Definitely Not Rescue 911
I was on a conference call yesterday with several other practitioners who practice in the area of tax problem resolution because I had a specific question that I was hoping to get answered but also because I wanted to get a sense of what other people around the country are dealing with related to the IRS. What I heard startled me.
Here’s a little background on the case I had a question about. Basically, the IRS is levying my client’s income. The type of arrangement my client has with her client makes this levy basically a 100% levy so she has absolutely no income to pay basic living expenses. The revenue officer was not working with us on getting the levy released (or at least reduced) so I filed a Taxpayer Assistance Order (Form 911) with the Taxpayer Advocate’s office to seek some relief from them. The Taxpayer Advocate’s letterhead has this quote in its logo, “Your Voice at the IRS.” However, when I received her response the letter appeared to have been written by the revenue officer and signed by the taxpayer advocate. In a nutshell the letter said, “too bad, so sad.” Because my client was not “in compliance” (meaning she was current with all of her taxes) the taxpayer advocate could not help her. My question is this, who calls the taxpayer advocate for help? Certainly not the people who have no tax issues and are current! It is the person who is struggling to get on their feet and the IRS is harassing them who needs the help of the Taxpayer Advocate.
What I heard on the conference call yesterday was that many practitioners around the country are also dealing with this type of IRS. It is hard to get any help even when you are doing everything you can to get back on track with the IRS. There have been some rumors about the IRS recently and that things may “loosen up” for a little while because of the state of the economy. However, nothing has come down in any official capacity to give practitioners any guidance.
IRS Lien Releases
QUESTION: I owe the IRS a substantial amount of money, but I do not have any money left over at the end of the month after I pay my bills to be able to afford to pay anything on my taxes. I could refinance my house since the rates are a lot lower now and save a few hundred dollars per month, but the IRS has a lien. Can you help me?
ANSWER: Yes, it is possible to work with the IRS to have the lien either released or subordinated beneath the lender’s mortgage so you can refinance your home. In fact, due to the state of the economy there are some new rules where the IRS is expediting the process of releasing or subordinating liens for taxpayers so they can refinance their homes to take advantage of the low mortgage interest rates. They are especially excited to be able to subordinate a lien when you will be able to take some money out of the equity in your home to pay your tax debt, but that is not always necessary.
Happy New Year from AtkinsSC.com
Dear Readers,
Can you believe that there is just one more day left in 2008? It is hard to imagine that this year has gone by so fast. While tomorrow will be a time to celebrate the entrance of a new year, today you can look forward to what that new year will bring. We will experience several new beginnings in 2009: our new President will begin his duties in a few weeks, the country is experiencing an economic crisis, and there is no question that we will all encounter new challenges throughout 2009. It is refreshing to look forward at a new year to imagine how we will move forward and build on the things we achieved in the previous year. I know many of our readers are dealing with legal issues that have caused a lot of stress over the past year. The only sure thing about those issues is that they will not go away on their own. Whether you are dealing with tax problems and the IRS or you lost a loved one in 2008 and need assistance with the probate process we can assist you with your legal needs and help make your new year better. We can also assist you with real estate and estate planning matters. Please call us today to set up a free, no-obligation, consultation so we can discuss how your legal matters can be resolved.
Happy New Year from AtkinsSC.com!
Merry Christmas from AtkinsSC.com
Dear Readers,
This is an exciting time of year and I am excited to wish you a Merry Christmas on behalf of AtkinsSC.com. While this time of year is a happy time it is also filled with hurry and stress. It is my hope that you and your family will take the opportunity to spend some quality time together this Christmas. I understand that many of the people that have retained our firm to assist them this year or who are considering coming to speak to us are feeling extremely anxious about what may happen to them because of the money they owe the IRS, and Christmas may seem like just another day of stress. I encourage everyone to take some time today to not worry about your tax liability and celebrate the true reason for Christmas, Christ’s birth. After you have taken some time to be thankful for what you have been blessed with in 2007, I would encourage you to call our office to set up a free consultation to discuss the possible resolutions to you problems. No matter how dire your situation may sound, I would like to give you some hope this Christmas season so you know that there is a way to resolve your problems with the IRS. Please call our office for a consultation soon. There is no charge and no obligation. We want to assist you with resolving your tax problems and take that burden off of you. I would also like to remind our readers that we also handle probate, real estate and estate planning matters and would be happy to discuss those matters with you for free as well. Call us soon for your free consultation.
Merry Christmas from AtkinsSC.com!
What Can I Do to Stop an IRS Levy?
QUESTION:
The IRS has placed a levy on my wages. What can I do to stop it?
ANSWER:
Getting the IRS to release a levy is not an easy task. If you act quickly enough there are several ways we can help you prevent a tax levy. The type of action you must take depends on whether the levy is against your wages or a bank account. Although your employer or bank has to withhold funds from you immediately after receiving Notice of Levy, they are instructed to hold the money for 21 days (up to 45 days if you file an appeal). If your wages are levied, you must request a CAP (Collection Appeals Program) hearing within ten days of the levy. This will be decided within five business days. You may also file a Collection Due Process appeal within thirty days of the levy. Even if the levy originates from the Automated Collection System in Philadelphia, we can usually get it released. Generally, an Installment Agreement can be negotiated which results in the levy being lifted. If you miss the thirty-day deadline for an appeal, you can still request an equivalent hearing, but this will take longer. Again there are several avenues we can explore to help you. I will be happy to talk with you about your situation and tell you how I can help. Your initial consultation is free and you will be under no obligation. The sooner you take action, the sooner you can rest easy and cease worrying about those taxes and levies! Please call today for a free consultation. For all of my readers, if you have any legal problems, such as unpaid taxes, real estate, probate, domestic and personal injury matters, I can help. If you need help with any legal matter, please call today for your free consultation.
What Documents Do You Need for an Offer In Compromise?
Question: I would like to submit an offer in compromise, but I have heard that the process is similar to an audit and that I will have to provide a lot of documents to the IRS. What kind of information would I have to provide if I file an offer in compromise?
Answer: There are three types of offers in compromise, but the offer based on doubt as to collectability is the most common and is what we will address here. Basically, an offer in compromise based on doubt as to collectability means that you know you owe the taxes, but you do not have the money to pay the taxes to the IRS and you want them to accept a smaller amount. When you file this type of offer you will need to provide a Form 433-A that is a financial document listing all assets that you own and your income and expenses. This form also asks for proof of the values you listed so you will need to provide documents like a recent appraisal of the real estate that you own, Blue Book sheets for your vehicles, three months of account statements from banks and other financial institutions. You also need to provide proof of medical expenses such as doctors’ bills, a printout from the pharmacy showing how much you have spent this year on medications, mortgage statements, and utility bills. This information all has to be sent with your offer in compromise application and usually is required to be updated throughout the offer in compromise process. We would use this information to determine if you qualify for an offer in compromise and the IRS will use the information to determine whether they will accept your offer. If you would like to discuss your case, we offer a free, no obligation consultation. Please call our office today to schedule that meeting. We can also assist you with estate planning, probate and real estate matters. Please call today for your free consultation.