THERE ARE ONLY A FEW REQUIREMENTS THAT MUST BE MET BEFORE THE IRS EXECUTES AN IRS BANK LEVY / IRS WAGE GARNISHMENT / IRS WAGE LEVY:
The IRS must have assessed the back tax debt and sent a IRS Levy Notice ( Bank Levy, Wage Garnishment / IRS Levy ) and Demand for Payment
The taxpayer must have neglected or refused to pay the back tax debt and,
The IRS must have assessed the tax debt and sent a IRS Levy Notice ( Bank Levy, Wage Garnishment / IRS Levy ) and Demand for Payment
The IRS can serve the Final Notice to Levy / Notice of Bank Levy or Wage Garnishment in person, leave it at the taxpayer’s home or usual place of business, or send the Notice of IRS Levy or IRS Wage Garnishment / Wage Levy to the last known address by certified or registered mail.
IDEALLY, YOU SHOULD CONTACT DWK TAX GROUP AS SOON AS YOU RECEIVE THE IRS LEVY LETTER / IRS NOTICE TO LEVY:
DWK Tax Group can protect your Bank Account before the IRS Bank Levy takes place.
The IRS commonly uses an IRS Levy as a way for collecting back income taxes and this can have a devastating impact on a taxpayer’s financial situation.
If the IRS Executed an IRS Levy on your Bank, you can be sure that their next step is to proceed with an IRS Wage Garnishment / IRS Levy. DWK Tax Group will stop your IRS Garnishment / IRS Levy and have your entire IRS Tax Debt settled Now. It is time for IRS Tax Relief.
IRS WAGE GARNISHMENT / IRS WAGE LEVY / VENDOR LEVY / STATE ORDER TO WITHHOLD:
The IRS or State will demand of your employer that a portion of your income be sent directly to the IRS. Section 6334 does allow for an exempt amount that must remain outside of the IRS Levy / IRS Wage Garnishment / Wage Levy. That amount is very small, leaving you without enough money to satisfy your regular monthly living expenses.
An IRS Offer in Compromise (also known as an OIC) is an excellent way to receive IRS Tax Relief and Settle your IRS Tax Debt with the IRS for much LESS than what you currently owe.
Real IRS Tax Help Through an IRS Offer In Compromise.
Our latest information (7/2013) from the IRS is that an IRS Offer in Compromise is taking the IRS 9 to 12 months to process an Offer in Compromise once your Offer in Compromise is submitted.
OFFER IN COMPROMISE: GUIDELINES:
At least one of three conditions must be met to qualify a taxpayer for IRS Debt Relief consideration of an IRS Offer in Compromise (OIC) Tax Settlement:
Doubt as to Collectibility
Doubt as to Liability
Effective Tax Administration
Under Federal Tax Regulations;
The IRS will not execute an IRS Wage Levy / IRS Wage Garnishment while an Offer in Compromise (OIC) is under construction.
The IRS will not collect on tax liability that is the subject of the IRS Offer in compromise (OIC) during the period the Offer in Compromise(OIC) is pending and under review.
The IRS will not proceed with collections for 30 days immediately following the rejection of the IRS Offer in Compromise, and for any period when a timely filed appeal from the rejection is being considered by Appeals.
Please note that about 25% of all Offer in Compromise submissions are rejected simply because taxpayers fail to timely respond to the IRS’s requests for additional information. Our Tax Attorneys and Enrolled Agents will file a form 2848 (Power of Attorney) and get you a stay while we gather the necessary information to move your case forward.
DWK will only prepare your IRS Offer in Compromise if you are Qualified and Eligible for Tax Relief help
IRS Bank Levy Rules:
There are only a few requirements that must be met before the IRS starts a IRS Wage Garnishment or IRS Bank Levy:
The IRS must have assessed your IRS Tax Debt and sent you a notice of demand for Payment;
You have neglected or refused to pay your IRS Tax Debt; and,
The IRS must have sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing at least 30 days prior to the IRS Wage garnishment / IRS wage Levy.
