FAQ
IRS Tax Debt Frequently Asked Questions
- If I haven’t filed a tax return in years, is it better to start filing now or wait until the IRS asks for a return?
- What can I do if the IRS informs me of a collection action?
- What can I do if I can’t pay the IRS what I owe?
- What is the difference between an IRS levy and lien?
- What can I do if the IRS has filed a lien against me?
- What happens to my credit score if I owe money to the IRS?
- What can I do if the IRS has issued a levy against my property?
- What can I do if the IRS has a wage garnishment on my paycheck?
- How much of my wages can the IRS garnish?
- My spouse owes the IRS money from before we were married. Am I liable for those taxes?
- How do I find out where my federal income tax refund is?
- How do I get copies of my tax return?
- How can I avoid an audit?
- How do I prepare for an IRS audit?
- Why should I hire AmeriPride Tax Group for tax help instead of using a local CPA or specialist?
- What can I do when faced with enforced collection action?
- What authority does the State or IRS have to collect money from me or my business?
- Is there a way to get IRS tax debt help?
- There are so many business tax help companies out there. Why should I choose AmeriPride Tax Group?
- Can you help release a wage garnishment?
- What is the difference between a levy and a lien?
- Do people go to jail for back tax debt?
- Can my existing accountant or attorney help me in this situation?
- Doubt as to liability – There is doubt that your tax is correct.
- Doubt as to collectibility – There is doubt that you could pay what you owe.
- Effective tax administration – Your offer can be accepted even if your tax is correct and can be collected under rare circumstances if you can prove that the tax would be unfair or create an economic hardship.
- Self-employment
- Home office deductions
- Driving logs for business travel
- High wages
- A large number of deductions
- Unreported income
- Unreported alimony
- The problem is not going to go away on its own.
- Letting time pass without taking action will only make it worse.
- The IRS and State Collection Divisions can and will levy bank accounts, garnish wages and seize assets.
- Dealing with a tax issue can be overwhelming. You don’t have to go through it alone.
If I haven’t filed a tax return in years, is it better to start filing now or wait until the IRS asks for a return?
The best thing you can do is file your tax return as soon as possible. The IRS will eventually find out that you haven’t paid taxes through employers, contractors, mortgage holders or previous documents. The longer you go without paying taxes, the more fines you will have to pay. If you can’t pay all of your taxes, you may be able to qualify for an Offer in Compromise, Installment Agreement or Currently Not Collectible Status.
Get all tax documentation you have to file for previous years. If you can’t find some of the documentation, call the IRS for help. You must file late tax returns by paper. Also, you should mail them through certified mail in different envelopes for each year.
→→Return to topWhat can I do if the IRS sends notice that they have a collection action against me?
If you are unable to pay the taxes within the time allotted by the IRS, or if there is question as to the validity of the taxes, you need to seek help to protect your assets from collection. .
→→Return to topWhat can I do if I can’t pay the IRS what I owe?
If it is impossible to pay back the IRS, you may be able to negotiate an Offer in Compromise, which can offer some help by settling your taxes for less than you owe. If the IRS accepts your offer, you can pay the amount agreed upon, and all federal tax liens are removed.
Negotiating an Offer in Compromise can be very complicated and last 6-18 months. After all that, only about a quarter of all offers are accepted. Therefore, it is highly recommended that you get a tax specialist to help with your offer. Offers in Compromise are eligible for acceptance if there is:
After your offer is accepted, you must file and pay your tax returns for the next five years, or you will again be responsible for all taxes and fines.
→→Return to topWhat is the difference between an IRS levy and lien?
A levy is more serious than a lien. A lien is used as security for taxes. It says that the IRS has the right to seize the property before other creditors. If the IRS has a levy against your property, they can actually take your property to satisfy those taxes.
→→Return to topWhat can I do if the IRS has filed a lien against me?
A lien is a public record on your property that says you owe the IRS money. It tells creditors that the IRS has a claim on all your property, including property you buy after the lien is filed. If a lien is attached to your property, you cannot sell that property without a clear title.
If you settle your taxes with the IRS, the lien will be released within 30 days. If you never pay your IRS taxes, the lien will usually be released automatically 10 years after it is issued.
→→Return to topWhat happens to my credit score if I owe money to the IRS?
Your credit score will take a huge hit if the IRS has filed a tax lien against your property. This is why it is important to take care of a lien as soon as possible.
→→Return to topWhat can I do if the IRS has issued a levy against my property?
The IRS can issue a levy against your property, including your house, your vehicle and even your bank account. This levy allows the IRS to seize your property to pay taxes.
If a levy has been issued against your property, start communicating immediately with the IRS. Find out if you qualify for an Offer in Compromise, Installment Agreement or Currently Not Collectible status. If the seizure would cause severe hardship, you can request a Taxpayer Assistance Order to protect you.
→→Return to topWhat can I do if the IRS has a wage garnishment on my paycheck?
The IRS can collect money you owe them by issuing a garnishment on your paycheck. A garnishment is basically a levy that requires your employer to collect a large portion of your paycheck and pay it straight to the IRS until your taxes are paid off. Garnishments usually collect between 30 and 70 percent of each paycheck.
Your best chance of avoiding garnishment is to respond immediately when the IRS contacts you. Before they can garnish any wages, the IRS can send a Final Notice 45 days before taking action. Also, it is important to know that the IRS can garnish your wages months or years after sending you the Final Notice. The best thing you can do when you get a Final Notice is act immediately.
