Tax Relief Services

Providing You With Outstanding Tax Defense Solutions

Unfiled Tax Returns

Every year millions of Americans do not file their income tax return. Some don’t need to file, but many others forget and ignore the process. Others get confused as to whether they need to file. Filing requirements vary based on the taxpayer’s income and several other factors. If you are supposed to file a federal tax return, but you don’t, you face penalties, interest, and other collection actions. If the IRS believes that you owe taxes, they will file a Substitute for Return. This usually will mean that you owe more taxes than you should, because the IRS will not consider any deductions. Even if no taxes are owed, your right to claim a refund goes away after 3 years. The IRS usually sends you a letter explaining how they assessed the taxes and a form to consent to their assessment. It might not be a good idea for you to sign it because the IRS will give you only the standard deduction and no dependents. If you do not sign it, eventually they will assess the balance against you anyway.

The IRS has a significant penalty for not filing a tax return. Consequently, the IRS assesses a penalty of 5% of your balance for every month your tax return is late. This fine maxes out at 25% of your total tax liability. In addition, they will charge interests on the outstanding balance, which will also accrue continuously. Filing late returns is the first step you must take if you wish to have a favorable outcome in your tax relief process. The IRS will typically not accept any resolution unless the taxpayer is up to date with their filing requirements and estimated tax payments.

What can Reliable Tax Defense do for you?

Here at Reliable Tax Defense, we can help you file all the returns that you are legally REQUIRED to file in order to meet the compliance requirements. If you do not have your records for every year, we can obtain your Wage and Income Transcripts from the IRS. We can also help you recreate your accounting record, to maximize your deductions. Call us now at 1-844-601-8999 or email us at info@reliabletaxdefense.com to setup your free initial consultation with our licensed tax professional.

Audit Defense

An IRS audit is a formal review of financial information, used to verify that the tax return was done accurately. Their purpose is to minimize the tax gap, which is the difference between what the IRS is owed and what was received. Sometimes they are done randomly, while in other cases, taxpayers are selected based the tax returns’ DIF (Discriminate Function) score. A DIF score is a mathematical technique used to classify income tax returns as to Examination potential. Under this concept, formulas are developed based on available data and are programmed into the computer to classify returns by assigning weights to certain basic return characteristics. These weights are added together to obtain a composite score for each return processed. This score is used to rank the returns in numerical sequence (highest to lowest). The higher the score, the higher the probability of significant tax change. The highest scored returns are made available to Examination upon request.

After you’ve received a notice, you should protect yourself with audit representation. The IRS imposes deadlines in which issues must be resolved to prevent incurring additional fines or penalties. Remember that once the IRS begins an official investigation, any information you report could be potentially self-incriminating. It’s important to note that hiring a professional representation is not an indication that you’ve done something wrong. An IRS audit representative can save you time and stress by handling the endless paperwork. Hiring tax audit representation signifies that you take the audit seriously; it will make the IRS agent’s job easier and lead to a better outcome.

What can Reliable Tax Defense do for you?

As your audit representative, we will ensure you only divulge what they want to know – and nothing more. In addition, we will help you sort or even recreate your records in order to provide the auditor what he or she is looking. The faster you employ audit representation, the more quickly your case will be settled, and the sooner the IRS will be off your back. Being under collections from the IRS can be dangerous and intimidating, and the wrong advice can be very costly. Avoid taking chances with your financial future and talk to one of Reliable Tax Defense’s trusted professionals for audit representation. Call us now at 1-844-601-8999 or email us at info@reliabletaxdefense.com to setup your free initial consultation with our licensed tax professional.

Installment Agreement- Payment Plans

An Installment Agreement is an agreement between the IRS and the taxpayer that enables the taxpayer to pay his or her debt overt time (generally 60 – 72 months). There are 4 types of installment agreements under the IRS Fresh Start Program. It is important to note that interest and penalties will continue to accrue even when the taxpayer has entered into an installment agreement.

