www.backtaxdefense.com/index.htmlHot News!eninfo@backtaxdefense.comCopyright 2008 Atlas Tax Solutions2008-05-16T12:37:14-04:00 hourly 1 2000-01-01T12:00+00:00 Fri, 16 May 2008 12:41:38 -0400info@backtaxdefense.comTax Relief2008-05-16T12:37:14-04:00www.backtaxdefense.com/weblog/files/what-is-offer-in-compromise.html#unique-entry-id-12www.backtaxdefense.com/weblog/files/what-is-offer-in-compromise.html#unique-entry-id-12
After drying the cold soda off your shirt that your spouse threw at you, you both sit down and think really hard about how to best resolve this situation. You first check your bank accounts only to discover your worst fears, which is that you only have $893 available. However, you also have a couple credit cards that have $2,000 available. But still, you're no where near able to pay the full amount. So you do some investigating and discover an IRS program called Offer In Compromise. You read how this program will allow you to settle your back taxes for a much smaller amount than what you owed. You and your spouse are completely thrilled beyond belief! Only one problem, how do you go about getting this wonderful instrument from the IRS Gods?

You decide to call the phone number on the IRS notice that you received, which is from their collections department, assuming they'll be glad to hear from you. So you call, and sure enough, they are glad to hear from you so that they can demand their $40,000 you owe them. You explain that you would like an Offer In Compromise. At first, you assume the dead silence is a problem with your phone. "Did I hang up them?" But then you suddenly hear a chuckle. It is at that moment that you realize calling the collections department may not have been a good idea after all. After the IRS Collections Agent finishes laughing at you, he tells you that you don't qualify for the OIC program and that your best bet is to make monthly payments of $2,000 per month until you catch up on your debt. At this moment you freeze, completely unsure of what to do. Do you agree to these terms that you know you can't afford...Do you tell the Agent you cannot afford this...Or do you book that ticket to Bermuda that you've always dreamed about and try to evade the IRS? Thankfully, the rational part of your mind kicks in and you realize that if you avoid paying your taxes, you will go to prison. So instead, you tell the Collections Agent you'll have to think about it and hang up abruptly.

You wonder why the IRS Collections Agent shrugged off your suggestion about an Offer In Compromise. It's then that it hits you...The program exists, but they would rather collect on all the back taxes you owe instead of settling it, after all they are a Collections Agent, so that's their job. So you decide to research the program yourself. You determine you'll need to fill out form 656. Only problem is, it's long...Real long and complicated. You also find out during your research that before the IRS will negotiate with you, you must be current on your tax filings. Unfortunately, you have not filed your tax return for the years 2005 and 2006, and you don't know how to prepare your own taxes since you had both W2's and 1099's for those years, as well as itemized deductions. Moreover, you discover that there is a way to stop the collections, but it involves filing an appeal to the Collections Department, which means another form, knowing how to fill it out, and where to send it. Along the way, you also find out that there is more than a good chance that much of the $40,000 they say you owe, is made up of penalties and interest. In that case, you have a shot at receiving a Penalty Abatement. This is a program that allows you to get many if not most of penalties wiped away, however you'll need to file another specific form for that as well. Then again, how will you know about your penalties? Well, you research some more and find out that you can pull your Master Tax Record from the IRS which will show you everything, but that means another form. What makes this really difficult on you is the fact that all these forms may have to be sent out to different locations within certain time frames and of course there may be IRS filing fees. You've also read that one single mistake on these forms, especially when making your Offer In Compromise, could cause the entire negotiation process to come to a screeching halt since the IRS will immediately throw your offer out. Meanwhile, the clock is ticking closer to the thirty day window the notice had warned you about. You wonder, "Are they going to garnish my wages?" "Or are they going to levy my bank account?"]]>info@backtaxdefense.comTax Relief2008-05-08T11:30:57-04:00www.backtaxdefense.com/weblog/files/tax-relief-for-back-taxes.html#unique-entry-id-11www.backtaxdefense.com/weblog/files/tax-relief-for-back-taxes.html#unique-entry-id-11
Well if you're behind on your federal taxes, the first thing you need to do is come to the realization that you must do something, and do it now! Inform yourself of the collection process and of T.B.O.R.(Taxpayer Bill of Rights.) IRS Collection Agents count on the fact that most people are scared of the IRS and don't know their rights. Granted, if you owe federal taxes, then you should be scared because the IRS has enormous powers, but that doesn't mean you have to give up on life and bow down to them either. You should also familiarize yourself programs that are available to taxpayers to help them catch up on their arrears. There is no perfect fit for everyone, but perhaps if you have a good understanding of what you are facing and what your options are, you may be able to determine which tax relief program you qualify for.

