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—Settle IRS Tax Debt for Less

Key Take Away

When applying for an OIC, the government expects you to provide the realizable value of your monetary assets, such as investments, cash and life insurance cash value along with the realizable value of your non-monetary assets, such as cars, real property and personal assets. Rough approximations will not satisfy the IRS. The information that you provide on the OIC application must be honest, complete and accurate and, even if your offer in compromise is rejected, be aware that the information you submit can still be used by the IRS if it chooses to escalate collection efforts against you.

Fact Sheet: IRS Offer in Compromise

An offer in compromise (OIC) is an agreement between the taxpayer and the IRS that settles the taxpayer's tax liabilities for less than the full amount owed. The IRS considers a number of factors and circumstances when considering an OIC -- including the individual's ability to pay the tax within the statute of limitations, which is ten years.

Offer-in-Compromise Overview

An Offer in Compromise allows you to settle your tax debt for less than the total amount you owe. It may be a viable option if you can't pay your full tax liability, or if you were to pay in full would create a financial hardship. The IRS will consider your unique set of personal and family circumstances including ability to pay, income, expenses, and asset equity. The IRS states that it will "generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time."

The IRS Pre-Qualifier

The IRS has an Offer in Compromise Pre-Qualifier to determine eligibility:

A Closer Look at the OIC

There are benefits to filing for an OIC. If the offer is accepted, enforced collection will be eliminated and tax liens will be removed. However, even with the new IRS Fresh Start Initiative, the majority of offers are not accepted, so it's wise to consider using a tax relief specialist, or tax attorney when filing an OIC. Even if you do use the services of a tax professional, check their credentials, BBB accreditation and reputation carefully as there are unscrupulous companies who charge high fees for "filing" offers in compromise that have little chance of being accepted and should never have been filed in the first place.

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"I found out I had a tax lien of $250,000 from taxes that I hadn't filed from over ten years. They arranged to give me a payment, get it worked down to $116 a month...it's really been an easy process and everybody's been very helpful, and understanding, not demeaning in any way or anything." - Richard, VA
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Learning Center
Help for IRS Tax Lien

If you are worried about or faced with a tax lien, The Tax Relief Center can help you. Take a moment to answer a few simple questions so that we can connect you to experienced tax relief specialists and lawyers in your area who can provide you with a free tax relief consultation.

You Need Someone On Your Side IRS tax issues and enforcement measures are all based on federal law. That's why it is so important to have the most experienced and knowledgeable tax relief attorneys on your side - experts who have rescued taxpayers time after time and know exactly how to make the law work for you!

Tax Lien Help
A lien is the legal claim of one person or entity upon the property of another person or entity in order to secure the payment of a debt or financial obligation. A tax lien is one of the enforcement measures that the IRS commonly uses to enforce its claim against you for taxes you may owe.

Tax liens, filed through county clerks in the county where you live or where you do business, are public records stating that you have an outstanding federal or state tax debt.

Tax liens can be a real problem for several reasons: They can make it very hard for you to secure credit and borrow against your property. Tax liens may also make it difficult for you to be approved for an auto loan. They can also make it hard for you to sell your property as long as the lien appears on your public record.

Tax Liens - What You Need to Know

In these times of financial struggle, many individuals including families and business owners find themselves facing what is called a tax lien. A serious legal circumstance, a tax lien results from an often innocent inability to pay your taxes. In general, a lien is the legal claim of one person or entity upon the property of another person or entity in order to secure the payment of a debt or financial obligation. The IRS commonly uses tax liens to enforce its claim against you for taxes you may owe.

As if wrestling with financial obligations and debt weren't enough to worry about, a federal tax lien could impact your life substantially. If you fail to pay or are delinquent in paying income or any type of federal tax such as (but is not restricted to) income tax, gift tax, or estate tax, then all of your property is subject to a lien.

What kind of property does a lien involve? Some of the most significant examples of vulnerable property are your house and car. If you own a business, even your accounts receivable are susceptible to a tax lien. Property obtained after the lien is filed is also subject to the lien!