IT DOES NOT TAKE MUCH FOR THE IRS TO SEIZE / GARNISH YOUR PAYCHECK, YOUR SOCIAL SECURITY OR YOUR SOCIAL SECURITY DISABILITY (SSDI) BENEFITS.
The IRS will serve the Final Notice to Levy / Notice of Wage Garnishment in person, leave it at your home or usual place of business, or the IRS could send the Notice of IRS Wage Garnishment / Wage Levy to your last known address by certified or registered mail.
It is important to note that the IRS is only required to send the Final IRS Levy Notice (Final IRS Wage Garnishment Notice) to your last known address.
You do not need to actually have received the Notice for IRS Wage Garnishment / IRS Wage Levy for the IRS Levy to be effective.
An IRS Tax Lien is a legal filing on all of your property for the satisfaction of an IRS Tax Debt. The IRS will file a IRS Tax Lien in an attempt to collect back taxes owed. The best way to resolve your IRS Tax Lien is to resolve your tax debt as quickly as possible.
Avoiding a Tax Lien:
The Internal Revenue Code and the IRS’s own procedures, set forth in the Internal Revenue Manual, give properly informed taxpayers opportunities to prevent the filing of tax lien notices, but you must be pro-active and work with the IRS in an effective and timely manner. Failure to do so will inevitably result in the filing of lien notices in the public record, after which is it very difficult to get the lien removed.
The following information is not “etched in stone”, but, you can expect the IRS Tax Lien to be reported on Experian, Trans Union and Equifax after a full month has past since the filing of your IRS Tax Lien with your County Recorder’s Office.
Ideally, our DWK Tax Attorneys or IRS Enrolled Agents need to protect your assets before the IRS Records the Notice to Lien with your County Recorder.
IRS Tax Lien and Your Real Property:
Many questions about the impact of the federal tax lien involve real estate, and the reach of the lien often turns on the particular form in which ownership is held, especially where there is more than one owner.
Most encumbrances on or interests in a taxpayer’s property, if properly perfected prior to the date on which the federal tax lien arises, have priority over the lien. Notice of the lien must be filed before it has priority over most subsequently perfected interests in the taxpayer’s property. But once the notice is filed, the federal tax lien takes priority over all but a few subsequently arising interests in the taxpayer’s property. Remember, the lien itself does not transfer or convey the taxpayer’s property to the IRS. Such transfer of ownership is accomplished either through a judicial foreclosure of the lien, or through an administrative action such as a levy.
The IRS Collection Process:
If you do not pay IRS Tax debt in full when you file your Tax Returns, you will receive a Tax bill from the IRS. This bill begins the IRS collection process, which continues until your account is satisfied or until the IRS may no longer legally collect your Tax Debt, for example if the collection period has expired.
The IRS can potentially attach an IRS Tax Lien to all of your assets, including your home, your car, your Social Security number, and even your spouse’s assets whether or not they were involved.
Some of the actions the IRS may take to collect back taxes owed include:
The IRS will file Notice of Federal Tax Lien,
The IRS will serve a Notice of Levy (most likely IRS Wage Garnishment or IRS Bank Levy); or
The IRS will keep a refund to which you are entitled
DWK Tax Group’s Enrolled Agent prepared State or IRS Unfiled Tax Returns will usually reduce your State or IRS Back Tax Debt significantly by filing your missing tax returns. We will leave no stone unturned.
Perhaps the Taxpayer has relocated recently and documents are difficult to retrieve, DWK Tax Group will acquire the necessary transcripts to move forward. Are multiple states involved? Our communication skills are streamlined, to the point and unmatched by our competitors.
Do not allow your case file to drag on, clients often share treatment of other tax resolution companies they have retained in the past only to fall backward to square one because the unscrupulous, tax resolution company operator, needed more money. Imagine that.