There are a couple things you need to understand first however. First of all, if you are applying for a tax relief plan, you will need to be current with your tax returns. So ask yourself this, have you filed all your returns or are there some years that are missing? If you have some returns that are unfilled, then you will either need to prepare your own taxes, or have a CPA prepare your taxes. Obviously, our clients have their taxes done for them by our CPA's. If you are in a situation where the IRS is after you, then frankly you should probably have a tax representation firm that has CPA's on staff handle this for you, including preparing your returns. Once your taxes are all filed and current, then you can begin the negotiation process. This may include pulling master files to see exactly what the IRS has on you, including penalties and interest. Once you have determined where you stand, you may want to consider filing an appeal to abate some or all of your penalties. Keep in mind, there are many required forms and time lines that must be met since you're dealing with IRS bureaucracy, but you can do this! During this process, you should also determine whether you are likely to qualify for an Offer In Compromise, Installment Agreement, or some other payment arrangement to settle your debt and finally receive the tax relief you are seeking.
]]>info@backtaxdefense.comBack Tax2008-04-29T11:28:00-04:00www.backtaxdefense.com/weblog/files/tax-audit.html#unique-entry-id-10www.backtaxdefense.com/weblog/files/tax-audit.html#unique-entry-id-10
Let’s make something straight before we go any further. Nearly one third of tax audits are done via mail. This alone should give you some peace of mind. This usually doesn’t apply for those who owe back taxes, in which case you should have a back tax defense. If however you are being audited through the mail, the Internal Revenue Service may simply want to see your corresponding documentation to verify certain aspects of your return, for example receipts of a business. You need to determine whether your entire return is being audited, or if it’s only one part. For obvious reasons, you shouldn’t make things harder on yourself by going into the entire return if their only questioning one part of it.

If the audit is being done in person and sounds a little more complicated, then you may have to hire a tax representation firm. Of course, no two tax firms are equal. Atlas Tax Solutions uses CPA’s to go over aspects of your return as well as using Attorneys for particular appeals. If you are being audited over back taxes, then without a doubt you’ll have to deal with some headaches. Everything will have to be accounted for and your tax firm will have to mount a back tax defense on your behalf.

You’ll find that your memory can be one of your best tools when fighting an audit. Try to clear up your mind and recall all events pertaining to your audit. You may need to work closely with your tax representative to gather all necessary documentation and organize them by the sections that are being questioned. Make sure to make copies of everything you’re bringing to the audit. It would also behoove you to have your tax representative bring any forms or spreadsheets that show how certain write off’s were calculated. During the actual audit, be very nice to all the parties involved but never give any information that wasn’t asked of you. If you are being represented, let them do most of the talking. Also keep in mind that the return you are being audited on may have been prepared by someone that you are not in contact with. Some firms, such as Atlas Tax Solutions, actually try to contact the CPA that prepared your returns in question to determine how they came up with their numbers and whether any errors were made.

Once your audit is complete, the IRS agent will let you know how it went. They’ll go over any problems they’ve found or whether it all checks out. If some issues were found, make sure to get these resolved immediately. The IRS generally does not abuse people who work to get things resolved. What they don’t like, is those who try to get away with something. Tax payers have a bill of rights, and this includes any appeals that you can make with regards to an audit. But remember that everything has to be done in an organized fashion and only in a legal manner]]>info@backtaxdefense.comBack Tax2008-04-25T19:46:53-04:00www.backtaxdefense.com/weblog/files/wesley-snipes-tax-conviction.html#unique-entry-id-9www.backtaxdefense.com/weblog/files/wesley-snipes-tax-conviction.html#unique-entry-id-9
"We think it sends a real message," U.S. Attorney Robert O'Neill said. "Again you have to pay your taxes." ]]>info@backtaxdefense.comTax Relief2008-04-14T13:25:32-04:00www.backtaxdefense.com/weblog/files/atlas-tax-solutions-innocent-spouse-relief.html#unique-entry-id-8www.backtaxdefense.com/weblog/files/atlas-tax-solutions-innocent-spouse-relief.html#unique-entry-id-8
Obviously in order to qualify for the Innocent Spouse, you must have been married at some point. An Innocent Spouse could still be married to the person who filed incorrectly, or didn’t pay of course, but often times it’s based on a previous spouse. We all enter into marriage wanting the best and truly hoping we’ll be married forever, but sadly things happen in life that change everything. The person you may have loved so much at one point may now be the person that is causing you to receive a tax line. Unfortunately, Atlas Tax Solutions cannot do anything about your love life, however if you’re one of the people who was married and is now in debt to the IRS due to taxes that your spouse owed or made mistakes about, well there may be some light at the end of the tunnel.

