Taxpayer Received A Wage Levy
This corporate executive owed the IRS approximately $110,000. The IRS had garnished her paycheck and had taken $7,000 of her $8,500 salary for one month. Needless to say, this left her extremely distraught. My team formulated and implemented a plan that caused the wage garnishment to be released by the IRS and negotiated an installment agreement of $1,000 per month for this corporate executive.
IRS Levy
Tax Resolution Pricing Guide
Here are the standard services provided by a tax resolution company and the average fees for each:
Installment Arrangement
If your tax resolution firm is arranging a payment plan or installment agreement with the IRS, the average fee will be between $2,500 and $3,500. You may pay more than that if youre looking to arrange a payment plan for a business.
Partial Payment Agreement
Partial payment agreements are a little more involved than standard payment agreements, and they often result in you paying a lower amount than your total debt. Because of the work involved, the average fee for a partial payment agreement is $3,500 to $5,000.
Penalty Abatement
Penalty abatement;tends to be an additional service to a payment agreement. It is also offered as a stand-alone service, however. Penalty abatement costs range from $250 to $1,000. Its important to be sure that youre abating more penalties than the cost of the total fee to ensure that the service is worthwhile.
Offer in Compromise
Arranging an;Offer in Compromise;can cost between $4,000 and $7,500, due to the work involved. Before entering into an Offer in Compromise, be sure that you wont be charged any additional fees if the IRS doesnt accept the offer.
Currently Not Collectible Status
Obtaining a Currently Not Collectible status costs around $2,500 to $4,000 at the average tax resolution company.
Innocent Spouse Relief
Tax-Related Identity Theft
Tax Transcript Review & Compliance Check
At the heart of most cases, to provide you precise tax resolution fees, the tax firm or one of the firms licensed tax professionals will obtain your tax transcripts or transcript information from the IRS or State. This process is essential, as it confirms your interest, penalties, and balances for each year as well as your filing compliance history. Some companies call this a transcript review or compliance check. Others, call it an investigation and include a financial analysis .
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Who Needs Professional Irs Tax Relief Services
Both individuals and businesses may need tax relief services. You dont need a net worth in the millions to benefit from professional guidance and representation. Making sure that everything is handled properly before things get out of your control will protect your existing assets and financial future.
Signs You Should Be Worried About A Tax Levy
Are you behind on paying your taxes? Has it been several years since youve actually filed your taxes? If the IRS has made repeated contacts with you and youve havent responded, you should be concerned.
When the IRS contacts you in writing, they offer you the way to respond. They will offer the right to appeal on contest their judgement. If you ignore these requests or these opportunities to work with the IRS, you face the reality of having a tax levy.
One of the important way a tax resolution specialist can help you is working with the IRS to avoid this situation.
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How Do I Qualify To Offer Tax Resolution
In order to qualify to offer tax resolution, you must be an Enrolled Agent, CPA, or tax attorney.
To become an EA, you can take one of two paths.
The first option is:
- Obtain a Personal Tax Identification Number
- Take the Special Enrollment Examination . Here you can find examples of past examinations and answers, provided by the IRS
- Pass all sections of the SEE
- Apply for enrollment on Form 23
- Pass a background check, which will include a review of your tax transcript
The second option is:
- Apply for enrollment on Form 23
- Pass the background check
To become a CPA you must do the following:;
- Earn 150 credit hours of education;
- Pass all four sections of the CPA Exam;
- Meet work experience requirements for the state you live in
Once youve become certified as an EA, CPA, or tax attorney, you should obtain a Centralized Authorization File number. A CAF is a nine-digit number assigned to you by the IRS that they use to track your requests for client information, such as transcripts.;
To obtain a CAF number, write none in the space designated for a CAF the first time you file a Power of Attorney of Tax Information Authorization . The IRS will send you a letter with your CAF number and youll use that number for each case going forward.;
Work With A Tax Resolution Specialist
Consider hiring a tax resolution specialist to help you figure out what went wrong and help resolve significant tax issues. Tax resolution professionals can perform a wide range of services, such as formulating an ideal tax resolution plan, negotiating for more affordable tax payment plans, and providing valuable tax advice and guidance.;
When hiring a specialist, make sure to look for professionals who have significant experience, qualifications, and credentials. Credentials are required for any provided resolutions services the specialist must be an Enrolled Agent , CPA or attorney.
