What You Should Know About the IRS

All information herein can be viewed at www.taxdefensenetwork.com

Welcome to

our

complimentaryguide concerning IRS tax debt

issue

This

guide

is not intendedto provide a comprehensiveoverview of all forms of tax debtrelief available, but rather gives asummary of each of the

Tax

Relief Solutionsreferenced on

our

website

in the area titled

“

Frequently Asked Questions.

”

You may need help with an IRSdebt problem not covered here

which case we advise you to takeadvantage of afree telephone

consultation

with one of ourexperienced and knowledgeabletax professionals.

Is help with back tax filings available?

Yes, in fact, if you have not filed either your personal or your business tax returns, it isquite a serious matter. The first step in addressing this tax problem is to immediatelyprepare and file the back tax returns. We realize that oftentimes there may be missinginformation making it difficult to assemble accurate tax returns. Our tax speci

alists are

equipped to handle missing records and still provide you with valuable help in preparingyour back tax returns.You may find yourself in a situation where the IRS has already filed “their version” of your tax returns for you. This is called an “SFR” or Substitute for Return.

Clearly, the

back tax filings completed by the IRS on your behalf will not attempt to identify anydeductions you may be entitled to (beyond the standard deduction and one personal

exemption).

The IRS will be filing your back tax returns (SRFs) with the best interest of the federal government in mind. In fact, the IRS considers the non filing of tax returns soserious that it sometimes imposes penalties as high as 25% of the tax you owe.Additionally, all taxpayers should be aware that the failure to file tax returns may beconstrued as a criminal act by the IRS.Once you have addressed and completed the back tax return filing process with our taxadvisors, you will likely realize that payment of the back taxes is a h

eavy burden when

you are required to remain current on your taxes during this same time period.

This is

This watermark does not appear in the registered version -http://www.clicktoconvert.com

another compelling reason to seek professional tax assistance. Back tax debt specialistsare aware of the IRS relief programs available that may help relieve some of the hardshipof paying your back taxes. Contact our tax advisors immediately so they can assist youwith a tax relief strategy and stop your back tax debt problem from compounding over

time!

What is an Offer in Compromise?

An Offer in Co

mpromise is an out of court agreement between the IRS andthe taxpayer that resolves the taxpayer'sliability. The Internal Revenue Servicehas the authority to settle orcompromise federal tax liabilities byaccepting less than full payment under

certain

circumstances. Thesecircumstances are:Doubt as to Liability

The IRS may also accept an offer in compromise when doubtexists that the amount of tax owed is correct. The taxpayer needs to explain why theybelieve that they do not owe the tax that they would like to compromise. Financialinability to pay will not be considered under this basis alone.Doubt as to Collectibility (most common)

Under this basis, there is doubt that theamount of tax owed can ever be paid back in full. In order to successfully negotiate thistype of offer in compromise, the taxpayer must demonstrate through complete andthorough financial statements and supporting documentation that there are insufficientassets and income to pay the full amount of tax owed.

Effective tax

administration

Under the third basis for an offer in compromise, there isno doubt that the tax owed is correct and there are sufficient assets and income to pay theentire liability. However, the taxpayer believes that, due to exceptional circumstances,

would be unfair and inequitable to require full payment of the tax.The primary determinant on “doubt as to collectibility” is based on a taxpayer’s personalfinancial profile; including income, expenses, and assets. The IRS sets strict guidelines

for

income, allowable expenses (categorized as: Living, Housing, Transport), andavailable equity in owned assets. An additional benefit of submitting an OIC is that IRSRestructuring Act prohibits the IRS from collecting a tax liability by levy during the

riod in which the Offer is being processed, or 30 days following rejection of an offer,or during the appeal of an OIC. This window of non

collection is frequently a respite forour clients to avoid any IRS collection actions, thereby securing additional t

ime for

clients to pay and prevents the IRS from seizing any assets in the interim.If the offer in compromise is accepted, payment can be made via one of three options: 1)cash (within up to 90 days of acceptance); 2) short

term deferred payment plan (pa

yable

This watermark does not appear in the registered version -http://www.clicktoconvert.com

within 24 months of acceptance); or 3) a long

term deferred payment plan (payable overthe remaining time left on the collections statute).Once the offer in compromise is accepted, the taxpayer must remain in compliance withall filing and payment obligations, including staying current with quarterly estimated taxpayments and not incurring any new tax debt, for five years or until the offer amount ispaid, whichever is longer. Failure to abide by these terms may result in the default of the

offer in

compromise and the reinstatement of the original tax liability.

What is IRS Tax Penalty Abatement?

IRS tax penalty abatement refers to the reduction or the removal of tax penalties assessedby the IRS. Typically this occurs because you fell behind on your taxes and the IRSexercised their right to charge a penalty. When tax penalties and interest are assessed, thetotal tax you owe increases and so does the financial hardship you are undoubtedlyalready experiencing.However, there is professional help available for an IRS tax penalty problem. The IRS iswilling to review information about the reasons you either did not file your taxes in atimely manner or underpaid your tax liability. Tax abatement advisors will review yoursituation, and if appropriate, will complete a Penalty Abatement Request on your behalf.In some cases, it is discovered that tax penalties were incorrectly assessed, and thetaxpayer ends up owing no tax penalty at all. Even more encouraging is the fact that an

expert tax advis

or may be able to secure a refund for prior tax penalties remitted thatwere unfairly assessed by the IRS. The process to secure a tax penalty abatementrequires that the proper forms be filed and specific procedures be followed.

It can be

challenging to

have the tax penalties removed without professional tax assistance.

Many

states also offer tax penalty abatement programs so do seek help from a tax advisor aboutany state tax penalty problems you are facing.

What is an Installment Agreement?

An IRS installment agreement is essentially a monthly payment plan which allows you topay off your past due tax liability “over time”. Once you have been approved for aninstallment agreement the IRS will no longer continue to pursue you with their collection

forts.

However, receiving this form of tax relief requires that you remain current withall your future tax filings and all your future payment obligations.

How do I stop the IRS from garnishing my wages, levying, my bank account, or seizing my assets

When you become client

Tax Defense Network the first step for us is to stop the IRScollection procedures. This means that all garnishing, levying, or seizures will be put in a

hold

status while we negotiate the best possible outcome on your behalf with the IRS.The collections hold will remain in affect for the entire length of the negotiation processwhich means your assets will be safe.

This watermark does not appear in the registered version -http://www.clicktoconvert.com