Get a free tax relief consultation - or help for a matter involving the IRS by using a simple form.

Act Fast!

To prevent a lien from taking effect, you are required to pay the tax within ten (10) days of the IRS's written notice and demand. If you do not pay within this time, the lien becomes active and retroactive (including the ten day period).

In addition to a federal tax lien, state governments can also impose liens on your property and may, in some states, have priority over the federal government. In most cases, if there are two or more creditors (the government is treated as a "creditor" with respect to unpaid taxes), the creditor whose lien went into effect first has priority over subsequent tax liens.

Serious Side-Effects

Along with the impact on your property, a filed tax lien may also harm your credit rating. In effect, this can prevent you from getting a loan to buy a house or car, obtaining a new credit card, or signing a lease.

Not only does a federal or state tax lien remain effective until it is fully paid off, but generally additional interest and other fees (e.g., state or other jurisdiction charges to file and release the lien) will be tacked onto the total amount you owe.

Statute of Limitations

The IRS must file a lien within the statute of limitations which for taxes assessed on or after November 6, 1990, is typically ten (10) years. If the federal government fails to file a lien within the statute of limitations then the lien is unenforceable and should release automatically (unless the IRS has filed it again).

Tax Lien Relief

Certainly, tax terms and law can be very intimidating and confusing. For instance, a federal tax lien is very different from tax levy in that a lien encumbers property to secure the payment of a tax whereas a levy is the actual act of seizing property. It is imperative that you know all your legal rights and get the help you need before you are adversely affected. This is why many employ expert help such as a tax attorney or tax lawyer.

To see what tax relief can do for you, take a moment to answer a few simple questions, and you'll be provided with a free confidential tax relief consultation at absolutely no obligation.

Your Home at Risk

Perhaps you've heard about tax lien sales or tax lien investing but don't know how they could affect you. Tax lien sales and investors can compound a taxpayer's attempts to remedy their tax problems. For instance, when you have unpaid taxes and a lien is filed, your lien is subject to being purchased from the government by a tax investor purely for investment purposes. You could then be subject to high interest rates on the lien until you pay it off or even the risk that the lien holder may take your home should foreclosure occur.

Tax Liens - Other Problems

Tax liens, filed through county clerks in the county where you live or where you do business, are public records stating that you have an outstanding federal or state tax debt.

Tax liens can be a real problem for several reasons: They can impact your credit by making securing credit and borrowing against your property very challenging. Tax liens may also prevent approval of an auto loan. And, tax liens can make selling your property next to impossible as long as the lien appears on your public record.

To see what tax relief can do for you, take a moment to answer a few simple questions, and you'll be provided with a free confidential tax relief consultation - at absolutely no obligation.

Stop or Remove IRS Tax Levy

If you are worried about, or faced with, a bank levy, the Tax Relief Center can help you. Take a moment to respond to a few simple questions so that we may connect you immediately to experienced tax relief professionals and lawyers in your area - professionals who have already proven successful at removing countless bank levies.

Get a free tax relief consultation from tax relief professionals and lawyers to prevent potential bank levies, or remove existing bank levies. Get started by using a simple form:

Bank Levy Assistance


A bank levy occurs when the IRS orders your bank to seize the funds in your account and send them to the IRS as payment for back taxes owed. When taxpayers ignore IRS warnings or wait too long to respond to IRS collection letters, they run the real risk of having their bank account frozen and funds removed. Regardless of your tax situation, don't wait for IRS collection and enforcement action to get more serious. Get tax relief now for bank levy assistance.

A Levy is a Serious Matter

The current troubled economy has caused more and more people to deal with rising costs, mounting bills and even something called an IRS levy. Unlike the kind of levy that prevents water from flooding and ruining property, a tax levy allows the IRS to seize your property as a result of unpaid taxes.