If you wait for the IRS to find you, the cost of additional IRS Tax Penalties grows exponentially. If the IRS seeks you out before you have filed past-due returns, the likelihood of criminal prosecution escalates and the chance of a State or IRS Wage Levy / IRS Wage Garnishment becomes ever more likely.
The IRS estimates that approximately 10 million taxpayers fail to submit their income tax returns each year. A delinquent unfiled tax return is often more closely examined by the IRS. When filing a delinquent tax return it is important to move quickly and correctly, and to follow IRS guidelines for “voluntary compliance”.
The IRS will find you through Automated Collection Services (ACS, that’s the computer that will find you) and proceed to IRS Wage Levy / IRS Wage Garnish your pay check, or place a bank levy on your bank account and bring you to your knees financially. Do not let it get to this point. A proactive approach armed with a DWK Tax Attorney or IRS Enrolled Agent is the recommended tactic. Navigating the Internal Revenue Code is not for the uninformed Taxpayer.
If you have unfiled business or individual tax returns, and have not yet been discovered by the IRS, the time to act is now. Failure to act now, the IRS is almost certain to pay you a visit or worse, execute collection activity.
THE CONSEQUENCES FOR HAVING UNFILED TAX RETURNS:
Criminal penalties for willful failure to timely file tax returns or pay taxes are mentioned at 26 U.S.C. § 7203:
Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a income tax return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such income tax return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and , upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than 1 year, or both, together with the costs of prosecution.
Via the initial detailed tax analysis, DWK Tax Group can determine if you qualify for IRS Tax Relief Penalty Abatement Petition. DWK Tax Group will need to know what happened to you that caused this unfortunate tax problem situation to occur.
The IRS considers Reasonable Cause for Penalty Abatement:
• Ignorance of the Law (you must demonstrate you made a reasonable effort to learn the law though).
• Error or Mistake was Made, but you must still show “due diligence, ordinary business care and prudence” had been exercised.
• Forgetfulness, but you must still show “ordinary business care and prudence”.
• Serious Illness, Death, or Unavoidable Absence.
• Unable to Obtain Records.
• Incorrect Advice from a competent tax professional.
• Incorrect Advice directly from the IRS, written or oral.
• Fire, Casualty, Natural Disaster, Other Disturbance
DWK Tax Group will provide you with determined and diligent Tax Attorneys or IRS Enrolled Agents who have successfully handled countless Penalty Abatement cases, in turn, saving our clients massive amounts of money.
DWK Tax Group will not accept a case if we cannot save you money.
If your business owes IRS Payroll Tax it is at serious risk if you don’t handle this situation immediately and correctly.
It is DWK Tax Group’s belief that it is critical to have a DWK Tax Attorney / Tax Lawyer or an IRS Enrolled Agent represent you immediately. The longer that you wait, the more difficult the tax problem will be.
Both large and small business owners are sometimes in need of tangible IRS Tax Relief. Have all quarterly payroll returns been filed? YOU, are not Compliant if you have neglected to do so. Has an IRS Revenue Officer been to your home and/or place of business? The IRS takes Trust Fund violations very seriously.
The IRS has been heavily pursuing criminal 940/941 tax investigations in recent years. Criminal payroll tax investigations are up about 75 percent from the past.
Not only is your business at risk, you may be personally liable, as well.
According to the IRS, a responsible person is a person or group of people who have the duty to perform and the power to direct the collecting, accounting and paying of trust funds. This person may be:
– An officer or an employee of a corporation
– A member or employee of a partnership
– A corporate director or shareholder
– A member of a board of trustees of a nonprofit organization, or
– Another person with the authority and control to direct the disbursement of funds. If you could sign checks, you are a “Responsible Person”.
Once the IRS has determined the business cannot pay its past due payroll taxes (940 / 941 Tax), the IRS will then turn their sights on the individuals who they say are responsible for the 940 / 941 Payroll tax violations…look out!