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Tax Resolution Isnt An Impossible Feat
If the IRS spots a tax issue in your record, it can cause tremendous stress. Whether you file your own taxes or seek the help of a professional, tax resolution will remain a complicated issueso you want your taxes done right.;
However, even though a successful tax resolution is different for every taxpayer, tax resolution can be attainable. With the help of tax specialists, youll be able to analyze your financial information and determine what exact resolution is best for you.
You can be free from your tax troubles for good if youre willing to invest the time and effort to do so. Dealing with the IRS shouldnt be taken lightly. Nonetheless, hiring a tax resolution specialist and knowing the practical steps towards tax resolution can be an easy means to reach financial freedom.
If youre looking for a reputable tax resolution partner, Tax Samaritan offers the best-in-class service. Understand all the facets of and resolve your tax situation and problems today.
Where Can I Find Help With Tax Resolution
After youve gained a good foundation of what tax resolution entails and you start practicing tax resolution, there are more resources out there designed to help you do the actual tax resolution work youre not left on your own.
For starters, Canopy has an entire library of ebooks that cover subjects such as Offer in Compromise, liens and levies, and Penalty Abatement.
If youd like tips on Tax Resolution strategies, read books like Jassen Bowmans Tax Resolution Secrets, available as an ebook or hard copy. The book includes instructions for how to employ proven methods of tax resolution.
Another helpful resource is modern tax resolution software. For example, if you use Canopy, theres no need for you to memorize every complicated IRS code, because the software will automate data gathering, auto-populate the appropriate IRS forms for your clients cases, solve collection cases, and more. Canopy can save you 5-10 hours per case. With the help of Canopy, you could start offering tax resolution today, growing your practice, client base, and income.;
If you want to read more about how to start offering tax resolution services, check out our free ebook. Youll learn more about adding tax resolution services to your practice, pricing those services, and more.
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Who Should Consider Tax Relief
Anyone facing tax debt, notices from the IRS, or missing payment penalties may benefit from the tax solutions a tax relief company can provide. However, if you only owe back taxes for a few thousand dollars or have a plan to repay your debt, spending additional money to hire a tax professional may not be necessary.
The IRS only recommends tax relief programs to taxpayers who owe at least $10,000 in back taxes since a company’s fees may end up being about the same as the amount of tax relief you could receive.
How Much Do Tax Resolution Services Cost
Tax Resolution companies generally operate in two ways.
The first approach is to connect you with an unlicensed and inexperienced salesperson that will pitch an investigation phase where you can pay thousands of dollars simply to conduct an investigation into what needs to be done. After the investigation, you are asked to pay an additional fee to actually address the issue.
The second approach, is to have an initial consultation with an individual licensed to represent clients with the IRS before any fee is paid. The licensed consultant will ask you questions specific to your situation and assess what needs to be done from the information you provide. From there, you can expect a fee of at least a thousand dollars for the simplest resolution strategies up to tens of thousands of dollars for the most complex cases with liabilities ranging into the millions of dollars. Before consulting with any tax resolution specialist, make sure you ask the individual you speak with if they are licensed to practice before the IRS.
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Settlement Firm’s Success Rate
As stated previously, the IRS rejects the majority of offers in compromise it receives each year. The number of clients who get satisfaction from tax settlement companies is negligible and most are virtually destitute financially. The vast majority of potential settlement clients need to work out payment plans with the IRS that allow them to clear out their tax balances over time while keeping their assetsand dignity.
For more information on whether a payment plan is right for you, see these questions on IRS website.
Trust Fund Recovery Penalty
If you have a business and employ people, you can be charged with a trust fund recovery penalty if you remit payroll taxes late just because of cash flow issues. This penalty makes you liable for 100% of the unpaid payroll tax, cannot be discharged, and often requires professional assistance to get the charges dropped.;
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Problems With Tax Relief Companies And Representatives
The IRS Office of Professional Responsibility targets questionable practices in the tax debt resolution industry. Report problems to the IRS on Form 14157, Complaint: Tax Return Preparer. The IRS Return Preparer Office will process the complaint and, if appropriate, submit it to the IRS Office of Professional Responsibility for investigation.;
Behavior warranting a complaint to the IRS includes companies or individuals that:
- promise that you will get relief from tax liabilities;
- misrepresent how long it will take to process a debt relief request application; or
- omit relevant asset information on financial statements submitted to the IRS.;
You also may file a complaint with the FTC online or by phone: call 1-877-FTC-HELP. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
What Are The Benefits Of Tax Resolution Services
The obvious benefit is that you resolve your lingering tax issues. It gets the IRS off your back and allows you to solve the situation without it getting nasty. Remember, the IRS is one of the most powerful organizations in the country. If they feel that theyre owed money, they wont hesitate to take it by force. Tax resolution services ensure that this doesnt have to happen, and a solution is reached that appeases all parties.
