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The Tax Giants Services

Tax Services

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IRS REPRESENTATION

IRS RepresentationThe old adage that the attorney who represents himself in a court of law has a fool for a client is probably even more accurate when it comes to the handling of one’s tax problems with the Internal Revenue Service. Most individuals do not have the tax knowledge, training, or experience to successfully negotiate with IRS agents who are well trained and experience in the tax laws governing the examination of tax returns and the collection of taxes. An experienced tax attorney, certified public accountant, or Enrolled Agent, understands the language of the tax code and is thus more suited to represent your best interest.

The Tax Code allows all taxpayers, when dealing with the IRS, to be represented by a tax professional. To initiate representation a taxpayer must complete and sign a power-of-attorney form (Form 2848) that designates a representative. The form is forwarded to the IRS and recorded in a central authorization file (CAF) where it is available for reference purposes by any IRS employee.

Not all tax preparers can represent taxpayers before the internal revenue services. Only Enrolled Agents, Attorneys, and Certified Public Accountants are currently allowed to do so. All Tax Giants representatives fall into one of these categories and are allowed unfettered access to all levels of the IRS.

AUDIT ASSISTANCE

Audit AssistanceThe IRS accepts most tax returns as filed. However, a small number of filed returns is often selected each year, for examination (audit), to determine if income, credits, expenses, and adjustments are being reported accurately.

If your return is selected for an audit it does not suggest that you made an error or are dishonest. Your return could have been selected on the basis of a random sampling by computerized screening, or because of information received from a third-party documentation such as Forms 1099 and W-2 that does not match the information reported on your tax return, or simply to address the questionable treatment of an item that stands out on your tax return. Not all audits result in additional taxes to be paid. Many audits, especially when the taxpayer is represented by a competent tax professional, are concluded with an additional refund or, at the very least, acceptance of the return as filed without any changes.

The professional team of Tax Giants collectively handle thousands of audits successfully each. Our life-long experience and extensive tax knowledge gives us an edge over the average preparer when it comes to Audit representation. If you receive a letter from the IRS don’t go it alone. Let us handle it for you. From the very beginning we will give you a free Tax Situation Analysis (TSA), with no obligation expected on your part, and no high pressure sales pitch. The TSA will allow us to assess your tax problem and devise the best strategy to arrive a favorable resolution – all before attempting to receive any money from you. If you select us to assist you, we will keep you abreast the progress of the examination until it is concluded in a timely manner. If you have further questions about your audit, please do not hesitate to contact us immediately.

Audit reconsideration is an Internal Revenue Service procedure designed to help you when you disagree with the results of:  an assessment IRS made because of an audit of your tax return, or a return IRS created for you because you did not file a tax return, as authorized by Internal Revenue Code 6020(b). This process allows the IRS to reconsider a taxpayer’s information informally.

The IRS will accept an Audit Reconsideration Request if: (1)You submit information that was not considered previously which might change the amount of tax you owe, or credit you believe you are entitled to. (2) You filed a return after IRS completed a return for you. (3) You believe the IRS made a computational or processing error in assessing your tax. (4) The liability is unpaid or credits are denied.

We resolve many cases at this level. To find out if you qualify for Audit Reconsideration and a possible reduction of your tax liability, call and speak to one of our Tax Giants today.

AMENDED TAX RETURN

Amended Tax ReturnThere are times when, after filing your tax return, you may discover that information (income or deductions) may have been inadvertently omitted that, had it been included, would have resulted in a smaller tax refund or a larger under-payment of taxes. In order to correct this mistake a taxpayer must file an amended tax return on Form 1040X.

The Tax Giants can assist in correcting any mistakes made on your originally filed tax return. Sometime we have to initiate the filing of an amended return based upon the correspondence you received from the IRS. In many cases when the IRS amends the return and proposes additional taxes we have found them to be inaccurate. For example, when the IRS calculates the sale of certain assets such as stocks or real property, they use the gross proceeds figure that was reported to them, and fail to take into account the taxpayer’s basis in the sold property.

If you receive correspondence from the IRS proposing additional taxes due, before you send in the payment you should talk to one of our tax professionals. You may not owe the amount they have proposed.

INSTALLMENT AGREEMENTS

Installment AgreementsThe IRS is mandated by Congress to automatically enter into Installment Agreements with taxpayers who are unable to pay their outstanding tax liability in full. This agreement allows you to pay your full debt in smaller, more manageable amounts. Installment agreements generally require equal monthly payments. The amount of your installment payments and the number you make will be based on the amount you owe and your ability to pay that amount within the time the IRS can legally collect payment from you.