Trust Fund Recovery Penalty:
IRC Section 6672(a): Any person required to collect, truthfully account for, and pay over any tax imposed by this title who wilfully fails to collect such a tax, or truthfully account for or pay over such tax, or wilfully attempts in any manner to evade any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for.
The type of business you operate determines what income tax you must pay and the method in which you are required to pay it:
Self – Employment Tax
If your business is considered a Partnership, a Form 1065 is due by the 4th month and 15 days or 10th month and 15 days including extension. Generally a Partnership is considered a “pass through” entity.
If your business is considered a Corporation or C Corp, a Form 1120 is due by the 3rd month and 15 days or 9th month and 15 days including extension .
If your business is considered an S Corporation, a Form 1120S is due by the 3rd month and 15 days or 9th month and 15 days including extension . Generally a Partnership is considered a “pass through” entity.
If you are self-employed, a Schedule C should be filed with your individual Form 1040 tax return filing.
An approved business tax return extension, is not an extension of time to pay the assessed back tax balance owed, it is an extension of additional “time” to file.
Often overlooked are the submission of “information” returns such as Form 1096, Annual Summary and Transmittal of Information Returns, which have employer filing deadlines as well
Negotiation of a State or IRS Installment Agreement (IA) has a plethora of variables to consider before settling on a sustainable monthly commitment.
Do you need more time to pay you State or IRS taxes owed? Once an IRS Tax Debt is demanded, the IRS will want the IRS Tax Debt to be paid in 10 days.
Taxpayers who do not have the ability to pay tax balances owed in full will usually travel down this path for a solution. Be careful, going it alone with this scenario is where a clear understanding of your state of circumstances needs to be identified. Most often, the IRS will dictate the terms of the IRS payment plan regardless of your ability to keep these arrangements.
The IRS has 10 years to collect outstanding tax liabilities. This is measured from the day an IRS tax liability has been assessed. A tax liability can be finalized in a umber of ways. It could be a balance due on an IRS tax return, an assessment from a tax audit, or a proposed assessment that has become final. From that day, the IRS has 10 years to collect the full amount, plus any IRS penalties and Interest
DWK Tax Group will not rule out any of your options.
Tell us “YOUR STORY”. Where, What, When and how it happened? The most important aspect of an Innocent Spouse Petition is bringing your story to the IRS in a compelling manner.
DWK Tax Group will be your most aggressive tax settlement advocate.
An individual will be relieved of liability for income tax (including interest, penalties and other amounts) for a tax year to the extent the tax liability is attributable to an understatement (understatement and tax deficiency are synonymous) described below:
• A joint return was filed. Relief is not available under §6015(b) or §6015(c).
• The requesting spouse applies for relief no later than two years after the date of the first collection action against her after July 22, 1998.
• The liability remains unpaid (except that a refund will be considered for payments made after July 22, 1998, and before April 15, 1999).
• No assets were transferred between the spouses as part of a fraudulent scheme.
• No disqualified assets were transferred to the requesting spouse by the non-requesting spouse.
• The requesting spouse did not file the return in question with fraudulent intent.
• Even if these threshold conditions are met, of course, it must still be shown that holding the requesting spouse liable would be “inequitable.”
The new IRS innocent spouse rules are a vast improvement over the situation prior to the enactment of the IRS Restructuring and Reform Act of 1998. The IRS, however, has taken every opportunity to interpret the new rules as narrowly as possible. This is especially true of the “equitable” tax relief provisions of §6015(f).
In the face of this administrative reluctance to allow innocent spousal tax relief the successful and timely assertion of an innocent spouse claim requires creativity, diligence, and a complete understanding of the Code and the IRS’s implementing pronouncements.
