IF YOU OWE BACK TAXES, WE HAVE SOLUTIONS
If the IRS is looking for you and sending you threatening letters, you know you have a serious problem. If the letters say you owe taxes it is even worse. If you are being audited, your CPA, Enrolled Agent or tax return preparer may be able handle the matter. If you have not filed tax returns, any tax return preparation firm can prepare them. However, if you owe the IRS tens of thousands of dollars, what then? What are your options? Find a tax resolution specialist? But, what can he do?
There are only five long term solutions to unpaid taxes. Here they are:
Pay them, all at one time or with a monthly installment agreement.
Settle them for a lesser amount with an Offer in Compromise.
Eliminate or reduce them with Bankruptcy.
Let the ten year Statute of Limitations expire. (Twenty years for California.)
Eliminate them if you qualify as an Innocent Spouse.
That is it. There are no other long term solutions. Do not be fooled by a smooth talking salesman or intimidated by an attorney. There is nothing mystical about these five solutions and you cannot go to court to get some other resolution.
(One exception, if the amount you owe is incorrect it can usually be corrected by filing an amended tax return or requesting an audit reconsideration. In a very small percentage of cases the matter may have to go to tax court.)
One very important temporary solution is to have the delinquent taxes put into a hardship suspended status. But, do you know what that requires? The suspension can last one, two or more years, but it is not a long term or permanent solution like the five above
The best thing you can do is find a tax specialist who deals with the IRS every day, five days a week; then ask for a consultation and ask questions. However, there are very few tax professionals who deal specifically with the resolution of unpaid taxes. They are out there, but hard to find. Look for someone who is a former IRS Revenue Officer. Not a Revenue Agent, but a Revenue Officer. Demetriou, Montano & Associates are former Revenue Officers and have over 25 years representing their clients before the IRS and resolving all sorts of tax problems.
WHAT YOU NEED TO KNOW ABOUT FILING
PAST DUE TAX RETURNS
Do you have unfiled tax returns? Has the IRS contacted you about the non-filing of tax returns? Has the IRS made "estimated assessments" against you? If so, Demetriou, Montano & Associates can help, even if you have not filed for twenty years. We provide tax preparation services typical to most tax preparation firms, but we are different.
We routinely prepare tax returns for the past five to fifteen years where most return preparation firms regularly prepare the current year or one or two prior year returns. (The record in our firm was a client who had not filed for 34 years.) Many tax return preparation firms state that if you do not have receipts, invoices, bank statements, canceled checks, etc., you cannot claim deductions. Demetriou, Montano & Associates is very experienced at and regularly prepares tax returns without many or all of the above items.
First, we need to determine which tax returns actually need to be filed. That's right, you may NOT have to file all of your unfiled tax returns, but how do you know which ones? Second, we need to prepare the required tax returns as soon as possible, but how much time do we really have? Third, almost any licensed preparer, CPA, Enrolled Agent, etc., can prepare your tax returns, but what if you have no records? Fourth, knowing how to negotiate with the IRS tax collector is the key to the successful resolution of your tax problems. So, the question is, do you know what to say or more importantly what NOT to say to the tax collector? If the IRS has made an estimated assessment against you, can it be fixed?
DM&A has already helped thousands of people and businesses resolve unfiled tax return problems just like yours. We even help "tax protestors" get back into compliance. One important aspect is that when clients come to us after the tax collector knocks on the door, we understand the urgency, can obtain additional time to file the tax returns and can apply our resources to expeditiously prepare several tax years to meet the tax collectors deadline.
GET THE IRS OFF YOUR BACK
NOT an easy thing to do, especially on your own. The best way to get the IRS off your back is to hire a representative and have him handle the tax collector.
What can you do to help get the IRS off your back? Face the problem and get organized.
Figure out and write down which tax returns are not filed and/or how much you owe, year-by-year. Do you know why you owe the taxes?
The most important thing is to STOP accruing taxes in the future. Correct your withholding on your paycheck or if you are self-employed start making current year Estimated Tax Payments every month instead of quarterly. It does no good to find a resolution to your back taxes and then accrue more unpaid taxes in the future.
Then start thinking about a solution for the unpaid taxes.
Can you borrow any money on your home or other assets?
After your monthly living expenses how much can you afford to pay in a monthly installment agreement toward what you owe?
If paying off the amount owed will take more than five years, determine if there is any way you can you obtain a large significant amount, about 24 times your monthly payment from above PLUS realizable equity, to attempt an Offer in Compromise?
If all or a large amount of what you owe is over three years old, would you consider using bankruptcy to reduce or eliminate the amount that is over three years old?
If you are in a true financial hardship situation and can pay nothing per month, would delaying any payment for one, two or more years help?
Then you need to decide if you have the ability to deal with the IRS on your own and negotiate one of the above resolutions. If you owe the IRS less than $20,000 and can fully pay what you owe in a couple years you can probably deal with the IRS on your own. But remember, once you have a resolution, you cannot owe taxes again in the future.
If you owe more than $20,000 and cannot pay it all within a couple of years you should seriously consider hiring an experienced representative to handle the IRS.
LEINS AND LEVIES
https://www.youtube.com/watch?v=asWlWGXmKZY
PAYROLL TAXES
https://www.youtube.com/watch?v=twT5FlT2ARU