As with all things, there will be paperwork involved and some negotiation, as well as requirements that must be met. Keep in mind that the IRS will also investigate any claims to make sure that you are not purposely committing fraud. For example, they will most certainly find out if you transferred property to one another in order to avoid paying your taxes. But ultimately it comes down to explaining why you either were not involved or did not know that taxes were owed or filed incorrectly. In a sense, you should commit yourself to presenting an accurate and detailed case while following all the rules. For many people, it’s much easier to let the consultants at Atlas Tax Solutions do the work so that you can continue living your life without the stress of dealing with the IRS.

There are different kinds of tax relief through the Innocent Spouse which Atlas Tax Solutions can walk you through. For some, it may be through a Partial Relief. However you may qualify for Separation of Liability Relief. Keep in mind that with this type of relief you will not get any refunds, but rather for unpaid liabilities. There is also the Relief from Liability Arising from Community Property Law. Even if you don’t qualify for any of these Innocent Spouse Relief Programs, you may qualify for Equitable Relief, which would relieve you from having to pay the tax, penalties and interest. Of course like with all other programs, there are many conditions that must be met. The most important aspect that you should take away from this is that knowledge truly is power. Atlas Tax Solutions can represent you on your behalf to settle your tax debt by determining which program you may qualify for and negotiate your best possible outcome.
]]>info@backtaxdefense.comTax Relief2008-04-13T12:25:31-04:00www.backtaxdefense.com/weblog/files/atlas-tax-solutions-offer-in-compromise.html#unique-entry-id-7www.backtaxdefense.com/weblog/files/atlas-tax-solutions-offer-in-compromise.html#unique-entry-id-7
Remember that the you will not qualify for an Offer In Compromise if you are able to pay your taxes in a lump sum. In other words, if you owe $14,000, and you have $20,000 sitting in your bank account, well guess what? You’re going to have to pay the full amount! Put simply, if Atlas Tax Solutions is able to get you approved for an Offer In Compromise, the IRS will allow you to settle your tax debt for a lesser amount owed. You may have heard the saying, “Settle for pennies on the dollar.” Well, that’s not exactly accurate, but it is true that an Offer In Compromise will make it possible for you to end your tax problems for a fraction of what you owe.

It used to be a lot easier but there have been some changes that have made qualifying all the more confusing in the last few years. If Atlas Tax Solutions determines that you may qualify for this solution, the IRS does require filing fees. However, if you qualify for the low income exemption waiver, then you would not have to pay for the filing fees. Of course, this entire process is exactly that…A process! There is an immense amount of paperwork that must be filled out, and if you haven’t filed your taxes for past years, well those have to be prepared and filed before you may qualify. It then becomes a paperwork drill and a negotiation drill. The IRS will investigate the settlement offer and look for different reasons to disqualify you. Sometimes they will suggest that you up your offer or arrange for a different type of settlement, perhaps a combination of plans. This can be an exhaustive effort on the part of the tax paper, which is why most people choose to let the experts at Atlas Tax Solutions deal with all the paperwork, hassles and going back and forth.

Depending on your particular situation, and Offer In Compromise may be a good thing for you. Like most things in life, it also depends on your urgency level. Obviously, if your wages are being garnished or if a tax lien is put on your home, you’ll be more pressed to resolve the situation. There are many solutions at your disposal, but the first step is to take action. If you’re at a point now where you feel it’s time to take control and would like to find out if you qualify for assistance, Atlas Tax Solutions will determine your best route and take your headaches away.
]]>info@backtaxdefense.comTax Relief2008-04-11T15:25:00-04:00www.backtaxdefense.com/weblog/files/atlas-tax-solutions-back-tax-defense.html#unique-entry-id-6www.backtaxdefense.com/weblog/files/atlas-tax-solutions-back-tax-defense.html#unique-entry-id-6
For one thing, if you owe under $10,000 in back taxes, then the IRS will work with you and offer a payment plan. The trouble comes when you owe more than that amount…Then the IRS is not so friendly. The IRS has enormous power due to obvious reasons, and their collections department can often times be harsh. Many people find their tactics to be horrifying. If you’re one of those who owes back taxes, then you may have had some experience with threatening letters and phone calls.