You should be aware, however, that an installment agreement is more costly than paying all the taxes you owe now. As with most revolving credit arrangements, the IRS charges interest and penalties on the unpaid portion of the debt.

Another cost associated with an installment agreement is a user fee. This is a one-time fee (currently $52 for direct debit agreements and $105 for non-direct debit agreements) that is charged to set up the agreement. For eligible low-income individuals, the fee for entering new agreements will remain $43. If you don't meet the terms of the agreement throughout the life of the agreement, an additional fee of $45 will be charged, regardless of income, to reinstate it.

If you want to pay off your tax debt through an installment agreement, we at The Tax Giants can help. If you owe:

  • $25,000 or less in tax, we'll tell you what you need to do to set up the agreement
  • More than $25,000, we may still be able to set up an installment agreement for you, but we may also ask for financial information to help us determine your ability to pay

Even if you set up an installment agreement, the IRS may still file a Notice of Federal Tax Lien to secure the government's interest until you make your final payment.

Note:
The IRS can't take any collection actions affecting your property while they consider your request for an installment agreement, while your agreement is in effect, for 30 days after they reject your request for an agreement, or for any period while the Tax Giants appeal the rejection.

Call us today at 877.TAX.1090 to arrange an installment agreement with the IRS.

INNOCENT SPOUSE RELIEF

Many married taxpayers choose to file a joint tax return because of certain benefits this filing status allows. Both taxpayers are jointly and severally liable for the tax and any additions to tax, interest, or penalties that arise as a result of the joint return even if they later divorce. Joint and several liability means that each taxpayer is legally responsible for the entire liability. This is true even if a divorce decree states that a former spouse will be responsible for any amounts due on previously filed joint returns. One spouse may be held responsible for all the tax due even if the other spouse earned all the income or claimed improper deductions or credits. In some cases, a spouse can get relief from joint and several liability.

There are three types of relief from joint and several liability for spouses who filed joint returns:

  1. Innocent Spouse Relief for additional tax you owe because your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits.
  2. Relief by Separation of Liability provides for the allocation of additional tax owed between you and your spouse or former spouse because an item was not reported properly on a joint return. The tax allocated to you is the amount you are responsible for.
  3. Equitable Relief may apply when you do not qualify for innocent spouse relief or separation of liability relief for something not reported properly on a joint return. You may also qualify for equitable relief if the correct amount of tax was reported on your joint return but the tax remains unpaid.

Note: You must request relief no later than 2 years after the date the IRS first attempted to collect the tax from you, regardless of the type of relief you are seeking.
You must meet all of the following conditions to qualify for "innocent spouse relief":

  1. You filed a joint return, which has an understatement of tax, directly related to your spouse's erroneous items. Any income omitted from the joint return is an erroneous item. Deductions, credits, and property bases are erroneous items if they are incorrectly reported on the joint return.
  2. You establish that at the time you signed the joint return you did not know, and had no reason to know, that there was an understatement of tax.
  3. Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understatement of tax.

To qualify under "relief by separation of liability" you must have filed a joint return and must meet one of the following requirements at the time you request relief:

  1. You are divorced or legally separated from the spouse with whom you filed the joint return for which you are requesting relief; or
  2. You are widowed; or
  3. You have not been a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857 (PDF), Request for Innocent Spouse Relief.

If you have actual knowledge of the item that gave rise to the understatement of tax, you may not qualify for relief by separation of liability.

You may qualify for "equitable relief" if you do not qualify for innocent spouse relief or relief by separation of liability. Equitable relief is available for additional tax owed because of a reporting error (an understatement) or you properly reported the tax on your return, but you did not pay it (an underpayment). To qualify for equitable relief you must establish, under all the facts and circumstances, that it would be unfair to hold you liable for the tax on your joint return. In addition, you must meet other requirements.

If you request relief from joint liability, the IRS is required to notify the spouse with whom you filed the joint return of your request and allow him or her to provide information for consideration regarding your claim.

