Payroll Tax Debt Relief

The IRS requires employers to deduct a part of employees' wages as payroll taxes and contribute an equal amount. Failing to remit all the withheld money within the given deadline can land you and your company's finance department in trouble.  In most cases, the IRS will impose accruing penalties and tax lien. If declared guilty, the party liable for failing to remit collected amounts may also serve jail time or pay hefty fines.  It is crucial to clear the payroll tax you owe to avoid such issues. Here, we discuss how you can use various relief programs to repay the IRS and prevent business closure.

Dealing With Payroll Tax Debt

Once the IRS realizes that your business owes payroll taxes, they will assign your case to a revenue officer. This expert will then contact you by sending a notice requesting compliance with tax filing. In the document, they will indicate the reason for reaching out and the amount that you owe. They will also state the fines imposed and the likely consequences of failing to repay.  When you receive such a communication, it is essential to ensure that the details indicated are correct. Confirm that the amount due is the right one by comparing the document against your tax forms. After that, respond to the revenue officer to acknowledge receipt of the notice. This measure will indicate cooperation and the willingness to clear your debt. If you cannot repay the amount due in full, contact a tax resolution expert to help you set up a payroll debt relief plan.

Negotiating Payroll Tax Debt Relief With the IRS

The IRS allows employers and business owners to negotiate payroll tax debt. In most cases, the agreed repayment method differs depending on the nature of the liability. It may also vary based on the party liable for not remitting the taxes. One relief option the IRS provides is an installment payment agreement. This mainly involves clearing the total amount owed, including penalties, within a given period.  During this time, the IRS will still impose penalties on due taxes and any late payment. You must file all taxes for previous years and pay a processing fee to qualify for installment agreements. Besides, you should pick an appropriate plan depending on the amount owed and your ability to pay. Some of the options to consider are streamlined installment agreement and in-business trust fund. If your business is still running, the IRS will only allow you to repay using an in-business trust fund. With this program, you can clear debts equal to or less than $25,000. Still, you must repay the total amount within 24 months or the provided collection statute expiration date (CSED). On the other hand, if the IRS closed down your business due to debt, you can enter a streamlined installment agreement. This program will help you clear debt equal to or less than $25,000 within six years. Once your business qualifies for this plan, the IRS will not file a tax lien.

Benefits of Hiring an Expert for Payroll Tax Debt Resolution

When owing the IRS, it is crucial to consult a tax attorney before seeking debt relief. This can help you determine the best way to resolve the issue while considering your company's goal. They will also guide you in selecting a relief program that will not lead to significant financial straining. Another benefit of consulting an expert is they can identify when your business is at risk of closure. This way, you can take precautions to avoid it and negotiate for favorable repayment terms.

Contact Tax Industry for Debt Relief

Working with a tax resolution expert allows your company to avoid the consequences of payroll tax debt. At Tax Industry, we have a team of experienced lawyers and CPAs to help you deal with the IRS. With their skills, you can negotiate for installment payments to prevent business closure and lawsuits. Contact us today to enroll for payroll tax debt relief.

Everything You Need to Know About the IRS One Time Forgiveness Program

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When you owe the Internal Revenue Service (IRS), you may wonder whether there is a way to avoid accumulating penalties and fines. Besides that, you may want to invest but fear that your tax lien will damage your financial credibility. Luckily, the IRS offers a One Time Forgiveness program to help people deal with tax liability. Using this initiative, you can evade the negative consequences of owing taxes. You may also get enough time to organize your finances and repay the debt without causing significant financial problems. Read on to discover several things you need to know about the One Time Forgiveness program. We will also explain how you can determine the most suitable tax relief program based on your needs and financial status.

How Many Options Does the One Time Forgiveness Program Have?

The IRS offers several options under the One Time Forgiveness program. These include Innocent Spouse Relief, Installment Agreements, and Currently Not Collectible. Innocent Spouse Relief allows you to avoid paying penalties, taxes, and interests if your current or former spouse provided wrong information when filing taxes. For instance, if they did not disclose some of their income sources, which led to a penalty, you may apply for relief. This initiative is applicable if the IRS can only collect the amount due from the spouse. Besides that, you can only qualify if:
  • The penalties are from self-employment taxes
  • You can prove you did not know about the inaccuracy
  • You and your spouse have not transferred money in a fraudulent scheme
Sometimes, your financial situation may make it very challenging to pay the taxes you owe. In such a case, you may apply for a Currently Not Collectible status. In case you qualify, the IRS will stop penalizing your debt and refrain from collection activities. An Installment Agreement is a tax forgiveness program that allows you to repay your debts with a schedule. If you cannot remit the entire amount due to various issues and owe a debt of less than $50,000, you may benefit from the initiative.

