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Tax Debt Faqs
1. Can you help me stop a wage levy or bank levy right away?
Yes. We'll need to contact the IRS immediately. Often, these
tax levies can be released within a day so that you can
receive your wages or access your bank account right away.
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2. I have a tax lien on my record, can this be removed? Yes,
either by submitting an offer in compromise, negotiating
structured payment of debt, or by requesting a discharge of
lien, your tax liens can be released.
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3. I haven't filed taxes in many years, what can I do? For
one reason or another, many Americans do not file their tax
returns. Some of our clients haven't filed their returns for
over ten years before coming to us. Regardless of your
reason for not filing, it is very important to review your
case with a qualified attorney before any further action is
taken. By reviewing your case, an attorney may be able to
greatly reduce taxes and penalties which you would otherwise
owe by coordinating the timing of your tax return filing.
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4. I filed my returns but I can't afford to pay my taxes,
what are my options? There are many options for those with
tax debts who cannot afford to pay. Offer in compromise,
innocent spouse and installment payments are some of the
options available to manage your tax debt. In some cases,
attorneys can negotiate with the IRS to stop all collection
activity against you and not pursue you at all for the taxes
outstanding. In addition, by reviewing your case, penalties,
interest and even some of the taxes may be reduced.
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5. Can taxes be discharged in bankruptcy? Most people don't
know that certain taxes can be eliminated through the
bankruptcy process. In fact, most bankruptcy attorneys or
even tax attorneys do not know that certain taxes may be
eliminated through the bankruptcy court. To properly handle
tax matters in the Bankruptcy Court, you need an experienced
attorney that has been trained and understands the
complexities involved in handling tax matters through the
Bankruptcy Court. Keep in mind that only a lawyer can give
you legal advice and discharge taxes in bankruptcy for you.
Because of the complexities, no other professionals,
including CPA, or EA are permitted to handle tax bankruptcy
cases.
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6. I filed bankruptcy already, can I file again? Yes.
Depending on what chapter you filed. If you filed Chapter 7
Bankruptcy, you can file Chapter 13 Bankruptcy after you
receive your discharge. If it has been more than 6 years
since you received your last discharge, you can file another
bankruptcy now.
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7. Will I go to jail for not paying or filing my taxes? It
is a federal crime not to file tax returns for tax periods
in which taxes were due, in most cases. In most cases, IRS
will initiate criminal actions against you only if
additional factors warrant such criminal tax prosecution.
The most important step is to make proper arrangements
through an experienced tax attorney and get into compliance
with the IRS before they decide to come after you.
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8. IRS has rejected my Offer in Compromise several times;
what is wrong? Many taxpayers get their Offer in Compromise
rejected or not even considered by the IRS simply because
they received poor representation. There are many
non-lawyers who advertise as tax resolution companies
offering "pennies on the dollar" settlement. These non
lawyers give taxpayers bad advice and cost them a lot of
money. Make sure that you hire a competent tax lawyer. No
one else can give you the proper legal advice to fully solve
your tax problems.
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9. I own a house, can I still do an offer in compromise?
Yes. Ownership of any assets does not prevent you from
receiving a good settlement of your taxes with the IRS. The
government does focus on the equity in your assets as one of
the factors in determining the acceptance of your offer.
However, IRS may consider different valuation methods in
calculating value of your particular asset.
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10. Do I need to see a tax attorney for my tax problems?
Only conversations with attorneys are absolutely protected
by the rules of confidentiality to prevent the IRS from
prying or forcibly obtaining sensitive information to be
later used against the taxpayer. Everything you say to a
CPA, EA or anyone else concerning your tax problem can be
used against you if the IRS decides that your case warrants
criminal prosecution. In fact, the IRS can investigate and
force your CPA, EA or anyone else, other than a lawyer, to
testify against you for your indictment. Always insist that
you speak with a lawyer only.
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11. How long can the IRS come after me for my taxes? There
are many factors which will determine how long the IRS can
chase you to collect taxes. Generally, IRS has 10 years from
the date of tax assessment to collect their taxes. However,
there are several tolling factors which could extend the 10
years to collect.
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12. I have been receiving certified mail from the IRS. What
should I do? In most circumstances, IRS sends you certified
mails to levy bank accounts, levy wages and to file tax
liens against you. The green certified mail slip on the
envelope usually indicates that you must act immediately or
you may be harmed by the government's tax collection
activity.
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13. My employer sent me a copy of a letter they received
from the IRS to levy my wages. What does this mean? Unless
you take immediate action, you will lose your wages.
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14. I think I am being investigated by the IRS. What should
I do? Any involvement in a criminal investigation is
extremely stressful and potentially dangerous to any
taxpayer. If you have been contacted by criminal
investigation division or believe that you may be involved
in some type of investigation by the IRS, contact a lawyer
immediately so that we can make a determination whether you
are a target of criminal investigation.
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