Tags: delinquent, past, due, federal, income, tax, return, Internal, Revenue, Service, IRS, taxpayers, taxation, lawyer, attorney, firm, legal, advice, penalty, penalties, fines, levy, United, States, firm, substitute, refund, automated, collection, system, relief, burden, bill, notice, letter, settlement, proposal, offer, compromise

Can the IRS take my home because I owe unpaid taxes?

If you owe money to the Internal Revenue Service (IRS) related to your federal income taxes, it can become a very serious financial matter.  If you do not pay the money you owe, the IRS can seize your possessions, possibly including your home.  How can they do this?  Read on to find out more about the process, as before the IRS can seize your home (and for that matter is willing to take such a serious step), a number of things have to happen.

First, if you owe money to the IRS, the IRS will make every effort to be sure you are aware that you have an unpaid tax liability.  It is not unusual for there to be a simple misunderstanding on the part of a taxpayer, especially if it is the first time a taxpayer has ever had to pay taxes, they have not had to pay taxes in a long time, or the taxpayer filed an extension.  For example, a new taxpayer may simply not have known that they need to pay their tax liability at the time they file their taxes.  Or if the taxpayer has never filed an extension before, they may not have realize that the tax liability must still be paid on April 15.  When the unpaid tax liability is a simple misunderstanding, a notice to the taxpayer about the unpaid tax is often enough to illicit payment.

Second, if you do not respond to the IRS’ initial notification that there are unpaid taxes or to their follow-up communication, it will become apparent to the IRS that you are not willing to work with them in addressing the tax liability.  Usually when the IRS seizes the possessions of a taxpayer, it occurs in situations where the taxpayer is unwilling to work with the IRS to establish a payment plan or otherwise address the tax liability.

Third, the IRS will provide you a notice of their intent to place a levy against your property and then obtain that levy.  A levy allows the IRS to take your property to satisfy the tax debt.  This property can include your bank accounts, wages, vehicles, and other personal property, including your house.

The IRS is aware that seizing the home of a taxpayer can cause a significant hardship in the life of the taxpayer.  Therefore, they will not do so unless they have no other options.  This means the taxpayer has to willfully continue to not work with the IRS to establish a payment plan to pay the taxes and that other assets of the taxpayer are simply not sufficient to satisfy the tax debt.

As you can see, it takes a concerted effort on the part of a taxpayer to drive the IRS to seize their home.  So long as you file your taxes, even when you cannot afford to pay  them, and are willing to work with the IRS to agreed to a payment plan, you can avoid having your home seized by the IRS.

Should I speak with a tax attorney if I owe money to the IRS that I cannot afford to pay?

If you are not able to pay your tax liability to the IRS, it is a good idea to hire a tax attorney.  A tax attorney will have experience in working with the IRS to address unpaid tax liability.  They will be able to provide you guidance on your tax situation and what the best options are for you to address the deficiency.

If you complete the short form below, a tax attorney can review your situation free of charge and with complete confidentiality.  This review does not obligate you to anything further, yet it will provide you with an idea of what the best steps are for your situation.  Therefore, please take a few moments to complete the form to get the help you need to address your unpaid tax liability.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

An offer in compromise is a settlement option offered by the Internal Revenue Service (IRS) that may allow a taxpayer to address their federal income tax liability for an amount less than the full amount owed.  If you are considering making an offer in compromise, keep in mind that there is no set timeframe by when the IRS will generally approve the offer.  The length of time it takes for the IRS to approve an offer in compromise varies from case to case, but in general, you can expect it to take anywhere from six to twelve months.  If the IRS has not approved or rejected your offer in compromise within two years from the date when the IRS receives the offer, then the IRS is required to accept the offer.

You may surprised that it generally takes up to a year to complete the offer in compromise process.  The lengthy amount of time can be caused for several different reasons:

Initial Assignment and Review. The IRS generally receives a large number of offers in compromise in a given tax year, and the IRS has a limited number of caseworkers who work on these offers.  Therefore, it may take some time before the specific details of your case are assigned to a caseworker for the review process to begin.

Request for Additional Information. Once an IRS caseworker begins to review your offer in compromise, they may determine that your offer is not complete.  This could be because you have not completed all the necessary application forms, you did not include the necessary fees required with the offer, you have not included documentation necessary to support your reason for requesting an offer in compromise, or they have other questions about your offer for which they need an answer.

