tax debt issue. Recently, the three major credit bureaus decided to no longer report tax liens on credit reports. This offers an opportunity for Americans who owe back taxes to the IRS or have a tax lien judgment against them to obtain a higher credit score.

“More than 5.5 million liens will be removed from consumer’s credit reports, increasing the chances that they will get new loans from banks,” said David Hong, a Senior Enrolled Agent at Ideal Tax Solution. “The change means that a negative event that could have held a taxpayer back from getting approved for financing will be wiped off the consumer’s credit report. That could increase their credit score and make them look more creditworthy to lenders.”

With the change to how tax liens are reported, Americans with past tax issues may be able to finally apply for a home loan, auto loan, or credit card. Previously, tax liens could appear on a credit report for seven years after the date of payment, and sometimes longer. This was devastating to many consumers, as it could even prevent them from getting a job.

Consumers suffering from tax problems experience much stress. Ideal Tax Solution is ready to help clients navigate through their tax issues and come up with a viable solution. They offer comprehensive professional representation in defense of taxpayer rights, arriving at resolutions for numerous situations that include unpaid taxes, tax levies, tax liens, wage garnishment, unfiled tax returns, tax audit, IRS asset seizure, tax penalties, penalty and interest abatement, expiration, and much more. They also provide instant protection by filing a “stay of enforcement,” which blocks the IRS from seizing a taxpayer’s bank account or assets. The service concludes with a resolution that allows the taxpayer to make a fresh start with the possibility of saving tens of thousands of dollars.

Although the changes in tax lien reporting is good news for Americans wanting to apply for credit, Ideal Tax Solutions would like to remind taxpayers that owing money to the IRS still places them at risk for IRS collection activities, such as asset seizures, bank levies, wage garnishments, and liens on property. Visit https://www.idealtaxsolution.com/services/ to learn how Ideal Tax Solution can help resolve your tax problems and to sign up for a free consultation.

About Ideal Tax Solution:

Headquartered in Orange County, California, Ideal Tax Solution is licensed in all 50 states and provides tax resolution services to consumers throughout the U.S. The company’s team of tax attorneys and consultants helps clients burdened by a tax debt issue by easing the stress and anxiety that comes with serious tax problems. With a mission to provide clients with affordable and expert representation against either the IRS or state revenue agencies, Ideal Tax Solution is ready to assist Americans who have overwhelming tax debt. Go to https://www.idealtaxsolution.com to see how.

Who Can Represent You? A Quick Guide To Tax Professionals

 

professional

When dealing with the IRS, many people prefer to have someone represent them during IRS proceedings. If you’re facing an IRS matter and wish to have a representative, here is a brief overview of the professionals who can help.

Limited representation

The following professionals can represent you before the IRS only if they prepared and signed your tax return:

  • Business partners
  • Employees
  • Relatives
  • An officer of a corporation, professional association or other organization

Limited representatives can’t represent you in matters such as IRS collections, appeals, estate closures, or in tax court.

Additionally, the people listed above can only appear before certain IRS representatives:

  • Revenue agents
  • Customer Service Representatives
  • IRS employees in similar categories

Unlimited representation

When you are facing a more complex IRS matter such as collections, appeals, tax liens, and estate closures, the following professionals can assist you:

Tax attorneys: Look for an attorney who is in good standing with the state bar association and with the IRS. Additionally, you will want to find an attorney who ether specializes in taxation, or who is a general practitioner with additional coursework in taxation.

Certified Public Accountant (CPA): CPAs have either a Bachelor’s or a Master’s degrees from an accredited college or university and have passed the state CPA exam. In order to represent you before the IRS, your CPA must be in good standing with the IRS, with no license suspensions or disciplinary actions on their record.

CPAs are especially skilled in reviewing and analyzing financial statements and tax returns.

Enrolled Agents (EA): An EA is a licensed tax practitioner who has been authorized by the U. S. Department of the Treasury to represent taxpayers in tax matters. The EA designation is the highest credential awarded by the IRS, and there are over 48,000 EAs in the United States.

Facing an IRS proceeding on your own can be intimidating. By hiring a qualified professional to represent you before the IRS, you’ll have someone who will ensure your rights are being upheld and who can negotiate with the IRS on your behalf.

