Aegis Tax Defense Learning Center
The following are some of the most common tax debt problems facing tax payers. Aegis will evaluate each case on its own merits.Every case resolution is determined by specific facts and circumstances. We are careful to evaluate each case fully before deciding on the most appropriate defense and plan of action to realize the best possible outcome.
The IRS can, and will, collect back taxes by taking a portion of a person's paycheck. This is called wage garnishment. This deduction may continue until the entire debt is satisfied.
When the IRS garnishes income they do it through tax payer's:
- Pension fund
- Retirement account
- Social Security check
In fact, the IRS can garnish checks coming from any source of income including checks from businesses for services performed by the self-employed and insurance claim checks.
Garnishments, however, may be stopped or modified by taking specific actions. Aegis can insure that your rights are protected and defended to stop the garnishment.
Similar to garnishment, if you owe the IRS back taxes, the IRS can seize funds for payment from checking and savings accounts. Even joint accounts, school accounts and other banking accounts are not immune from the IRS's reach.
Although, the IRS will send letters to the taxpayer that they may be subject to bank levies and wage garnishment, there is no warning as to when they would levy.
Once the money is moved from the account, the taxpayer has 21 days to satisfy the IRS by paying the back taxes or showing that the levy is causing extreme financial hardship. If no agreement is made, the bank must send all of the levied funds to the IRS to be applied to their debt.
Short of paying off the entire back debt to the IRS, the taxpayer must make formal arrangements to enter into a negotiated Installment Agreement or prove they are "Currently Not Collectible".
If the IRS has levied your bank accounts, Aegis Tax Defense would promptly begin negotiations with IRS on your behalf to lift the levy and return the funds to you.
The IRS can put a lien on your property for back taxes. The lien will stay on that property, until the taxpayer either reaches an agreement with the IRS to have the lien lifted, or, the back tax debt is paid. Such liens are reported, making them public information and may become put of your credit profile as well.
Tax liens can be removed by specific actions performed by your tax defense team. Generally, these matters are of such significance to the tax payer, that being represented by a tax professional such as Aegis Tax Defense is considered an absolute necessity.
Delinquent Taxes & Tax Debt
Delinquent tax returns can mean simply neglecting to file your taxes. Rather than concerning yourself with the "delinquent taxes" definition, failing to file taxes or failing to pay tax returns is, after all, fairly easy to understand; instead, focus on the implications that can result from failing to resolve them. When you receive a delinquent tax notice, it’s the first of many steps taken the by the IRS to compel you to satisfy your liability.
If you are faced with delinquent taxes it is important to understand what actions that IRS could take against you. Depending on the circumstances around your tax problem, several things might happen. Not filing delinquent tax returns, for example, can lead to the IRS filing a tax return for you, otherwise known as a "Substitute for Return", or "SFR". This does not include any credits and deductions for which you may be eligible and enables the IRS to move forward with an assessment of how much you owe.
Something more severe, such as delinquent payroll taxes, can elicit more severe action. If you fail to withhold and pay these types of taxes, you can be prosecuted for tax evasion and may be subject to incarceration. Regardless of our circumstances, though, notices of a tax debt should prompt you to consult a licensed Tax Professional.
Currently Not Collectible
There is a chance that you can’t afford anything when it comes time to address a tax debt. If this is the case, IRS "Currently not Collectible" or "CNC", may be your solution. CNC allows you to avoid collection action from the IRS and prevents you from having to pay anything against your tax liability. This is typically a temporary measure, as your financial situation will be periodically reevaluated by the IRS. Until your finances are back on the upswing, though, this option can be to your advantage.
Prior to any agreement with the IRS, the tax payer must be caught up on all previous years' filing. They need not be paid, just filed.
Before any settlement, the IRS will look at the taxpayer’s full financial situation with special emphasize on monthly income, assets and liability of the taxpayer.
After the IRS analysis, Aegis can negotiate a settlement through several IRS programs, such as:
- Streamlined Installment Agreement
- Fresh Start Streamlined Installment Agreement
- Partial Payment Installment Agreement
Dealing with the IRS is seldom easy. Getting professional licensed help is generally the tax payer’s best option.
Offer In Compromise
If you qualify under Offer in Compromise, you may be able to satisfy your debt for a reduced amount. To qualify the IRS determines if there is doubt as to collectability, liability or failure to reduce the tax debt would result in an economic hardship that would be unfair or equitable. Most applications are denied when an Offer is made.
We seek to determine if the taxpayer qualifies before the application is prepared, so as to avoid unnecessary expense and time.
Sometimes the penalties accessed by the IRS end up more than the original debt. A Penalty Abatement Agreement with the IRS is a reduction in the amount owned due to those tax debt penalties.
To get a Penalty Abatement the taxpayer must show "reasonable cause."
This means the taxpayer must fall with a certain circumstance such as:
- Divorce, Unemployment or a Retiree
- Lost Records
- Theft, embezzlement
- Floods, hurricane, tornado or other natural disasters
- Bad Financial advise
- Health Problems
- Family Death
Since this is what is "reasonable" or not, the IRS has great leeway with Penalty Abatement. Your adviser on these matters should be a professional with experience because you must present, not only a strong case, but one that is well within the parameters of the IRS.
Innocent Spousal Relief
Generally, Innocent Spousal Relief applies to a spouse who was not aware of the IRS filing mistake and received no benefit from it. An individual may be found not liable for tax underpayment (including interest, penalties, and other amounts) for a tax year if certain criterion is met.
This relief from tax debt requires the taxpayer to fall into specific categories and can best be described as technical and tricky. for most taxpayers to get a grip on the technical details of Innocent Spousal Relief. Certainly, the taxpayer would be much better served seeking professional advice. The rewards can be substantial…the entire debt may be gone at the stroke of an IRS keyboard.
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IRS tax debt settlement is possible."
Contact us today at (979)999-1223 for a free consultation with one of our lawyers.
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Aegis Tax Defense, LLC is not a law or accounting firm, nor are such representations being made. While we may employ attorneys, CPA's and enrolled agents pursuant to IRS Regulation Circular 230, the use of the term 'Tax Attorney' is used as a general or generic term referencing attorneys seasoned in aspects of tax relief and collection work. They may or may not have a specialized degree in taxation or be individually licensed in tax payers particular state.
Estimates are based on prior results; individual results will vary based on circumstances, including tax payer’s ability to provide information that is timely and accurate. We do not guarantee that tax debts will be lowered by a specific amount or percentage or that the tax debt will be paid off within a specific period of time.