Rejection and Appeal. If the IRS caseworker makes the decision to reject your offer in compromise (offers are usually rejected because the IRS considers the offer to be too low based on the income and other assets you disclosed as a part of the offer), you can appeal the decision.  Once you complete the required forms to initiate the appeals process, your appeal likewise takes time for the IRS to consider.  Alternatively, depending on the reason the IRS rejected your offer, you may choose not to appeal the rejection but rather to file a new offer in compromise

What if I need help submitting or appealing an offer in compromise?

A tax attorney can help you with your offer in compromise.  An attorney will have the training and experience to know the types of situations for which the IRS generally accepts offers in compromise, as well as the support you will need to include with your offer for it to be seriously considered.

If you complete the short form below, a professional tax attorney will  review your case free of charge.  This review is 100% confidential and does not obligate you to anything further, so you should get this initial evaluation to help determine the appropriate next steps for your tax situation.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

If you receive notice that the Internal Revenue Service (IRS) has filed a lien against your property, you may be wondering what a lien is and what the lien means for you.

A lien is the granting of an interest in a property to secure the payment of a debt that is owed by the property owner.  One of the commonly used forms of a property lien is a mortgage, which is an interest that the lender holds in the property that was purchased with the money the lender loaned to you.  When a property with a lien is sold, it guarantees to the lienholder that they will be paid out of the proceeds from the sale of the property up to the value of the lien.

When the IRS files a lien against your property, it generally means that you have an unpaid income tax liability that you owe to the IRS.  The IRS is using the lien to secure its interest in your property to increase the likelihood that you will have to pay the tax liability at some point in the future.  The IRS may take out a lien against your property if they have previously sent you a request to pay the outstanding tax liability but you have failed to respond to the requests.  The IRS may also file a lien against your property if you have agreed to a payment plan with the IRS, such as an offer in compromise, but the payment plan has not yet been completed.  In this case, the IRS is using the lien to help motivate you to fulfill your obligations under the agreed-upon payment plan, as they will only release the lien once you have completed the agreement.

A property lien filed by the IRS generally gives the IRS ten years to collect the tax liability.  During this time, the IRS can seize and sell your property to collect proceeds to pay off the tax liability.  The definition of property as it relates to a property lien filed by the IRS is very broad.  It includes not only real estate but also personal property such as cars, trucks, boats, bank accounts, wages, and interest. Even if you acquire property after the lien was filed, the lien will attach to that property as well.  In general, if you have an asset with value, the IRS can seize it and sell it.

There are only a few types of property that the IRS may not seize related to a tax lien:

Personal residence. While the IRS technically can seize your personal residence to help satisfy a tax liability, they generally will not unless it is an exceedingly flagrant case of non-payment.

Property without any value. In general, if a piece of property has more than one lien against it, the liens are satisfied in the order they were attached to the property.  That is, the first lien will be satisfied first, the second lien will be satisfied second, etc.  This holds true for tax liens as well.  Therefore, if you have a home worth $250,000 but have a mortgage for $225,000, the IRS will not seize your home because the $25,000 difference would be wiped out by the time the IRS reduces the sale price of the home sufficiently for it to sell.

Interest of an Indian in restricted land. The only piece of property that is technically exempt from a federal tax lien is land held in a trust by the United States for a Native American Indian.

As you can see from the information above, the filing of a lien by the IRS is a serious matter and it gives them a lot of power to attempt to recoup the tax liability they are owed.

What should I do if the IRS has filed a lien against my property?

If the IRS files a lien against your property, you should seek professional help from a tax attorney.  A tax attorney can help you negotiate a payment plan with the IRS in an attempt to stop the IRS from seizing and selling your property.

If you complete the short form below, a tax attorney will review your situation free of charge and with complete confidentiality.  As this review does not obligate you to anything further, please take a few minutes to get help today in dealing with the IRS.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

If you have a tax liability with the Internal Revenue Service (IRS)—that is, you owe money to them—you may be considering a settlement proposal, especially if you have been as hard hit by the economy, job loss, or other factors as many other Americans have been.  A settlement proposal is when you offer to address your tax liability in a manner other than paying the total amount due when it is due.

When you are submitting a settlement proposal to the IRS—whether your proposal is an installment plan, an offer in compromise, or a different payment option—there are several important steps you can take to improve the chances the IRS will accept your proposal:

File all tax returns due. If you have not filed your federal income tax return for one or more years, including the current tax year if the filing date has passed and you have not filed for an extension, then the IRS will automatically reject most settlement proposals.

Submit completed forms including fees. For each of the IRS’ available formal processes for submitting different types of settlement proposals, the IRS has specific forms that it expects you to fill out completely and turn in.  Even within a given settlement option, there may be one or more different forms to submit depending on your circumstances.  And along with these forms, you generally need to include the appropriate supporting documenting and filing fees.  If any of the forms, supporting documentation, or filing fees are not in order, the IRS may automatically reject your settlement proposal.

