TAX RELIEF PROGRAMS
Offer In CompromiseYou Have Tax Settlement Options The IRS designated a specific office, Centralized Offer in Compromise (COIC), to process Offer in Compromise (OIC) applications exclusively. This department employs Offer Examiners who are responsible for calculating and negotiating on behalf of the IRS to determine the maximum amount of revenue that can be collected from the OIC applicant. An Offer in Compromise is a tax settlement made with the IRS to pay an agreed amount of money in order to satisfy your tax debt. Reaching a tax settlement with the IRS is very beneficial and can save taxpayers from continued headaches and IRS collection actions. However the Offer in Compromise process can be complicated and time consuming during attempts to reach a tax settlement. An Offer Examiner takes into account not only your current financial situation but also any future financial factors that may allow the taxpayer to pay off more of the debt. For example, if you are currently making a car payment of $300, this is an allowable expense. But if the car will be paid off in the next year they would consider the additional income for the months there after. This ‘additional income’ is included it in a complex formula used to determine an acceptable settlement amount according to the IRS. After years of negotiating with the IRS, we at "TAX LEADERS OF AMERICA®" knows what the IRS is looking for and if our clients have a strong enough case to apply for an Offer in Compromise. Many times an Installment Agreement may be a more viable option. We specialize in finding an offer amount that does not impose a great burden on our clients and that is likely to be accepted by the IRS. The IRS charges a non-refundable $150 application fee to submit an OIC and requires an initial payment toward the tax liability. It’s important to understand all of the factors that the IRS will consider when reviewing your offer. application package.
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 CURRENTLY NON COLLECTIBLE STATUS
A CNC status is a great way to stop the IRS from garnishing your paycheck, bank accounts or even your assets. You will enjoy peace of mind knowing you are not obligated into any monthly payments to the IRS. However in most cases you are on a yearly basis probation period. Where the IRS will ask again to confirm your income situation has not increased making you eligible for an installment agreement. However, you may stay in CNC status as long as you remain under financial stress, according to IRS allowable expenses and guide lines. Currently Not Collectible (CNC) status is a code that the IRS can attach to your tax account to halt collection activities against you. Obtaining CNC status is a temporary relief for you from garnishments, levies and property seizures. Interest and penalties continue to accrue even with CNC status. 
Installment AgreementAn Installment Agreement is a tax payment plan negotiated with the IRS to make monthly payments until your debt is resolved. The amount of money you owe and your monthly income after allowable living expenses determine your tax payment plan. If you choose a direct debit tax payment plan then the fee is $52. If it is a standard monthly payment or a payroll deduction agreement the fee is $105. The fee for qualified low income taxpayers is $43. highway An Installment Agreement is easier to be approved for than an Offer in Compromise . However, this a payment plan is not ideal compared to satisfying your debt fully and saving money by avoiding interest. Interest still accrues on tax debt while making tax payments under an Installment Agreement. But by making monthly tax payments you can avoid penalties, levies, garnishments and usually tax liens. The IRS has the option to charge late penalties for installments that are not paid by their due date. Sometimes they will charge you a penalty, sometimes they won’t. The IRS announced a Fresh Start initiative that they say will help more taxpayers qualify for an OIC or Installment Agreement.
