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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, October 21, 2024
Colorado Springs: What to Do When You Do Not Think You Owe What the IRS Says You
Receiving a notice from the IRS is a frightening experience! When you believe you do not owe any money, it is causes a high level of stress. Under such circumstance it's best to approach the situation with a calm mindset as you try to understand why you received the notice. Here are some recommended steps to take:
- DO NOT IGNORE THE NOTICE!
- Contact your tax professional to help you understand the notice.
- A tax professional will explain why you received the notice
- You will need to verify the information such as reported income and any errors in calculations.
- Draft an appropriate response
While receiving an IRS notice can be scary, approaching it with a clear plan and professional assistance can help resolve the issue efficiently. It is best to keep in mind that the IRS is open to communication, and many issues can be resolved through proper channels.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Tuesday, October 8, 2024
Colorado Springs: Step 1 for Resolving Your Tax Debt
Dealing with tax debt can be a daunting task, but breaking it down into manageable steps can make the process less overwhelming. Step 1 in solving your tax debt is to determine if there is Cancellation of Debt (COD) income, and if so, identify the amount and the applicable year.
COD income arises when a debt is forgiven or discharged for less than the amount owed, and the forgiven amount is considered taxable income by the IRS. To begin, gather all relevant financial documents, including any 1099-C forms received from creditors. These forms report the amount of debt canceled and are crucial for accurately assessing your tax liability.
Next, review your financial situation for the year in question. This involves examining your income, expenses, and any other financial activities that may impact your tax obligations. Understanding your financial landscape will help you determine the exact amount of COD income and ensure that you are reporting it correctly.
Once you have identified the COD income, it's essential to explore any exclusions or exceptions that may apply. The IRS provides certain exclusions, such as the insolvency exclusion, which allows taxpayers to exclude COD income if they were insolvent at the time the debt was canceled. Carefully evaluate your eligibility for these exclusions to potentially reduce your taxable income.
By thoroughly understanding and documenting your COD income, you lay a solid foundation for addressing your tax debt. This step is crucial in ensuring compliance with IRS regulations and setting the stage for resolving your tax obligations effectively.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Thursday, October 3, 2024
Colorado Springs: How Do You Request Your Collection Appeal and Avoid the Levy?
Facing a levy from the IRS can be daunting, but understanding your rights and the appeal process can help you navigate this challenging situation. Here's a concise guide on how to request a collection appeal and avoid a levy.
Firstly, it's crucial to act promptly upon receiving a notice of levy. The IRS provides a window for you to respond before the levy is enforced. Begin by reviewing the notice carefully to understand the specifics of your case.
To request a collection appeal, you need to file a Collection Due Process (CDP).The request must be submitted within 30 days of receiving the levy notice. The CDP hearing allows you to present your case and explore alternatives to the levy, such as installment agreements or offers in compromise.
During the appeal, it's essential to provide all necessary documentation and be transparent about your financial situation. This transparency can help demonstrate your willingness to resolve the debt and may lead to more favorable terms.
Additionally, consider seeking professional assistance. A tax professional such as and Enroll Agent can guide you through the process, ensuring that all paperwork is correctly filed and deadlines are met.
To avoid future levies, maintain open communication with the IRS. If you're unable to pay your taxes, contact them to discuss payment options. Proactively managing your tax obligations can prevent levies and other collection actions.
In summary, requesting a collection appeal involves timely action, proper documentation, and possibly professional guidance. By understanding and exercising your rights, you can effectively manage your tax situation and avoid the stress of a levy.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Monday, September 30, 2024
Colorado Springs: How to Avoid a Levy When the IRS Final Notice Letter 11 Shows Up
Receiving an IRS Final Notice Letter 11 can be a daunting experience, as it indicates the IRS's intent to levy your property to satisfy unpaid tax debts. However, there are steps you can take to avoid this outcome.
First, it's crucial to act quickly. The letter serves as a 30-day warning, so time is of the essence. Begin by thoroughly reading the notice to understand the specifics of your situation, including the amount owed and any discrepancies.
Next, reach out to a tax professional, such as an Enrolled Agent. Many of these experts specialize in tax resolution and can communicate with the IRS on your behalf, potentially negotiating a more favorable outcome. They understand the complexities of tax law and can help you navigate the process effectively.
Additionally, ensure all your tax returns are filed, as unfiled returns can complicate negotiations. Gather all relevant documentation to support your case, such as proof of income and expenses.
By taking prompt and informed action, you can avoid a levy and work towards resolving your tax issues with the IRS.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Colorado Springs: How Final is the IRS Final Notice of Intent to Levy
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The IRS Final Notice of Intent to Levy is a critical document that signifies the agency's intention to seize a taxpayer's assets to satisfy an outstanding tax debt. However, despite its name, this notice is not entirely "final" in the sense that it leaves room for taxpayer action.
