Stopping bank levies, wage garnishments and IRS collection activities are just some of the common tax problems we fix every day at ASAP Tax Relief. We will create a tax debt solution tailored to your needs and then negotiate with the IRS and state tax authorities to resolve your tax problem.
Try the Tax Wizard or Talk with a Tax Pro
Your Tax Wizard Report is Here!
Just answer a few questions and in seconds, the automated Tax Wizard will create a custom report with the information you need to answer important questions like:
Talk with a Tax Pro
Our Tax Specialists and Enrolled Agents have years of experience in dealing with the IRS and state tax authorities fixing tax problems in all 50 states. You may even be eligible to settle your tax debts for less than you owe. Call us for your free no-obligation consultation at 1-703-307-0605.
You can also click the “Live Help” button to chat with us right now, or fill out the Free Consultation Request form and we will call you.
If you owe back taxes, you probably also owe interest and penalties as well. Depending on the nature of the penalties involved and the number of years the debt has been outstanding, your total tax liability, including interest and penalties, can easily double over five to seven years. So, acting sooner is always better than waiting.
Unfiled Tax Returns
One of the most common IRS penalties is the Late Filing Penalty which can be up to 25% of any tax due for the year you have not filed. So even if you owe taxes that you cannot pay right now, it is better to file your return by the deadline than be assessed this high penalty.
Typically, if you ignore IRS requests to file your tax returns, fail to pay on a time, or fail to communicate with them, they will withdraw funds directly from your bank account. They provide advance notice of their intention to do so and if you act quickly in conjunction with your tax professional, often times these levies can be prevented.
A wage garnishment is a direct reduction from your paycheck by the IRS or state tax authority usually occurring for failure to file tax returns, failure to pay on time, or failure to communicate with the tax authority. For state tax garnishments, each state has its own law. In many instances, however, these garnishments will be removed if the taxpayer, and their advisor, show that a plan is in place to remedy the outstanding tax issues.
A tax lien is a security interest in an item or property that helps ensure that any proceeds from the sale of the property will pay off the tax debt first. The IRS will place tax liens on the personal property and real estate of taxpayers who owe back taxes. In some instances these liens can be removed with the help of a tax professional.
IRS Offer in Compromise – sometimes referred to as “Offer to Compromise”, “Offer and Compromise”, or “Offers of Compromise”
This is a special IRS program where, under certain circumstances, the IRS agrees to take less than the full amount of the tax debt owed. The qualification rules are stringent for this program and many taxpayers will not qualify. Please consult a qualified tax professional to see if this program might be right for you.
An installment agreement is a payment plan to pay off past tax debts over some period of time – generally 5 to 7 years. There are several different types of installment agreements and in many instances creating such an agreement is the fastest way to stop IRS collection activities. Please consult with a qualified tax professional to help you set up the best plan for your situation.
Late Filing Penalty, Late Tax Filing, or Late Payment Penalty
The Late Filing Penalty and the Late Payment Penalty combined can be up to 50% of the taxes due if you don’t file and pay your income taxes on time. It is always better to file your tax returns on time even if you cannot pay the taxes due.
There are quite a variety and number of IRS penalties that can be assessed depending on the facts and circumstances of each case. In certain circumstances you might be able to get an abatement, or penalty reduction, if you have new information that the IRS doesn’t have or the IRS made a mistake in the first place. This is a complex area of the tax law and we recommend you discuss any penalties you have been assessed with a tax professional.
Tax Debt Settlement or Tax Debt Resolution
As mentioned above, there are several approaches to settling back taxes with the IRS and state tax authorities. The right approach will very much depend on your circumstances. There are several companies in the business of helping taxpayers resolve their back taxes, but it pays to shop around because quality, service, and fees vary widely.
It may be possible to negotiate a reduction of what you owe the IRS, but for many taxpayers just stopping IRS or state tax collection efforts is relief enough. Let the professionals at ASAP Tax Relief tailor a tax relief program just for you.