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 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 to see how.

What You Need To Know About IRS Collections

Photo: David Playford/freeimages
Photo: David Playford/freeimages


Things can happen. An unexpected medical bill, unpaid time away from work or other financial emergency is enough for most people to fall behind on their tax obligations to the IRS. Maybe you really meant to pay your tax bill, but somehow it got pushed aside when an emergency came up that wiped out your savings or other financial reserves earmarked for paying your taxes.

In some ways, the IRS collection process isn’t really that much different than credit card collections or medical collections. Even with that, it’s important to be aware of how the IRS goes about collecting past due taxes from taxpayers.

The IRS places a high priority on past due taxes and is intent on collecting all past due tax debt. If you’ve set aside your IRS collection notices out of fear or hoping the debt will somehow be written off, you could be in for a rude awakening: the IRS places older tax debt at the top of its list and will take action to recover that debt.

IRS debt can linger for years, depending on how much you owe them. You may end up facing years of collection activity, since the IRS makes it a priority to recover “old” tax debt. The IRS will continue to pursue you until the debt is paid off. Like credit card companies and hospitals, the IRS means business and wants the money that is owed to them.

You could be stuck making payments for years and living on a very lean budget while paying off your tax debt, including the balance due and any interest and penalties.

While it can seem like you’ll be forever saddled with IRS debt that will never go away, there is a legal time limit, or statute of limitations on IRS debt. Tax debt that is more than 10 years old is off-limits to them. If your tax debt is outside the statute of limitations, this could help you in deciding which course of action to take, or whether or not to take any action to pay off the debt.

When it comes to debt less than 10 years old, however, the IRS employs many of the same tactics used by credit card companies and hospitals: wage garnishments and levying assets. At the same time, there is one key difference: the IRS does not require a court order to do so. This will typically happen if you haven’t responded to any of the IRS’s correspondence regarding your tax debt.

If you want to avoid the nightmare of finding your bank accounts and other liquid assets frozen, or having a lien placed against your home and other assets, you must respond to any communication from the IRS. Failing to do so signals to the IRS that you have no intention of satisfying your tax obligation, and they will resort to stronger tactics such as wage garnishment or asset levy.

The IRS, like credit card companies and hospitals, takes debt seriously. They will prioritize unpaid debts; the older the tax debt, the more aggressive they are when it comes to collecting that debt. If you are tossing their notices in the trash out of fear or in hopes the debt will eventually be written off or forgiven, the IRS can and will initiate collection action against you.

Tomorrow: More about the IRS collection process.


Audit Letter 3172: The IRS Talks Tough About Your(Past Due) Taxes



If you’ve been blowing off that tax debt and not replying to any of the IRS’s  earlier correspondence, chances are Audit Letter 3172 will find its way into your mailbox.

This is the letter where Uncle Sam lays down the gauntlet; if you don’t reply or appeal within 30 days the IRS can and will impose a tax lien on your property as a means of recovering the past due taxes you owe them.

As mentioned before in earlier entries, a tax lien isn’t pretty. It’s not only a substantial amount of money that the IRS is attempting to collect, but a tax lien will also appear on your credit report under “public records.” It will be visible to any prospective landlord, lender, and employer. An open tax lien will torpedo your credit rating and make it difficult for you to secure financing (cars, homes, some student loan products such as the Grad Plus loan or private student loans) or an apartment lease.

What’s On The Letter

The letter will have the following information:

  • The amount you owe
  • The tax period for which the lien is issued
  • Instructions for filing an appeal
  • Contact information for reaching out to the IRS

What To Do Next

Once you get the notice, it’s vital that you contact the IRS right away at the number that’s listed on your letter. Doing so demonstrates good faith that you are willing to address your past due taxes.

Once you have the letter in your hands, don’t assume that you are out of options. You have the right to review the letter and to appeal the IRS’s findings if you feel the past due taxes are in error. You also have the option of setting up an installment plan with the IRS.

At this point you should also consider reaching out to a qualified tax advisor. They have the skill, ability, and tax law knowledge to negotiate with the IRS on your behalf. A tax pro will also make sure you understand your rights in dealing with the IRS.

Life happens. Past due taxes happen. If you receive an Audit 3172 Letter from the IRS, don’t despair. You do have options. Respond to the letter before the 30-day deadline, either on your own or with a tax advisor who will act on your behalf.

If you’re facing a tax lien, past due taxes or any other tax-related hardship, we have qualified tax pros on staff to assist you. Get started today by clicking the white “Start Chat” button or by giving us a call. Learn about your options, put your mind at ease, and get your tax matter cleared for once and for all. You don’t have to go it alone.