By understanding the difference between limited and unlimited representation, you will be better prepared to find the tax pro who is best suited to your needs.

Always look for a licensed tax pro who is in good standing with the IRS as well as with their professional association. Speak to several within the same level of representation. Doing so will ensure you have the best person to represent you before the IRS.

 

What You Need To Know About The Offer In Compromise

offer in compromise

If you’re facing a large tax bill with the IRS but lack both the means and the assets to satisfy your debt, the Offer In Compromise (OIC) is one option to consider.

The OIC program allows you to pay a lesser amount while permanently settling your tax account.

You’ll first need to complete IRS For 433-A, in which you’ll need to fill out completely. The IRS will take the following into consideration when evaluating your request for the OIC program:

  • Ability to pay
  • Income and expenses
  • Overall value of any existing assets

It’s a good idea to utilize the IRS’s pre-qualifier tool before completing the OIC packet. You’ll gain a clearer understanding if the OIC program is suitable for you.

If you decide to move forward with the program, you will need to submit the following:

  • Your completed 433-A form, along with IRS Form 656.
  • The $186.00 application fee, along with your initial payment.

If you  meet the Low Income Certification guidelines (refer to your OIC booklet for guidelines), you are exempt from both the application fee and the initial payment while the IRS evaluates your application package.

Payment options

If you are required to make an initial payment, it will vary based on the payment option you choose:

Periodic Payment: Submit your initial payment along with your application packet, and continue to pay toward the remaining balance in monthly installments while the IRS evaluates your case. If your OIC proposal is accepted, continue with the monthly payments until your balance is paid in full.

Lump sum cash: Submit an initial payment of 20 percent of the proposed balance under the OIC proposal, in addition to your completed application packet. Wait for the IRS to make a determination, and pay the remainder in five or fewer payments.

By understanding the OIC process, you will get a clearer picture of your options in the face of a sizable tax bill.

Not sure if the OIC program is for you? We have licensed tax professionals on staff who can assist you and answer your questions.

Get started today by clicking the “Contact” button on the top menu bar on our website, and choose the best communication method that meets your needs and busy lifestyle.

You don’t have to face a large tax bill by yourself. We’ll help you get the resolution you need and within a timeframe you can live with.

CAP: One Option For Your IRS Tax Defense

 

irs

 

You’ve taken the steps to challenge the IRS’s decision regarding your tax debt, and waited patiently for their decision. Unfortunately, the IRS didn’t rule in your favor.

The good news is that not only do you have recourse, you can take up your own defense if you wish to do so.

Acting on your own behalf can be to your benefit, particularly if you’re a low-income person. You’ll have access to a free tax clinic that can provide assistance as you formulate a plan of action and file the necessary paperwork.

One of the options available to you is the IRS’s Collection Appeals Program (CAP). Through CAP,  you’ll receive a quicker resolution of your tax issue than through other means such as tax court.

You’re eligible for CAP if your tax issue meets any of the following criteria:

  • If your Installment Agreement request has been denied or modified
  • If your Installment Agreement has been terminated or will be terminated
  • Before or after the IRS levies or seizes assets or property
  • Before or after the IRS files the Notice of Intent to Levy
  • The disadvantage to utilizing CAP is that their decision is considered final; you do not have the option of appealing the IRS’s decision.

Steps to take

  • Call the telephone number shown on your IRS notice
  • Tell the phone representative why you would like to the appeal the IRS’s decision and offer a solution
  • Be ready to discuss your case with a Collections Manager before moving forward with CAP
  • Complete IRS form 9423 within two days of your conversation with the Collections Manager

As intimidating as it may sound, you do have the option of taking the DIY approach to resolving your tax issue with the IRS. The CAP option allows you to resolve your issue in a timely manner and to permanently close your account with the IRS.

The Offer In Compromise: Is It For You?

offer in compromise

The IRS offers several repayment options for taxpayers, including the Offer In Compromise. Is it for you?