How far-reaching and impacting could not paying your taxes be on your life when the Internal Revenue Service has the power to levy or take your property? This very serious legal action by the IRS endangers all of your property and rights to it. Specifically, a tax levy potentially permits the Internal Revenue Service to:

  • garnish your wages (wage levy or wage garnishment)
  • take your bank accounts (bank levy)
  • obtain your social security payments
  • procure your accounts receivable
  • acquire your insurance earnings
  • seize real property (in some cases your personal residence)

If you receive an IRS document or form called a "Notice of Intent to Levy" then, time is of the essence in which to respond. By law the notice must arrive at least thirty (30) days before the levy or seizure of your property occurs.

Regardless of your tax situation, don't wait for IRS collection and enforcement action to get more serious. Get tax relief now and tax levy assistance.

See how tax relief specialists can help you. Begin by requesting a free tax debt relief consultation from tax relief professionals and lawyers to prevent potential wage or bank tax levies, or to remove other existing IRS levies. Get started by using a simple form.

Know Your Rights

Receiving an IRS "Notice of Intent to Levy" can be a grave event especially when the notice can show up in your mailbox or at your front door by either personal hand delivery or through certified mail. Or worse, the IRS levy notice can even be delivered - with all its potentially embarrassing implications - at your place of business!

You have thirty days from the date of receiving the levy notice to respond, fill out and mail Form 12153 to request a hearing (one hearing per tax year). Thirty days can pass very quickly, particularly with regard to a complex legal matter, and most people may be unsure of their rights and how to proceed. Dealing with the IRS and all of its forms can be a daunting and intimidating experience unless you know what you're doing or have the help of an expert whose business it is to provide tax relief.

Get your free tax debt relief consultation from tax relief professionals and lawyers to prevent potential IRS levies, or remove existing tax levies. Get started by using a simple form:

Tax Experts - Help With The IRS

Without knowledge of all your legal rights, you like many taxpayers faced with a levy, may be unfamiliar with what recourse you have and how to proceed. Perhaps you didn't know that you may seek innocent spouse relief, present alternative collection options such as installment agreements or what is called an offer in compromise.

As a taxpayer, you also have the right to challenge whether you are even liable for the taxes described in the IRS notice. At this point, you may decide to pursue a hearing and further choose to contest a decision made at that hearing (in the United States Tax Court or at a federal district court). However, performing these legal tasks is typically not advisable because they can be beyond the scope or ability of most who are not tax experts such as attorneys or lawyers.

When it comes to your most valuable assets such as your home, car, wages and bank or savings accounts, it is wise to take the best course of action to protect your possessions. If you try to defend yourself without tax expert help and are unsuccessful at opposing your tax levy, the IRS will most likely proceed to take your property. Some property is exempt from being levied but the list is small.

Free Tax Relief Options

Whatever tax situation you are facing - IRS levy, tax lien, wage garnishment or back taxes, don't wait for IRS collection and enforcement action to take action. Get tax relief help today

Request your Free Tax Debt Relief Consultation from tax relief professionals and lawyers to stop potential tax levies, or to help remove existing levies. Get started by using a simple form.

Stop or Remove Wage Garnishment

If you need tax relief to remove a wage garnishment or need assistance to help prevent a wage garnishment before it occurs, The Tax Relief Center can connect you to experienced and proven wage garnishment relief specialists and lawyers in your area who can help you.

Need Wage Garnishment Relief?

A wage garnishment is an IRS enforcement action whereby the IRS sends an official notification to an employer ordering your employer to withhold a substantial amount of your paycheck and send it to the IRS until back taxes owed are satisfied.

IRS wage garnishments are serious collection and enforcement actions that employers must follow, or they risk being assessed substantial penalties. Don't ignore tax collection efforts. To prevent a wage garnishment or stop a wage garnishment, get professional tax relief now from tax defense experts and IRS tax lawyers who are experienced in helping taxpayers facing wage garnishment.