Offer in Compromise (OIC) Tax Relief Option

OIC is a One Time Forgiveness relief program that is rarely offered compared to the other options. This initiative is an ideal choice if you can afford to repay some of your debt in a lump sum. Once you qualify, the IRS will forgive a significant portion of the total taxes and penalties due. They will then provide a payment schedule allowing you to clear the remaining amount in installments. The payment period is usually a maximum of 72 months, whereby the IRS will require you to remit a specific figure without fail or delay for the entire period.

How Does One Time Forgiveness Work?

The One Time Forgiveness program you qualify for will mainly depend on your financial situation. However, determining the most suitable option may be challenging without professional help. It is advisable to consult with a tax resolution expert before applying for any relief program. By taking this step, you enhance the chances of qualifying and ensure you provide the IRS with correct information. Once you apply for One Time Forgiveness, the IRS will assess your situation and evaluate eligibility. If they accept the application, they will provide a detailed repayment schedule. Depending on the program you chose, you may send the amended debt in installments or lump sum. The IRS will also require you to remit all your taxes within the stipulated time moving forward. Other than that, they may perform periodic assessments on your financial status as needed.

Contact Tax Industry to Apply for Debt Relief

Each option in the One Time Forgiveness program has several qualifications you must meet to be eligible. Unfortunately, gathering all the details you need to apply for this initiative may be frustrating if you do not have extensive knowledge about taxation. At Tax Industry, we offer professional tax resolution services to help you deal with debt. Our experts can assess your situation to help you apply for the most suitable One Time Forgiveness option. Reach out to us today for reliable tax debt relief services.

Top 5 Best IRS Tax Relief Programs You Need to Know About for 2021

Have you finished preparing your tax returns and found that you still owe some taxes that you didn’t know about? No need to panic.

It isn’t uncommon to find that you have some outstanding taxes when you prepare your tax returns. Luckily, the IRS offers several tax relief options to assist taxpayers to meet their obligations in a way that doesn’t cripple their financial health. Instead of ignoring your tax bill, take advantage of these legal tax relief programs to gain some reprieve and pay with a plan that suits your financial ability. 

Installment Agreements

Installment Agreements are the most common tax relief method for taxpayers who cannot clear their debt in full. It is available to taxpayers whose total tax liability (tax, interest and penalty) does not exceed $50,000. 

The IRS can allow you to repay the outstanding taxes in small installments for a maximum of 72 months. Note, however, that any interests and penalties will continue to accumulate on the outstanding debt, therefore you should try to shorten the repayment period

Innocent Spouse Relief

Through Innocent Spouse Relief, the IRS allows innocent spouses to avoid tax, interest and penalties that arise from a current or former spouse’s tax delinquency (underreporting, fraud, or nonpayment). 

Innocent Spouse Relief can only be requested when filing individual or self-employment tax returns. However, there are tax liabilities that are ineligible for cancellation under this program, such as business taxes, trust fund recovery penalties, Individual Shared Responsibility payments, and Household Employment taxes.

Offer in Compromise (OIC)

The Offer in Compromise is a tax relief option where a taxpayer pays less than the amount that they owe. Usually, the IRS will accept an Offer In Compromise when they assess the applicant’s tax liability and their present and future (potential) income earning capacity.  

To qualify for OIC, you should make the application to the IRS explaining their circumstances and give them your best offer to settle the debt. The IRS only accepts about 25 of all applications, which is why it is critical to use a qualified tax relief professional when making your application. 

If you succeed, you should pay your offer amount in five instalments or less. You may be able to appeal the decision if your OIC application is rejected. 

Advance Child Tax Credit (ACTC)

This is a tax relief program that the IRS offers to families. Many families will receive Advance Child Tax Credit payments up to 50 percent of the estimated ACTC amount (according to their 2019/2020 tax returns). 

Once the IRS processes your 2020 returns, you will receive 50 percent of this credit and from July to December 2021. The remaining half will be paid once your file your 2021 returns. You can learn more about this tax relief program by clicking here.

ACTC payments from the IRS will be paid by direct deposits to make the money easily accessible to the beneficiaries. You should ensure that you provide your correct banking information. Otherwise, the IRS will send checks in the mail beginning July 15 and every 15th of the month after that. 

The Coronavirus Economic Impact Payments

The IRS is also sending out the third round of Economic Impact Payment to the eligible individuals. Some people have already received their payments, but if you haven’t, it doesn’t mean you won’t get it. 