Note: The content in this post is not intended to replace the advice of a licensed tax professional. If you are facing a tax-related hardship, consult a tax professional to determine the best option for your unique circumstances

Facing a sizable tax bill is unsettling, especially if you lack the means to pay it. The Offer In Compromise (OIC) is one of the payment options available. Here is a brief look at the OIC and what it can and can’t do for you.

The OIC is designed for taxpayers who have the means to only pay a portion of their total tax bill.

Requirements

You’ll need to file IRS form 656, along with the $186.00 filing fee.

Generally you’ll have between 11-24 months to pay the agreed-upon amount.

The IRS will take into consideration your ability to pay, your income/assets and asset equity when determining your eligibility for OIC.

Eligibility

The IRS has designed an eligibility screening tool that you should use before applying for the OIC program. If you are eligible, you will need to complete the OIC form, (Form 433-A for individuals or form 433-B for businesses).

You’ll need to submit the forms along with the $186.00 filing fee and your initial payment.

Payment options

  • The IRS offers several different payment options:
  • Lump sum in cash
  • Periodic payments, in which you pay the initial amount and then make monthly payments while the IRS evaluates your application.
  • If you meet the low-income guidelines, you don’t need to submit an initial payment or the application fee, and you won’t need to make monthly payments while the IRS evaluates your offer.

If your offer is accepted:

You must meet all terms of the offer

Any tax refunds due during the calendar year will automatically be applied to your tax debt

Any federal tax liens will not be released until you have satisfied the OIC terms

If your offer is rejected, you and your tax professional have the right to appeal. You can file the Request for  Appeal form within 30 days in order for your appeal to be considered.

Facing a significant tax debt can be stressful. It’s always best to enlist a qualified tax professional when dealing with a sizable tax bill, especially if you lack the means to pay it in full.

Your tax pro can help you determine the best payment plan for your circumstances, and they can negotiate with the IRS on your behalf.

If you are in need of a licensed tax pro or if you are facing a large tax debt, visit us at indealtaxsolution.com and get in touch by using any of the available options under the “Contact” tab on the menu bar.

You don’t have to go it alone. We can help.

Don’t Let A Big Tax Bill Scare You: Tax Payment Options

If you’re facing a large tax bill, don’t panic. There are options available to you.

tax

If you’re like most hard-working taxpayers, the thought of a sizable tax bill is enough to make you break out into a cold sweat. However, the worst thing you can do is ignore your tax bill, since the legal and financial consequences can be far-reaching and far worse than the tax bill itself. There are tax payment options available to you. Here’s a look at some of them:

If your tax bill is $10,000 or less, you may be eligible for the IRS’s guaranteed payment plan. One thing to keep in mind is that the program doesn’t cover your fees and/or penalties, which could nudge your tax bill over the $10,000 threshold.

This program also doesn’t cover any delinquent employment taxes.

Under $25,000

If you owe more than $10,000 but less than $25,000, one tax payment option available to you would be the streamlined payment plan offered by the IRS. Under this plan, you would pay off your tax debt in 72 months or less. Additionally, this plan will allow you to have any tax liens released.

$25,000 or more

If you owe between $25,000 and $250,000, the IRS offers a streamlined payment program in which you pay off your tax bill within 72 months, but any tax liens  filed against you will not be paid off as part of this plan.

If you find yourself unable to pay off your tax debt in 10 years the IRS offers the partial payment plan.

You may need to liquidate certain assets in order to pay your tax debt under this plan, and the IRS will review  your financial information every one to two years to confirm that you are still eligible for this tax payment option.

Regardless of the program you choose, you’ll need to satisfy the following requirements:

  • Accurately disclose all income and assets
  • File all tax returns, including past due tax returns
  • You must agree to make timely payments

You may also renegotiate the terms of your payment plan if there is a change in your income. Less income due to job loss or other hardship may result in a lower payment, while to opposite is true if your income increases.

Facing a sizeable tax bill is stressful. At the same time, there are payment options available to you. Always consult with a licensed tax professional before negotiating with the IRS.

Your tax pro will negotiate on your behalf, and will also ensure your rights are upheld as your case progresses.

Did You Get A Letter From The IRS? Don’t Panic!

Alarmed about that letter from the IRS?

vecezy.com
vecezy.com

 

No one relishes the thought of getting a letter from the IRS. Here is a quick guide to the most common reasons for a notice from the IRS, and steps you can take.

