Problems With The IRS

PROBLEMS WITH THE IRS?

FIRST TIME HEARING FROM THE IRS?

• THE CP2000’S IRS NOTICES

• AUDIT PROCESS AND REPRESENTATION SERVICES

• WHAT ARE MY RIGHTS?

• IRS COLLECTIONS PROCESS

DO YOU HAVE A LIEN ON YOUR PROPERTY?

• HOW TO GET RID OF A LIEN

• HOW DOES A LIEN AFFECT YOU

• STEPS TO RESOLVING A LIEN

IS YOUR PROPERTY LEVIED (SIZED)?

• WHY IS MY PROPERTY BEING LEVIED?

• HOW CAN I GET MY LEVY RELEASED?

• CAN I APPEAL MY LEVY?

EMPLOYMENT TAX TROUBLES?

• WHAT ARE EMPLOYMENT TAXES?

• WHAT IS THE TRUST FUND RECOVERY PENALTY?

THE CP2000 NOTICE

THESE IRS NOTICES ARE ONE OF THE MOST COMMON AND ARE USUALLY SENT OUT BY A PROGRAM THAT MATCHES AMOUNTS REPORTED BY YOUR EMPLOYERS AND/ OR FINANCIAL INSTITUTIONS TO WHAT YOU REPORTED. IF THERE IS ANY DISCREPANCY, THE IRS SEND CP2000 TO PROPOSE ADJUSTMENTS TO INCOME, PAYMENTS, CREDITS OR DEDUCTIONS AND CAN RESULT IN EITHER A LIABILITY OR REFUND. THE TAXPAYER HAS THE OPTIONS TO EITHER AGREE TO THE PROPOSED CHANGES, DISAGREE OR DO NOTHING. NORMALLY YOU NEED TO RESPOND IN 30 DAYS AND IF YOU DISAGREE, MAKE SURE TO SEND IN SUPPORTING DOCUMENTATION.

MAIL AUDIT PROCEDURE

AFTER CHANGES HAVE BEEN PROPOSED BY THE IRS IN THE 30-DAY LETTER (LETTER 525), THE TAXPAYER HAS 30 DAYS TO EITHER ACCEPT AND PAY THE PROPOSED LIABILITY, APPEAL THE FINDINGS WITH THE IRS APPEALS DIVISION, OR DO NOTHING AND RECEIVE A NOTICE OF DEFICIENCY (KNOWN AS THE 90-DAY LETTER).

IF YOU ACCEPT AND PAY THE PROPOSED LIABILITY, THERE ARE MULTIPLE PAYMENT OPTIONS FOR YOUR LIABILITY.

IF YOU DON’T AGREE, YOU CAN FILE AN APPEAL WITH YOUR ASSIGNED APPEALS OFFICER THROUGH A FORMAL PROTEST OR SMALL CASE REQUEST,IF QUALIFIED WITHING 30 DAYS OF THE 30 DAY LETTER.

IF YOU DO NOTHING, YOU WILL RECEIVE THE 90-DAY LETTER, NOTICE OF DEFICIENCY, AND HAVE 90 DAYS WITHIN RECEIPT OF THE LETTER TO FILE A PETITION WITH THE TAX COURT OF PROPOSED LIABILITY

WE CAN PROVIDE REPRESENTATION SERVICES TO PROPERLY CORRESPOND WITH THE IRS AND LESSEN, OR EVEN IN SOME CASES ELIMINATE, YOUR PROPOSED LIABILITY

WHAT ARE MY RIGHTS?

• A RIGHT TO PROFESSIONAL AND COURTEOUS TREATMENT BY IRS EMPLOYEES

• A RIGHT TO PRIVACY AND CONFIDENTIALITY ABOUT TAX MATTERS

• A RIGHT TO KNOW WHY THE IRS IS ASKING FOR INFORMATION, HOW THE IRS WILL USE IT AND WHAT WILL HAPPEN IF THE REQUESTED INFORMATION IS NOT PROVIDED.

• A RIGHT TO REPRESENTATION, BY ONE’S SELF OR AN AUTHORIZED REPRESENTATIVE

• A RIGHT TO APPEAL DISAGREEMENTS, BOTH WITHIN THE IRS AND BEFORE THE COURTS

FOR MORE INFORMATION, REFER TO PUBLICATION 1, YOUR RIGHTS AS TAXPAYER

IRS COLLECTIONS PROCESS

• IF YOU ARE ABLE TO PAY YOUR LIABILITY IN FULL, YOU CAN DO SO BY DIRECT PAY ( A SECURE ACH PAYMENT METHOD THROUGH WWW.IRS.GOV/PAYMENTS/DIRECT-PAY, THE EFTPS SYSTEM, CREDIT OR DEBIT CARD, MAIL OR IN PERSTON AT A LOCAL IRS OFFICE

• IF YOU ARE UNABLE TO PAY THE FULL LIABILITY, YOU CAN APPLY FOR AN INSTALLMENT AGREEMENT (WE CAN HELP FOR THESE APPLICATIONS AS WELL)

