Penalty Abatement

Penalty abatement is a useful tool when implemented at the right time and in an effective manner. Penalty Abatement will eliminate Penalty and Interest that is attached to the Penalty to reduce your overall tax debt. The Tax Code has specific qualifying hardship events that allows for the abatement of penalty and some interest. That would include hardship experienced due to the loss of a family member in death, bankruptcy, illness, injury, or Post Office Error. The code is very specific as to what events qualify for tax relief thru Penalty Abatement. Our tax professionals will screen your case to see if you qualify for this provision of the tax code. We will go every line item on your Account Transcript to search out any possible penalty or interest that could be eliminated from your tax debt, it’s part of the normal service for every client.

FBAR Cases

FBAR is an acronym for Foreign Bank Account Report, and refers to TD F90-22.1 Report of Foreign Bank and Financial Accounts. Penalties for failure to file a Foreign Bank Account Report (FBAR) can be either criminal (with Federal Incarceration) or civil, or in some cases, both. The criminal penalties include: - Willful Failure to File an FBAR. Up to $250,000.00 or 5 years in jail, or both. - Willful Failure to File an FBAR while violating another “law of the United States” or as part of a pattern of any illegal activity involving more than $100,000.00 in a 12 month period. Up to $500,000.00 or 10 years in jail, or both. On top of the fines and jail time, the willful failure to file an FBAR is a felony which can result in collateral consequences such as: - Revocation of professional licenses such as those for CPA’s, Attorneys, Doctors, or Nurses. - The loss of the right to bear arms; - Loss of Employment; and - Deportation of a green card holder AFTER jail time has been served. FBAR cases levy the most severe types of penalties and consequences. It is imperative that you seek the advice of a qualified Tax Attorney to help manage the problem. Call us immediately, and tell the operator you need someone who specializes in FBAR matters only.

File Back

Non-filed tax returns can complicate your tax case significantly. Once a single tax return is missed being filed, it turns into multiple non-filed tax returns seemingly overnight. The IRS will respond with light enforcement, by filling the tax returns for you. This is called a Substitute For Return (SFR). When the IRS files these types of returns, it’s not to assure that you get the most out of your deductions. Their reason is so they have a dollar amount to collect from you. When this enforcement action is taken, the IRS will not award you any deductions whatsoever, this usually results with a heavily inflated balance. Once this process is completed, the IRS will move you into their Automated Collections Unit and will begin the enforcement of collections, which included Wage Garnishment, Bank Levy, and the Seizure of Assets.

Stop IRS Bank Levy

A bank levy is usually the first level of enforcement action a self-employed individual would experience. Since your wages are a little more difficult to garnish, the IRS will Levy your bank account. Personal and Business Bank accounts that are connected to your social security number or Tax ID number are at immediate risk. According the Tax Code the IRS must allow for 21 days for the tax payer to establish reasonable cause to reverse the bank levy. That means, time is of the essence. We have 21 days from the date of your notice to GET YOUR MONEY BACK. Call us, or fill out the form to request immediate attention in this matter.

Stop Wage Garnishments

The IRS has the power to garnish wages of all types. Pension, Social Security, W2 Wage, and 1099 Independent Contractor wage could all be garnished by the IRS. The IRS can take up to 15% of Social Security Income. For 1099 Income, the IRS can garnish up to 100% of the income from the Contractor. In addition to the garnishment, the IRS will send your customer a letter informing them that you have not paid your tax returns. They will also tell them that if they do not cooperate they will be subject to penalty. It’s the last kind of notice you would want your customer receiving in your behalf. Literally nobody likes to hear from the IRS. For W2 Wage earners the IRS can garnish up to 75% of your wages before deductions. Literally the IRS has the power to wreak havoc on your financial wellbeing an in turn compromise your ability to provide for yourself and your family. If you find yourself in this kind of situation contact us immediately and inform the operator that you have a urgent wage garnishment issue and you need to speak to someone right away. We will connect you with a professional specializing in wage garnishment remediation and get you the help that you need immediately.

Payroll Tax Resolution

Employee withholding tax debt is one of the most frowned upon type of tax to owe. It can carry with itself a “TFRP” Trust Fund Recovery Penalty of up to 100% of the outstanding amount with interest calculated on top. This type of tax debt is easier handled if the business is no longer operational, or if it has plans of closing or restructuring. If you are a business owner and you want to remain open while this issue is being resolved, we can help you too. It will be more challenging, and there’s less to be done in terms of tax forgiveness. We can however, gain some time for you to properly improve cash flow, and recover in an effective way.

Tax Harship Cases

The Internal Revenue Service is not allowed to compromise your ability to provide for yourself or your family. The only way that your situation will become dire is if you leave the matter unresolved. If you have not meet your minimum tax requirements (file not pay your tax), you can expect the IRS to be heavy handed with Enforcement. We will bring you into filing compliance by only filing what is minimum ally required and then establish a temporary collection hold while we continue to work on your case. If you qualify for hardship, we will demonstrate to the IRS that you should not be subject to financial enforcement, and should not be required to make any payment. We will further outline that doing so would jeopardize your ability to provide for yourself or your family.

Reduce IRS Tax Debt

There are multiple ways to reduce IRS tax debt. We will briefly describe what methods are available here. Amended Tax Return / 1040-X - As a matter of normal practice, your tax practitioner will review your tax returns to determine whether your liability could be reduced by Amending your tax return. Sometimes, your tax problem could be solved entirely just by properly maximizing deductions or accounting for cost acquisition and demonstrating that in a professionally completed Amended Tax Return. Penalty Abatement – Penalty Abatement is a process where the Penalty and the Interest that is attached to the penalty is eliminated. There are 16 acceptable reasons the tax code identifies as being reasonable cause to reduce your debt thru Penalty Abatement. Penalties can account for significant portions of your tax debt unnecessarily. Penalty is normally assessed yearly, but could also be accessed quarterly depending on the type of tax debt. Some Penalty can be as high as 100% of the principal amount that is owed. The most common types of Penalty is the Failure to Pay and Failure to File Penalties that are generally calculated at 25% of the total Balance Due. These penalties are more commonly added to your tax debt on a yearly basis. The interest is compounded daily on top of that. If you find yourself in this kind of situation, you should move quickly to bring your tax case into proper resolution as soon as possible. TIME IS NOT ON YOUR SIDE.

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