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IRS Bank LevyWE CAN HELP! One avenue that the IRS will take to collect overdue taxes is the issuance of a bank levy. This means the IRS has legally claimed the money in the bank account(s) in order to pay part or all of a taxpayer’s debt. An account levy differs from a property lien, which is issued as security or collateral for the tax debt while a levy actually seizes the assets in order to satisfy tax debt.The IRS may also legally seize any funds from an individual, business or institution that is holding an investment or deposit for the indebted taxpayer. This can include a utility company deposit, home escrow account or payments into a 401K retirement account. A bank levy sent by the IRS instructs the bank to freeze all assets in the account for 21 days after which the bank is to forward the IRS all monies in the account to be put toward the tax debt. The money they levy from your account(s) will be put toward your principle balance first but your tax account will still be accruing interest and penalties until you pay it off. You are still being charged interest and penalties before, during and after the IRS has levied your accounts. Banks are required to cooperate with IRS levies and will be seriously penalized if they fail to do so. Expecting your personal banker, no matter how long you have been with your bank, to help prevent an IRS levy is pointless because the matter is completely out of their control. The IRS will send a Final Notice of Intent to Levy at least 30 days before they actually levy your assets. They will send this notice by certified or registered mail or they may have a field officer give it to you in person. This is especially dreary since IRS Field Agents also carry guns and are responsible for the arrest of extremely delinquent taxpayers. They are permitted by law to even show up to your workplace or home to personally issue a Final Notice of Intent to Levy.
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Wage GarnishmentIn attempt to collect debts owed to them the IRS will garnish or levy your wages. This will happen after the IRS has sent you three notices followed by an Intent to Levy and multiple demands for payment in full. Payment in full includes all penalties and interest that accrued on your debt since your account was delinquent. If the IRS feels that you are ignoring your tax liabilities they will take collection action and enforce a wage levy. To determine the amount of your wage levy, or garnishment, the IRS uses what is called the National Standard, which applies to food, clothing, transportation and healthcare expenses. The National Standard applies to all taxpayers regardless of local cost of living or any other fluctuating expense factors. The National Standard only varies depending on your family size and it is used to determine how much you absolutely need to live and take care of your dependents. This is a very generic estimate that will not take into account many factors that vary greatly from household to household. Regarding a wage levy, the IRS states on their website (www.irs.gov) that, “Taxpayers and their dependents are allowed the standard amount on a per person basis, without questioning the amount actually spent.” If the IRS has already begun to garnish your wages it means that they have contacted your employer’s Human Resources department and issued a legal wage levy. They provide your employer with the calculated amount they believe you need to live and require the HR Department to withhold the rest to put toward your tax debt balance. While your wages are being garnished your tax debt is still accruing Interest and Penalties that the IRS will expect you to pay unless you are able to negotiate other terms of agreement to settle your debt.
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Audit DefenseIRS tax audits panic millions of taxpayers every year. Enforcement and collection efforts have gone up by more than 11% in the past two years. An IRS tax audit is a review of an individual or company’s accounts and financial information compared to what they claimed on their tax return. The process is meant to ensure that all taxpayers are filing correctly and accurately each year. There is a chance that any taxpayer will be audited by the IRS. In fact, the IRS says that random selection based on a statistical formula is one of the ways they decide which taxpayers to audit. The IRS will audit you if there are discrepancies or mismatched information on any of your tax document and you have failed to correct them through the AUR department. Also, you may be audited if you had any transactions or business relations with another taxpayer who is being audited. Returns that seem to be incomplete, inaccurate or questionable are first sent to a department of the IRS called Automated Underreporting, the AUR department. AUR will send you a notice letter that may be confused as an audit notice and vice versa. The notice sent when you are being audited says that your return has been “opened for examination.”
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Tax Resolution OptionsOnce you are in compliance with the tax code, meaning you have filed all your returns and are paying tax withholding and/or quarterly estimated tax payments, then we can talk about how to handle any remaining tax liability. Let’s talk about your IRS debt options to get your taxes back on track. Do not ignore your tax debt. There are many IRS debt options and this is the worst! If you ignore your tax debt, the IRS will take drastic actions in an attempt to collect: Liens will be filed Any titled assets (real estate, automobiles, etc.) that the IRS can find in your name will have liens placed on them. Through tax liens, the IRS will become your most-secured creditor. Accounts will be levied The IRS will locate and take money right from your bank accounts. Any account you have access to is at risk – even if you are not the primary on the account! Your income will be garnished If you are employed, your employer will be instructed to garnish your wages. If you are retired, your pension and/or retirement will be intercepted. Even social security income is at risk.
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