  1. Under $10,000 (Guaranteed, no financials)
  2. $10,000 - $25,000 (Streamline, limited financials)
  3. $25,000 - $50,000 (Streamline DDIA, limited financials)
  4. $50,000 - $250,000 (Full financials, over $250,000 assigned to revenue officer)
Hardship Status Request (Currently not Collectible)

With this resolution option the IRS will consider placing the account in a “hardship” or Currently Not Collectible status. In considering a taxpayer’s account for hardship status, the IRS will compare the taxpayer’s monthly gross income against what it calls “allowable” expenses. IRS monthly allowable expense are national averages for food, clothing, miscellaneous expenses, housing, transportation, medical expenses, among others. These allowable amounts vary depending on household size and local standards as well. Hardship is a subjective term, and even though a taxpayer’s monthly expenses may exceed IRS allowable amounts, it doesn’t mean that such status will be approved.

Being placed in CNC is generally not a permanent solution to a tax problem, unless the taxpayer is elder or on a fixed income. A taxpayer that is placed in CNC will have his or her status reviewed every 18-24 months by the IRS to determine if hardship status is still warranted. Generally, if the taxpayer’s AGI (adjusted gross income) increases significantly from the information contained in the application, the IRS will request the taxpayer to update the form to see if he or she can now make monthly payments towards the liability.

Being considered CNC has strategic planning merit if other viable solutions to a tax problem exist. For example, if a taxpayer is close to the Collection Statute Expiration Date (CSED), being put in hardship status for the remainder of that statutory period would result in the relief of those liabilities once the CSED has passed. It is important to note that while in CNC status the IRS will not actively try to collect, except for any refunds, if the taxpayer is due a refund upon filing his or her income tax return, the IRS will keep the refund and apply it towards the debt.

What can Reliable Tax Defense do for you?

Here are Reliable Tax Defense, our licensed tax professional will perform a financial analyzes and with the results we will evaluate all the viable options. We will discuss with you the pros and cons of placing you in CNC status. Once we have qualified you for CNC, we will complete all the pertinent paperwork and we will submit everything required by the IRS. Depending on the amount of the debt, we might be able to get the approval from the IRS right away. Call us now at 1-844-601-8999 or email us at info@reliabletaxdefense.com to setup your free initial consultation with our licensed tax professional.

Offer in Compromise

An Offer in Compromise (OIC) is the most advertised resolution option because depending on the circumstances the debt may get completely wiped-off. However, in order to qualify for an OIC you must show that you are in a genuine state of financial hardship. With the Fresh Start initiative, the IRS has made liberal changes to the OIC program that favors taxpayers. There are 3 different types of OIC options available, they are listed below:

    1. OIC - Doubt as to Liability - A compromise meets this only when there’s a genuine dispute as to the existence or amount of the correct tax debt under the law. There are frequently times when both the taxpayer and the IRS may doubt the liability and in this circumstance, they may allow a compromise to proceed. The amount of the offer should be based on what you believe the correct amount of the tax debt should be, not what the taxpayer owes. A statement should be included with supporting documentation explain why the tax debt or portion of the tax debt is incorrect.
    2. OIC – Doubt as to Collectability - Doubt as to collectability exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability. Ultimately, the IRS and the taxpayer settle the debt for less than the amount owed. The IRS will not accept an OIC if it believes the liability can be paid in full as a lump sum or through an installment payment plan.
    3. OIC - Effective Tax Administration - An offer may be accepted based on effective tax administration when there’s no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.

Getting an offer in compromise is not easy, the process may take between 1 and 2 years to complete. During the time the offer is being processed, the Statute of Limitation is tolled. You will need to demonstrate your circumstances so the IRS is absolutely certain that you cannot meet your liabilities.

You have two options as to how to settle your offer in compromise with the IRS:

  1. The first is a ‘lump sum cash offer’ where after a down payment of 20% of the agreed repayment you will make 5 or fewer repayments to settle the compromise. These payments must be made while the IRS reviews your offer and are non-refundable.
  2. Periodic Payment Offer. In this situation you will agree to a repayment plan with regard the offer which may well be 24 monthly repayments. You will enclose your first payment in the OIC and must then pay your offer monthly even while the compromise is being considered. These payments are non-refundable, even if the IRS reject your offer and demand more money.

