Tax Problem Help with the IRS

tax attorney

If you need tax problem help with the IRS, you have come to the right place. Here are some tax problems that individuals and small business routinely have and some helpful tips to solve your tax problems.

If you require additional tax problem help after reading this article, tax attorney Charles Rosselli can assist in solve your tax problems, once and for all.

I have years of unfiled tax returns

If you have years of unfiled tax returns, it can be scary and overwhelming. You may not have your tax records. You want to get your life back on track but you may not where to start.

With delinquent tax returns, great care must be taken in preparing and filing the necessary tax returns to satisfy the IRS requirements and get you back into the system.

The reason why is because Internal Revenue Code 7203, 6 U.S. Code § 7203 states that the failure to file a tax return is a misdemeanor and possibly a felony if the conduct was willful.

There is possible jail fine and fines associated with this section of the code. However, the good news is the majority of cases involving unfiled taxes do not become criminal matters.

The best strategy is get back on track is to take a proactive position and come forth with the help of a tax attorney.

A competent tax attorney will help you determine the best strategy to resolve your delinquent tax problems.

I owe back taxes to the IRS

If your tax problem involves owing back taxes, your goal should be to resolve your IRS tax issues under the best possible terms allowable under the law.

On the other hand, it is the goal of the Internal Revenue Service to obtain as much of what you owe in the shortest period of time. These interests are competing and conflicting.

If you make the mistake of calling the IRS yourself, you will see that the person on the other end of the phone serves the best interests of the government, not yours. 

2 Questions You WIll Be Asked If You Call The IRS Yourself:

1. " Where Do You Do Your Banking?"
2. " Where Do You Work?"

The reason why you are being asked these questions immediately is so that aggressive collection activity can be taken against you immediately or in the not so distant future.  What's your best option?

You may qualify for a tax debt settlement, a reduction or elimination of your penalties, or a reasonable payment plan.

However, it is not as easy as the advertisements all over the internet and radio offering tax problem help lead you to believe.

Rather, you should seek tax problem help from a  tax attorney that will analyze the specific of your particular situation and advise you accordingly.

I cannot afford to pay my back taxes

Many taxpayers cannot afford to pay their back taxes.

The good news is that the IRS has a program called the Offer in Compromise (OIC) that will allow an individual and certain circumstances businesses to lower the overall tax debt that is owed to the Internal Revenue Service, including penalties and interest.

The bad news is that the majority of offers submitted to the IRS are rejected.

The reason why most offers are rejected is because the financials of the taxpayer was not properly analyzed and documented prior to the offer being submitted to the IRS.

Often, the offer has the incorrect data and does not support the most advantageous position of the taxpayer based the Internal Revenue Service Collection Guidelines.

If you do not qualify for an Offer in Compromise, do not despair.

You may qualify for such IRS tax relief as the establishment of a partial pay installment agreement; or a reduction of your penalties.

The IRS has issued a wage garnishment

An IRS wage garnishment is the legal seizure of a percentage of your paycheck resulting from tax debt that the taxing authority claims that you owe.

The IRS calculates the amount of your paycheck that can be taken based upon IRS publication 1494. This table shows the amount of your wages exempt from levy.

As you can see from the table, the amount that the IRS cannot take (i.e. exempt) is based upon whether you are single or married and the number of your exemptions.

The IRS has levied my bank account​

    Under Internal Revenue Code (IRC) Section 6343(b), the IRS can serve a notice of levy to your banking institution due to unpaid tax debt.

    An IRS bank levy takes directs your bank to turns over any money in your bank account up to the amount of the tax debt.

    The bank levy is broad as it includes any account that you have at the bank including but not limited to checking accounts, savings accounts, money market accounts and Certificates of Deposit.

     You have up to 21 days to get the tax problem solved.

    Under IRC 6332(c), your bank must wait 21 calendar days after the levy is served before sending the fund in the bank account, up to the amount of the tax debt, to the IRS.

    The IRS has issued a federal tax lien

    An IRS tax lien is the legal claim of the United States government against your property when you do not pay your tax debt.

    The federal tax lien is broad in scope as it extends over any real estate you may own, personal property and financial assets.

    Generally, an IRS tax lien happens after the tax liability has been assessed; a demand for payment has been made; and you have not paid the tax debt.

    You will typically find out that a federal tax lien has been filed in one of three ways:

    • You will receive IRS Form 688 (Y), Notice of Federal Tax Lien in the mail. It will sent to your last known address.
    • You will check your credit report and see it on the report. It will negatively affect your credit score.
    • You will attempt to sell your property and you will unable to clear title to sell the asset as the IRS tax lien is recorded in the county in which you own the asset.

    Besides negatively affecting your credit score, you would not be able to sell or refinance your property unless the tax liens is discharged, withdrawn, or subordinated by the IRS.

    The size of the tax lien continues to grow as your tax debt accrues penalties and interest.

An IRS Revenue Officer showed up

Depending upon the size of your IRS tax debt or the length of your delinquency, the IRS may assign a Revenue Officer to your case.

It is not uncommon for Revenue Officers to show up at your home or place or place of employment.

IRS Revenue Officers have the ability and the authority to levy your bank account, garnish your wages, seize your real estate, and put a federal tax lien on your home.

They are also influential in making a determination about any settlement options or negotiations you may be trying to make to settle the debt, such as an Offer in Compromise or Installment Agreement.

