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FAQ’S FOR TAX PROBLEMS

Question: How do I stop a Tax Levy?

Answer: Contact us immediately to help you resolve your liability and request a levy release. We can get the IRS or State to release a levy if we can convince them that the levy is causing an economic hardship. If they deny our request to release we can appeal the decision.  We can appeal before or after a levy is placed on real estate, wages, or bank account.  Your full legal appeal rights can be found by clicking HERE.

Question: What is the difference between a lien and levy?

Answer: A tax lien is a claim against possessions that secures the payment of a tax debt. A Federal tax lien is a non-consensual lien that gives the IRS an interest in your property. With regards to §6321, the lien imposed in favor of the U.S. Treasury when an assessment has been made by the government, a notice and demand for payment has been made, and the taxpayer has not paid the assessment. Under §6322, the tax lien is given at the time the assessment was made.

 

Question: How can you assist with my bank levy?

Answer: A bank levy occurs when a creditor files a writ of garnishment or writ of execution and sets it to all your banks and local law enforcement.  Once a judge determines a credit has the right to collect money from an individual or business for a past due amount, they can issue this legal document. The following are ways we can stop it quickly. Contact us right away because time is of the essence.

-Settlement Negotiation

-Bank Levy Reversal

-Hardship Plan

-Partial Payment or Installment Plan

-Claiming Bank Levy Exemptions

 

Question: Can the IRS levy my bank account after I sent up a monthly payment plan.

Answer: After a payment plan is established the IRS may file a tax lien to protect their interest in case an individual or business stops making monthly payments. With that said, your bank account is off limits. Additionally, your paycheck is also safe from collections. If, for instance, the IRS places a levy on your bank account or your paycheck after a payment plan is set up it must be removed once they are properly notified.

 

Question: How does an Offer in Compromise (OIC) work?

Answer: To start, you need to make sure you’re are eligible.  Click HERE for an IRS Pre-Qualifier or call us directly. Second, an offer is submitted via form 433-A for individuals and 433-B for businesses.  Third, you will need to select a payment option (lump sum cash or periodic payment). Feel free to reach out to us anytime to discuss this process in more detail.

 

Question:

Answer: The first step in resolving IRS problems is to file all past tax returns. By submitting your original returns the IRS balance may be reduced or eliminated. If after filing the returns if there is still a an outstanding balance, you have 3 options. Option #1, enter into a monthly payment plan that is affordable. Option #2, request the IRS place your account in their non-payment category. Option #3, settle your tax debt by submitting an offer in compromise as discussed above.

 

Question: How do I defend myself against the IRS or state tax authority?

Answer: We have several ways to defend yourself against the IRS or State agency. Before a tax authority is allowed to place a levy on your wages or bank account they must notify you by mail. This notification is called “Final Notice of Intend To Levy”. Attached to this is a form for you to request an appeal of their proposed action. Once a timely appeal is filed the IRS cannot touch your bank account, real estate, or paycheck.

 

Question: I owe payroll taxes from my business, can these be assessed to me personally?

Answer: Aside from liens or levies against your business assets, payroll tax debt can come back on you. To keep these taxes from being assessed to you personally call us immediately at 866-928-2990 so we can figure out the best course of action.

 

Question: The IRS has audited me, what do I do now?

Answer: In regards to the audit, the IRS is looking to see if the tax returns have been filed properly and all your deductions and exemptions are valid. Its not recommended to go through an audit alone. Call us 866-928-2990 and let the tax professionals here at Cure Tax Debts to handle it for you.

Question: What if I can’t pay my taxes when they are do?

Answer: There are different tools that can be used for those that can’t pay their taxes on time.  To start, you can enter into an installment agreement.  If you can’t meet the requirements for an installment agreement you could do an Offer in Compromise. A third used option is getting declared uncollectible until your financial situation improves enough to facilitate your back taxes.

Question: Can I settle my unpaid taxes for less?

Answer: The short answer is yes! The most common ways to do this are through an Offer in Compromise or a Partial Payment Installment Agreement. There are stringent requirements for each and you will be forced to give the IRS detailed financial information about. We can assist you in navigating these two and other options legally available to you.

 

Question: If I don’t have the money to pay my taxes should I still file my return?

Answer: Definitely yes! Not filing a tax return has much harsher penalties than not paying. The penalty on unpaid taxes owed when no tax return is filed is 5% a month up to 25%, however, the penalty for not paying taxes when a return is filed is only .5%. Not paying is not nearly as serious as as long as you are willing to work with the State agency or IRS on a resolution. There are many payment and resolution alternatives.

 

Question: What forms are needed to file for Innocent Spouse Relief

Answer: You are required to file form 8857.  Its critical that you also include a letter to the IRS to stress how you meet the requirements of the Innocent Spouse Relief. Chat with us online or give us a quick call at 866-928-2990 so we can walk you through the process.

Question: How many years can an Innocent Spouse Relief filing cover?

Answer: 3 years unless you want to cover more and you will need to file a separate IRS form 8857.

 

Question: What are the monthly amounts the IRS uses when considering a hardship?

Answer: The following is a break down:

-$227 for food

-$87 for miscellaneous expenses

-$85 for apparel and service

-$28 for housekeeping supplies

-$30 for personal care and services

-$57 for individuals under65 Health Care and $144 for individuals over 65

-$163 for public transportation, more for ownership of cars and difference of region, see links below for more details

-$1,000 rough average for housing. Varies greatly by both the state you live in and area.

 

Question: What form do I need to use to file a hardship with the IRS?

Answer: There isn’t a specific form that can be used to file a hardship. You or we can work with the IRS and ask them to have you to be considered for uncollectible status. You will be required to fill out IRS form 433-A which will give them detailed financial information about your situation. They will also require detailed breakdown of your monthly expenses.

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