What can Reliable Tax Defense do for you?

Here are Reliable Tax Defense, our licensed tax professional will perform a financial analyzes and with the results we will evaluate all the viable options. We will discuss with you the pros and cons of submitting an OIC. Once we have determined that an OIC is the right choice for your, we will complete all the pertinent paperwork and we will submit everything required by the IRS. This process could take up to two years, during that time we will stay by your side, contacting the IRS and answering any additional requests they might have. Call us now at 1-844-601-8999 or email us at info@reliabletaxdefense.com to setup your free initial consultation with our licensed tax professional.

Innocent Spouse Relief

Under federal law, if a joint income tax return is filed, signed by both taxpayer and spouse, both spouses are 100% responsible for the taxes owed. There are a few exceptions to this rule. The IRS has the power to release a spouse from direct financial liability for unpaid taxes. This release from responsibility from having to pay tax debts of the other spouse (or estranged spouse) is called innocent spouse relief.

The IRS understands that there are some situations in which a spouse cannot be held responsible for mistakes solely attributable to the other spouse. However, innocent spouse relief is very difficult to obtain and granted on a case-by-case basis. They will conduct an assessment of the “innocent” spouse’s education, work experience, relationship status (still married, divorced, or separated), physical or mental disabilities, and level of involvement in household finances to determine whether the spouse can qualify for innocent spouse relief.

What can Reliable Tax Defense do for you?

At Reliable Tax Defense, our licensed tax professional can help you with the application process and with the gathering of all the supporting documentation. With the combination of our experience in this type of resolution and your story, we will be able to adequately portray you situation to the IRS in a way that is truthful and compelling. Call us now at 1-844-601-8999 or email us at info@reliabletaxdefense.com to setup your free initial consultation with our licensed tax professional.

Liens & Levies Service

Some people use the words “lien” and “levy” interchangeably, however, they mean different things. A tax lien is a document filed by the IRS to protect the government’s ability to collect the money you owe. A levy is the forced collection of tax, for example by seizing money directly out of a bank account or paycheck. The IRS may take ownership of personal or business property when they fail to collect a tax liability. The process begins with a demand for payment with ten days to respond. If you don’t pay or reach an agreement, a tax lien gives the IRS legal rights to your property.

Assets that the IRS may seize:

  • Your bank accounts
  • Your real estate, cars, motorcycles, or boat
  • Cash value of life insurance
  • Your accounts receivable, if you own your business
  • Dividends
  • Your rental income
  • Any collectable items
  • Wage garnishment

Federal tax liens can be prevented from being filed in the first place by paying the tax in full and prior to any lien is filed by the IRS. Liens can also be prevented by setting up an installment agreement that meets the IRS requirements to avoid filing a lien. The IRS will not file a federal tax lien if a taxpayer sets up either a guaranteed installment agreement or a streamlined installment agreement. The tax lien can be released if the tax liability is paid, or a settlement is reached with the IRS to satisfy the debt. To protect your assets, it is essential to remove tax liens as quickly as possible.

What can Reliable Tax Defense do for you?

We understand how hard you have worked to acquire your assets. Anything of value can be taken to satisfy the tax liability. We also realize the potentially devastating effects of a federal tax lien. Our licensed tax professionals will evaluate all options allowable by law to permanently release or withdraw any liens. In levy cases we can help do a temporary stop while we arrange for a more permanent resolution. Call us now at 1-844-601-8999 or email us at info@reliabletaxdefense.com to setup your free initial consultation with our licensed tax professional.

Penalty Abatements

Some people use the words “lien” and “levy” interchangeably, however, they mean different things. A tax lien is a document filed by the IRS to protect the government’s ability to collect the money you owe.  A levy is the forced collection of tax, for example by seizing money directly out of a bank account or paycheck.  The IRS may take ownership of personal or business property when they fail to collect a tax liability. The process begins with a demand for payment with ten days to respond. If you don’t pay or reach an agreement, a tax lien gives the IRS legal rights to your property.