• APPLY FOR AN OFFER IN COMPROMISE, IF ELIGIBLE UNDER CURRENT FINANCIAL POSITION

• DO YOU HAVE A LIEN ON YOUR PROPERTY? IF SO, IT MEANS YOU HAVE FAILED TO PAY YOUR FIRST BILL FOR TAXES DUE. THERE ARE SEVERAL WAYS OF LIFTING A LIEN FROM YOUR PROPERTY, HOWEVER THE NOTICE OF FEDERAL TAX LIEND, ISN’T ONLY A NOTICE TO YOU, BUT OTHER CREDITORS ABOUT THE IRS’ CLAIM TO YOUR PROPERTY REGARDING YOUR OUTSTANDING LIABILITY AND CAN HAVE NEGATIVE IMPANCT ON YOUR CREDIT SCORE. WE CAN HELP YOU MANAGE YOUR LIEN AND WITHDRAW IT AND PREVENT FURTHER LIENS BY A FEASIBLE WAY OF PAYING YOUR LIABILITY

• LEVY – UNLIKE A LIEN, WHICH IS A LEGAL CLAIM AGAINST YOUR PROPERTY, A LEVY TAKES YOUR PROPERTY TO SATISFY YOUR TAX LIABILITY. YOU WILL RECEIVE ONE OR TWO NOTICES OF INTENT TO LEVY AND NOTICE OF YOUR RIGHT TO A HEARING BEFORE RECEIVING A FINAL NOTICE AND HAVING 30 DAYS TO RESPOND. WE CAN LIFT YOUR LEVY, ASK US HOW

HOW TO GET RID OF A LIEN

• IF YOU HAVE A LIEN ON YOUR PROPERTY YOU HAVE SEVERAL WAYS OF MANAGING YOUR LIEN BY RELEASING, WITHDRAWING OR DISCHARGING A LIEN.

• YOUR LIEN MAY BE RELEASED ( A “RELEASE” MEANS THAT THE IRS HAS CLEARED BOTH THE LIEN FOR YOUR DEBT AND THE PUBLIC NOTICE OF FEDERAL TAX LIEN) IF YOU EITHER PAY YOUR DEBT FULLY, YOUR PAYMENTS HAS BEEN GUARANTEED BY A BOND, YOU HAVE MET THE TERMS OF AN OFFER IN COMPROMISE, WHICH THE IRS HAS ACCEPTED, OR THE PERIOD OF COLLECTION HAS ENDED

• YOUR LIEN MAY BE WITHDRAWN (A “WITHDRAW” MEANS THAT THE NOTICE OF FEDERAL TAX LIEN IS REMOVED FORM PUBLIC RECORD AND SIGNALS TO CREDITORS THAT THE IRS IS ABAONDING THEIR LIEN PRIORITY; THE FEDERAL TAX LIEN AND LIBILITY STILL REMAIN) YOU’VE ENTERED INTO AN INSTALLMENT AGREEMENT, IT WILL HELP YOU TO PAY YOUR LIABILITY QUICKER, IRS DIDN’T FOLLOW PROCEDURE, IT WAS FILED DURING A BANKRUPTCY AUTO-STAY PERIOD OR THE WITHDRAWAL IS IN BOTH THE INTERESTS OF THE IRS AND TAXPAYER

• A LIEN MAY ALSO BE DISCHARGED FOR A SPECIFIC PROPERTY, FOR INSTANCE, WHEN WANTING TO SELL THE PROPERTY ONLY IF THE GOVERNMENT GETS ITS INTEREST IN THE SALE.

HOW A LIEN AFFECTS YOU:

• ASSETS – A LIEN ATTACHES TO ALL OF YOUR ASSETS (SUCH AS PROPERTY, SECURITIES, VEHICLES) AND TO FUTURE ASSETS ACQUIRED DURING THE DURATION OF THE LIEN

• CREDIT – ONCE THE IRS FILES A NOTICE OF FEDERAL TAX LIEN, IT MAY LIMIT YOUR ABILITY TO GET CREDIT

• BUSINESS – THE LIEN ATTACHES TO ALL RIGHTS TO BUSINESS PROPERTY, INCLUDING ACCOUNTS RECEIVABLES

• BANKRUPTCY – IF YOU FILE FOR BANKRUPTCY, YOUR TAX DEBT, LIEN AND NOTICE OF FEDERAL TAX LIEN MAY CONTINUE AFTER THE BANKRUPTCY

STEPS TO RESOLVING A LIEN

• YOU CAN RELEASE THE LIEN IF YOU CAN PAY YOUR LIABILITY IN FULL, YOUR PAYMENT IS GUARANTEED BY A BOND, THE IRS HAS ACCEPTED YOUR OFFER IN COMPROMISE PAYMENT TERMS OR THE COLLECTION PERIOD HAS ENDED.