IRS Wage Garnishment or Administrative Levy

If you are like many people and are dealing with the financial difficulties of the present economy and are unable to pay your taxes, you could face an IRS wage garnishment. A wage garnishment is an enforcement action that the IRS sends to your employer to notify and order your employer to withhold a significant portion of your paycheck. That money is then redirected to the IRS as payment on taxes you owe.

Though it may seem surprising that your wages could be taken from you, wage garnishment is one of the more typical means used to pay off a debt. While there are many types of wage garnishment, (e.g., child support, defaulted student loans, taxes and unpaid court fines) dealing with an IRS wage garnishment is perhaps the most challenging. Why? As a federal agency, the Internal Revenue Service often has priority over state tax garnishment and also credit card garnishment.

A more common term that the IRS uses for wage garnishment is "administrative levy." An IRS levy, is a serious matter because it requires no court order and allows the IRS to take or seize your property (including your wages). In fact, to begin garnishing your wages, all the IRS need do is:

  • Assess your taxes and send you a written "Notice and Demand for Payment";
  • Note if you have not paid or refused to pay your taxes within the time ordered in the notice; and
  • Send you a "Final Notice of Intent to Levy and Notice of Your Right to a Hearing (levy notice) at least 30 days before the levy.

You might think that the IRS would be required to make sure that you actually receive such a life impacting notice such as a wage garnishment levy, but this is not the case. Even if you do not get the notice, it is still effective! The only obligations the federal government has are to serve the Final Notice in person, (leave the notice at your home or usual place of business) or deliver it by certified or registered mail - to your last known address. What happens if the last known address that the IRS has is no longer where you live? The truth is many taxpayers may never actually receive the final notice!

A worst case scenario could be that you don't receive the notice of the tax levy, and the first time you learn of the wage garnishment is when your employer tells you about it or begins deducting the IRS's demanded amount from your salary. This would be, as the expression goes, a very "rude awakening." Certainly, most people would want to avoid these negative circumstances and get tax help to stop their wages from being garnished before their employer was notified about it.

Get a free tax relief consultation from tax relief professionals and attorneys to prevent potential wage or bank tax levies, or to remove other existing IRS levies. Get started by using the form on this page.

Tax Garnishment Affects More Than Wages

First, there is the impact a wage garnishment has on your ability to pay other bills like rent, mortgage and car payments because your paycheck is greatly reduced.

Second, an employer who receives a notice from the IRS to withhold a designated amount of an employee's wages must comply. Though tax garnishment may strain the employer/employee relationship, federal law prohibits an employer from firing an employee due to the issuance of a wage garnishment or administrative levy.

Federal law imposes a fine of up to $1,000 and imprisonments for as much as one year should an employer intentionally terminate an employee because of the garnishment of an employee's earnings.

Third, a wage levy or garnishment has a ripple effect, and it is likely that your credit report and credit score will be negatively influenced by it. This could result in the denial of such important means as loans, new credit cards and bank accounts.

To prevent a wage garnishment or stop a wage garnishment, get professional tax relief now from tax defense experts and IRS tax lawyers who are experienced in helping taxpayers out of wage garnishment. Get a free tax relief consultation from tax relief professionals and attorneys by using the form on this page.

What is the Limit a Wage Garnishment Can Take?

The amount the IRS can garnish from your wages could vary depending on the state you live in and if you have obtained any exemptions. For instance, in Florida, if you provide over half of the support for a child or other dependent, you may be exempt from garnishment altogether (though this is subject to waiver).

Additionally, the law allows a debtor the right to keep more of his or her wages if the garnishment would create an economic hardship.

When Does IRS Wage Garnishment Stop?

Your wages can be garnished without the IRS taking further action (after the original levy) until it releases the wage garnishment levy or until the unpaid or back tax amount due is totally paid off. However, if money in your bank account has been garnished or seized to pay taxes, and you make deposits after the date of the levy, the IRS must take additional actions to seize more money from your bank.

Get a free tax relief consultation from tax relief professionals and lawyers to prevent potential wage or bank tax levies, or to remove other existing IRS levies. Get started by using the form on this page.

