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IRS Tax Relief Frequently Asked Questions

If I haven’t filed a tax return in years, is it better to start filing now or wait until the IRS asks for a return?
The best thing you can do is file your tax return as soon as possible. The IRS will eventually find out that you haven’t paid taxes through employers, contractors, mortgage holders or previous documents. The longer you go without paying taxes, the more fines you will have to pay. If you can’t pay all of your taxes, you may be able to qualify for an Offer in Compromise, Installment Agreement or Currently Not Collectible Status.

Get all tax documentation you have to file for previous years. If you can’t find some of the documentation, call the IRS for help. You must file late tax returns by paper. Also, you should mail them through certified mail in different envelopes for each year.

What can I do if I can’t pay the IRS what I owe?
If it is impossible to pay back the IRS, you may be able to negotiate an Offer in Compromise, where you can find tax relief by settling your taxes for less than you owe. If the IRS accepts your offer, you can pay the amount agreed upon, and all federal tax liens are removed.

Negotiating an Offer in Compromise can be very complicated and last 6-18 months. After all that, only about a quarter of all offers are accepted. Therefore, it is highly recommended that you get a tax attorney to help with your offer. Offers in Compromise are eligible for acceptance if there is:

  • Doubt as to liability – There is doubt that your tax is correct.
  • Doubt as to collectability – There is doubt that you could pay what you owe.
  • Effective tax administration – Your offer can be accepted even if your tax is correct and can be collected under rare circumstances if you can prove that the tax would be unfair or create an economic hardship.

After your offer is accepted, you must file and pay your tax returns for the next five years, or you will again be responsible for all taxes and fines.

 

What is the difference between an IRS levy and lien?
A levy is more serious than a lien. A lien is used as security for tax debt. It says that the IRS has the right to seize the property before other creditors. If the IRS has a levy against your property, they can actually take your property to satisfy that debt.

How can I find tax relief if the IRS has filed a lien against me?
A lien is a public record on your property that says you owe the IRS money. It tells creditors that the IRS has a claim on all your property, including property you buy after the lien is filed. If a lien is attached to your property, you cannot sell that property without a clear title.

If you settle your tax debt to the IRS, the lien will be released within 30 days. If you never pay your IRS tax debt, the lien will usually be released automatically 10 years after it is issued.

What happens to my credit score if I owe money to the IRS?
Your credit score will take a huge hit if the IRS has filed a tax lien against your property. This is why it is important to take care of a lien as soon as possible.

What can I do if the IRS has issued a levy against my property?
The IRS can issue a levy against your property, including your house, your vehicle and even your bank account. This levy allows the IRS to seize your property to pay back tax debt.

If a levy has been issued against your property, start communicating immediately with the IRS. Find out if you qualify for an Offer in Compromise, Installment Agreement or Currently Not Collectible status. If the seizure would cause severe hardship, you can request a Taxpayer Assistance Order to protect you.

What can I do if the IRS has garnished my paycheck?
The IRS can collect money you owe them by issuing a garnishment on your paycheck. A garnishment is basically a levy that requires your employer to collect a large portion of your paycheck and pay it straight to the IRS until your tax debt is paid off. Garnishments usually collect between 30 and 70 percent of each paycheck.

Your best chance of avoiding garnishment is to respond immediately when the IRS contacts you. Before they can garnish any wages, the IRS can send a Final Notice 45 days before taking action. Also, it is important to know that the IRS can garnish your wages months or years after sending you the Final Notice. The best thing you can do when you get a Final Notice is act immediately.

If the IRS does issue a garnishment on your paycheck, you can find out if you qualify for tax relief through an Offer in Compromise, Installment Agreement or Currently Not Collectible status. Act as quickly as possible, because even you get a garnishment released, the IRS will not give back money that they have already collected.

How much of my wages can the IRS garnish?
The amount garnished depends on the amount you earn and the number of dependants in your family. Also, the IRS is only required to leave you a certain amount of money. So, the IRS could take the same amount of money from you whether you make $1,500 or $15,000 per month.

My spouse owes the IRS money from before we were married. Am I liable for those back taxes?
You do not have to be liable for those back taxes. The IRS offers Innocent Spouse relief to protect you.