• YOU CAN DISCHARGE OR WITHDRAW THE LIEN, BUT IT DOESN’T RESOLVE THE LIABILITY YOU HAVE WITH THE IRS

• TO RESOLVE A LIEN, THE DEBT WITH THE IRS MUST BE SATISFIED. IN SOME CASES, THE LIABILITY AMOUNT MAY BE NEGOTIATED AND REASONABLE MONTHLY PAYMENTS ARRANGED IF YOU QUALIFY FOR AN OFFER IN COMPROMISE

• OTHER SOLUTIONS MAY BE MORE FAVORABLE FOR YOUR CASE

• TO TRULY RESOLVE A LIEN, WE MUST NEGOTIATE YOUR LIABILITY WITH THE IRS OR SIMPLY PAY IT OFF IF POSSIBLE

WHY IS MY PROPERTY BEING LEVIED?

• THE IRS HAS ASSESSED TAX AND SENT YOU A BILL, YOU NEGLECTED OR REFUSED TO PAY YOUR ILL, THE IRS HAS SENT YOU A FINAL NOTICE OF INTENT TO LEVY AND AT LEAST 30 DAYS HAVE PASSED

HOW CAN I GET MY LEVY RELEASED?

THERE ARE SEVERAL WAYS TO HAVE THE IRS RELEASE YOUR LEVY:

• YOU PAID THE AMOUNT OWED TO THE IRS

• THE PERIOD FOR COLLECTION ENDED PRIOR TO THE LEVY BEING ISSUED

• THE RELEASE WILL HELP YOU IN PAYING YOUR TAXES

• YOU ENTER INTO AN INSTALLMENT AGREEMENT AND THE TERMS OF THE AGREEMENT DON’T ALLOW FOR THE LEVY TO CONTINUE, YOU CAN SUE THE FEDERAL GOVERNMENT FOR DAMAGES

• THE LEVY CREATES AN ECONOMIC HARDSHIP, MEANING WE’VE DETERMINED THE LEVY PREVENTS YOU FROM MEETING BASIC, REASONABLE LIVING EXPENSES

• THE VALUE OF THE PROPERTY IS MORE THAN THE AMOUNT OWED AND RELEASING THE LEVY WON’T HINDER OUR ABILITY TO COLLECT THE AMOUNT OWED

• IF THE LEVY WAS ISSUED IMPROPERLY

CAN I APPEAL MY LEVY?

YES, HOWEVER, UPON RECEIPT OF THE NOTICE OF INTENTO TO LEVY AND NOTICE OF YOUR RIGHT TO A HEARING, YOU HAVE 30 DAYS FROM THE RECEIPT OF THE TWO NOTICES TO REQUEST A COLLECTIONS DUE PROCESS HEARING.

AT THE END OF THE HEARING, OFFICE OF APPEALS WILL PROVIDE A DETERMINATION. IF YOU ARE NOT PLEASED WITH THE DETERMINATION, YOU HAVE 30 DAYS TO CHALLENGE IT WITH THE US TAX COURT.

THE COLLECTIONS DUE PROCESS MIGHT NOT BE AVAILABLE FOR YOUR CASE. IF CIRCUMSTANCES ARE IDEAL, WE MAY BE ABLE TO GO WITH THE COLLECTION APPEALS PROGRAM.

WHAT ARE EMPLOYMENT TAXES?

EMPLOYMENT TAXES ARE THE AMOUNTS WITHHELD FROM YOUR EMPLOYEES’ INCOME FOR INCOME TAXES, SOCIAL SECURITY/MEDICARE (FICA), AND MATCHING AMOUNTS PAID TO EACH EMPLOYEE.

EMPLOYMENT TAXES ARE INCURRED AT THE TIME YOU PAY WAGES AND THE DUE DATES (SEMI-WEEKLY, MONTHLY OR NEXT-DAY) IS DETERMINED UPON GROSS WAGES OR WHICH DAY PAY-DAY FALLS ON.

FAILURE TO PAY EMPLOYMENT TAXES WILL RESULT IN THE ASSESSMENT OF THE TRUST FUND RECOVERY PENALTY.

WHAT IS THE TRUST FUND RECOVERY PENALTY?

THE TRUST FUND RECOVERY PENALTY IS A PENALTY ASSESSED PERSONALLY AGAINST THE INDIVIDUAL OR INDIVIDUALS WHO WERE RESPONSIBLE FOR PAYING THE TRUST FUND TAXES (TAXES WITHHELD FROM EMPLOYEES’ WAGES), BUT WILLFULLY DID NOT DO SO.

THE AMOUNT OF THE PENALTY IS EQUAL TO THE AMOUNT OF THE UNPAID TRUST TAXES.

IF YOU OR YOUR BUSINESS RECEIVES LETTER 1153 AND FORM 2751, PROPOSED ASSESSMENT OF TRUST FUND RECOVERY PENALTY. IF YOU DISAGREE WITH THE FINDINGS, YOU HAVE 10 DAYS FROM THE DATE OF THE LETTER TO RESOLVE IT WITH THE IRS.

DON’T DO IT ALONE, LET US HELP!