Help for IRS Payroll Tax Delinquency

If you need professional tax relief assistance for payroll tax delinquency or back payroll taxes owed, the Tax Relief Center can connect you to experienced tax relief specialists and lawyers in your area who are available to help you. See how tax relief specialists can help you. Begin by requesting a Free Tax Debt Relief Consultation - at no obligation.

Don't Wait to Get Help

When businesses neglect to file and pay payroll taxes, the IRS may take serious collection and enforcement action against the business, or even the owners of the business. This may include seizure of company assets, bank levies, and other strong measures. Don't ignore tax issues until things get worse. Get professional tax help now.

Help With Payroll Tax Delinquency

As a business or employer you are responsible for more than a healthy bottom line; you are obligated to pay payroll taxes to the Internal Revenue Service and other state or local agencies on time to avoid payroll tax delinquency. The IRS mandates that you withhold taxes from your employees' wages and also that you pay your portion of the following:

  • Medicare taxes
  • Social Security taxes
  • Unemployment taxes
  • Federal income taxes

As an employer you are required to deposit your employees' and your portion of payroll taxes with the appropriate revenue agency. This includes timely payment of federal payroll withholding taxes. Most states and local governments typically impose income tax withholding measures on employers as well.

Payroll tax delinquency is a serious matter and could happen if you do not closely follow all prescribed IRS and other tax rules. For example, you must:

  • Adhere to your federal tax deposit schedule called a "Circular E."
  • Make sure you receive the current IRS Circular E form (the IRS sends employers a new Circular E each year).
  • Follow the correct Circular E form.
  • Comply with your tax deposit schedule (typically semiweekly or monthly).

If federal tax obligations and time tables weren't enough to keep track of, there can also be state payroll tax requirements. Regulations can change from state or state. Commonly, the majority of states enforce state income tax withholding and make it the employer's responsibility to pay state unemployment tax.

When businesses neglect to file and pay payroll taxes, the IRS may take serious collection and enforcement action against the business, or even the owners of the business. Tax delinquency justice is designed to help stop seizure of company assets, bank levies, and other strong measures. Don't ignore tax issues until things get worse. Get professional tax help now.

Delinquency and Tax Penalties

Juggling the demands of a business as well as the IRS payroll tax rules and regulations to avoid income tax delinquency can be very time-consuming and stressful. The IRS can penalize you for not paying your taxes on time or even if you do not use the stipulated deposit method. For example, if you make your payroll tax deposits without utilizing the Electronic Federal Tax Payment System (EFTPS) system or at a financial institution authorized to accept federal tax deposits, you can be charged a hefty percentage (typically 10%) of the taxes due.

Should you make your payroll tax deposits late, the usual charge or penalty is 5 percent (of the amount owed) and can rise in accordance with how late a payment is. In other words, the more delinquent or the later you pay, the greater the percentage you pay. Even if a third party deposits your payroll tax for you and makes a mistake, the business or employer is liable.

Instead of dealing with complex tax issues on your own, get professional tax help now by requesting a free tax debt relief consultation - at no obligation.

You must also remember the timetable or payment schedule for state payroll tax deposits as they will probably be different that the federal system.

Employers must give their employee(s) an annual report or proof of wages paid and federal, state and local tax taxes withheld. This is called a W-2 Form and a copy must also be sent to the IRS and some states (by January 31 and February 28 (March 31 if filed electronically) respectively). If an employer defaults or neglects to file W-2 forms, an automatic penalty of up to $50 per form could be charged for late filing (also state and local penalties can apply).

Tax Relief Could Help You

When businesses neglect to file and pay payroll taxes, the IRS may take serious collection and enforcement action against the business, or even the owners of the business. One of the harshest tax penalties a business could face from the IRS results from delinquent federal income tax withholding and Social Security taxes. The Internal Revenue Service can penalize a business for as much as 100% of the payroll taxes due them.

Tax relief could help you stop IRS, state or local agencies seizure of company assets, bank levies, and other strong measures resulting from payroll tax delinquency. Don't ignore tax issues until things get worse. Get professional tax help now.