  • If you owe a past due balance on your taxes.
  • If the IRS intends to levy certain assets for non-payment of delinquent taxes
  • If you default on a payment agreement or installment plan.
  • If you have an unclaimed tax refund

Other reasons the IRS may send you a notice:

  • Incorrect or missing information  on your tax return. The IRS will send you a letter requesting clarification or supplemental documentation.
  • Notice that your return has been selected for an audit

Regardless of the reason for the letter, it is important that you respond right away. Setting the letter aside and hoping the IRS will forget isn’t realistic no matter how badly you want the matter to go away.

All IRS correspondence lists an 800 number and address for your written responses. Whenever you call the IRS, keep a log of when you called, who you spoke with, and the outcome/response.

If you correspond with the IRS by mail, be sure to send your letter via certified mail with a return receipt.

Most IRS notices have a clearly stated deadline. Don’t ignore it. If you can’t provide the needed information by the deadline, call the IRS and explain your situation. Chances are, you’ll get additional time to comply.

Since mail is the IRS’s first line of communication, don’t ignore any correspondence. Chances are, it’s a request for clarification on missing or incorect items on your tax return.

If the letter is a notice to pay past due taxes, or is a notice of default, don’t ignore it. Doing so will bring about legal and financial consequences that will be harder to resolve than the original problem.

If you’re facing unpaid back taxes, a pending tax lien or other tax-related hardship, we have qualified tax pros on staff who can help.

Get started today by choosing any of the options under the “Contact Us” link on your website. Whether you choose to chat, email, or call, we can help.

 

Need Tax Filing Assistance? VITA Can Help

Tax filing assistance with VITA

Get tax filing assistance from skilled VITA volunteers


Tax season is upon us, and if you’re in need of tax preparation assistance, you’re in luck. The IRS offers two volunteer-based programs to qualified taxpayers.

VITA (Volunteer Income Tax Assistance) provides tax filing assistance to any taxpayer who meets any of the following criteria:

• Earn $54,000 or less per year
• Disabled
• Limited English proficiency speaker and will need help in reading and interpreting tax forms and tax return instructions.

VITA sites are found in community centers, shopping malls, senior centers, libraries and other community gathering spots. IRS-trained volunteers will help you file a basic tax return at no charge to you.

To locate a VITA site, call (800) 906-9887 or use the online locator to find a site near you.

Help For Taxpayers Over 60

If you’re over 60 and have retirement or pension-related tax concerns, the TCE (Tax Counseling for the Elderly) program is available to you.

IRS-trained volunteers, in cooperation with the AARP Foundation will assist you in preparing and filing a basic tax return, much like they do in the VITA program.

To find the nearest TCE site, call (888) 227-7669 anytime between January and April to find the nearest site and/or to schedule your appointment.

To locate a TCE site online, use the AARP Tax Aide locator.

Getting Organized is Key

Regardless of which program you choose, getting organized ahead of time is essential to filing an accurate and timely return.

Limited-income taxpayers, disabled taxpayers and those with limited English skills are welcome to participate in the VITA program. Older taxpayers also have access to IRS-certified volunteers to help them file their tax returns.

If you are in any of the above groups and prefer to self-file, just look for the “self prep” designation in the VITA/TCE site listing.

The New Tax Year Resolution You Must Make Right Now

calculator-1019743_1280Ignoring that past due tax debt will get your new year off to a stressful start

2015 will be history in a matter of days. If looking back on 2015 also includes an outstanding tax debt, addressing that tax debt needs to be at the top of your New Year’s resolutions list.

Penalties and fees

If you have not  yet paid your 2014 taxes, you’ve been racking up penalties and fees for each month of non-payment. The IRS assesses a non-payment penalty of 1/2 of 1 percent of the balance for each month after the initial due date. It may not sound like much, but it can penalties can add up to as much as 25 percent of the balance due.

That’s a lot if you’re on a tight budget, and penalties can add up quickly, not to mention past due notices from the IRS.

