Struggling with tax debt can be very stressful. The IRS and the state are often aggressive in their collection tactics, including placing liens on your property and levying your wages or money in your bank account.
There are a multitude of ways to get relief from IRS and state collection efforts, including getting on a payment plan with the taxing authority or getting relief on the total amount of taxes owed through an offer in compromise. In certain circumstances, bankruptcy is the most cost-effective means to achieving tax relief. The Wink Law Firm can advise you on all your options and represent you in achieving the most cost-effective resolution of your tax debt.
Releasing Tax Levies and Garnishment
If the IRS or state has begun garnishing your paycheck or levying funds in a bank or other assets, you need immediate relief so that you can afford to live. The Wink Law Firm can help you get a release of the levy or garnishment, often within few days.
The Wink Law Firm can help you stop a tax levy or garnishment by making alternate arrangements with the taxing authorities. The alternate arrangements are typically to get your account placed in not collectible status or get you on a payment plan.
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Currently Not Collectible Status
“Currently not collectible status” is a designation in which the IRS acknowledges you are currently unable to pay your taxes due to financial hardship. If you qualify for currently not collectible status, the IRS will move you from collections and into hardship status. This will protect you for collections for at least one year. After that, the IRS will begin monitoring your income through your tax filings. If your income increases, you may lose currently not collectible status and be placed back into collections. If your income stays low enough for long enough, you may be able to stay in currently not collectible status until the collection statute passes and your tax debt is forgiven. The Wink Law Firm can advise you on whether you are eligible for currently not collectible status and, if so, get your account moved out of collections.
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Payment Plans/Installment Agreements
In most cases, the IRS will allow you to pay your taxes over a 6-year payment plan, or installment agreement. In order to qualify for this, you must have filed all returns which are due and must not accrue additional tax debt during your payment plan. This means that you must pay liability for future tax years as they come due during the plan. The Wink Law Firm can help you get on a payment plan with the IRS and advise you on how to stay compliant with the terms of the plan.
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Offer In Compromise
An Offer in Compromise is a settlement with the IRS or other government agency such as the SBA that can allow you to pay a fraction of your debt to the government and get out of the rest. The IRS or SBA will only accept an Offer in Compromise if the settlement offered represents the amount the government could expect to collect from you through other means. In making this determination, the IRS or SBA will look at your income, expenses and assets. The asset analysis generally does not include your personal items and household goods but will include all other assets. The income and expense analysis determines your “disposable income” by deducting IRS allowed expenses from your gross income. The IRS or SBA will consider offers that include the equity in your assets plus 1-2 years of disposable income. For tax debt, once you have a settlement approved by the IRS, most states will offer the same percentage discount for the same tax years.
The Wink Law Firm can help you evaluate whether you are a good candidate for a tax settlement through an Offer in Compromise. If so, The Wink Law Firm can present your case to the IRS in a way that will result in the lower possible settlement.
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Back Tax Return Preparation
Before the IRS will work with you on any settlement or payment agreement, they will require that you have the last six years of tax returns filed. Additionally, bankruptcy law requires that you file the past four years of returns. The Wink Law Firm can obtain your W-2s, 1099’s and other tax documents from the IRS and prepare these returns for you quickly, allowing us to move forward with the resolution of your tax debts.
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Other Options for Tax Relief
Depending on your situation, there are a number other ways The Wink Law Firm can help you with your taxes. For example, if you filed a joint tax return and owe taxes as a result of your spouse’s fraud or income, you may be released from that liability through the IRS Innocent Spouse program. You may also be able to remove or reduce penalties you owe the IRS if you failed to meet the IRS payment and filing obligations because of circumstances beyond your control. And if you are trying to sell an asset that is subject to an IRS tax lien, there are ways to make the sale happen and possibly get the lien removed. Finally, bankruptcy can be very effective at eliminating certain types of taxes, particularly income taxes for returns that you filed more than three years ago.
Because The Wink Law Firm has expertise in the multitude of ways you can deal directly with the IRS as well as bankruptcy, we can advise you on the most cost-effective way to resolve your tax debt and represent you in achieving that outcome.
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