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You are here: Home / Archives for IRS TAX RELIEF / Representation

Representation

April 29, 2014 by James Grennen Leave a Comment

IRS Trust Fund Recovery Penalty Representation

Trust Fund taxes include social security, Medicare, and income taxes that are withheld from employee wages as mandated by the federal tax code. This type of tax is paid by employees, but the employer is responsible for forwarding the employee-paid taxes to the government.

When this doesn’t happen, the IRS is quick to step in and take action against corporate officers, finance officers, business bank account signers/co-signers, financial partners, and limited liability company members. The IRS charges a Trust Fund Recovery Penalty (TFRP) to individuals assigned with the collection and remittance of these taxes but who don’t comply with the rules.

IRS trust fund recovery penalty

The process of stopping a trust fund recovery assessment is quite complicated. First, the target person or persons must file a written appeal. If this is not done, the IRS will personally assess the person or persons responsible for the liability. Usually at this point, the right is lost to challenge the trust fund recovery penalty. (Under certain circumstances, the right is not entirely forfeited. For example, if the target was not responsible for paying trust fund taxes or simply did not do it wilfully, there’s still a chance to appeal.)

As with other tax problems, appealing against a trust fund recovery penalty is an arduous process that requires expert care and insight. It is wise to confront the IRS with expert help. While it is possible to represent yourself, it is not advised because the stakes are high – and best left to the professionals. Certified tax experts are aware of every clause in the tax code and every situation in which you may be granted tax relief.

If you’re a victim of misdirected Trust Fund Recovery measures, contact Long Island Tax Resolution Services today. Trust Fund Recovery measures are extremely serious and may disrupt your ongoing business affairs. Our highly qualified tax experts will give you the representation you deserve, handling your unique case with the highest degree of care.

Filed Under: Representation

April 29, 2014 by James Grennen Leave a Comment

Power of Attorney Forms in Long Island

The IRS gives you the right to authorize an individual to represent you before them. Certified tax professionals are well versed with the federal tax code and understand the nuances of the power of attorney form.

Imagine a situation where your finances and livelihood are unknown. Instead of seeking help from someone who has gotten someone out of a similar rut, you choose to go out and take on an unknown entity with no backing, simply because you didn’t want to spend a little extra. Instead of saving a major amount and spending a minor one, you’re saving a minor amount and losing a major one.

Power of Attorney

This is what happens when you choose to take on the IRS for tax liabilities without any professional help. Tax professionals experience years of training and require a great deal of experience to be called ‘experts.’

The power of attorney form gives you the ability to appoint a certified tax professional to represent you before the IRS, and take care of all proceedings while causing you the least amount of headache. The form also reminds the agent that they are supposed to act in the best interests of the beneficiary. This isn’t to say that all tax consultants are the same. Take extra care to choose the right one.

The IRS allows many people to represent you before the IRS, including friends and family members, but in a situation where your finances hang in the balance, you must make the right decision and allow an experienced individual people to represent you.

The 3 types of professionals who are qualified to represent you before the IRS are:

  • U.S. Department of the Treasury certified Enrolled Agents
  • Attorneys
  • Certified Public Accountants

A certified tax professional with years of experience dealing with the IRS will work to gain you tax relief. You will have to sign and send in Form 2848, which officially designates them as your tax representative, and he or she will have access to your financial documents, information, and background.

Filed Under: Representation

April 29, 2014 by James Grennen Leave a Comment

Tax Relief Help – Representation For Employment or Payroll Tax Problems

If you are a business owner or previously owned a now defunct business, you may be required to pay employment or payroll taxes to the IRS. These include social security and Medicare taxes to benefit workers and their dependents.

Payroll Tax Problems

Employers are required to furnish two main payroll tax forms:

  • Form 940 – The Employer’s Annual Federal Unemployment Tax Return (FUTA)
  • Form 941 – The Employer’s Quarterly Federal Tax Return

Failure to fill and submit any of the above two forms is viewed as a serious offense, and the IRS may even initiate an audit to determine if there are additional parties from whom tax can be collected.

There are two very important things to understand about owing payroll taxes or employment taxes:

  1. The penalties and interests accrued on tax debts of this kind increase exponentially in a matter of months.
  2. It is extremely difficult to get tax relief schemes because the IRS can deem a company’s value higher than the taxes owed, which makes you unable to apply for any tax relief programs.

