Services
Audit & Appeals Representation(Back to Top)
As a former Revenue Agent and Appeals Officer, I have been involved in thousands of audits and appeals hearings, both as a government agent, and since 1991, on behalf of my clients. With my extensive background, I bring to my clients a level of expertise few have had. Many CPA's, Attorneys and/or Enrolled Agents refer their clients to me to handle their clients' audits and/or appeals because they typically do not know the ins and outs of IRS practices and procedures. My review of a client's returns and records is done with the "jaundiced eye" of the revenue agent or appeals officer. We know what the IRS agenda is and prepare our client's cases accordingly.
Collection Due Process
File Current & Late Returns(Back to Top)
We represent numerous clients who have missed filing some of their state or federal taxes. Some clients are only behind a year or two, others need to catch up on their filings way back into the 1980's. Regardless of complexity, our team of experienced tax experts promptly prepares accurate returns, while aiming to minimizing the risk of criminal prosecution and enforced tax collection by the taxing agencies.
Due to circumstances beyond their control, many of our clients have lost their tax records, making the preparation of old tax returns more complicated. Our tax experts often reconstruct and retrace client's tax records. By working closely with the clients, our tax experts are able to prepare reasonably accurate tax returns going back as far as 15 to 20 years.
Many taxpayers do not file tax returns because they do not have the money to pay the balance due on the tax return. Our tax attorneys strongly believe that in most circumstances, filing the missing tax returns is in the best interest of the client. Although there are numerous reasons for timely filing of the tax returns, the IRS can impose a penalty of up to 25% of the tax due on a late tax return. In California, a failure to file an income tax return upon request may also lead to a large penalty, even if you do not owe any tax.
Innocent Spouse Relief(Back to Top)
In general, a husband and wife are held jointly and severally liable for all the tax on a joint return, which means that either one or both spouses can be required to pay the entire amount of tax on a joint return. As the direct result of Congressional Hearings which took place in 1997, and brought to the surface the harsh tactics of the IRS, congress revamped the laws surrounding the type of relief which can be granted under the innocent spouse provisions and made it far more broad sweeping and less restrictive for someone to qualify for relief. Under the new provisions, a taxpayer may be granted full or partial relief of the tax liabilities depending upon specific facts and circumstances.
Offers in Compromise(Back to Top)
An Offer in Compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service (IRS) that resolves the taxpayer's tax liability. The IRS has the authority to settle, or compromise, federal tax liabilities by accepting less than full payment under certain circumstances. The IRS may legally compromise taxes for one of the following reasons:
- Doubt as to Liability - Doubt exists that the assessed tax is correct.
- Doubt as to Collectibility - Doubt exists as to whether you could ever pay the full amount of tax, penalties and interest owed.
- Effective Tax Administration -There is no doubt that the tax is correct and no doubt the money owed could be collected, but an exceptional circumstance exists. A taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
We have submitted hundreds of Offers for our clients since 1991 and have achieved extraordinary results saving our clients millions of dollars. This has been accomplished by spending the time necessary to properly evaluate each client's financial condition and submitting the appropriate documentation to the IRS. In each instance we follow up with the IRS and assure that they properly apply the procedures and rules that will result in the best results for our clients. During this process our clients rarely, if ever, need meet with or speak to the IRS.
In addition to the IRS, most state agencies have offer programs including the California Franchise Tax Board, California Employment Development Department, California State Board of Equalization and Departments of Revenue for many states.
To see if you qualify for an offer, contact us.
Release Wage Garnishments(Back to Top)
Both the state and IRS frequently use wage garnishments to collect taxes owed through your employer. Once a wage garnishment is filed, the employer is required to collect a percentage of each paycheck. A wage garnishment requires that a large percentage of taxpayer's wages be turned over directly to the IRS or the state. The wage garnishment stays in effect until the tax is fully paid or until the IRS or the State agrees to release the wage garnishment.
The amount that the IRS can keep from any wage garnishment is based on your marital status and number of dependents. Basically the IRS keeps most of the money from a wage garnishment. The amount of your income that is exempt from an IRS wage garnishment is figured by adding the standard deduction you can claim on your taxes and the amount you can claim for exemptions, divided by 52. A family of three subject to a wage garnishment will only be allowed to keep about $325 per week.
California tax agencies such as The Franchise Tax Board, The Employment Development Department and The State Board of Equalization can only collect up to 25% of the taxpayer's disposable wages through a wage garnishment.
A number of our clients turn to us for emergency help with a wage garnishment. Our tax attorneys understand how important a regular paycheck is to our clients and their families. We also understand how especially devastating a wage garnishment is to taxpayers with families. Upon being retained, our tax attorneys immediately contact the IRS or the state to negotiate the release of the wage garnishment. Of course, releasing or lowering a wage garnishment is only a temporary solution. Our tax attorneys follow up by developing a long-term strategy for dealing with the tax bill. Once the wage garnishment is released, we will either set up a repayment plan or submit an offer in compromise for our clients.
Tax Penalties
Tax Liens(Back to Top)
The IRS and State taxing agencies have the power to collect back taxes by levying on taxpayers' property as a result of a Tax Lien. When a person owes back taxes, the IRS and state agencies gain a tax lien on all that person's assets after meeting certain statutory requirements. The tax lien attaches to all rights, title and interest of the taxpayer. Once the IRS or a state tax agency have a tax lien on all of a taxpayer's assets, they may enforce that tax lien by administratively levying his or her assets.
The government files a tax lien to protect its interests. Recorded with one or several county recorders, a tax lien basically tells the world that you owe back taxes, and is generally devastating to the taxpayer's credit. Tax liens make it very difficult to obtain credit or to sell real estate.
The effect of the Federal Tax Lien statute is that when any person fails to pay any assessment of tax, plus interest, penalties, or costs, a tax lien in favor of the United States arises upon all property and rights to property, whether real or personal, tangible or intangible, belonging to the taxpayer. Even if the taxpayer makes partial payment, a tax lien will arise for the balance of the tax.
Although the taxing agencies are extremely reluctant to release or modify tax liens, we might be able to get the government to subordinate its tax lien to a lender, thus allowing the client to borrow money against his assets to satisfy all or part of the tax lien. Our tax attorneys also make sure that the tax agencies have met all legal requirements for a legal tax lien filing. If any defects are discovered in the tax lien process, our tax attorneys immediately appeal the filing of the tax lien.
Trust Fund Recovery Penalty (TFR)(Back to Top)
The Trust Fund Recovery Penalty (TFR) formerly known as the "100% Penalty" is a tool in the government's huge arsenal of penalties and is often misunderstood. It essentially allows the IRS to assess an amount of penalty against responsible third parties whom they have determined were required to withhold, collect and pay over payroll taxes. But not only must the government show that the person was responsible, they must also show that the person willfully failed to perform their duties in collecting and paying over the taxes.
The IRS is not the only agency with these powers and often times the analysis made by the government is inadequate and/or entirely inappropriate. Should you be the subject of a Trust Fund Recovery Penalty Interview, you should immediately contact us to discuss precisely what the meaning of such an interview is and what your options are.