Submit your best offer. When you submit a settlement proposal, the IRS expects that while it may not be for the full amount of the tax liability you owe, they expect that it will be the maximum amount you can afford to give them.  When the IRS reviews your income, expenses, and overall situation as a part of your settlement proposal, if it is obvious you can afford to pay more than your offer, the IRS will reject your proposal.

Provide support. As noted above, the IRS generally requires supporting documentation as proof that, rather than you paying your full tax liability, you need to use a settlement proposal.  The IRS has specific reasons for when it will accept a settlement proposal.  If your reason and the supporting documentation do not establish that it is for a legitimate reason, the IRS will not accept your proposal.

Follow your settlement agreement as though it has been accepted. While the IRS is considering whether it will accept your settlement agreement, they expect you to begin making payments to them according to your submitted plan as though the settlement agreement has already been accepted.  Failure to make these payments will results in the IRS declining you proposal.

How can I get help in making sure my settlement proposal will be accepted by the IRS?

While there is no guarantee that a settlement proposal to the IRS will be accepted, you can increase the likelihood of your proposal being accepted by leveraging the knowledge and experience of a tax attorney.  A tax attorney will understand the settlement proposal options available to taxpayers, the specific situations that allow a taxpayer to qualify for each of the settlement options, and how to submit a settlement proposal that meets the criteria to qualify for the chosen options.

If you complete the short form below, a tax lawyer will review your situation free of charge and provide guidance you can use to make the decision best for you.  This review is 100% confidential and free of charge, so please get help today in determining what settlement proposal options is best of your tax  situation.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

If you receive a letter from the Internal Revenue Service (IRS), it could be for one of a variety of reasons.  Remember that it may not necessarily be a bad thing—it could just be an informational letter—so you need to start by taking a few minutes to read the letter carefully to understand the purpose.

At one time, receiving a letter from the IRS could be a confusing prospect, as it contained technical terms that might be difficult for many to understand.  However, the IRS has taken steps to redesign its letters so they are easier to understand.  Each letter should clearly state the reason you have received the letter and what steps you must take to address the issue.

In addition, the IRS has created a reference number you can use to find additional information about the reason you received the letter.  This reference number will be in the top right corner of the letter.  You can look up additional information about this reference number on the IRS’ web site at http://www.irs.gov/individuals/article/0,,id=96199,00.html.

Following are a few of the common reasons why the IRS sends notification letters to taxpayers:

• Reminder – The IRS has sent you a previous letter asking you to take action on a situation.  This letter serves as a reminder that you have not completed the necessary steps.
• Overpayment – Because of an error found on your return, you have overpaid your taxes and are due a refund of the overpaid amount.
• Balance Due – As the result of changes to your return because of a miscalculation, an amendment, an audit, or for other reasons, you now have an outstanding tax liability.  You will need to pay the balance due or contact the IRS to work out payment plan options.
• Notice of Default – You have previously entered into some form of payment plan with the IRS to pay your tax liability, but you have failed to meet the terms as agreed to with the IRS.

If you agree with the notice and it does not specifically indicate you must take action to address an open issue, you do not have to respond or take any further steps.  However, if the letter indicates you should take action, regardless of the reason you received the letter, you should not ignore it.  Ignoring a letter from the IRS that requests action can make a bad situation much worse.  If you are unsure if you need to take action based on the letter or are unsure what the IRS is asking of you, you should seek professional help to be sure the appropriate steps are taken.

How can I obtain help with the notice I received from the IRS?

Professional help in reviewing your tax situation or a letter received from the IRS is close at hand.  If you complete the short form below, a tax attorney can review your situation and evaluate what action you need to take as a result of the letter.  This review is 100% confidential and free of charge.  Therefore, there is no reason to try to handle the situation with this free consultation from a tax professional.  Please complete the form today.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

An offer in compromise is one of the payment options defined by the Internal Revenue Service (IRS) whereby the IRS is willing to accept less than the full amount of tax due from a taxpayer.  To submit an offer in compromise, you must provide the following four items as outlined on the IRS’ web site at http://www.irs.gov/individuals/article/0,,id=243822,00.html:

• For individuals, Form 443-A found at http://www.irs.gov/pub/irs-pdf/f433a.pdf; for businesses, Form 443-B found at http://www.irs.gov/pub/irs-pdf/f433b.pdf
• Form 656 found at http://www.irs.gov/pub/irs-pdf/f656.pdf
• A $150 application fee
• The first payment due under the proposed offer in compromise

The application fee and first payment are non-refundable, but the IRS will apply them against the taxpayer’s tax liability.  While the IRS is considering the offer in compromise, the taxpayer must begin making payments according to the office in compromise payment plan.