If you lived in a community property state and filed as "married filing separate" rather than "married filing jointly", you might still qualify for relief. Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Relief from joint and several liability should not be confused with an injured spouse claim. You are an "injured spouse" if you file a joint return and all or part of your share of the 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) of your spouse with whom you filed the joint return. If you are an injured spouse, you may be entitled to recoup your share of the refund.
The Tax Giants have assisted many innocent spouses, over the years, in obtaining relief from the tax burden of their spouse. We have tax professionals on our team who specialize in this area of tax law, continuing to upgrade their knowledge by staying abreast all of the constantly changing tax laws.

IRS COLLECTION TOOLS

IRS Collection ToolsWhen you owe taxes to  the IRS and fail over significant period of time, and after receiving multiple notices, the IRS will take steps to secure the debt and  collect it in a timely manner, and by whatever legal means it has at its disposal. The following are some of tools used and how a competent tax expert may be able to assist you in overcoming some of these strong arm tactics.

Federal Tax Lien

A Notice of Federal Tax Lien gives the Internal Revenue Service (IRS) legal ownership over your property as payment for tax liability. The tax lien certificate may be filed if and only if (1) the IRS assesses your tax debt, (2) the IRS notifies you and sends a demand for payment, and (3) you do not respond in payment within 10 days of notification.

The tax lien certificate grants legal claim to the IRS over all of your property and removes your rights to the property. Your creditors will be notified of the lien, and your credit rating may be harmed. You likely will have difficulty securing a loan, or refining your house.

Tax Lien Release

Fortunately, the notice is in place only until you take action to release it. Your Notice of Federal Tax Lien will be released within 30 days if you pay your debt, have it adjusted appropriately, or provide an accepted bond that guarantees payment.

A lien can be withdrawn if it is determined that the filing was not done according to procedure, if you elect to participate in a payment plan upon the filing of the lien, if payment can be made more quickly otherwise, or if it would be in the best interest of both you and the IRS to do so. Additionally, you have the right to appeal the filing.

You do not want to find yourself with a Notice of Federal Tax Lien over your property. If you do, it is in your best interest to have it released as soon as possible. For help in releasing your lien, or in preventing such a situation altogether, The Tax Giants are here to offer their expert advice.

Property Seizure

In very serious, ongoing cases of tax debt, the IRS may utilize property seizure. When the IRS believes that monetary value can be obtained from your asset(s), it will determine how much equity is in an item such as a car, boat or home. If the equity is over 20%, your property may be taken and sold at an auction as payment for your debt.

Property seizure is not very common nowadays, as it is often not valuable. If you own a home worth $100,000 with a $90,000 mortgage, for example, then the equity is low and seizing it might not be worthwhile. Home and business seizures in particular are especially rare, but they DO happen.

If you receive a notice of seizure, or if you think that your debt situation may be leading to such action, you should contact a tax professional. The Tax Giants will work for you to resolve your debt and have the Lien released.

BANK LEVY
A bank levy essentially funnels the money in your bank account(s) to the IRS. When the IRS serves a levy to your financial institution, all of the money in your account(s) at that moment, up to the amount that you owe in tax debt, is removed by the bank. Leaving you little or nothing, the bank must send this money to the IRS. Even the interest earned during the transition time must be sent. It is very difficult to get a refund after your money has been seized by the IRS. Fortunately, there is a holding period of 21 days before the bank sends your money, during which time it is crucial that you work with a tax expert to implement a new solution for reconciling your tax debt.
A bank levy can be devastating to your everyday life. We, at the Tax Giants will work feverishly to help you prevent a levy on your bank accounts, release a levy within the holding period, or attempt to retrieve your money from the IRS.

WAGE GARNISHMENT
The IRS may request the assistance of your employer in collecting taxes from your pay check. The laws allows them to deduct up to 75% of your gross wages each pay period until the outstanding tax liability is paid in full. Unless you are able to survive on a mere 25% of your earned income, you will need professional help in overcoming a wage garnishment. We at the Tax Giants can help. Call us today for a free consultation. We can effect the removal of your wage garnishment today!

OFFER IN COMPROMISE

Offer in CompromiseAn offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for much less than the full amount owed. Absent special circumstances, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement.

In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayer’s ability to pay and includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property. The RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.

Taxpayers should beware of the popular claim seen on television that tax debts can be settled through the offer in compromise program for "pennies on the dollar".

Three Types of OICs

The IRS may accept an offer in compromise based on three grounds:

1. Doubt as to Collectibility - Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
Example: A taxpayer owes $20,000 for unpaid tax liabilities and agrees that the tax she owes is correct. The taxpayer’s monthly income does not meet her necessary living expenses. She does not own any real property and does not have the ability to fully pay the liability now or through monthly installment payments.