If the IRS does issue a wage garnishment on your paycheck, you can find out if you qualify for tax help through an Offer in Compromise, Installment Agreement or Currently Not Collectible status. Act as quickly as possible, because even if you get a garnishment released, the IRS will not give back money that they have already collected.
→→Return to topHow much of my wages can the IRS garnish?
The amount garnished depends on the amount you earn and the number of dependents in your family. Also, the IRS is only required to leave you a certain amount of money. So, the IRS could take the same amount of money from you whether you make $1,500 or $15,000 per month.
→→Return to topMy spouse owes the IRS money from before we were married. Am I liable for those back taxes?
You do not have to be liable for those back taxes. The IRS offers the Innocent Spouse program to protect you.
How long does the IRS have to collect back taxes from me?
The IRS must collect back taxes within 10 years after the tax has been assessed. However, this time limit can be extended under certain circumstances. For instance, if a person has filed for bankruptcy or an Offer in Compromise, the statute of limitations is usually suspended until the bankruptcy or Offer in Compromise has been resolved.
→→Return to topHow do I find out where my federal income tax refund is?
You can track your IRS refund through the “Where’s My Refund” page on www.irs.gov. To find out where your IRS refund is, you need to know your Social Security Number, filing status and the amount of your refund.
→→Return to topHow do I get copies of my tax return?
If you just need a transcript or print out of your return, call the IRS. If you need an actual copy, mail Form 4506 and $57 per year requested to the IRS.
→→Return to topHow can I avoid an audit?
The easiest way to avoid an audit is to completely and accurately fill out your tax return. This includes double checking your math and making sure you used all the correct forms. Because the IRS flags items that look suspicious, you may want to consider attaching an explanation if you think a deduction or credit you are claiming looks too large.
Even if you follow all these steps, you may still have to undergo an audit. The following can factor into the IRS’s decision to audit:
→→Return to topHow do I prepare for an IRS audit?
First, find out whether or not the IRS wants to have a face-to-face meeting with you. About a third of audits are just letters from the IRS asking for explanation for a certain item on your tax return.
Next, consider contacting an accountant, tax specialist or Enrolled Agent to stand before the IRS for you. Before you go to your audit, organize all tax material relevant to the question being asked and make copies. Bring all worksheets to show how the tax figures were calculated. Always remember that you can do yourself more harm than good by volunteering more information than was requested by the IRS.
At the end of the audit, the IRS agent will give his informal judgment on the matter. You will receive a formal report later. If you do not agree with the audit ruling, you can appeal to the IRS or even the United States Tax Court.
→→Return to topWhy should I hire AmeriPride Tax Group for tax help instead of using a local CPA or specialist?
Consider their experience. AmeriPride Tax Group handles more cases in one week than most CPAs or specialist will handle in their career. Can you rely on someone who occasionally handles tax issues? At AmeriPride Tax Group, our tax counselors handle tax issues all day, every day.
→→Return to topWhat can I do when faced with enforced collection action?
As a taxpayer, you have rights and options. However, the IRS or state is not obligated to point these out to you. Neither will most tax practitioners – they just aren’t specialists in providing IRS tax help. At AmeriPride Tax Group, we routinely help people with tax issues. Additionally, we provide financing and new corporate formation options that may work for you.
→→Return to topWhat authority does the State or IRS have to collect money from me or my business?
The collection divisions of the State and the IRS have the power to file tax liens without court order. They also have the power to levy your bank accounts, wages, investments, retirement funds, business and personal property. The IRS has thousands of Collection Division employees doing this everyday.
→→Return to topIs there a way to get IRS tax help?
The IRS allows qualified taxpayers to satisfy their tax liabilities for lump sum payments, amounting to a small portion of the liability. Recent statistics also show that 42% of all IRS penalties are abated – if you know the procedure. AmeriPride Tax Group can provide the IRS help you need to reduce your liability and get you the fresh start you need. →→Return to topThere are so many business tax help companies out there. Why should I choose AmeriPride Tax Group?
That's simple: Experience, experience, and experience. Our managing CPA has over 25 years in business helping clients in every state across the United States. In addition we have some of the most knowledgeable and experienced professionals in the industry working behind the scenes to help every client. Our CPAs, EA, and attorneys are highly skilled and trained to, which is why you should choose AmeriPride Tax Group for your tax issues!
→→Return to topWhat else should I know about tax issues?
Let the experts at AmeriPride Tax Group guide you through the process so you can go back to living your life with complete confidence.
→→Return to topCan you help release a wage garnishment?
Yes, AmeriPride Tax Group can help release wage garnishment, often effective immediately.
→Return to topWhat is the difference between a levy and a lien?
A lien involves the government claiming an asset to secure taxes. A bank levy is the removal of money from your bank account.
→Return to topDo people go to jail for taxes?
The federal government stopped this practice many years ago. The only reason people go to jail at this time is for tax evasion where they deliberately avoided paying taxes on income.
→Return to topCan my existing accountant or attorney help me in this situation?
CPAs and attorneys may represent you with the IRS or state tax agency. However, not all have actual experience in these situations. It is best to engage an accountant or attorney that works consistently with the collection divisions of the IRS and state agencies.
→Return to topFor help with personal and business IRS tax issues, call today for a free tax consultation at 1.888.265.3418
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