If you need professional tax relief assistance for payroll tax delinquency or back payroll taxes owed, the Tax Relief Center can connect you to experienced tax relief specialists and lawyers in your area who are available to help you. Get started by requesting your free tax debt relief consultation. Begin with a simple form.

IRS Options for Unpaid Back Taxes

If you owe back taxes to the IRS or state, whatever you do, don't ignore letters or collection efforts, because the IRS will pursue you relentlessly until the issue becomes a nightmare in your life. If you ignore the IRS, you are risking wage garnishments, bank accounts seizures or levies, tax liens, and more. Before tax issues become more serious, get a Free Tax Relief Consultation - at no obligation - from tax relief specialists who will stand by your side and work out the most favorable tax relief solution for you.

Know Your Legal Rights and Options

IRS and tax issues are governed by, and subject to, federal law. That's why it is so important to have experienced tax attorneys on your side working on your behalf - Experienced professionals who have been there before - who understand how to make the law work for you - and protect your interests.

Back Taxes - Up Front

Another name for unpaid or late taxes is "back taxes" (usually for the previous tax year).Though you may want to put the uncomfortable thought of your overdue taxes in the back or your mind, getting tax relief help is a smarter idea. Avoiding late tax payments could cost you money and cause serious difficulties.

To the IRS, getting your back tax payments is a top priority. When you are late paying your taxes, the Internal Revenue Service could subject you to significant legal consequences including:

  • placing tax liens on your property
  • charging added fees and interest for late penalties
  • garnishing your wages (wage levy or wage garnishment)
  • taking your bank or savings accounts (bank levy)
  • obtaining your social security payments
  • procuring your accounts receivable
  • acquiring your insurance earnings
  • seizing real property (in some cases your personal residence)

Time is of the essence when you have back taxes, because the IRS practice is to send you time-sensitive legal notices to make you pay your back tax bill. Such IRS notices threaten severe outcomes if you don't respond or comply with them.

To see what tax relief can do for you, take a moment to answer a few simple questions, and you'll be provided with a Free Tax Relief Consultation

One of the more threatening IRS documents or forms is a "Notice of Intent to Levy." Be aware that if you receive this notice, you need to act very quickly. By law this notice must arrive at least thirty (30) days before the IRS levies or takes your property. Thirty days is a small amount of time in which to respond or seek professional tax relief.

Many taxpayers faced with an IRS back tax notification may have little or no knowledge of all their legal rights or how to proceed when they receive a notice regarding their unpaid taxes. If you need tax relief help, take a moment to answer a few simple questions, and you'll be provided with a

Back Tax Help

You may also have to pay interest and penalty fees on unpaid or late tax debts - especially if you have not filed your back tax returns or requested a filing extension (to avoid a 5 percent late filing fee.)

Maybe all of your attempts to raise funds to pay your back taxes have fallen through - such as borrowing money, selling some of your assets (e.g., house, car, bonds, etc.) or obtaining a home equity line of credit, and you are at a loss as to what to do. Perhaps you even have an existing back tax payment plan with the IRS but find that you are becoming less and less able to make monthly payments. Rather than default on your payment plan or new taxes, know that you have options.

Before tax issues become more serious, get a Free Tax Relief Consultation at No Obligation - from tax relief specialists who will stand by your side and work out the most favorable tax relief solution for you.

Protect Your Assets

An experienced back tax professional or attorney can help you with complex IRS notices and forms and protect your assets and property from seizure or lien. A tax expert or lawyer who understands how to make the law work for you can offer you legal back tax settlement solutions and help such as:

  • Assisting with innocent spouse relief
  • Negotiating with the IRS for reasonable collection options such as installment agreements
  • Getting you an offer in compromise (erase tax debt for an amount less than total back tax owed)

Time is of the Essence

To see what tax relief can do for you, take a moment to answer a few simple questions, and you'll be provided with a free & confidential tax relief consultation - at absolutely no obligation.

