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FAQ
Who is eligible for Tax Relief?
Almost everyone is eligible for some form of tax relief. Our Tax Relief Professionals know your rights. From swiftly liberating a wage garnishment to negotiating a settlement, they will provide a fast, accurate solution and enforce your rights in the way they were intended.
How much could I save if I took advantage of this settlement?
That depends on your specific situation such as your age, total assets, income, expenses, etc. In an average case, we usually save tens of thousands of dollars for our clients.
Could I file the settlement myself?
Of course. Anyone can file his or her own settlement. However, the IRS scrutinizes each case very closely. If your proposal is not accurate or complete, you may wind up paying much more than you should. Most people find that working with a firm that specializes in settlements actually saves a lot of time and work but also a significant amount of money. Our team of professionals knows the critical IRS secrets.
Why does the IRS want to settle?
There are situations where a person will not be able to pay their full debt to the IRS. The IRS realizes that there are many circumstances where no matter how hard they try they will not be able to get the full amount they are due. So it's in their interest to settle with.
How can the IRS collect money from me or my company?
The IRS has a staff of about 18,000 and will be staffing more in its Collection Division. They can file a federal tax lien against all your assets; levy your bank accounts and/or wages; seize your home, investments, retirement, cars, business, or anything of value.
How do I know that I will get my settlement proposal accepted by the IRS?
We use the IRS guidelines, so we can tell you with a very high degree of accuracy if you qualify or not. If we feel that you are not a likely candidate for a settlement, we will tell you so before you consider retaining us.
What are Back Taxes?
Tax debt that is unpaid and past due taxes are assessed against a taxpayer by the government (i.e. Federal, State, Local). Federal back taxes are owed to the Internal Revenue Service (IRS). Back taxes are owed for not paying taxes when they are due, failing to report all income on a tax return, or failing to file a return.
What Is a Bank Levy?
The IRS sends the taxpayer a Final Notice of Levy. This is the final
document received by the taxpayer, informing the taxpayer that the IRS
is pursuing a bank levy. Another Notice of Levy is mailed to the taxpayer’s
bank and the bank is legally obligated to attach all accounts in the
name of the taxpayer, irrespective of sole or joint account status.
Hence, levy freezes the cash funds on deposit in the accounts. The bank
doesn't allow anyone to access funds for 21 days from the date of receipt
of the IRS Notice. However, once the 21 days expire, the bank must send
the frozen cash funds to the IRS.
What is Bankruptcy?
Bankruptcy is a legal process which results in debt relief. The resultant
debt relief can be garnered through reorganizing debt or by liquidating
assets. However, filing bankruptcy doesn't mean that you are free from
your previous tax debt. In many cases, it is possible to file for bankruptcy
and still owe tax debt to the IRS.
What is a Collateral Agreement?
A secondary agreement that the IRS could require before approving to settle your back tax liability.
What Is a Collection Information Statement?
The Collection Information Statement is a form used by the IRS to determine what back taxes might be owed, to derive at a proper tax resolution typically through a tax service. This form usually gives information about the taxpayer’s income, expenses, and assets. The Collection Information Statement is a form used by the IRS to determine what back taxes might be owed, to derive at a proper tax resolution typically through a tax service. This form usually gives information about the taxpayer’s income, expenses, and assets.
Who Is a Creditor?
Person or company that lends you money.
What is Currently Non-Collectible Status?
Currently Non-Collectible status is a situation in which the IRS recognizes
that the taxpayer does not have the financial ability to pay the tax
debt through, full payment, an Installment Agreement or by an Offer
in Compromise. Once a taxpayer’s account is in Currently Non-Collectible
status the IRS does not seek collection against the taxpayer. Also,
while in this status, the statues of limitations on the tax liabilities
continue. So, if the taxpayer’s financial circumstances don't change,
the account remains in Currently Non-Collectible status until the tax
liabilities expire.
What Is a Debt Consolidation Loan?
Combines all outstanding loans into one single loan, usually with a lower repayment schedule.
What Are Dissipated Assets?
Dissipated assets occur when funds are directed for a purpose other than paying off tax debt obligations. For example, a taxpayer who owes a tax debt uses monies from Home Equity Line of Credit to pay for home improvements. The IRS sees the HELOC funds for home improvement as dissipated assets.
Thus, the IRS can refuse to settle and negotiate the tax debt in view
that those funds should've been used to alleviate the existing IRS tax
debt.
What is a Lien?
A lien is a legal interest that a creditor has in the debtor’s property asset, the legal interest remains until the debt is satisfied.
What Is a Tax Lien?
A tax lien is a lien on a property asset to secure the tax debt. The tax lien is not specifically related to the debt owed on that property.
What Is Wage Garnishment?
The IRS has the right to issue a wage garnishment, a levy attached to a taxpayer’s wages who owes the IRS a tax debt. Proper notice must be given by the IRS to the taxpayer before it can actually issue the levy. The IRS informs the taxpayer’s employer of the wage garnishments and the employer is legally obligated to comply with the terms of the wage garnishment.
However, the IRS is not allowed to take all of a taxpayer’s wages, only up to 80 percent of the wages. The IRS will release the wage garnishment in full if the taxpayer agrees to pay the liability in full, or can prove that the garnishment is causing financial hardship.
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