How long does the IRS have to collect back taxes from me?
The IRS must collect back taxes within 10 years after the tax has been assessed. However, this time limit can be extended under certain circumstances. For instance, if a person has filed for bankruptcy or an Offer in Compromise, the statute of limitations is usually suspended until the bankruptcy or Offer in Compromise has been resolved.

How do I find out where my federal income tax refund is?
You can track your IRS refund through the “Where’s My Refund” page on irs.gov, or you can call the Refund Hotline at 800-540-0433. To find out where your IRS refund is, you need to know your Social Security Number, filing status and the amount of your refund.

How do I get copies of my tax return?
If you just need a transcript or print out of your return, call the IRS at 800-540-0433. If you need an actual copy, mail Form 4506 and $57 per year requested to the IRS.

How can I avoid an audit?
The easiest way to avoid an audit is to completely and accurately fill out your tax return. This includes double checking your math and making sure you used all the correct forms. Because the IRS flags items that look suspicious, you may want to consider attaching an explanation if you think a deduction or credit you are claiming looks too large.

Even if you follow all these steps, you may still have to undergo an audit. The following can factor into the IRS’s decision to audit:

  • Self-employment
  • Home office deductions
  • Driving logs for business travel
  • High wages
  • A large number of deductions
  • Unreported income
  • Unreported alimony

 

How do I prepare for an IRS audit?
First, find out whether or not the IRS wants to have a face-to-face meeting with you. About a third of audits are just letters from the IRS asking for explanation for a certain item on your tax return.

Next, consider contacting an accountant, tax attorney or Enrolled Agent to stand before the IRS for you. Before you go to your audit, organize all tax material relevant to the question being asked and make copies. Bring all worksheets to show how the tax figures were calculated. Always remember that you can do yourself more harm than good by volunteering more information than was requested by the IRS.

At the end of the audit, the IRS agent will give his informal judgment on the matter. You will receive a formal report later. If you do not agree with the audit ruling, you can appeal to the IRS or even the U.S. Tax Court.

Contact Omni Financial for IRS help.

Why should I hire an Omni Financial tax attorney for tax relief instead of using a local CPA or attorney?
Consider their experience. Omni Financial handles more cases in one week than most CPAs or attorneys will handle in their career. Can you rely on someone who occasionally handles a tax resolution case to produce a favorable outcome? At Omni, our tax attorneys handle tax resolution all day, every day.

What can I do when faced with enforced collection action?
As a taxpayer, you have rights and options. However, the IRS or state is not obligated to point these out to you. Neither will most tax practitioners – they just aren’t specialists in providing IRS tax relief. At Omni, we routinely negotiate payment plans, penalty abatements, and settlement offers that can be tailored to fit your budget, allowing you to stay in business. Additionally, we provide financing and new corporate formation options that may work for you.

What authority does the State or IRS have to collect money from me or my business?
The collection divisions of the State and the IRS have the power to file tax liens without court order.  They also have the power to levy your bank accounts, wages, investments, retirement funds, business and personal property.  The IRS has thousands of Collection Division employees doing this everyday.

Is there a way to get IRS help or tax relief?
The IRS allows qualified taxpayers to satisfy their tax liabilities for lump sum payments, amounting to a small portion of the liability. Recent statistics also show that 42% of all IRS penalties are abated – if you know the procedure. Omni Financial can provide the IRS help you need to reduce your liability and get you the fresh start you need.

There are so many business tax help companies out there.  Why should I choose Omni Financial?
That's simple: Experience, experience, and experience. 20 years in business; clients in every state across America; the most knowledgeable and experienced professionals in this industry are a few reasons why you need to choose OMNI for your tax relief specialist!

3 Things you should know about tax relief

  1. The problem is not going to go away on its own.  Letting time pass without taking action will only make it worse.
  2. The IRS and State Collection Divisions can and will levy bank accounts, garnish wages and seize assets.
  3. Dealing with a tax issue can be overwhelming. You don’t have to go through it alone. Let the experts at Omni Financial guide you through the tax reliefprocess so you can go back to living your life with complete confidence.

For personal and business IRS tax help, call today for a free tax relief consultation at 800-540-0433.

Call today for a FREE Tax Debt Consultation (800) 540-0433 or Click Here