Assets that the IRS may seize:

  • Your bank accounts
  • Your real estate, cars, motorcycles, or boat
  • Cash value of life insurance
  • Your accounts receivable, if you own your business
  • Dividends
  • Your rental income
  • Any collectable items
  • Wage garnishment

Federal tax liens can be prevented from being filed in the first place by paying the tax in full and prior to any lien is filed by the IRS. Liens can also be prevented by setting up an installment agreement that meets the IRS requirements to avoid filing a lien. The IRS will not file a federal tax lien if a taxpayer sets up either a guaranteed installment agreement or a streamlined installment agreement. The tax lien can be released if the tax liability is paid, or a settlement is reached with the IRS to satisfy the debt. To protect your assets, it is essential to remove tax liens as quickly as possible.

What can Reliable Tax Defense do for you?

We understand how hard you have worked to acquire your assets. Anything of value can be taken to satisfy the tax liability. We also realize the potentially devastating effects of a federal tax lien. Our licensed tax professionals will evaluate all options allowable by law to permanently release or withdraw any liens.  In levy cases we can help do a temporary stop while we arrange for a more permanent resolution. Call us now at 1-844-601-8999 or email us at info@reliabletaxdefense.com to setup your free initial consultation with our licensed tax professional.

Payroll Taxes

All businesses are required to deduct payroll taxes from their employees’ paycheck and submit the withheld tax to the IRS. Failure to comply with these duties can lead to an audit, tax debt, and severe IRS penalties. A payroll tax penalty or the Trust Fund Recovery Penalty (TFRP) is charged when employers do not pay payroll taxes to the IRS. The IRS has the right to penalize you on delinquent payroll tax deposits or filings. Examples of penalties for non-payment of payroll taxes are failure to file, failure to deposit, and failure to pay.

In order to calculate the TFRP, the IRS includes the unpaid income taxes plus the employee’s portion of the withheld FICA taxes. If the IRS finds you to be non-compliant, you will receive an IRS letter regarding the penalty. You can make an appeal within 60 days from the date on the letter. If you don’t respond to the letter, the IRS will send you a Notice and Demand for Payment, after which they may initiate collection actions.

If you owe payroll taxes you need to take immediate action to resolve it, as owing payroll taxes can put your business at risk. In order to resolve your payroll tax debt, you may use a payment plan such as an Installment Agreement. If the IRS determines that you were responsible and willful for not paying the payroll taxes as they became due, they have the right to go after your personal assets and your case could even become a criminal case.  

What can Reliable Tax Defense do for you?

You shouldn’t live in fear that your business and assets will be seized. If you haven’t paid your payroll debts, then our professionals at Reliable Tax Defense will be more than happy to help you negotiate a deal and represent you before with the IRS. Our tax preparers understand how to properly prepare your IRS Form 941 and 940 returns and remit your returns.  We will assess your payroll tax debt. Then we provide a case review explaining your payroll tax debt issue include missing returns, tax balances owed and ways to resolve your payroll tax debt. Call us now at 1-844-601-8999 or email us at info@reliabletaxdefense.com to setup your free initial consultation with our licensed tax professional.

Tax Liabilities in Bankruptcy

If you have a significant debt or tax arrearage, you may be considering a personal bankruptcy filing as a way to starting again. You may be uncertain as to what the limitations are and how the process works under the Bankruptcy law, or even whether income taxes can be discharged through bankruptcy.

When it comes to taxes many people seem to believe that they will never go away, and they can’t be discharged in bankruptcy. However, that’s not entirely true. While it is true that some taxes cannot be discharged, and special rules apply to taxes so they are not like ordinary debts, at least some taxes can be discharged in bankruptcy.