Interest & Penalties on Back Taxes

When taxpayers are delinquent in filing taxes, or in paying the full amount owed, the IRS will assess extremely high and punitive penalties and interest. In many cases, taxpayers are able to pay the original amount of taxes owed, but the penalties and interest add up so quickly that tax relief is needed.

To see what tax relief can do for you, take a moment to answer a few simple questions, and you'll be provided with a free confidential tax relief consultation - at absolutely no obligation.

Penalty Abatement - Interest Abatement
If the IRS is pursuing you with notices that communicate failure to deposit, failure to pay, or failure to deposit you are likely to face a wave of tax penalties and interest that can quickly double your tax debt owed before you know it. With the assistance of experienced tax relief specialists and attorneys, you may qualify for a Penalty or Interest abatement that could save you thousands or tens of thousands of dollars.

Tax Penalties - Know Your Rights

Many would probably agree that facing an IRS tax penalty is one of life's more negative experiences. Filing and paying your taxes in a timely manner is extremely important. When you don't, large fines (with interest) and penalties (including civil fines to imprisonment for criminal tax evasion) may be imposed on you.

What tax matters cause the IRS to subject you to penalties? The main penalties occur when you:

  • do not file your tax return
  • pay your taxes late (past the due date)
  • substantially understate your taxes (or a reportable transaction)
  • file an inaccurate claim for refund or credit
  • file a frivolous tax submission
  • provide fraudulent information on your return (a civil fraud penalty)

Penalties arise for such taxes as income from self-employment, payroll or withholding, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards.

Typically, the IRS also expects tax penalties to be paid once they have noticed a taxpayer of the penalty.

File Your Tax Return

Perhaps you forget to file your tax return and think that once you do file it, you'll be okay with the IRS. The consequences of not filing your return could cause you to pay a penalty of as much as 25 percent of the taxes you owe. Additionally, the taxes you owe could be surcharged a 5 percent fee. This tax penalty is calculated monthly and could add up to the maximum of 25 percent (pending the filing of your tax return) of the tax bill.

Your tax penalty will be a minimum of $100 or the total you owe (whichever is less) if your tax return is more than 60 days overdue. If you can show what is called reasonable cause as to why you filed your taxes late, you may be able to stop or abate the penalty.

How do you show "reasonable cause"? The tax laws, forms and penalties can be voluminous and complex which is why many taxpayers rely on tax experts and preparers to handle their taxes.

With the assistance of experienced tax relief specialists and attorneys, you may qualify for a Penalty or Interest abatement that could save you thousands or tens of thousands of dollars. To see what tax relief can do for you, take a moment to answer a few simple questions, and you'll be provided with a free confidential tax relief consultation - at absolutely no obligation.

File On Time

Is there a penalty if you file your tax return but are unable or do not do not pay your taxes on time? Yes. The tax penalty is generally estimated up to 25 percent of the tax amount you owe. The longer you don't pay your tax bill, the more the IRS could charge you in interest. Every month you may be assessed 1/2 of 1 percent up to the maximum of 25 percent

Provide Enough Information

Filling out your tax returns requires accuracy and the proper amount of information. If you do not believe you have the knowledge to accurately and completely perform this task, it is smart to get the help of a tax specialist. Ignorance of tax procedures may subject you to what the Internal Revenue Service deems a "frivolous return." The penalty for this is stiff - $500.

File an Accurate Return

As with a frivolous tax penalty, there is a penalty for filing inaccurate of incorrect information on your return. Claiming ignorance which results in a negligent regard for tax rules and regulations or underestimating the amount you owe, could result in a tax penalty of as much as 20 percent of the tax amount actually due.

What does the IRS consider negligence? It is "the lack of any reasonable attempt to comply with provisions of the Internal Revenue code" or includes (but is not limited to) any failure to:

  • reasonably try to abide by the Internal Revenue Service's laws
  • employ reasonable and ordinary attention in preparing a tax return
  • maintain sufficient records and account books or to verify items correctly

And though a tax penalty for negligence may be reversed or abated, you must prove to the IRS that you acted with reasonable cause and good faith. It is wise to enlist the help of a tax specialist, attorney or expert in such matters.