They are also influential in making a determination about any settlement options or negotiations you may be trying to make to settle the debt as well as referrals to the Criminal Division.

At this juncture in your tax problem, it probably a good idea to seek legal counsel.

Your tax matter has become a priority in the eyes of the IRS. Be polite to the Revenue Officer ; take his business card ; and contact a tax attorney.

I don’t know where to start 

Many people with IRS tax problems are paralyzed by fear. They do not where to start…

  • "Should I call the IRS"
  • " I don't have my records."
  • " I don't know what the IRS is going to do next."
  • "Will I go to jail?"

If you have an IRS problem, these are some of the questions that may be running through your mind

Often, the best solution in a tax case like this is to have an experienced tax attorney obtain and analyze your tax file.

The IRS maintains a tax file on every individual and business.

Your tax file outlines your history with the IRS; the amounts that you owe and for what years; and what the IRS is likely to do next with respect to enforcement.

A  local tax attorney that handles IRS and New York State tax problems on a regular basis will be able to advise as to the appropriate actions that are necessary to protect you based upon a review of your particular circumstances.

The IRS is unreasonable

Often, taxpayers encounter the harsh reality of attempting to call the IRS on their own and “work out a deal.

You have to understand three points when dealing the IRS:

1. IRS personnel represent the interests of the government, not yours

2. “Working out a deal” with the IRS is based upon tailoring your specific facts to the tax laws and the Internal Revenue Collection Manual

3. IRS personnel will not advise you as to the best option to save you money or reduce your tax debt

I received an IRS collection notice

The Internal Revenue Service has a computerized letter system if you owe back taxes. Each IRS collection notice is sent approximately 30 days apart and often each letter has more serious consequences.

As you move down the collection notice sequence, your chance of a levy on your bank account, federal tax lien. or garnishment on your wages increases. 

If own a business, the IRS may sometimes skip the IRS collection sequences and go straight to the final notices.

You should open all the notices that you receive and try to solve your tax problem before the IRS takes your bank account, wages, or real estate.

The tax debt is my spouse’s fault

Under Internal Revenue Code Section 6105, a spouse or ex-spouse may be relieved of a tax liability under certain circumstances.

Generally, there are 5 types of relief available under this section of the tax code:

1. Injured Spouse

2. Innocent Spouse Relief under IRS Section 6015(b)

3. IRC Section 6015(c): Election of Separate Liability

4. IRC Section 6015(f) : Equitable Relief

5. Relief from liability pursuant to IRC Section 66 ( This applies only in community property states so if you are reading this and you are from New York, this section does not apply to you.)

Several of the issues to be explored by an experienced tax attorney to see which section of the tax code you may be able to avail yourself are as follows:

1. Was a joint tax return filed for the tax year in question

2. Was there an understatement of tax due to an audit or is there a balance due for the tax year in question

3. Was there knowledge or reason to know of the omission

4. When did the tax debt arise

If successful with your claim for Innocent Spouse Relief, you will be relieved of the entire tax liability.

However, before any paperwork is submitted to the IRS, please seek tax problem help from an experienced tax attorney. 

IRS penalties are adding to my tax debt

The IRS has numerous penalties they can assess you with. The penalties that you owe can be a high percentage of the tax debt that you owe to the IRS.

To make matters worse, you are paying interest on the penalties and the tax debt.

If you do qualify, a tax attorney can properly formulate a request to the IRS to have your penalties reduced or eliminated. This is called a penalty abatement.

My business has payroll tax problems

If you are a small business owner, you know that payroll taxes may not get paid when your business is slow. Your main goal is that your business stays afloat.

However, the IRS does not see it that way.

The IRS considers unpaid payroll or employment tax a high priority debt and a serious offense.

As you may be aware, it is your responsibility to collect federal income, and Social Security and Medicare taxes from employees to pass along to the IRS.

These taxes are also called trust fund taxes, which is why the IRS may deem the non-payment of these taxes “theft.”

The IRS does not care that you cannot pay your employees or that you are owed receivables. It is not uncommon for a Revenue Officer to be assigned to your payroll tax case.

Revenue Officers will seize the assets of your business and assess you personally for the taxes of the business.

A court order is not necessary and the IRS will move quickly.

The IRS will want to assess the tax debt of the business to you personally if you are deemed a “responsible party.”

This is called the trust fund penalty and if assessed, it allows the IRS to go after your personal assets. 

Tax Problem Help

You may owe a few hundred dollars to the IRS and as such, it may not make financial sense to hire a tax attorney where the dollar amount owed is not very high.

However, when you have a serious IRS or New York State tax problem, a tax lawyer who handles tax problem cases on a regular basis can advise you as the best strategy available for your particular circumstances.

Second, many tax problems have the possibility of becoming very serious legal problems. Certain tax matters can be referred to the IRS criminal division.

If you are a non- filer, for example, there are possible criminal ramifications and as such, you are best served by someone who has been trained to be an advocate.

The good news is that every tax problem has a solution. 

The bad news is that you have to deal with the taxing authorities who are often unreasonable and don’t have your best interests at heart.

Your best interests may be best served by seeking tax problem help from a qualified tax attorney.

Charles Rosselli, Esq.

Charles Rosselli, Esq., founder of the Tax Problem Law Center, is a New York tax attorney that focuses on helping individuals and businesses throughout New York & nationwide solve their IRS and NYS state problems.

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