It’s important to understand that everything you say to the IRS can be recorded and may prevent you from being offered plans in the future. So if you are behind on your taxes, you may want to retain professionals. This is especially important if the IRS is threatening to garnish your wages or place a lien on your property. If this is the case, you may want to develop a back tax defense strategy that will protect your rights and settle your debt.

One of the plans available for those that qualify is an Offer In Compromise. This is a solution for those who owe more than they can afford to pay. For example, if you owe $25,000, you may qualify for a settlement of $2,000, or another amount. However, there are many IRS guidelines that you must fit into and of course a myriad of paperwork and red tape must be dealt with. This can be a very time consuming process so be prepared for this in advance. But perhaps this is not the best option for you. There are also other payment arrangements, such as an affordable installment agreement where your arrears get spread into monthly payments.

Depending on your circumstances, you may qualify to have your file placed as a Currently Not Collectible Status, which would in effect stop collections efforts by the IRS. These are a few of the options at your disposal. A professional tax representation firm can provide a winning argument by mounting a strong back tax defense on your behalf. The main point to remember is that you do have options. As scary as it can be to deal with the IRS collections, there are programs you may qualify for. The Tax Payer Bill Of Rights has established guidelines of what you can and cannot do.
]]>info@backtaxdefense.comTax Relief2008-04-09T15:19:48-04:00www.backtaxdefense.com/weblog/files/back-tax-defense-short-sale.html#unique-entry-id-5www.backtaxdefense.com/weblog/files/back-tax-defense-short-sale.html#unique-entry-id-5
]]>info@backtaxdefense.comIRS2008-04-05T15:06:00-04:00www.backtaxdefense.com/weblog/files/Back-tax-defense-filing-tax-extension.html#unique-entry-id-4www.backtaxdefense.com/weblog/files/Back-tax-defense-filing-tax-extension.html#unique-entry-id-4
]]>info@backtaxdefense.comIRS2008-03-10T13:14:14-04:00www.backtaxdefense.com/weblog/files/Back-Tax-Defense-IRS-Chief-Counsel.html#unique-entry-id-3www.backtaxdefense.com/weblog/files/Back-Tax-Defense-IRS-Chief-Counsel.html#unique-entry-id-3]]>info@backtaxdefense.comTax Relief2008-02-14T14:01:58-05:00www.backtaxdefense.com/weblog/files/Back-Tax-Defense-Enlisted-Military-Get-Help-With-Owed-Back-Taxes.html#unique-entry-id-1www.backtaxdefense.com/weblog/files/Back-Tax-Defense-Enlisted-Military-Get-Help-With-Owed-Back-Taxes.html#unique-entry-id-1
So how does this work exactly? First of all you need to understand that the Government won’t just do this for you. You will need to actually apply for it since it is not an automatic process. When you apply you will have to make clear exactly how it is that serving in the military has caused you to become default of your taxes. Keep in mind that the deferral applies to taxes that fall due before or during military service, and extends the payment deadline to six months (180 days) after the military service ends. Also, you won’t have to pay interest during this period and there is no accrual of interest during deferment.

In order to defer your back taxes, a taxpayer must also have received a notice of tax due, or have an installment agreement with the IRS, before applying for the deferral. It is often times recommended that a professional Tax Representation Firm handle your IRS back taxes in order to provide you with tax relief, such as an installment agreement, which will then allow you to move forward with your deferral.

There are a few caveats to getting a deferral of your back taxes through the SMCRA however. For one thing, the deferral does not extend the deadline for filing any tax returns. In other words, file your taxes! There are some provisions however that may buy you some time. A couple examples would be that if you are in a combat zone or stationed overseas, you could then apply for an extension. Of course even more questions arise from what exactly is considered a combat zone, what if you fly over a combat zone, etc. Clearly having legal representation can make your life a lot easier when trying to decide whether or not you qualify. It can get even more complicated when determining how much of your gross income is taxable. In short however, if you serve in a combat zone as an enlisted person or as a warrant officer (including commissioned warrant officers) for any part of a month, all your military pay received for military service that month is excluded from gross income. For commissioned officers, the monthly exclusion is capped at the highest enlisted pay, plus any hostile fire or imminent danger pay received.

As you can see, the Service Members Civil Relief Act can assist you in receiving tax relief by providing these benefits and more, but only if you apply and qualify. One thing is for certain, if you do nothing, then you’ll never know. If you are in the military, then you have additional rights as a tax payer. Make sure to do something about it and take advantage of the benefits that you most certainly deserve.
]]>