Innocent Spouse | Injured Spouse | IRS TAX DEBT HELP
IRS Tax Relief by Separation of Liability – Equitable Relief – Innocent Spouse
An Innocent Spouse (IRS innocent spouse) is simply someone whose tax refund is used to cover the past-due debts of a spouse or ex-spouse. If you filed a joint tax return, you are jointly and individually responsible for the tax debt and any interest and penalty due on the joint return. The IRS does not care about any divorce decree. As far as the agency is concerned “it’s between you and your ex.” This is true even if a divorce decree states that a former spouse will be responsible for any amounts due on a previously filed joint return. If you believe, that only your spouse or former spouse should be held responsible for all or part of the tax, then you can file a request for Innocent Spouse Relief.
GETTING THE IRS TO AGREE TO INNOCENT SPOUSE STATUS IS NOT EASY. IT MAY BE EASIER TO GET RECEIVE AN OFFER IN COMPROMISE. SO, IT IS VERY VERY DIFFICULT TO GET THE INNOCENT SPOUSE DECLARATION ON YOUR OWN.
By requesting innocent spouse relief from the IRS, you can be relieved of responsibility for paying tax, interest, and penalties if your spouse (or former spouse) improperly reported items or omitted items on your tax return. In some cases, if the request has been accepted, a spouse may be relieved of the tax, interest, and penalties on a joint tax return. You must meet with the required conditions to be qualified for a request for Innocent Spouse status. If you live in community property State, then the requirements and qualification will also depend on the community property state laws.
After the agency receives and investigates your Request for Innocent Spouse Relief, the IRS will determine by taking into consideration of all information and your circumstances to evaluate which type of relief you will be qualified:
Three Types of Innocent Spouse Relief:
Innocent Spouse Relief
Relief by Separation of Liability
Equitable Tax Relief
I am Dave Rosa. It is my pleasure and duty to provide everyone who calls with a thorough evaluation of their tax problem. Our consultation will take 20 to 30 minutes to complete. By the time we finish, you will have a complete understanding of your tax relief options and what you cn expect. Our phone time with you will be well worth it.
An IRS Notice of Levy is a letter sent to taxpayers who have not paid their back taxes and have an IRS lien placed against them. The IRS is notifying the delinquent taxpayer that the agency will begin enforcing collection of the tax debt using levy actions such as wage garnishment, property seizure, and bank account seizure. A notice of levy causes many problems for taxpayers. It means that the taxpayers’ accounts and assets may be frozen by the tax lien, which may prevent the possibilities of selling them or changing ownership of the items. The taxpayer only has 30 days in which to take care of the tax debt before tax levy enforcement action is taken. Failing to pay back the full amount of your tax debt after receiving an IRS notice of levy will mean that levy enforcement will start unless the necessary steps have been taken.
It’s important to note here that an IRS levy is a legal seizure of your assets to use towards a taxpayer’s outstanding tax debt. They’re different from a tax lien, as an IRS lien is a hold on assets, while a tax levy will actually take them away from the taxpayer.
What Actions Does the IRS First Take Before a Notice of Levy is Issued?
Typically, there are procedures the IRS will follow before resorting to sending a notice of levy. They go as follows. First the IRS has assessed your account, decided that you have a certain amount owed, and then they will send you a notice that demands immediate payment. This is a tax bill the agency expects to be paid upon being received. If the taxpayer neglects to pay the amount demanded, then the IRS will send a final notice of intent to levy accompanied by a notice of your right to hearing. The IRS must also include an explanation for the issuing of the tax levy, the process in which the levy happens, and the alternatives the taxpayer has when dealing with enforcement. These documents are released thirty days prior to the tax levy being ordered, allowing the taxpayer a month to respond promptly. These ‘before’ notices will be sent via certified mail and or delivered at the address the IRS has on file. In some cases, the IRS will hand deliver the notice to the taxpayer.
When Will a Levy Be Issued?
To put it simply, when the IRS computer (ACS) has enough noncompliance information, the Automated Collection System (ACS). This means that the taxpayer has not paid their taxes nor have they taken the proper steps to make arrangements in doing so. The IRS will then take enforcement action and issue a tax levy against assets you own or that others do (for instance your wages given by your employer).
What Can a Levy Be Issued Against?
There are quite a few of things the IRS can levy once the notice has been delivered and there has been no correspondence within thirty days. In terms of what the government can legally take from a delinquent taxpayer, our tax professionals list them here:
Garnish Wages – IRS Wage Garnishment
An IRS Wage Garnishment – the IRS will demand that your employer garnish your wages and send them to the IRS to be applied to your tax debt rather than to you personally. An IRS Wage Garnishment is continuous which means unless it is stopped and released, the tax levy will go on and on until the entire tax debt is paid in full.
