Settle Your IRS Debt for Less Than What You Currently Owe
Minnesota’s Tax Resolution Specialists
More and more businesses in Minnesota struggle with Tax Debt and Tax issues. Are you receiving letters from the IRS or Department of Revenue? Do you owe taxes that you can’t pay? Ignoring them won’t make the problem go away. In fact, the sooner you deal with it, the less penalties and interest you’ll pay. In fact, you have several options to deal with your debt. Don’t let fear prevent you from doing something about it.
Let me help you deal with the IRS and State and negotiate a fair deal for you and your situation. We do not charge any fee until we have reviewed your information from the tax agencies and have determined the best option for you.
Scott is a licensed by the IRS as an enrolled agent (EA) which means that he can represent you in your dealings with the IRS or state. That means that you don’t need to be present for a meeting or phone call with the revenue agents.
TAX RESOLUTION SOLUTIONS
Generally, the IRS has 10 years to collect on delinquent tax debts. There are some situations where that 10 year time limit can be extended, however. Knowing those details can make or break your situation. Don’t wait until the last minute to ask for help. Contact us as soon as you receive a letter. We can educate you on what is happening and why along with options to solve the problem.
OFFER IN COMPROMISE
Most of us have seen or heard those commercials on TV and radio talking about “settling your tax debt for pennies on the dollar.” Some call it the IRS Fresh Start Program and make it sound like everyone qualifies for it. In reality, most people don’t. The actual name of the program is called Offer in Compromise. This means that if you qualify and the IRS or Dept of Revenue accepts, you will pay less than the amount you owe. There are a lot of variables that go into whether you would qualify or not. First, the IRS requires that all tax returns must be filed. Why? They want to know what you might owe them before agreeing to take less in payment. States have different qualification standards than the IRS as well. Remember, don’t give these national tax resolution companies any of your money! They will promise you the moon, but only give you excuses if you don’t qualify. Our firm will treat you honestly and fairly and tell you up front if you qualify and then you can decide if you want to engage our services.
INSTALLMENT AGREEMENTS OR PAYMENT PLANS
Most taxpayers will fall under this category for repayment of their debt. The IRS has changed and extended the maximum requirements for amounts due for payment plans to allow more taxpayers to qualify. If you owe up to $100,000, you may be eligible to make payments! Some agreements can be completed and approved online. Getting yourself on a payment plan reduces the possibility of a garnishment of your wages or having the IRS take money out of your bank account. However, don’t wait until the last minute since problems could occur that need time to resolve. It’s better to contact us as soon as you receive a letter demanding payment. This will allow us to act on your behalf to get the best payment plan for you and, if necessary, challenge the IRS or Dept of Revenue.
This option is often overlooked by DIY taxpayers. The IRS or Dept. of Revenue won’t offer it to you, but you need to know when to ask for it. If you’ve always filed and paid your taxes on time and just have this one issue going on, then it’s likely that you could have any penalties and interested abated or removed. It’s not automatic and there are stipulations. We recently helped a business have their penalty reduced by $6,000 because we knew to ask for it and cooperated with the auditor. It can make a big difference in what you owe.
Tax liens generally occur when a taxpayer ignores letters from the IRS or state. These entities will guarantee their payment by placing a lien or your property. In some cases, you may not receive a tax lien notice until the lien has been already placed! Once again, don’t ignore those initial letters and consult with us. Many times, we can negotiate with the IRS or state to not place a lien against you and work out other payment arrangements. Timing is critical so don’t wait until the last minute and expect a miracle. We recently worked with a taxpayer who had a very large tax lien on his credit report. He wasn’t able to purchase a new home on his scheduled closing date. We consulted with him and worked on his behalf to help him reduce that tax lien amount to $0 since his 10 year collection timeframe had expired.
PAYROLL TAX PENALTIES(TRUST FUND RECOVERY)
Business owners get in trouble by keeping the withholding, FICA and Medicare deductions from employee’s paychecks and not sending to the IRS or state. The taxing authorities are going after these businesses hard and penalizing them accordingly. Knowing how to deal with problems that come with this scenario is key to being able to stay in business. We don’t condone this type of behavior, but can assist you in getting out of it. We can also assist in making sure that you don’t get back into this situation in the future.
Some of you know the feeling when you receive that letter stating that your tax return is going to be audited! Remember, just because you’ve received a letter doesn’t mean you did something wrong. Your return may have been randomly selected for audit. We can help you navigate the process even if we didn’t complete your tax return. Also remember that most audits are done via mail and you don’t have to sit across the table from the auditor. Even if you have an in-person audit, we go in your place so you don’t have to! Let us help you reduce the stress in your life by taking on this task.
CURRENTLY NOT COLLECTIBLE
In some cases, there may be situations where you aren’t able to pay your debt now, but will be able to in the future. Perhaps you are in a bind financially and are unable to meet your basic living expenses. If you can show that you aren’t able to make any type of payment, you may qualify for this program. A financial analysis will be completed and then sent for review to the IRS or state. You may be able to delay or lower any payments for the time being until you get back on your feet. This option doesn’t make your debt go away, it only prolongs the time to pay. Penalties and interest will continue to accrue.
FAILURE TO FILE RETURNS
This is the most common type of problem that we help taxpayers solve. For many different reasons, you don’t file your income or business tax returns. Some people are afraid to know how much they will owe and don’t know how to pay it. Others just miss filing one return and then another and when nothing happens, they stop filing at all. The IRS and state will catch up to you at some point. In fact, they may even file a return for you(not in your best interest), place a lien on your property or garnish your wages or bank account. We can help you complete those returns and work with the IRS and state to work out a solution to your problem. Once again, getting ahead of the problem is the key. Don’t wait to see if everything will go away–it won’t.
Taxpayers who are seriously delinquent (>$51,000) in debt to the IRS may be receiving notices that their passport may not be renewed or revoked. If you owe money and aren’t sure how much it is, contact us for help. You don’t want to plan the next overseas trip and then find out that you can’t go.
The tax issues above are just some of the many issues that our firm deals with daily. Our fees are fixed (except for audits) so you know what you’ll pay. We do charge a retainer fee for all cases once you’ve decided to engage our services. We will explain everything to you and answer all of your questions. Please understand that the IRS and state don’t move quickly. In fact, 30 days is a quick response. There are some ways that we can reduce the time, however. Finally, DON’T WAIT UNTIL THE LAST MINUTE! ONCE YOU RECEIVE A LETTER DEMANDING PAYMENT, CONTACT US. The first 30 minutes are free along with a review of your correspondence.
We can also assist in working on budgeting and tax planning for the future so you don’t get in a similar position in the future. These fees are separate from our tax resolution services and can be ongoing or as often as you need us to help you.
Serving Minnesota, the Twin Cities and Surrounding Suburbs:
- St. Paul
- St. Cloud