10 Traits Of A Reputable Tax Resolution Firm

How To Tell The Good Guys From The Bad Guys…

There is no doubt the recession and the ensuing financial fallout left many taxpayers in distress. Maybe you’re one of them.  Maybe you’re haunted by back taxes. Liens, IRS levies, and wage garnishments for unpaid tax to the Internal Revenue Service (IRS) and state tax agencies can all add to the stress of making ends meet. Dishonest tax resolution firms have emerged in recent years, eager to separate distressed tax payers from their money in exchange for little to no service. Are you in need of tax resolution assistance? Here are 10 traits of a reputable tax resolution firm.

1.  Credibility: A reputable tax firm employs the following staff members: Tax Attorneys, Enrolled Agents, and Tax Consultants. A good firm will also have support personnel such as Case Managers, who will assist you as your case moves from intake to resolution. Beware of firms that don’t have these personnel on staff. Only tax attorneys and Enrolled Agents can negotiate with the IRS or state tax boards on your behalf. You want the best representation possible, and a reputable firm will provide that for you backed by well-trained and educated support staff.

2.  Reputation: You want to ensure your tax resolution firm has a sterling reputation. The Better Business Bureau is an excellent starting point. Personal recommendations from friends and family are also a good source.

3.  Integrity: Beware of any tax resolution firm that doesn’t disclose all fees BEFORE they are rendered. There should be no surprises. A reputable firm can work with you if you aren’t able to pay their full fee upfront.

4.  Service by Licensed Professionals: Your case should be handled directly by a tax attorney, Enrolled Agent and/or a Tax Consultant working in-house. At no time will a reputable tax firm outsource their work to a “back end” company. Ask if your tax matter will be handled in-house. If you can’t or won’t get a straight answer, look elsewhere.

5.  Transparency: Your tax firm should have all information easily available for you, either in person or on their website. You should be able to access full information regarding staffing, fees, hours, and policies. Are you dealing with a firm that won’t disclose or offer that information? Time to find one that will.

6.  Honesty: Some taxpayers may not qualify for an Offer In Compromise, for example. Is your firm honest with you about the extent to which they’ll be able to help you, or are they evasive when questioned? Reputable tax firms will be honest in telling you whether or not they will be able to assist you. Avoid firms that won’t shoot straight with you when it comes to your tax matters.

7.  Reasonable and fair: A reputable tax resolution firm will charge a fair and reasonable fee to assist you with your tax matters. You will be offered an honest assessment of your tax situation, along with a reasonable fee. Fees are influenced by many factors: labor hours in researching your tax matter, outstanding tax/lien balance, the level of staff needed (tax attorney or Enrolled Agent?) among many. Dishonest firms will charge an outrageous sum. Do your homework. Call or email different firms. If the quote seems outrageous, it probably is. A reputable firm won’t strip you of your hard-earned money.

8.  Discretion: If you’ve ever seen any amount of daytime television, you’ve most likely seen those loudly-produced ads for tax debt relief for “pennies on the dollar.” Avoid them. They will most likely charge an exorbitant fee (they need to offset those advertising costs somehow) or will accept your case, even if you don’t qualify. A reputable firm doesn’t employ large radio and TV advertising campaigns. A good firm will rely on word-of-mouth from satisfied clients, an accessible, well-written website and social media marketing for their services. All of those approaches are low-cost and there is no reason to overcharge clients to offset advertising costs.

9.  A Stress-free Approach: A legitimate tax resolution firm won’t leave you feeling like you’ve dealt with a used car salesman. Owing back taxes or being faced with a lien or bank levy is stressful enough without the high-pressure sales pitch. A reputable firm will assess your tax situation, make suggestions, and leave the final decision up to you. Beware of high-pressure tactics to pay a fee or sign up for services that offer pricing “for a limited time only.” Head out the door and to the nearest reputable tax resolution firm.

10. Accessibility: When you call your tax firm representative, are you able to speak with the same person each time, or are you passed from person to person? Do you know your representative’s name? Do they show a genuine interest in you as the tax payer and do they convey an honest desire to help you? Do they keep you informed as your case progresses? All of these are signs of a reputable tax resolution firm, as they hire those who have the utmost integrity and desire to help distressed tax payers.

If you are a distressed tax payer, we can help. We offer service that is fair, reasonable, and suited to your needs. You can contact us by phone at 888-224-3004. If you prefer, you can also reach us via  chat by clicking the white “start chat” button on the upper right hand of our webpage. You can take comfort in knowing your tax matters will be handled discreetly, professionally and with integrity. We are among the “good guys” and  we’re here to help you.