The two most common types of taxes that individuals are assessed with are income taxes and trust fund (Payroll) taxes. Trust fund taxes cannot be discharged. These kinds of taxes mostly apply to business owners. They are taxes that are collected from a third party to be paid over to someone else, i.e., the government. For instance, when an employer withholds income tax and FICA taxes from an employee, these taxes are supposed to then be paid to the U.S. Treasury. In essence, the employer holds the money in trust to be paid over to the government. The same is true of sales taxes and other state non-income taxes. If the taxes are not paid to the government, the individual business owner is often assessed for these taxes, but they are not dischargeable in bankruptcy by either the owner or the business.

 

A liability for income (and some other excise taxes) can be discharged in bankruptcy if all of the following conditions are met:

  1. Three-Year Rule: The tax year in question is one for which the return was last due, including extensions, more than three (3) years before the filing date of the bankruptcy petition. The three-year period is computed from the most recent date of the tax return due for the tax year (typically April 15 of the year following the taxable year).
  2. Two-Year Rule: A tax return has been filed by the debtor/taxpayer or the tax year(s) in question are at least more than two (2) years preceding the filing date of the bankruptcy petition. Even when no tax return is filed, the tax may still be dischargeable in a Chapter 13.

 

What can Reliable Tax Defense do for you?

Our licensed tax professional will evaluate all your IRS liabilities and will discuss with you which ones are dischargeable in bankruptcy and which one are not.  We will also help you strategize to see if bankruptcy your best alternative in order to resolve your IRS debt.  Call us now at 1-844-601-8999 or email us at info@reliabletaxdefense.com to setup your free initial consultation with our licensed tax professional.

Freedom of Information Act Requests

The Freedom of Information Act gives citizens the power to know exactly what the IRS finds problematic with their tax returns on file, so they can plan better strategies for tax relief.  There are limits as to what information may be requested, and proper procedures must be followed. Any information requests that conflict in any way with the public interest or violates the right to privacy of other citizens will not be fulfilled.

 FOIA request is particularly helpful in cases where criminal proceedings are underway and can unearth facts that might turn the tides in your favor. Since criminal proceedings only take place in severe cases, a well-crafted FOIA request could potentially save an innocent taxpayer from being wrongly prosecuted.

What can Reliable Tax Defense do for you?

At Reliable Tax Defense we will create and submit the FOIA request to the IRS on your behalf.  Once the request is approved and the documentation is provided by the IRS, our licensed tax professional will review each and every page received in order to find any and all information that may help us resolve the case in your favor.  Call us now at 1-844-601-8999 or email us at info@reliabletaxdefense.com to setup your free initial consultation with our licensed tax professional. 

State Tax Resolution

Most State taxing authorities follow the same general guidelines for resolving tax debt as the IRS. The first step is compliance. File your missing/required tax returns, and make sure your current taxes are paid in full. Then negotiate the resolution of your back taxes. Bear in mind that each State may have more than one taxing authority with its own set of unique rules.

What can Reliable Tax Defense do for you?

Our licensed tax professional will contact your state taxing authorities and will make sure that first and foremost you are in compliance.  We will then analyze the state’s resolutions option available and help you figure out what works best for you.  Call us now at 1-844-601-8999 or email us at info@reliabletaxdefense.com to setup your free initial consultation with our licensed tax professional.

Statute of Limitation

A Statute of Limitation is a time period established by law to review, analyze and resolve taxpayer and/or IRS tax related issues. The Internal Revenue Code (IRC) requires that the IRS assess, refund, credit and collects taxes within a specified time period; otherwise, these actions are prohibited.   What this means is that the IRS has a certain amount of time to assess the tax or to file a protest by initiating a suit in court against the taxpayer. 

 

What can Reliable Tax Defense do for you?

Here at Reliable Tax Defense, we always review our clients’ transcript and analyze the statute of limitation prior to suggesting a resolution option available to our clients.  We will request the appropriate transcript from the IRS and we will recalculate all the dates.  Believe it or not, the IRS makes mistakes, our job is to find it and help our clients explore all their options.  Call us now at 1-844-601-8999 or email us at info@reliabletaxdefense.com to setup your free initial consultation with our licensed tax professional.