| Frequently
Asked Questions |
| |
|
|
|
|
|
1. |
|
Why
hire a tax attorney? |
2. |
|
What
can a tax attorney do that an accountant cannot do? |
3.
|
|
I
filed my tax returns but didn't have the money to pay
what was owed. How do I reach a settlement to clear my
back taxes? |
4.
|
|
What
is an Offer in Compromise? |
5.
|
|
Why
would the IRS want to settle a tax debt? |
6.
|
|
Even
though I am making installment payments, can I do an Offer
in Compromise? |
7.
|
|
When
the Internal Revenue Service approves an Offer in Compromise,
what happens next? |
8. |
|
How
long does it take for an Offer in Compromise to be approved
by the IRS? |
9. |
|
How
do I know if I qualify for tax relief? |
10. |
|
I
have a bank levy or garnishment on my wages. What can
you do about that? |
11. |
|
The
IRS keeps sending me letters and calling me. I don’t
know what to do or what to say to them. Will I have to
see or speak to the Internal Revenue Service if you take
my case? |
12. |
|
Can
I file bankruptcy and discharge my taxes without entering
into an Offer in Compromise? |
13. |
|
I
have not filed tax returns for a number of years and have
lost all my records. Is it too late to reach a settlement
and make a fresh start? |
14. |
|
Is
an Offer in Compromise best for me? |
15. |
|
When
do I have to pay the amount being offered in an Offer
in Compromise? |
16. |
|
Can
the IRS ever revoke an approved and paid Offer in Compromise?
|
17. |
|
What
about these commercials I see that promise to settle my
case for “pennies on the dollar?” |
18. |
|
What
are your fees? |
19. |
|
Can
the IRS take my house? |
20. |
|
I
am located outside South Florida. Can you still help me? |
21. |
|
I
have more questions. How can I contact you? |
|
1. |
|
Why
hire a tax attorney? |
|
|
Where
a taxpayer desires to engage a representative to deal
with the IRS, the IRS recognizes Attorneys, CPA's and
Enrolled Agents as authorized representatives. The person
who prepares your tax return may not be required to hold
any of these credentials and may have training limited
to preparing an IRS income tax return. Likewise, your
bookkeeper is probably not a tax expert. Your CPA prepares
tax returns for approximately three months out of the
year and spends the balance of the time preparing books,
records, and financial statements. Most, if not all enrolled
agents are not tax lawyers. Attorneys may have a general
or a specialized practice that does not include tax issues
and problems. Nevertheless, accountants, CPA's, bookkeepers,
enrolled agents, and non-tax attorneys will usually agree
to represent you if you approach them with a tax issue,
even if they do not have the training or experience to
handle difficult or complex tax issues, or tax issues
requiring creative solutions. |
|
|
Back
to top |
2. |
|
What
can a tax attorney that an accountant cannot do? |
|
|
An
experienced tax attorney can thoroughly research the tax
laws and master them - finding interpretations and loopholes
that benefit you. The scope of tax research is not just
limited to the Internal Revenue Code, but also Treasury
Regulations, IRS rulings and court decisions. Your accountant
may not necessarily have the training or experience that
would permit him to penetrate the complexity of the tax
law on a particular tax issue. Also, your accountant may
not be able to devote time out of a busy accounting practice,
working with numbers and preparing financial statements,
to master the vast array of tax laws. |
|
|
Because
accountants are trained to be precise with numbers, most
accountants admit that they can only see things as "black
or white." However, research and application of tax
law typically involves working in the "gray areas,"
because most of the time there is no answer that is right
or wrong. Many times there are also legal issues that must
be addressed as well. Tax attorneys are trained to seek
and find the ambiguity in the law (i.e., the "gray
areas ") and address all legal issues. |
|
|
For
example, in filing an Offer In Compromise, we will go beyond
a mechanical submission of tax forms to the Internal Revenue
Service. We will fully analyze your situation prior to the
filing of any forms to determine the lowest acceptable offered
amount and determine whether there are other options that
would provide a more favorable result. |
|
|
Back
to top |
3. |
|
I
filed my tax returns but didn't have the money to pay
what was owed. How do I reach a settlement to clear my
back taxes? |
|
|
When
the Internal Revenue Service sends you a notice stating
that you owe back taxes, the amount is usually much higher
than what you thought because they have tacked on penalties
and interest. Of course, you could just write a check
and pay them the full amount, including those penalties
and interest. Or even worse, you could just ignore them;
meanwhile, the penalties and interest keep piling up.
You could meet with the IRS and attempt to reach an agreement
yourself, or you could hire a tax attorney who is experienced
in the matters of back taxes. By analyzing your situation,
we can determine your best course of action. For many
taxpayers, this typically leads to an Offer in Compromise.
|
|
|
Back
to top |
4. |
|
What
is an Offer in Compromise? |
|
|
An Offer in Compromise is an agreement between the IRS
and the taxpayer to settle the taxpayer's liability. The
Internal Revenue Service has the authority to settle or
compromise federal tax liabilities by accepting less than
full payment under certain circumstances. These circumstances
are: |
|
|
*
Doubt as to liability
*
Doubt as to collectibility
* Effective tax administration (i.e., economic hardship)
|
|
|
Back
to top |
5. |
|
Why
would the IRS want to settle a tax debt? |
|
|
The IRS understands there are situations in which they
will not be able to collect the entire amount of tax a
citizen owes, no matter what they do or how hard they
try. By agreeing to settle a tax debt, the IRS “brings
the citizen back into the system.” The citizen is
required to stay in compliance and pay their taxes on
time after tax relief is granted. It’s a win-win
situation for the citizen and the IRS. |
|
|
Back
to top |
6. |
|
Even
though I am making installment payments, can I do an Offer
in Compromise? |
|
|
Yes! And in some cases the installment agreement can be
suspended while the IRS is evaluating the Offer in Compromise.