THE TAX PROFESSIONALS AT FLAT FEE TAX SERVICE ROUTINELY HAVE AN IRS WAGE GARNISHMENT STOPPED AND RELEASED IN ONE DAY.
IndependentContractor or Vendor Payments– 1099
The IRS has all your information. When an agent is on the case, they can reach out to third parties who owe the levied taxpayer money and demand these payments are sent to the IRS instead. The IRS will seize 100% of the the money due you.
The IRS also has the power to take these perks from you and use them towards the entirety of your tax debt owed. Regarding Social Security Benefits and Veteran’s Pensions, the IRS can take an automatic 15% from your check. This seizure is called The Federal Payment Levy program (FPLP). Try living on what’s left.
Bank Accounts – IRS Bank Levy
In the worst case scenario, the IRS can put a tax lien on your bank account and lock it from you. After forty five days, they can then demand that whatever money in your account is transferred directly to the IRS. You have 21 days to get your money released back into your account. The 21 days includes Saturdays, Sundays and holidays, so you have no time to lose. You are at a disadvantage if you try to have the IRS bank levy released on your own.
Commissions – Independent Contractors (Insurance Agents, Real Estate Agents, etc.)
Depending on the situation, if the taxpayer is going to be receiving commission from a certain project or legal endeavor, then the IRS will take action and claim the commission to help satisfy tax debt. The IRS will keep it all.
Property (Includes Rental Property)
Any piece of property that the taxpayer owns which could help satisfy their tax debt. This starts with a home and can go all the way to toy vehicles that could be used to satisfy tax debt. Any piece of property that the taxpayer owns which the IRS considers valuable, they can levy and use towards the outstanding amount owed. If you own rentals, the IRS can seize the tenants payments.
Anything of Value
Truthfully, when the IRS has decided to take enforcement action, it’s possible that they can levy anything the taxpayer owns and use it towards the tax debt. Even possessions or holdings that are not considered assets to the taxpayer could be levied and used to resolve the amount owed.
What to Do Once You Receive the Intent to Levy Notice?
To state it simply, the obvious way to avoid having your assets taken and penalties added to your account is to pay off the debt owed. This will resolve matters with the IRS and dismiss the investigation issued for your account. However, if the taxpayer cannot pay the amount owed, then there are alternative programs which they might be eligible for. These are payment programs tailored towards taxpayers that are not in the financial situation to pay off their debts. The two main alternatives being an installment agreement and an offer in compromise.
This is basically a payment plan similar to the way one would pay off a loan. Depending on what is agreed between the taxpayer and the IRS, the taxpayer will then be put on a monthly installment plan and pay off their debt in increments. These terms usually last anywhere from 3-6 years. Again, depending on what is agreed, it is possible that through this payment plan the taxpayer will end up paying a larger amount in interest.
An Offer in Compromise is a tax settlement between the IRS and the taxpayer for an amount drastically less than the tax debt. Due to the IRS not wanting to implement a forgiveness policy for all those who cannot pay their taxes, eligibility for this plan is limited to those who lack the ability to pay after deducting their allowable expenses. The taxpayer needs to meet very specific criterion and must prove to the IRS that there is no possibility that they could pay the tax owed. The IRS, usually coordinating with a tax professional representing the delinquent taxpayer, will come to an agreement on how much is owed and will settle with one lump sum payment.
FLAT FEE TAX SERVICE HAS A 95% OFFER IN COMPROMISE SUCCESS RATE.
The Different Types of IRS Levy Notices.
The short is answer is no. There are different notices for different types of situations. For instance, a CP297 and CP90 act as notifications to taxpayers that they have an outstanding balance the IRS has tried to collect, and because they’ve been noncompliant the IRS will now take action against them. This action being that they will levy their assets, bank accounts, wages, and more. However, a CP523 is sent to those who entered an installment agreement but did not fulfill the terms. This type of notice will explain why the account defaulted, the conditions of the levy, and the options thereafter to avoid having assets seized.
An L-1058 and L-T11 usually succeeds the final notice balance due letter. This type of levy notice states that a taxpayer has an overdue balance and they have failed to address or resolve the account with the IRS. Due to this negligence and the notices that were sent prior, the IRS will issue a levy on the taxpayer’s assets after a thirty day period.
Then a CP91 and CP298 are notices sent to taxpayers who still owe money to the IRS despite the letters sent warning them of a 15% levy that is going to be placed against their social security benefits (FPLP). These notices typically arrive after a CP297 or CP90.
As you can see, there are multiple different types of levy notices. It’s important that if a taxpayer received a notice, they do the proper research in understanding what sort of notice they have received. Being that levy notices are indicative of a serious tax problem, it’s recommended the taxpayer seeks professional help in formulating a plan of action to ensure their assets are not seized.
I am Dave Rosa. It is my duty, my responsibility, and my pleasure to provide you with a thorough evaluation of your tax problem. Our conversation will take 20 to 30 minutes. By time we complete our consultation, you will know what your tax relief options are and what you can expect to by our tax professionals.