Civil Fraud Penalty

The most imposing tax penalty comes as a result of filing a fraudulent return. If the IRS determines that you have under paid your taxes because of fraud, a hefty penalty of 75 percent will most likely be attached to your tax bill.

Should IRS examiners determine that there is convincing evidence of fraud, they may refer the case to the Internal Revenue Service Criminal Investigation Division for possible criminal prosecution. When this unfortunate event occurs, penalties and sanctions are subject to both civil law and criminal prosecution.

However, it is very important to know the law because negligence or ignorance of the law is not considered fraud.

With the assistance of experienced tax relief specialists and attorneys, you may qualify for a Penalty or Interest abatement that could save you thousands or tens of thousands of dollars.

If you need tax relief help, take a moment to answer a few simple questions, and you'll be provided with a free confidential tax relief consultation - at absolutely no obligation.

IRS Collection Letters

The IRS follows a set protocol for contacting taxpayers, pursuing taxpayers, and taking strong enforcement action against taxpayers - such as wage garnishments, bank levies, tax liens, and more! That's why it is a serious mistake to ignore IRS collection notices and letters.

If you have received a tax collection letter or notice from the IRS, the Tax Relief Center can connect you to an experienced tax relief specialist or attorney serving your area - a professional who understands your circumstances and can go to work for you to come up with the most favorable tax relief solution for you.

It's important to understand that tax problems never go away - they only get worse and more stressful over time, unless you take action to exercise your legal rights to get the tax relief you are entitled to. Here's a partial list of some common IRS collection letters:

CP 88 - Delinquent Return Refund Hold
This notifies taxpayers that the IRS is holding their refund until a tax return has been filed or an acceptable explanation is given for why it was not filed.

CP 90 - Final Notice of Intent to Levy and Notice of Your Right to a Hearing
This is a notice indicating that the taxpayer still has a balance due on their account and that the IRS intends to place a levy on specific assets unless the taxpayer takes action within a 30 day period.

CP 91 - Final Notice Before Levy on Social Security Benefits
Informs taxpayers that they still have a balance remaining that is due on their account and that the IRS intends to levy Social Security benefits unless appropriate action is taken within 30 days.

CP 501 - Reminder - Balance Due
Notifies taxpayers that they still have a balance due and that the IRS can file a Federal Tax Lien if taxpayers don't remit to the IRS the entire amount within 10 days.

CP 503 - IMF 2nd Notice - Balance Due
This notice informs taxpayers that immediate action is required. This letter states that the IRS has written to the taxpayer, that taxes are owed, but the taxpayer has not contacted the IRS to respond. The letter goes on to state that the taxpayer may be eligible to pay via an installment agreement or a payroll deduction agreement, but if the IRS doesn't receive a response, steps will be taken to collect monies owed.

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CP 2000 - Notice Proposing Changes to the Taxpayers Return
This letter is sent to taxpayers when the IRS receives information from employers or other entities that doesn't match what was reported by the taxpayer on their return. Based on the new information that the IRS has, they then propose changes to the return and communicate to taxpayers what they may do if they agree or disagree with the proposed changes.

CP 504 - Final Notice - Balance Due
This notification informs the taxpayer that payment has not been made and this is the final notice before a levy will be placed on certain assets.

CP 521 - Balance Due
The notice informs taxpayers that a payment is due and that penalties and interest have been assessed and will continue to accrue until the balance is paid in full.

CP 523 - Notice of Intent to Levy - You defaulted on Your Installment Agreement
Informs taxpayers that they have defaulted on their installment agreement. The notice also provides the reason for the default, describes the actions the IRS plans to take, and communicates what taxpayers can do to prevent the IRS from taking those enforcement actions.

Don't Ignore IRS Collection Letters and Notices. Know Your Legal Rights and Options

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