|
|
|
Back
to top |
7. |
|
When
the Internal Revenue Service approves an Offer in Compromise,
what happens next? |
|
|
You may have up to ninety days to tender payment to the
Internal Revenue Service of the offered amount. Once the
IRS has received payment, they will release all tax liens
and there is no further liability. |
|
|
Back
to top |
8. |
|
How
long does it take for an Offer in Compromise to be approved
by the IRS? |
|
|
Depending on the caseload in your district, it generally
takes six to twelve months. But no matter how long it
takes the Internal Revenue Service to review the Offer
in Compromise, during that time all further collection
activities are suspended. |
|
|
Back
to top |
9. |
|
How
do I know if I qualify for tax relief? |
|
|
We
can quickly determine if you qualify for tax relief. Even
if we determine that you do not qualify for an Offer in
Compromise, you may still qualify for other types of tax
relief like Penalty Abatement, Innocent Spouse or Trust
Fund Recovery. We can also arrange a manageable installment
agreement with the IRS for you. |
|
|
Back
to top |
10. |
|
I
have a bank levy or garnishment on my wages. What can
you do about that? |
|
|
We
can remove the levy in most cases on the same day you
call us, if you qualify. We can also place a “collection
hold” on your tax account to give us time to work
out a tax relief solution for you. |
|
|
Back
to top |
11. |
|
The
IRS keeps sending me letters and calling me. I don’t
know what to do or what to say to them. Will I have to
see or speak to the Internal Revenue Service if you take
my case? |
|
|
No! We protect and represent you to the IRS. No more upsetting
calls or threatening letters. This means that you will
not have to speak to the IRS – we will negotiate
on your behalf and provide you with the relief you need
now. |
|
|
Back
to top |
12. |
|
Can
I file bankruptcy and discharge my taxes without entering
into an Offer in Compromise? |
|
|
Generally,
personal income taxes that are at least three years old,
and were assessed at least 240 days prior to bankruptcy
filing, and voluntarily filed at least two years ago,
can be discharged. The trust fund portion of employment
taxes is not dischargeable in bankruptcy; therefore, an
Offer In Compromise is the only way to effectively eliminate
the burden of the trust fund portion of employment taxes.
|
|
|
Back
to top |
13. |
|
I
have not filed returns for a number of years and have
lost all my records. Is it too late to reach a settlement
and make a fresh start? |
|
|
All tax returns must be filed to do either an Offer in
Compromise or an Installment Agreement. We can secure
all income and expense information reported by third parties
to the IRS and then work with your tax preparer to bring
you current and formulate a strategy to pay off the balance
due. For many taxpayers, this typically leads to an Offer
in Compromise. |
|
|
Back
to top |
14. |
|
Is
an Offer in Compromise best for me? |
|
|
That depends on your situation, which is different for
each taxpayer. That is why we offer a free consultation
to assess your needs and to recommend what would be best
for you in your particular situation. We suggest that
you complete our prequalification form and email or fax
it back to us so that we can analyze your situation. Click
here
to complete an Offer In Compromise Prequalification Form.
|
|
|
Back
to top |
15. |
|
When
do I have to pay the amount being offered in an Offer
in Compromise? |
|
|
Upon receiving an approval letter from the Internal Revenue
Service you may then have as long as ninety additional
days to pay the offered amount. No matter how long it
takes the IRS to approve your Offer, the underlying offered
amount remains fixed. There are no accruals of interest
or penalties tacked on. After receiving payment, the IRS
writes off the balance of the liability and releases all
tax liens previously filed. |
|
|
Back
to top |
16. |
|
Can
the IRS ever revoke an approved and paid Offer in Compromise? |
|
|
Your Offer will not be revoked as long as you comply with
the requirements relating to filing returns and paying
required taxes for five years after the date your Offer
is approved by the Internal Revenue Service. |
|
|
Back
to top |
17. |
|
What
about these commercials I see that promise to settle my
case for “pennies on the dollar?" |
|
|
When most people hear the phrase “pennies on the
dollar,” they think “2 or 3 pennies on the
dollar.” You will notice that the advertiser does
not mention “how many pennies on the dollar”
they can settle your case for. Some citizens indeed qualify
to settle their cases for 2 or 3 cents on the dollar.
The IRS average settlement is for 12 ½ cents on
the dollar. Depending on your circumstances, you may qualify
to settle for more or less. |
|
|
Back
to top |
18. |
|
What
are your fees? |
|
|
Our
fees for an Offer In Compromise are generally a flat rate
and the terms of our engagement will be presented to you
in writing for approval before we file any paperwork with
the IRS. |
|
|
Back
to top |
19. |
|
Can
the IRS take my house? |
|
|
Since the IRS Restructuring and Reform Act of 1998, property
seizures are rare. However, the IRS still threatens taxpayers
with seizures of their home, cars and retirement accounts.
We can stop these threats and provide the protection you
need to make a smart decision. |
|
|
Back
to top |
20. |
|
I
am located outside South Florida. Can you still help me? |
|
|
Yes! The IRS has offices all over the country and every
office is subject to the same guidelines. With today's
instant communication, mail, phones, facsimiles, and e-mail,
it has become relatively easy to accommodate taxpayers
who reside anywhere in the country. |
|
|
Back
to top |
21. |
|
I
have more questions. How can I contact you? |
|
|
Call our offices toll-free at 866.494.6829. We are available
from 9 am until 5 pm Monday through Friday (EST). Or,
click here to
submit and e-mail to us. We will contact you in no later
than three business days. |
| |
|
Back
to top |