FLAT FEE TAX SERVICE – GOOD PEOPLE – DOING GREAT WORK
Receiving a notice from the IRS is not something most people look forward to. You may be confused as to what the notice is saying, and afraid of the possible consequences, such as owing substantial back taxes, interest, and penalties.
However, there are two important things to know about most IRS notices:
You may have the right to challenge or appeal the action the IRS is taking:
1. You usually have a limited time to do so.
2. If you toss the IRS notice aside and forget about it, you may lose out on your chance to appeal an incorrect tax assessment or to stop an IRS collection action. The IRS is also much easier to deal with when you are proactive about solving your tax problems, rather than failing to respond to IRS notices and hoping for the best.
CALL THE BEST IRS HELP TEAM AT FLAT FEE TAX SERVICE AND FIND OUT WHAT YOUR TAX RELIEF OPTIONS ARE. WHAT IS YOUR BEST COURSE OF ACTION IS?
There are many different types of IRS notices, but the Notice of Deficiency and the various collection notices are two common ones that you should be aware of.
The Notice of Deficiency
The Notice of Deficiency, also known as a 90-day letter, is the last best chance to disagree with the IRS determination of additional tax due. Don’t ignore it! If you do, you will be very unhappy later.
Once you receive this notice, you have 90 days to file a petition in Tax Court. If you have any reason to believe that the IRS has made an error in computing the tax, you should contact a tax litigation attorney immediately, so you can argue your case in Tax Court.
After filing your petition, you may not need to go to court at all. Your tax attorney may be able to negotiate a settlement that eliminates some or all of the assessed tax. Even if you and your attorney decide that the IRS is likely to win their case, you can negotiate an installment plan or Offer in Compromise in order to avoid any IRS collection actions.
IRS Collection Notices
There are many different types of notices to inform you that the IRS is about to use its broad collection powers to take your assets. Some of these notices include:
Notice of Intent to Levy
Notice of Federal Tax Lien
Notice of Jeopardy Levy
Notice of Levy on Your State Tax Refund
Post Levy Collection Due Process Notice
If you receive any of these IRS notices, it means that the IRS is about to—or already has—seized your paycheck, your bank account and/or property, IRS will aggressively go after the funds in your bank account, a portion of your wages, or something else.
IF YOU GET ANY OF THESE IRS NOTICES, CALL THE IRS HELP PHONE AT FLAT FEE TAX SERVICE: 1-866-747-7435
A taxpayer has a right to challenge these collection actions (if you know how and what to do), whether they have already happened or not. In most cases you can request a Collection Due Process hearing, but you only have 30 days to make such a request.
You may or may not be able to dispute the tax assessment at this point, but you can challenge the specific collection action being taken, and either agree to a payment plan or Offer in Compromise, either of which is preferable to having the IRS drain your bank account or garnish your wages.
We have all viewed the myriad of television commercials regarding IRS tax resolution. Choosing an IRS tax relief team should not be daunting. Flat Fee Tax Service provides you with a few tips to help you make an informed choice.
Choose an IRS tax resolution company by first checking its rating on the Better Business Bureau website. Look at the experience and reviews. Is the IRS tax resolution company that you are looking at accredited by the Better Business Bureau?
You can check our Better Business Bureau record and reviews by clicking here:
Now that you clicked on the above link to the Flat Fee Tax Service, Inc. record, how does our competitors compare? Are they Accredited? Check the company’s rating on the BBB website. Look out for complaints, especially those that have occurred in the past few months. Find out whether there is an ongoing lawsuit against the company.
Read the Better Business Bureau reviews which are real reviews and not some “made up” puff pieces. Find out how long the company has been in operation. IRS tax resolution companies that have been in the business for a long time are usually better. Ask about the employees and how much experience they have in the field. Former IRS agents and teaching instructors make better representatives because they know the system.
When you call the IRS tax resolution company that you hired, will be speaking directly to the person who would be assigned your case. Ask about previous cases that he has worked on and their results. Inquire about the way forward where your case is concerned as well as the possible outcomes. A professional who is unavailable or unable to talk to you is a red flag.
Choose an IRS tax resolution company that charges a flat fee to avoid hefty bills. Get quotes from two or three companies, and make a decision based on the best value for your money. Will the IRS tax resolution company stretch out your fee payments over 10 months?
TOP TIP OF THE DAY:
It doesn’t matter whether you owe $10,000 or $90,000 when it comes to charging you a fee for service. It is the same amount of work for nearly every Offer in Compromise. It is a matter of labor hours, which is why Flat Fee Tax Service, Inc. can charge the same low affordable fee for “just about everyone.”
FLAT FEE TAX SERVICE POSTS FEES ON THE FRONT PAGE OF OUR WEBSITE.