525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Do You Owe the IRS Money That You Can’t Pay? Are You a Year or More Behind in Filing Your Income Tax Returns? Are You Behind in Your Payroll Tax Filings or Payments? Our Tax Relief services and Tax Resolution assistance can help you get tax relief!
Monday, July 29, 2024
Sunday, July 28, 2024
Colorado Springs: Tax Resolution Training on the Way to Orlando
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Friday, July 26, 2024
Colorado Springs: Should I File an Offer in Compromise to Resolve my Tax Debt?
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Wednesday, July 24, 2024
Colorado Springs: How Can I Get a Penalty Abated Using Reasonable Cause?
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Monday, July 22, 2024
Colorado Springs: Can I Challenge a Bad IRS Tax Assessment?
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Friday, July 19, 2024
Colorado Springs: How do I qualify for an IRS Installment Agreement?
If you owe the IRS a large tax debt that you are unable to pay in full, the notices and prospect of the IRS coming after you can be intimidating. What can you do if do owe the IRS a large sum that you are unable to pay in full? Should you just ignore the IRS? Or, is there an option available for you to sleep well at night and get peace of mind?
Under Section 6331 the IRS can help you with by setting up an installment agreement. The installment agreement will help you to mange your tax obligation. You will be allowed to pay over time in order to get caught up with your tax obligations. How can a taxpayer qualify for an installment agreement?
If the specific requirements are not meant, the IRS will not even consider or allow a taxpayer to start an installment agreement. First, a taxpayer must be tax compliant. This means that all all required tax returns must be filed. The amount you owe is also important. Is an installment agreement best for you? It may or may not be, depending on your facts and circumstances.
Working with a tax professional who will do an analysis of your situation is highly recommended to determine if the installment agreement or possibly an offer in compromise is better for you.
If an installment agreement is the way to go then I recommend enrolling in a Direct Debit Installment Agreement (DDIA). This ensures timely payments directly from your bank account, reducing the risk of default. The monthly payment amount must settle the debt within 72 months or before the Collection Statute Expiration Date, whichever comes sooner.
Depending on the size of the amount owed, you may qualify for a Streamlined Installment Agreement. With this type of installment plan there are no forms required and no documents needing to be submitted. You are automatically accepted. For certain large amounts owed you will need to complete forms and submit documents. Working with a tax professional who can analyze your situation, will walk you through the process and make simple for you to resolve your tax debt and avoid further collection actions.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Tuesday, July 16, 2024
Colorado Springs: Can I Really Settle My Tax Debt for Pennies on the Dollar?
The simple answer to the question in title of this blog is "maybe". Why do I say that?
The IRS provides a lifeline for those who either cannot pay or who doubt they actually owe the tax through the Offer in Compromise (OIC)
program, governed by Section 7122 of the Internal Revenue Code. This
program allows taxpayers to settle their tax liabilities for less than
the full amount owed for those who qualify. Taxpayers have to be patient as this process can take at least a year to complete.
To qualify for an OIC a taxpayer must calculate their RCP using guidelines provided by the IRS that include both actual expenses and nation standards. Once RCP is calculated the determination is made whether a taxpayer qualifies for the OIC or has to set up an installment agreement and full pay.
I recently completed a case that took over a year for the IRS to send us the OIC acceptance letter. The taxpayer was unable to pay the tax in full after calculating the RCP. This was a doubt as to collectibility offer. We were able to settle an $80,000 plus debt for $100. The taxpayer has two responsibilites now: 1) To make the $100 payment and 2) Stay tax compliant for the next five years, including making estimated tax payments if required. If these two conditions are not met, the taxpayer can become liable once again for $80,000 tax debt.
We cannot settle every case for such a small amount. Each taxpayer's facts and circumstances are unique. Only a full analysis of your situation can determine what the best course of action will be. Using a local Enrolled Agent(EA), CPA, or tax attorney who will complete such an analysis is highly recommended.
Section 7122 on Offer in Compromise is a valuable tool for taxpayers in distress. However, this path requires careful preparation and a clear understanding of the obligations involved. Consulting with a tax professional can enhance the chances of a successful application.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Thursday, July 11, 2024
Colorado Springs: What is an IRS Tax Levy? What is the Purpose
What would lead to the IRS to levy your bank accounts or other property? The legal seizure of your accounts or property is an extreme measure the IRS could take to satisfy a tax debt. If you have been ignoring the IRS when it comes to filing tax returns or making payments on your taxes, this extreme measure may be used to get your attention. Nothing will quite get your attention as your bank stating that your accounts are essentially frozen due to an IRS levy.
How many letters did you receive from the IRS? If you failed to open the letters and respond to the IRS, the levy process most typically begins with the IRS assessing the and sending a Notice and Demand for Payment. With no payment made or contact initiated to the IRS, the next notice possibly sent through certified mail, is a Final Notice of Intent to Levy and Notice of Your Right to a hearing at least 30 days before the levy action.
Most commonly I have heard of bank accounts being subject to an IRS levy. I some cases the frozen funds can be made available for you the taxpayer. Each taxpayer's circumstances are unique.
The best solution for an IRS levy is to never get an IRS levy. Stay compliant and make your tax payments in a timely manner.
However, if you do receive a levy notice taking quick action is highly advised. I recommend you do any or all of the following:
- Hire a tax professional (EA, CPA, or Tax Attorney) to assist you through this process
- Collect documents and records to build your case
- Request a Collection Due Process hearing or
- Prepare to make a payment in full, arrange a payment schedule, or if qualified file for an offer in compromise.
Ignoring a tax levy can lead to severe financial consequences. Immediately working to resolve the issue with a tax professional will help you quickly resolve the issue. As you work with a tax professional toward a resolution, you will be able to sleep better an minimize the impact on your financial well-being.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Wednesday, July 10, 2024
Colorado Springs: Am I or Am I Not an Innocent Spouse?
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Tuesday, July 9, 2024
Colorado Springs: Why Did the IRS File a Lien on My Assets?
How would you answer the following questions:
- Did you fail to file your tax return?
- Did you fail to pay your tax full?
- Or, did you fail to arrange to make payments on your taxes if you were unable to pay in full?
If you answered "yes" to any or all of the above questions and you owe the IRS more than $10,000, then that is probably why you received the notice of an income lien on your assets. What makes it possible for the IRS to file a lien. Under the Internal Revenue Code Section 6321, the IRS has the authority to protect the governments interests by filing lien. When a lien a placed, the IRS then has a legal claim to your property when you neglect or fail to pay your tax.
Three conditions must be met for a tax lien to attach to your property:
- The IRS assess your tax liability of $10,000 or more.
- The IRS sends you a bill explaining how much you owe.
- You either neglect to make payment or refuse to pay in full within 10 days
After each of these conditions is satisfied, the lien attaches to all your assets including real estate, personal property, and financial assets.
An IRS tax can have a significant impart on your credit score. Thus, you may find it more challenging to qualify for loans or credit. If you want to sell or refinance your home, an IRS tax lien will make it more challenging to accomplish, but not impossible. With the tax lien the government has an interest in your property as security for the tax debt.
In what ways can you address a tax lien:
- Pay the debt in full
- Request a payment plan, which the IRS may agree to and withdrawal the lien
- You may qualify for lien subordination, to allow other creditors to move ahead of the IRS
If facing an IRS tax lien, prompt action is necessary. I recommend consulting with a tax professional who can provide you with the needed guidance to resolve this issue as quickly as possible after they take a complete look at all your facts and circumstances.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
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