Additionally, the IRS is offering a 2020 Recovery Rebate Credit for those who didn’t get their first or second Economic Impact Payment or those who got less than the full amount. Those who are eligible to receive the payment but don’t usually fill tax returns can use the Non-Filer Sign-Up tool to register. 

Get Help for All Your Tax Concerns

Do you need help filing your 2020 tax returns? Contact our professionals at Finishline Tax Solutions for tailored solutions according to your needs. 

Have an outstanding tax liability? Contact us and let’s help to determine the tax relief program that works best for your needs. 

Finding the Best Tax Debt Relief Solution

When you find yourself owing back taxes, you may be at a loss for how to proceed. Unfortunately, many taxpayers don’t know the tax relief options open to them until they face various tax debts as a result of IRS audits, fines, penalties, levies, or liens, as well as unpaid payroll taxes and IRS wage garnishment.

Regardless of your tax challenge, there are five primary methods to get tax relief when you owe back taxes. You may be able to take advantage of just one or two of these solutions according to your specific circumstances.  

#1 Offer in Compromise (OIC)

An Offer in Compromise is an agreement between the IRS and a taxpayer where the latter pays less than the outstanding taxes they owe. The IRS does not accept all applications for Offers in Compromise - the current success rate is only 25 percent. Still, if OIC is ideal for you, we can help you to settle the debt once and for all to avoid further accrual of penalties and interest on the tax debt.

#2 Penalty Abatement

You can apply for penalty abatement when the IRS tacks an automatic penalty onto your outstanding taxes without considering your situation/reason for nonpayment. A tax relief professional can help you to file ‘reasonable cause’, which is written proof explaining the reason for nonpayment. If successful, you will get the penalties removed (or refunded if paid) and have more time to pay your outstanding taxes.

#3 Installment Agreement

Installment agreements get the best reception from the IRS since the taxpayer undertakes to pay the debt in full. You can choose to pay your outstanding taxes in manageable instalments over some time if you cannot afford to pay at once. You can also seek an extension on an existing installment agreement should your financial situation deteriorate.

However, note that you must apply and meet the requirements before IRS approves your installment agreement. Further, penalties and interest will continue to accrue on the outstanding amount until you have paid in full. 

#4 Currently Non-Collectible (CNC)

If you cannot pay your back taxes because your financial situation has deteriorated (e.g. if you lost your job), you can apply for a Currently Non Collectible status. CNC applications can be approved if you show that your total income is less than the allowable living expenses according to federal standards

If your application is approved, the IRS will grant you a reprieve from usual recovery and collection tactics. After 1-2 years, they will reassess your financial situation to determine whether you can resume payments. Also, you are required to notify the IRS if your financial situation improves. Note that penalties and interest continue to accrue while your account is in CNC status.

#5 Tax Audit Appeal

You can contest a tax audit if you feel that the IRS-recommended audit is inappropriate or incorrect. Disputed IRS audits are often settled when you initiate an appeal. Take advantage of the fact that the IRS prefers to resolve such issues because it is expensive, and they lose time and risk judgement against them. You need a tax professional who is familiar with the audit process to negotiate on your behalf.

#6 Innocent Spouse Relief

One spouse can apply for relief from tax liability or penalties for taxes filed jointly. However, you must prove that you were unaware of the understated income or taxes when you signed the tax return. A professional can help you to assess whether this avenue is right for you.

Conclusion

Regardless of the tax relief solution you choose, it is critical to use a reputable and experienced tax relief company. Check their reviews on independent review sites like the Better Business Bureau or get referrals from trusted people in your networks.

The most important thing to remember is that you’re looking for a solution that minimizes or reduces the penalties and interests on outstanding taxes to the barest minimum. That’s what a tax professional can help you to assess according to your particular circumstances.

4 Ways to Get Tax Debt Relief

A 2016 CNBC Small Business Survey showed that 22 percent of small businesses cannot work out the effective tax rate they should pay. It’s not hard to see why; corporate taxation is complicated at best, and many small business owners find themselves lagging behind on payments. To make things worse, these non-payments accrue interests and penalties that can quickly get out of hand. If your business owes the IRS back taxes, it may be necessary to get professional help with your tax debt. There are several options at your disposal, and tax debt professionals can determine how best to proceed given your personal and business circumstances. These are the four options to pursue:


1. Get an IRS Payment Plan


The IRS has provisions for businesses that need more time to settle their tax debts. However, it is important to note that effecting any payment plan doesn’t exempt you from any interest or penalties; they will accumulate for the outstanding amount. Tax debt advisors can help you create a regular repayment schedule while minimizing the impact of interests and penalties. With this option, note that any tax debt above $25,000 must be paid through automated withdrawals from a checking account. There are additional fees should you choose to pay using credit or debit cards, usually 2 percent of the installment amount or $2-$4.


