Colorado Springs: How Can I Make Payments To Payoff My Federal Tax Obligations?

 

How easy is to make a payment arrangement to payoff your federal taxes?  Some advertisements make it seem that just anybody can get a payment arrangement or an accepted Offer in Compromise (OIC) with the Internal Revenue Service (IRS).   With a payment plan a taxpayer agrees to make payments over time to the government of their tax.  Some installment agreements require the submittal of financials by the taxpayer.   With the submission of the financials, a taxpayer may be telling the government about a paid off house, a substantial IRA, or other assets that the taxpayer would prefer not to disclose.  What are the types of Installment Agreements?

1. Regular Installment Agreement -- Full disclosure of financials and assets; Results in full payment based on the statute
2. Partial-Pay Installment Agreement -- Full disclosure of financials and assets; Does not result in full payment; Government revisits in 12 months to see if payment can be increased.
3. Streamlined Installment Agreement -- No financial information required;  Full payment in 72 months or the time left on the statute.

Which installment agreement is best for you? What is required to qualify for an installment agreement?  Marcelino Dodge, EA of Cash Tracks Financial will examine your situation to help determine the best course of action for your circumstances.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave

Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

(Call for an in person or video conference appointment)

Colorado Springs: How Can I Get My IRS Penalties Reduced or Eliminated?

 

Is it really that easy to get your IRS Penalties reduced or eliminated as some advertisements claim?  In a previous blog I discussed the reasons why the Internal Revenue Service charges penalties to taxpayers.  

Some penalties such Failure to File, Failure to Pay, and Failure to Deposit can be abated under some circumstances.  However to qualify for abatement, taxpayers must meet some specific criteria including not being penalized in the prior 3 years.  Marcelino Dodge, Enrolled Agent is well versed in this process and can help you to get these penalties abated if you qualify.

If a taxpayer does not qualify for the penalty abatement discussed above, then you may need to use the IRS appeals process.  In this all the penalties can be appealed and used in the negotiation progress with the possibility of abatement during this negotiation time, which may include the filing of an offer-in-compromise.  I recommend that taxpayers do not try to navigate these waters on their own.  The recommendation is to find an Enrolled Agent or CPA that works in tax resolution to guide you through this process.

Cash Tracks Financial Inc.

Marcelino Dodge, EA

525 N Cascade Ave

Suite 200

Colorado Springs, CO 80903

(719) 359-8789

(Call for an appointment)

www.cashtracksfinancial.com

Colorado Springs: Why Does the IRS Charge Penalties?

 

There are many advertisements from national companies claiming that they can eliminate penalties from the Internal Revenue Service.  If it was only that easy to get an IRS penalty abated.  Before we can discuss how IRS penalties can be abated, we need to cover why the IRS charges penalties.

1. IRS penalties are to encourage voluntary compliance -- Our tax system is voluntary, but not everybody files or pays their tax on time.  Penalties for non-filing and non-payments are designed to encourage taxpayers to handle their personal and business tax matter in a timely manner.
2. Conserves IRS resources -- When people comply with their tax obligations, because they want to avoid paying penalties, that frees up IRS resources to pursue those who are seriously and perhaps criminally avoiding the paying of their taxes.
3. Provides clear guidance to taxpayers  -- When taxpayers fail to file their tax return or fail to pay their taxes the guidance is clear on the percentage of penalty they will pay for not meeting their tax obligations.
4. Ensure consistent and fair treatment of the issues -- When a taxpayer fails to file their tax return on time, a 5% penalty of the unpaid taxes can accumulate up to 25% of the unpaid taxes.  
5. Ensure noncompliant behavior is penalized -- For taxpayers who just do not want to cooperate with the IRS, the penalties are designed to motivate such behavior into compliance.

Now that we know why the IRS charges penalties, we will discuss in the blog about penalty abatement and why a tax professional such as an Enrolled Agent is important in helping you to deal with the IRS.

Cash Tracks Financial Inc.

Marcelino Dodge, EA

525 N Cascade Ave

Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

(Call for an appointment)

Colorado Springs: Can I Sell My Property If the IRS Has Filed a Lien?

 

Received a notice from the Internal Revenue Service (IRS) threatening to file a lien?  Or, has the IRS already filed the lien and you are concerned how that affects your ability to sell some of your assets?

If you are in the position of the IRS sending you notices about liens, have you been not responding to prior collection efforts on taxes owned to the IRS?  Do you perhaps have unfiled tax returns?  

The Internal Revenue Code Section 6321 authorizes the filing of a lien on a taxpayer to protect the government's interest against 3rd parties, if the IRS is owed more than $10,000.  The government then steps into the shoes of the taxpayer with the limit to what is owed to the government.  Even with the filed lien, you can still sell your home, but your lender and the IRS will be paid before you receive any proceeds.  You can also still make offers to collections, set up a payment plan, and submit an offer-in-compromise.

To carefully maneuver through this tax resolution process we suggest contacting an Enrolled Agent such as Marcelino Dodge, EA with Cash Tracks Financial Inc.   

Cash Tracks Financial Inc.

Marcelino Dodge, EA

525 N Cascade Ave

Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

(Call for an in person or video conference appointment)

Colorado Springs: How to Deal With IRS Collections Notices

 Are you one of the 15 million taxpayers to receive an IRS notice of collections? Do you have unfiled tax returns? Has the IRS filed a substitute return for you? Did you know that IRC section 6020 allows the governments to prepare a valid return based on 3rd party information? If you answered "yes" to any or all of the above questions, getting compliant with the IRS will be the start of solving your tax issues. How do you get compliant with the IRS?

Step1: Find the right tax professional -- This not just the person who prepared your tax return. We recommend either an Enrolled Agent or a CPA who specialize in tax resolution to guide you through process.

Step 2: Have the tax professional file that last 6 years of tax returns.

Marcelino Dodge, Enrolled Agent of Cash Tracks Financial of Colorado Springs will guide you through the process, get you compliant, and help to resolve your tax debt.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

Colorado Springs: (719) 359-8789

www.cashtracksfinancial.com

(Call to schedule an in person or video conference appointment)