If you require tax resolution services, dont hesitate to get in touch with us today. The Clean Slate Tax team will help you find the best solutions to your tax issues. From here, you can wipe the slate clean and put your tax woes behind you. Its a chance to finally end your tax mess!
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What Is Employment Or Payroll Tax
Individuals, businesses and all of their employees are expected to pay taxes to federal, state, and local agencies. Employers refer to these taxes as a employment or payroll tax. Subsequently, a number of different types of taxes are withheld from employees by their employers. Similarly, taxes are paid and deposited with the appropriate tax agencies by those individuals who are self-employed. Self-employed business owners must pay self-employment which includes the Social Security and Medicare taxes. If the IRS believes any individual or business has not paid these taxes, they are liable for penalties and interest.
How Does Tax Resolution Help You
Although you do have the option of working through your tax issues with the IRS on your own, its often in your best interest to work with tax professionals who can help you work with the IRS and resolve your problem.
As a taxpayer, you have certain rights, which are outlined in the IRS;Taxpayer Bill of Rights. You have the right to:
- Be informed
- Pay no more than you owe
- Challenge the IRS and be heard
- Finality
- Appeal the decision of the IRS
- Retain representation
- Confidentiality
- A tax system that is fair and just
Working with a company that provides tax resolution services helps you ensure your rights are protected. A tax resolution firm can help:
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Types Of Tax Debt Relief Programs
The IRS offers several tax debt relief programs that taxpayers can use to minimize their debt. Tax relief companies specialize in negotiating these relief programs for their customers, allowing them to qualify for the most programs possible and relieve the most debt.
The most common programs that the best tax relief companies negotiate with the IRS include:
Does Tax Relief Really Work
Tax relief services can stop penalties, liens, levies, and wage garnishments. Additionally, payment plans or debt reductions can make it possible to walk away from serious tax debt. Choosing to ignore tax issues instead of seeking the available relief could create serious consequences that chase you around for years.
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What Is Tax Resolution What Kind Of Tax Resolution Programs Does The Irs Provide
A tax relief specialist can walk you through the various types of tax resolution programs that exist. The tax relief program that may be right for you may not be right for everyone. A tax relief specialist will be able to determine the best tax relief program for you based on your situation. The total amount you owe and the amount youre able to pay will identify your tax relief result. Below are the different types of tax relief programs that the IRS offers.
Looking For Tax Resolution Services
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What Is Tax Resolution
Tax resolution is the umbrella term for services that aid taxpayers when they run afoul of the IRS. Sometimes called IRS representation, tax problem recovery, or tax controversy,;tax resolution services are in high demand. Those services include Offer in Compromise assistance, lien and levy relief, penalty abatement, and more. Well cover common types of tax resolution in more detail later.
What Are My Tax Resolution Options
There are several options for tax resolution and penalty abatement, depending on your circumstances. One of the enrolled agents at Easy Tax Service will consult with you about your options to explore any of the following tax resolution solutions.
- Penalty Abatement
- Lien removal and levy release
- Payment plan and installments
- Non-collectible status
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Tax Resolution Company Fees
Once a tax resolution company informs you of the fees they will charge for their services, its important to understand how your payments are laid out in your contract.
- Total upfront fee or payment plan.Some tax resolution firms ask for the total fee upfront, while others will provide you with a payment plan. You may receive a discount for paying your balance upfront.
- Part of the fees upfront.;Some tax resolution firms will ask for a portion of the fee upfront. You then pay the remainder of the fee in monthly payments.
- Continuous monthly payments until your case is closed.;Some tax resolution companies will charge a monthly fee, or a retainer, each month until the case is closed. This may also be in addition to a considerable upfront fee.
The manner in which a tax resolution firm charges fees may vary by company, but they do follow a general structure.
Several tax resolution companies use flat fees, which could mean one of two different structures:
- A flat fee for services.This includes resolution for any number of IRS issues. If you have issues with different tax agencies, however, you may have a separate fee for each agency.
- Flat fees for specific services according to your debt.;This is a sliding scale for your payment plan thats based upon the total you owe to the IRS.
Some tax resolution companies and individual licensed tax professionals bill by the hour. Fees can range from $200 and $500 per hour.
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