2. Apply for Offers in Compromise


Offers in Compromise are open for those that cannot settle their tax liability without triggering serious financial distress for self and/or business. For this option, after you make an application, the IRS investigates your incomes, expenses, and net assets to determine your ability to pay. Should the IRS accept your offer, an initial payment of at least 20 percent of the amount you have offered becomes due. As a caution, note that your personal data can enter the public domain, e.g. name, city and state, outstanding amount, and terms of your offer. These may be entered into the IRS public inspection files. Over 50 percent of applications of Offers in Compromise are rejected, even when they show that they have lower income or higher expenses. It is recommended that you exhaust other available options before applying for the IRS offer in compromise.In the fields of Business Analysis, Research, and Management Consulting, our Calgary Business plan writers are specialists in their respective fields.


3. Seek “Currently Not Collectible” Status


When you are unable to both pay your outstanding tax debts and essential living expenses, you can ask the IRS to place your account under “Currently Not Collectible” standing. When you apply for a delay in collection, you will often submit a Collection Information Statement form to verify that you have inadequate funds to settle your tax liability. In this form, you must give accurate information on your income and expenses. Even if you succeed, your “Currently Not Collectible” standing is temporary, and it does not wipe off your outstanding debt. The IRS may enter a tax lien against you even with this status. They will also review your account annually to check whether your financial status has changed. However, acquiring the “Currently Not Collectible” status can buy you some time to sort out your financial health.


4. Seek Help from Tax Relief Specialists


Regardless of the method you choose to settle your outstanding debt, getting the help of tax debt specialists or a tax relief company can ease the process of getting tax debt relief. These advisors can study the business’s and your expenses and recommend the best avenue to pursue from the above options. They can also help you to fill the right forms and avoid any errors that ruin your chance of getting a favorable outcome. Before working with any tax professional, ensure you understand how they will help and what they charge. Many taxpayers may not qualify for the tax relief programs advertised by these companies, but they find out this too late – after paying their hard-earned cash.


Conclusion


Having an outstanding tax debt can be a huge burden for individuals and small business owners. But with the proper assistance, it is possible to get your finances and taxes back in shape. Contact Tax Professionals at FinishLine Tax Solutions Today to find out if you qualify for IRS Tax Relief Program.

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Benefits of Hiring a Tax Debt Relief Company

Let’s admit it-taxes are complex. An average person without a sound background in finance will struggle to decipher tax jargon. Every year, several taxpayers get on the wrong side of the IRS due to their lack of knowledge about tax codes. 

Whether you are a business or an individual taxpayer who has fallen behind on their taxes, it makes sense to get tax debt help. A tax debt relief professional will look at your specific tax debt situation and determine the best solution to help you pay off your debt without straining your finances. Your tax debt relief company will negotiate with the IRS on your behalf.

Here are some ways in which a tax debt relief company can help you.  

Protecting Assets and Income 

The IRS comes down hard on people who do not file their taxes regularly. It has various tools, including wage garnishment and asset seizures, to recover tax debt at its disposal. If you have fallen behind on your taxes, your tax debt relief company will help you identify options to prevent wage garnishment or asset seizure. 

Helping You Navigate the Tax and Regulatory Framework 

Tax laws are complicated. An average taxpayer cannot make heads or tails of these laws. Your tax debt relief professional will help you avoid legalese. The expert will use simple and clear language when explaining your payment options to ensure there is no room for confusion. 

Representation 

The IRS usually does not take individuals acting on their own seriously. To effectively negotiate with the IRS, you need to have some clout and knowledge in your corner. A tax relief professional specializing in IRS representation will come up with a plan to protect your assets and negotiate the best solution with the IRS. 

 Preventing Tax Liens and Levies  

Your tax debt relief expert will help you understand the difference between a tax lien and a tax levy. The professional will take a close look at the facts and circumstances of your case. Once the expert develops a detailed understanding of your case, they will choose the best option to prevent tax liens. 

Support You Throughout the IRS Process 

IRS processes are a complex maze of rules and procedures. A licensed and experienced tax professional knows how the IRS works. Your tax debt relief professional will use their knowledge to manage your case from start to finish effectively. They will support you every step of the way and use their negotiation skills to get the best possible deal. 

FinishLine Tax Solutions offers top-notch tax debt services. Whatever your situation, our team will help you identify the best payment solution to fit your unique needs. To schedule an appointment, call 855-950-2720.