Tax preparation is the process of preparing tax returns to be filed with the IRS, state, or both, depending on which returns need to be filed. Most often, tax returns are filed with both and depend on which state an individual or business is located. Most tax preparation for both individuals and businesses is done by a professional tax preparer for a reasonable fee.
Tax preparation may also be done by a licensed professional such as an attorney, certified public accountant (CPA), enrolled agent (EA), or by an unlicensed tax preparation business. Due to the fact that income tax laws in the United States are considered to be considerably complicated, under most scenarios, many taxpayers should seek outside assistance with tax preparation.
In some states, licensing requirements exist for anyone who is involved with tax preparation for a fee – in many cases, this pertains simply to the individual state’s filing requirements.
It wasn’t until 2011 that the IRS mandated the requirement for national registration of paid tax return preparers in the United States. Therefore, effective January 1, 2011, new rules regarding tax preparation require the registration of almost all paid federal tax return preparers. These new tax preparation rules require that some paid preparers pass a national tax law exam and undergo continuing education requirements. Persons who are classified as certified public accountants (CPAs), enrolled agents (EAs) or attorneys are required to register but are not required to take the tax preparation exam and are not subject to continuing education requirements. CPAs and attorneys are licensed on a state-by-state basis, and are subject to state-mandated continuing education requirements to maintain their licenses.
For purposes of the registration requirement for certain tax preparation, the IRS defines a “tax return preparer” as “an individual who, for compensation, prepares all or substantially all of a federal tax return or claim for refund.”
All tax return preparers, including those involved in tax preparation that are attorneys, certified public accountants, or enrolled agents, are required to have a practitioner tax identification number (PTIN). This rule is effective for preparation of any federal tax returns after December 31, 2010.
Beginning in mid-2011, tax return preparers (other than CPAs, attorneys, and enrolled agents and a few others) have generally been required to take and pass a tax preparation competency test to officially become a registered tax return preparer.
When to File
Generally speaking, January 30, 2013 is the first date the IRS will accept and process tax returns for the 2013 tax season. April 15, 2013 is the due date for most taxpayers to file their 2012 income tax returns. It’s important to start your tax preparation early!
If you do not complete your tax preparation on time or file your return by the due date, you may be subject to a failure-to-file penalty and interest. To avoid penalties and interest, it is recommended that you file for an extension by April 15.
If you are due a refund, but you did not file a tax return, you must file within three years from the date the return was originally due to obtain that refund.
All of the above are tax preparation solutions that DWK Tax Group is more than happy to assist you with. In fact, we have an entire team strictly devoted to tax preparation as their core function. So, if you have found yourself in a hardship, have back tax returns that have gone unfiled, or an IRS collection action has been initiated against you, rest assured we are here to help. Call today for your free consultation!
Most business owners have way too much on their plates to run all facets of their business effectively, efficiently and cannot afford a full-time Accounting Department.
DWK Tax Group, Inc. can prevent the “quick mess” from happening to your business!
DWK Tax Group has staff that are Certified, Quickbooks Pro-advisor Bookkeepers and we specialize in setting up new businesses and offering a business financial restructuring to bring you and your company into the 21st century using Quickbooks Online (QBO) version. Let us keep you organized and maintain your bookkeeping on a WEEKLY basis to keep your company up to date and accurate.
I, Wendy Terino, have over 7 years work experience with Quickbooks that includes full charge bookkeeping and administrative work as Chief Financial Officer (CFO) and Managing Partner of DWK Tax Group Inc. I oversee and manage all DWK Tax Group’s staff of Bookkeepers.
• AP processing (matching, batching, coding)
• General ledger reconciliation
• Track invoices
• Payroll processing (either outside payroll or payroll through Quickbooks Online)
• Entering time sheet data
• Reconcile vendor statements
• Manage month end closing
• Creating and modifying journal entries
• Bank reconciliations for month end reports
We expertly handle direct deposits, W-2 filings, 1099 contractors, QuickBooks set-up, and quarterly & year-end financial reporting.