2. Doubt as to Liability - A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include: (1) the examiner made a mistake interpreting the law, (2) the examiner failed to consider the taxpayer’s evidence or (3) the taxpayer has new evidence.

Example: The taxpayer was vice president of a corporation from 2004-2005. In 2006, the corporation accrued unpaid payroll taxes and the taxpayer was assessed a trust fund recovery penalty as a responsible party of the corporation. The taxpayer was no longer a corporate officer and had resigned from the corporation on 12/31/2005.  Since the taxpayer had resigned prior to the payroll taxes accruing and was not contacted prior to the assessment, there is legitimate doubt that the assessed tax liability is correct.

3. Effective Tax Administration - There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.

Example: Mr. & Mrs. Taxpayer have assets sufficient to satisfy the tax liability and provide full time care and assistance to a dependent child, who has a serious long-term illness. It is expected that Mr. and Mrs. Taxpayer will need to use the equity in assets to provide for adequate basic living expenses and medical care for the child. There is no doubt that the tax is correct.

OIC Payment Options

In general, a taxpayer must submit a $150 application fee and initial payment along with the Offer in Compromise.  Taxpayers may chose to pay their offer in compromise in one of three payment options:

1. Lump Sum Cash Offer - Payable in non-refundable installments, the offer amount must be paid in five or fewer installments upon written notice of acceptance.  A non-refundable payment of 20 percent of the offer amount along with the $150 application fee is due upon filing.

If the offer will be paid in 5 or fewer installments in 5 months or less, the offer amount must include the realizable value of assets plus the amount that could be collected over 48 months of payments or the time remaining on the statute, whichever is less.

If the offer will be paid in 5 or fewer installments in more than 5 months and within 24 months, the offer amount must include the realizable value of assets plus the amount that could be collected over 60 months of payments, or the time remaining on the statute, whichever is less.
If the offer will be paid in 5 or fewer installments in more than 24 months, the offer amount must include the realizable value of assets plus the amount that could be collected over the time remaining on the statute.

2. Short Term Periodic Payment Offer - Payable in non-refundable installments; the offer amount must be paid within 24 months of the date the IRS received the offer. The first payment and the $150 application fee are due upon filing the Offer. Regular payments must be made during the offer investigation.

The offer amount must include the realizable value of assets plus the total amount the IRS could collect over 60 months of payments or the remainder of the statutory period for collection, whichever is less.

3. Deferred Periodic Payment Offer - Payable in non-refundable installments; the offer amount must be paid over the remaining statutory period for collecting the tax. The first payment and the $150 application fee are due upon filing the Form 656. Regular payments must be made during the investigation.

The offer amount must include the realizable value of assets plus the total amount the IRS could collect through monthly payments during the remaining life of the statutory period for collection.

The IRS is not bound by either the offer amount or the terms proposed by the taxpayer.  The OIC investigator may negotiate a different offer amount and terms, when appropriate.  The investigator may determine that the proposed offer amount is too low or the payment terms are too protracted to recommend acceptance. In this situation, the OIC investigator may advise the taxpayer as to what larger amount or different terms would likely be recommended for acceptance.

It is crucial that you work with a tax professional who can properly prepare and submit the Offer in Compromise process. The Tax Giants, while not promising the “pennies on a dollars” sales pitch, do complete thousand of Offers each year resulting in millions of dollars of savings to taxpayers.

PENALTY ABATEMENT
The IRS automatically applies penalties and late filing fees to the amount of taxes already owed when you do not pay your taxes in full and on time. However, these penalties can, in many instances be removed (abated) by the IRS if the taxpayer has reasonable causes and submits a proper request for the abatement of penalties.
Without the assistance of an experienced tax expert, it is very difficult to prove eligibility for penalty abatement. The Tax Giants has been helping taxpayers remove most penalties, as well as reducing the interest charged.

 
Here is what The Tax Giants has to offer...
Free/No Obligation Consultation Offer in Compromise Arrangements FREE Assessment / Click here to fill out form
Penalty Abatements Representation & Audit Assistance
Innocent Spouse Relief Reasonable Settlement of Back Taxes
Release of Liens, Levies, and Wage Garnishments Filing of Back Taxes
Installment Agreements Assistance Any State Problems
Much Much Much More!!!

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