While the steps for actually submitting an offer in compromise may be straight forward, providing the necessary information to convince the IRS to accept the offer can be more difficult.  The IRS considers an offer in compromise as a last resort of sorts from their perspective in collecting taxes, since they are settling for less than the full amount due from the taxpayer.  The IRS would prefer to collect the full amount of tax due by collecting the full payment in a lump sum.  Likewise, an installment agreement where the balance due is paid to the IRS over time works in the IRS’ favor, as the IRS collects the full balance due plus interest and penalties.

But the IRS also wants to keep the taxpayer in the system.  If the IRS believes a taxpayer is not capable of paying the full amount, the IRS will consider an offer in compromise if they believe it still represents the maximum amount they can collect from the taxpayer in a reasonable time.  The responsibility for convincing the IRS that the taxpayer’s offer is an acceptable amount for the IRS to collect rests with the taxpayer.

Can a tax attorney help me set up an offer in compromise?

Yes, a tax attorney will have experience in completing the required steps for the IRS to consider your offer in compromise, as well as the types of situations that lead the IRS to be more likely to accept an offer in compromise.  The IRS generally considers an offer in compromise for two reasons: you do not have the finances necessary to pay the full amount of taxes due or payment of the full amount of taxes due would create an unfair hardship on the part of the taxpayer.

In either scenario, a tax attorney will be able to evaluate if your situation is one that may qualify for an offer in compromise.  An attorney can also help you to provide the necessary documentation to establish your position in the eyes of the IRS.

If you complete the short evaluation form below, a tax attorney will be able to review your situation to determine what payment option makes sense for you.  This review is 100% confidential, free of charge, and does not obligate you to anything more.  Therefore, complete the form and seek professional help today in determining if an offer in compromise is the best approach to address your tax liability.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

At some point in your life, when you calculate your federal income tax, you may be shocked at the amount of tax due.  Whether because of an unusual increase in income, unexpected gains on an investment or property sale, or the loss of a job, you may find that the amount of tax due is more than you can afford to pay.  If that is the case, you are not the first person who has had that experience.  The Internal Revenue Service (IRS) likewise has experience with these matters.  The IRS understands that unexpected things can happen in a taxpayer’s life that make paying your tax debt in one lump sum difficult.  Therefore, the IRS has established a payment option that may allow you to change the timing of paying your taxes.  Such an option is known as an installment agreement.

An installment agreement is when the IRS allows you to pay your tax debt in a series of payments rather than as a lump sum.  As noted above, this gives an advantage to the taxpayer in that the payment can be made over time rather than all at once.  However, there is a disadvantage to the taxpayer as well: an installment agreement costs more than a lump sum payment.  For an installment agreement, the IRS charges a one-time setup fee as well as interest and penalties on the unpaid balance of the taxes you owe.  The setup fee is $43 for qualified low-income individuals.  For everyone else, the setup fee is $52 for agreements where you set up a direct payment (e.g., payroll deduction, electronic transfer from bank account) or $105 where you set up a non-direct payment (e.g., personal check, business check, money order).

If you wish to set up an installment agreement, you can call the IRS and they will walk you through the process.  Depending on how much you owe, the IRS may ask for information to establish your financial position, to be sure you are in a situation where you can pay the full amount owed.  Additional financial information may be required when your tax debt is more than $25,000.  Once you complete the application process, the IRS will review and approve or deny the installment plan request.

Once you have set up an installment agreement, you simply make the monthly payments throughout the agreed-upon term of the plan.  If you miss a payment, the IRS will charge you a fee of $45 to re-establish the plan.

Should I set up an installment agreement with the IRS?

Maybe.  While an installment agreement allows the taxpayer to spread out the tax debt over time, it costs the taxpayer more money in total.  Therefore, before you enter into an installment agreement, you should explore all the payment options available to determine which one is right for you.  For example, your situation may allow you to qualify for an offer in compromise, which allows you to pay less than your full amount of taxes due.  A tax attorney will have experience with installment agreements, offers in compromise, and other methods of making payments to the IRS than can lessen the pressure of making a lump-sum payment of all the taxes you owe.

By filling out the short evaluation form below, a tax attorney will be able to review your situation to determine what payment option makes sense for you.  This review is 100% confidential, free of charge, and does not obligate you to anything more.  Therefore, complete the form and seek professional help today in helping to address your tax burden.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!