Upon receiving this notice, taxpayers are granted a 30-day window to respond before the IRS can proceed with the levy. This period is crucial as it provides an opportunity to contest the levy or arrange alternative solutions. Taxpayers can request a Collection Due Process (CDP) hearing, which allows them to present their case and explore options such as installment agreements, offers in compromise, or proving financial hardship.
Ignoring the notice can lead to severe consequences, including the seizure of bank accounts, wages, and other assets. Therefore, it is imperative to act promptly. Engaging a tax professional, such as an Enrolled Agent, will be beneficial in navigating the IRS processes and procedures.
While the IRS Final Notice of Intent to Levy is a serious indication of impending action, it is not the end of the road for taxpayers. By taking timely and informed steps, individuals can potentially halt the levy process and negotiate a more manageable resolution to their tax liabilities. This underscores the importance having an Enrolled Agent to help you understand your rights and responsibilities when dealing with IRS communications.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Friday, September 13, 2024
Colorado Springs: Does Your Tax Professional Have the Right Ingredients?
I was waiting for my pizza out back of The Next Us Building. I was able to get what I wanted on my pizza. I thought "Do taxpayers get their tax professional with right ingredients to resolve their tax issues?" Does your tax professional make you feel valued and confident? As you personally work with Marcelino Dodge, EA you will feel confident that your tax issues will be successfully resolved so you can sleep well each and every night.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Wednesday, September 11, 2024
Colorado Springs: Do Your Taxes Feel Like a Bunch of Mondays Hitting You All at Once?
Do you dread the Monday morning after a fantastic weekend? Maybe that is how you feel about unfiled tax returns or a large tax bill.
Do you feel nervous and exposed over having to deal with the IRS by yourself? Let us help to eliminate the overwhelming stress and worry of being harassed by the IRS, so you will not have to worry about the your money being clawed back by the IRS.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Colorado Springs: What is an IRS Lien Notice? Is a Notice Even Required?
When a taxpayer fails to pay their tax debt, the IRS may place a lien on their property, which serves as a legal claim against the taxpayer's assets. This lien ensures that the government can secure the payment of the tax debt. Section 6320 of the Internal Revenue Code deals with the IRS's issuance of lien notices, a critical aspect of tax enforcement.
Upon filing a lien, the IRS is required to notify the taxpayer through a Section 6320 notice, commonly known as a Notice of Federal Tax Lien (NFTL). This notice is crucial as it informs the taxpayer of the lien's existence and their right to a hearing. The hearing, known as a Collection Due Process (CDP) hearing, provides the taxpayer an opportunity to dispute the lien or propose alternative payment arrangements, such as an installment agreement or an offer in compromise.
Receiving a Section 6320 notice can be daunting, but it is essential for taxpayers to understand their rights and options. Ignoring the notice can lead to severe consequences, including the potential loss of property. Therefore, taxpayers should promptly respond to the notice, either by paying the debt in full or by requesting a CDP hearing to explore other resolutions.
Engaging with a tax professional, such as an enrolled agent can be beneficial in navigating the complexities of IRS lien notices. They can provide guidance on the best course of action and help protect the taxpayer's rights. Understanding Section 6320 and taking timely action can mitigate the impact of a federal tax lien and lead to a more favorable resolution of tax debts.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Monday, September 9, 2024
Colorado Springs: Can a $400,000 IRS Payment Request Really be Reduced to $0?
There is nothing that will shock you and make you feel helpless as receiving a notice from the IRS that says something like "you failed to file your tax return so we filed a tax return for you and by the way, you now owe us $400,000 in taxes, penalties and interest." How and why does a taxpayer even receive such a notice?
There are several reasons why a taxpayer could receive such notice. First is that they have not filed a tax return for one or more years. The Internal Revenue Service (IRS) received income documents (W-2's, 1099's, etc) from third parties indicating that income was paid to the taxpayer. When the IRS went looking for a tax return to match the income documents, there was no tax return on record. There can be any number of reasons why a tax return was not filed. The reason is not important to the IRS. The IRS is just looking for a tax return. When the tax return is not filed the IRS has the statutory authority to file a substitute tax return on behalf of the taxpayer with the information they have. That is happened with the client who received a $400,000 tax bill from the IRS and a $35,000 tax bill from the state.
How did we get this $400,000 tax bill reduced to $0? After meeting with the taxpayer, we decided on a course of action that would help the taxpayer to reduce the debt. At the time I did not know for sure how much of the tax debt we could reduce. After implementing the agreed upon solution, we very pleased when we received letters stating that the federal tax is reduced to $0 and the state tax is reduced to $0. This is a case where the taxpayer qualified to have the tax debt reduced. I cannot guaranteed this result for every client. What I can guarantee is that we will work very hard so your feelings of worthlessness and overwhelming worry will instead become confidence and thankfulness that the dark cloud the of the IRS taking your hard earned is gone.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
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