Offer in Compromise (OIC) Program:
This IRS program is under 26 U.S.C., which allows qualified individuals with unpaid tax debt to negotiate a settled amount that is less than what is currently owed to settle the debt. The main objective of the OIC Program is to accept and compromise when it is in the best interests of both the taxpayer and the IRS.
Our team provides specialized assistance and guidance with the OIC Program to ensure that all specified requirements are met within IRS guidelines.
Payment plans are a valuable option, which allows a debtor to pay the owed amount within a particular time frame. Not paying your taxes when they are due may cause the filing of a Notice of Federal Tax Lien and/or an IRS levy action.
It is very important that you do not overexpose yourself in situations such as these. Our team will effectively negotiate Installment Arrangements that are inline with your ability to pay, in order to ensure that you are paying off your tax debt in an efficient and timely manner.
Benefits of Installment Arrangements:
Avoid additional accrued interest and penalty fees
Avoid offset of your future refunds
Avoid issues obtaining future loans.
The IRS has the power to issue levies, or seize, total or part of your wages or receivables; otherwise known as wage garnishments. The seized amounts will be sent to the IRS each pay period until arrangements are made to pay your overdue taxes The amount of overdue taxes are paid in full then the levy is released.
Wage levies are our top priority at Five Star Tax Resolution. We understand that you depend on your income to support your household and will work diligently to ensure the applied wage levy is released.
As a taxpayer, it is important to understand the differences between a levy and a lien. A levy is a legal seizure of your property or assets to fulfill a tax debt; meanwhile, a lien is a legal claim that may be used a security for the tax debt rather than to satisfy it. When a levy has been placed on a bank account, there is a 21-day period for complying with the levy.
It is of key importance that the levy release is resolved in a timely manner. Our team of tax professionals will take the proper channels to negotiate the full or partial release of your levy
Revenue Officer Release:
A Revenue Officer is a local agent of the IRS or Department of Taxation. Each agent is sent to investigate and notify the taxpayers about their tax responsibilities. Most importantly, these agents’ duties are to protect the interest of the federal state and government by collecting delinquent tax accounts and securing delinquent tax returns.
If you find yourself in a situation with a revenue officer, we can help. We are highly experienced in dealing with IRS and state revenue officers; it is important to remember, you have rights. If a revenue officer is currently contacting you, we advise that you seek professional legal assistance immediately.
The IRS imposes interests and penalties due to the late filing of a tax return, underpayment of taxes, filing of fraudulent returns and other improper reasons related to taxable income.
We are highly skilled in identifying the guideline requirements to ensure that the taxpayer is a good candidate for Penalty Abatement. The IRS is more inclined to accept Penalty Abatements if properly negotiated and requested.
An IRS or state audit is an examination of an organization's or individual's accounts and financial information. This process is to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct. There is a 1-in-143 chance of being audited randomly. Overstating deductions causes most audits.
We have helped, many of our clients overcome audits. Just because the IRS or state is questing your deductions and expenses does not indicate mean that the IRS or state is correct in doing so. You, as a taxpayer, have a legal right to acquire proper representation. Even if the audit has been finalized, our team of professionals can appeal the IRS or state’s decision
Payroll taxes are the portion of Medicare and Social Security taxes that an employer is required to withhold. The IRS is pressing and aggressive when it comes to a delinquency in payroll taxes (IRS forms 940 and 941). Failure to properly pay the IRS, also known as a Trust Fund Recovery, is considered stealing from the employee.
We are very knowledgeable and strategic when dealing with payroll tax issues. Whether you have a currently operating business or one that is now closed; we can properly represent and resolve the matter. More importantly, we will educate business owners on compliance to ensure the establishment of healthy practices for a long lasting and prosperous business.
Upon failure to file a federal tax return and taxes are owed there can be serious consequences. Even if an individual does not currently owe taxes, it may be in the parties best interests to still file. Here’s a look at what happens if there is a failure to file a Federal tax return. It is important to keep in mind that many states have similar consequences. In addition, states have greater power to do some things the IRS is unable to do. Penalties: That means 5% of the balance for every month you don’t file. This penalty maxes out at 25%. No Refund: If you are due a refund, but do not file, you will be denied the refund. You have three years to file your federal return, after that, you lose the opportunity to claim your refund. Substitute for Return Consequences: The IRS automatically completes a Substitute Federal Return (SFR) for you. In some cases, they may tax at the highest tax bracket with only the standard deductions. Your eligible deductions will not be taken into consideration, resulting in an unfavorable liability to you. Incarceration: Jail time is very rare but possible. Under federal law, you can face up to a year in jail and up to $25,000 in fines for not filing your return, per return that is unfiled. The penalties are stricter if you commit fraud. However, you cannot go to jail for owing taxes. Jail is normally reserved for purposefully evading taxes. Not filing your tax returns could be viewed as tax evasion.
We understand that W2's, 1099's and important receipts get lost through the years and the taxpayer is overwhelmed on how to obtain this crucial information. Our team efficiently and strategically gathers all the necessary information to accurately file your tax returns.
Unfiled Tax Returns Assistance:
Every year, millions of American taxpayers forfeit unclaimed income tax refunds. This often occurs because they were unaware they even had one coming. The problem arises because taxpayers are only required to file if they made a certain amount of income. Because they are not legally required to file a certain amount, many do not feel the need to bother filing. But more often than not, those very same people would receive a refund if they did file, even though they're not required to. Five Star Tax Resolution specializes in Account Transcript Reviews, saving you money that is otherwise left unclaimed. This money would go to the IRS or even worse, create a liability.
The IRS is not perfect and has been known to make mistakes and not go out of their way to correct them. We understand that everyone that has an obligation to pay taxes, our goal is to ensure that the taxpayers pay fair amounts.
Tax Account Review:
If you owe past-due federal taxes that you cannot pay, bankruptcy may be an option.
Our team of experts can help guild to make sure a bankruptcy is a right fit for you. Specific requirements are needed to ensure your bankruptcy is approved. Since bankruptcy affects your credit and ability to apply for future credit it is always best to weight out your options.