Owing employment/payroll taxes to the IRS is viewed as a major offense, and failure to repay on time can have serious financial consequences. For a company with an unstable financial situation, the IRS can add to this instability when it forces repayment. This often has the effect of further destabilizing the company. In extreme cases, the IRS may even close the company and liquidate its assets in an attempt to settle the debt. For now defunct businesses, previous owners can be examined and asked to settle the debts, which are sometimes large sums.

A certified professional tax expert will ensure your payroll tax and employment tax problems are solved as soon as possible. Without expert help, you risk losing your business or criminal prosecution. Long Island Tax Resolution Services will act as a liaison between you and the IRS to negotiate terms of settlement. Often, tax debts of this kind can be settled with payment plans, and they should be dealt with as soon as possible to prevent seizure of assets, financial instability or company closure.

Filed Under: Representation

January 22, 2012 by James Grennen

The Top 10 IRS Tax Relief Strategies

1. An Offer In Compromise

Many taxpayers qualify for the IRS Offer in Compromise program. If you qualify, this program gives you the opportunity to settle a tax liability for far less than the total amount owed. A tax resolution specialist is able to calculate if a taxpayer can qualify for an OIC.

2. Penalty Abatement

The IRS can grant abatement and remove penalties or interest if there is a legitimate reason for not paying taxes on time. Penalties and interest can comprise a large percentage of the overall tax debt, sometimes as high as 50{bf3da7fb6a4d0e0e3790d09a79b980fc065e33e2f3a2d49280f7e95b82f4982b} or more. A taxpayer should consult with a tax resolution specialist to see if they are a candidate for abatement.

3. Wage Garnishment Removal

The IRS can garnish a taxpayer’s wages until the tax debt is paid in full. It is important to act quickly to stop or release this type of levy. The taxpayer should seek help from a tax resolution expert who can develop a strategy to reduce or release the wage garnishment.

4. Stopping A Bank Levy

A bank levy is another form of legal seizure of property by the IRS to satisfy a tax liability. A bank levy freezes an amount available in your checking or savings account and sends it to the IRS in 21 days. It is advisable to work with a tax resolution expert to resolve your tax problem quickly with a goal of getting a release of levy.

5. Filing Delinquent Tax Returns

A taxpayer cannot successfully resolve a tax problem unless they file all previously unfiled tax returns. Often the IRS files a “substitute for return” which does not include any deductions owed to the taxpayer. Filing a first time or an amended tax return can often obtain those deductions and lower a taxpayer’s tax liability.

6. Optimizing An Installment Agreement

The most common IRS tax debt solution, for taxpayers with enough assets or income, is an installment agreement. The taxpayer should consult with a tax resolution specialist to develop a plan which fits their specific case. A properly structured installment plan can reduce the total amount to be paid.

7. Managing The Statute Of Limitations

The IRS has 10 years from the date of assessment of taxes to collect all taxes, penalties and interest from a taxpayer. A tax resolution specialist can help the taxpayer reduce an overall tax liability by managing the debt with an eye on the 10 year statute of limitations.

8. Innocent Spouse Relief

When two individuals file a joint tax return, typically each is liable for the tax debt. Occasionally the tax liability is the responsibility of just one individual. There are three categories of innocent spouse relief in which a taxpayer may qualify for tax relief.

9. Filing An Appeal

Every taxpayer has the right to appeal an IRS tax ruling. An advantage to filing appeal is the IRS will typically suspend their efforts at collecting the tax debt. This reprieve gives the taxpayer time to meet with a tax resolution expert to develop a defense.

10. Currently Not Collectible

If you have no assets or income above that which is necessary to cover living expenses you become currently not collectible. Collections against you will temporarily stop. This is a temporary form of relief.

 

 

 

 

Filed Under: Representation Tagged With: IRS Tax Relief

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IRS On Enrolled Agents :

"The Enrolled Agent is the most expansive license that the IRS grants a tax professional.

An Enrolled Agent has earned the privilege of representing taxpayers before the IRS.

Enrolled Agents are generally unrestricted as to which taxpayers they can represent, what types of tax matters they can handle and the IRS offices before which they can practice."


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Long Island Tax Resolution Services specializes in providing affordable solutions to both individuals and small businesses experiencing back tax problems. These are either IRS tax problems or State tax problems.

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  • NYS Tax Warrants: What Every Taxpayer Needs to Know
  • 10 Frequently Asked Questions about New York State Tax Problems
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  • Offer In Compromise (OIC): Tips To Getting Yours Accepted
  • The Penalties for Failing to File a Return or Pay Taxes

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