Don’t panic, and don’t ignore the IRS

Don’t assume the IRS will forget about those outstanding taxes, because their role is to collect tax payments from citizens. If you’re ignoring their written notices in hopes the IRS will forget and move on, it will never happen.

The IRS will become more aggressive with each passing month of non-payment. Regardless of where you are in this collection cycle, the IRS won’t forget. If you are facing asset seizure for non-payment of past due taxes, you need to take action immediately to protect your bank account and other assets.

Your best defense against the IRS

The bad news is you owe back taxes. The good news is that there are tax professionals who can help you. A qualified tax pro can determine if you’re eligible for an installment agreement, Offer In Compromise or Currently Non-Collectible status. A tax pro such as an Enrolled Agent or tax attorney can represent you in negotiations with the IRS.

One key advantage to hiring a tax pro: they know the complex IRS tax code inside and out, so you won’t have to. A qualified tax pro will also ensure your rights are upheld throughout the collection proceedings. They will also explain each step to you in terms that you can understand.

You won’t hear jargon or “legalese,” but you will hear an honest assessment of your financial circumstances and your options. Your tax pro can work with you in arriving at a payment arrangement you can live with over time.

If you’re facing 2016 with an outstanding tax bill, now is the time to take charge and take back your life. We have qualified tax pros on staff who can help you sort out your options, negotiate on your behalf with the IRS, and advise you every step of the way. Even better, they can translate that complex IRS jargon that might be difficult to interpret and understand.

If you’re ready to face 2016 with a clear plan of action, give us a call today at (888) 224-3004. You can also chat with us by clicking the white “Start Chat” button at the top of our homepage.

Either way, you don’t face to face past due taxes alone. We can help.

 

 

 

So When Does the IRS Initiate Collection Action?

OIC

 A quick IRS collection primer

If you’ve been a taxpayer for at least a few years, chances are you’ve heard IRS collection horror stories. After all, no one likes to hear from the IRS, and dealing with the IRS can be intimidating. One of the most popular reasons for hearing from the IRS is with regard to back taxes. What exactly takes place when dealing with an IRS back tax matter?

First of all, the taxes must be due and payable. Once you’ve prepared and filed your return (or had a tax pro do it on your behalf) you know right away whether or not you owe taxes. The IRS knows this as soon as they receive your return, so as they saying goes, “they’re on to you.”  You’ll need to pay any taxes due by the April 15th deadline in order to avoid late fees and penalties.

You’ll receive a Notice of Tax Due in the mail if you weren’t able to pay your taxes and submit them along with your return. This is s courtesy notice from the IRS, reminding you of your outstanding tax balance. You will have 10 days to pay the amount due or to make payment arrangements.

If the IRS doesn’t receive a response or payment from you, and if the tax bill is relatively small, you’ll receive a series of notices before they initiate collection action. The IRS has to conform to a strict series of policies and procedures before initiating collection action.

Each successive notice escalates in terms of urgency and in outlining the consequences for non-payment. Once your tax account reaches the collection stage, the IRS can and will become more aggressive in terms of recovering the debt you now owe them. At this stage, you do have the opportunity to set up an installment agreement or apply for an offer in compromise. Both of these require the help of a tax pro.

However, if you fail to respond to any IRS notice, or any other attempt to reach you, they will issue a Notice of Intent to Levy. In essence the IRS is informing you they can and will seize assets such as your bank account in order to satisfy your tax debt. 

However, you don’t have to let your outstanding tax bill get to that point. You do have the option of either negotiating with the IRS on your own or enlisting a tax pro to negotiate on your behalf. Despite the horror stories and urban myths, the IRS is willing to negotiate with taxpayers regarding an outstanding tax balance.

This is especially true if the balance due is relatively small. If you’re a rock star with hundreds of thousands of dollars in back taxes, then the IRS could be more aggressive in terms of collecting from you. 

If you’re facing an outstanding tax bill, don’t put it off for a moment longer. If the thought of dealing with the IRS gives you the cold sweats, we have tax pros on staff who are trained and qualified to negotiate with the IRS on your behalf, and to seek a payment arrangement you can live with.

Get started today by either giving us a call at (888) 224-3004 or by clicking the white “Start Chat” button at the top of our homepage. You don’t have to go it alone. We can help.