Tax prep
&
IRS Help

Falling behind on filing your income tax returns because you know you owe money is a domino effect. The taxes originally due will now be compounded with penalties and interest. If you didn’t owe money failing to file a tax return can lead to a loss of refund. The IRS and State Tax Agencies are getting better all the time at catching people who haven’t filed tax returns and they never seem to warn you until you’ve fallen a couple of years behind. It doesn’t matter if your unfiled tax returns are personal or business. Jason Valiante is an experienced Enrolled Agent and Tax Preparer who will prepare you unfiled tax returns and face the IRS for you so you don’t have too!!

• Have you gone to the bank and shockingly found out a Tax Agency has levied money from your bank account?
• Is a levy causing financial strain for you to pay your bills?
• Is the IRS garnishing your wages?

While a tax lien is a legal claim against a delinquent taxpayer’s property, a levy is a legal seizure. Though it may seem harsh; the IRS can legally seize a taxpayer’s assets to settle back taxes. The IRS will usually seize property when:

• Tax has been assessed and taxpayer has been sent a bill; 
• Taxpayer has neglected or refused to pay the bill;
• IRS sent the taxpayer a “Final Notice of Intent to Levy” and “Notice of your right to hearing” 30 days before the seizure. 

Common levy types are wage garnishment, bank levy, property seizure, 1099 levy, non-real property asset seizure, and the IRS can seize your passport. There are options to getting your levy lifted such as: 1) entering an agreed upon payment plan  2) submitting an offer in compromise, or 3) proving financial hardship.

Valiante Tax and Financial Management will analyze your situation and diligently work on your behalf to negotiate an arrangement that works for you, not the Tax Agency. 

The IRS can file a lien against your property when you have taxes that haven’t been paid. A Federal Tax lien is a legal claim against any current and future property such as: your house, car, rights to property, wages, and bank accounts. If you’ve failed to pay your taxes after the first bill, a lien will automatically come into existence. We can help you address the Tax Agencies and take the steps necessary to get the lien lifted.

https://valiantetfm.wpengine.com/wp-content/uploads/2019/11/VTFM-IRS-Tax-Lien-Blog-11152019.pdf

• Do you owe the IRS a large sum of money? 
• Have you been putting off facing this problem?
• Does it seem like you ‘ll never be able to pay off this tax bill?

When you owe back taxes, the IRS is like a Creditor who wants to get paid everything they are owed. Sometimes the IRS realizes that it is impossible to collect all or a portion of the debt owed. An offer in compromise is an agreement or contract between the Taxpayer and the IRS that settles the liability for less than the full amount owed. If the Taxpayer can pay the liability in full in a lump sum or through periodic payments, generally they will not qualify for an Offer in Compromise in most cases.

Schedule a free consultation today to see if you qualify for an offer in compromise.  If you don’t qualify, we will help you build a plan to address the situation and get moving in the right direction with both the Federal and State Tax Agencies.  

Every Year the IRS charges penalties for failing to file a tax return, failing to pay on time, failing to deposit taxes as required, and other applicable penalties. 

There are three types of penalty relief available to a taxpayer:

1. First time penalty abatement.
2. Reasonable Cause
3. Statutory exception. 

First Time Abatement addresses the two most common penalties; failure to file and failure to pay. The key to qualifying for the first-time abatement is having a good track record over the past three tax years. During the three years prior to the tax year receiving the penalty you must have not been charged a penalty. You timely filed all returns or requested an extension in a timely manner. The payments of tax due were paid on time or there is an arrangement to pay in place. 

Reasonable cause abatement will be reviewed based on facts and circumstances. You will need a solid sound reason to get the penalty abated. The IRS will consider and potentially accept the following as a solid reason:

• Fire, casualty, natural disaster, or other disturbances
• Inability to obtain records
• Death, serious illness, incapacitation or unavoidable absence of the taxpayer or member of the taxpayer’s immediate family
• Other reason which establishes that you used all ordinary business care and prudence to meet your Federal tax oblations but were unable to do so. 

You will need documentation to prove reasonable cause solid documentation includes obtaining medical records from the hospital, court records, or a letter from a Dr. or physician establishing your illness, incapacitation, with specific beginning and end dates. If you incurred a natural disaster have documentation of the disaster or other events that prevented, you from being compliant.

To qualify for a statutory exception the taxpayer would have had to receive incorrect written advice from the IRS. This advice resulted in a penalty being assessed. This statutory exception is difficult to obtain relief from because you will need the following to show proof. 

• The written request for advice.
• The erroneous written advice furnished to you by the IRS in which you relied
• The report, if any, of tax adjustments identifying the penalty or addition to tax, and the item(s) relating to the erroneous advice.

Innocent spouse relief and Injured spouse relief

Married Taxpayers are jointly and severally liable for the tax and any additions to tax, interest, or penalties that arise because of a jointly filed tax return. What happens if your spouse or ex-spouse failed to report income? reported income improperly? or claimed improper deductions or credits? Innocent spouse relief may relieve a Taxpayer from paying tax, interest, and penalties that arise from a jointly filed tax return. We can assess your specific situation and see if you are eligible to seek relief from the IRS collection actions. 

Injured spouse relief is different from innocent spouse relief. A taxpayer would be eligible for innocent spouse relief when the liability belongs to the other spouse. A Taxpayer would be considered injured if they filed married filing joint and all or part of their refund was or will be applied against the separate past due Federal tax, State tax, Child Support, or Federal Non-tax Debt (such as a Student Loan). 

Sometimes you do not have enough to pay the balance due with your income tax return by the due date. Your taxes are due by April 15th which is the filling date the which does not include extensions which are usually due by October 15th. If you do file an extension, but do not pay what you think you might owe, you will escape the failure to file penalty, but not the failure to pay penalty. When your current year taxes are filed and the amount owed is more than you can pay, you have the option for a short term payment plan (120 days or less) or a long term payment plan which the IRS calls an installment agreement (Paid in more than 120 days usually a 72 month (6 years) maximum time frame). Dealing with the IRS is very time consuming and stressful, which is why many Taxpayers put it off. At Valiante Tax and Financial Management we can help you get a payment plan in place and STOP the sleepless nights from the IRS collections actions.