TAX BALANCE RESOLUTION
IRS REVENUE OFFICER/AGENT OR STATE TAXING AGENCY REPRESENTATIVE ASSIGNED TO YOUR CASE?
There are few things more frightening than an IRS agent knocking on the door of your home or business. Almost as bad is receiving a phone call from the IRS.
The IRS or a state may assign your case to a Revenue Officer if one of the following applies:
- The agency has been unable to collect the taxes through the normal channels (notices, levies, liens, telephone calls, etc.)
- You have a history of not filing taxes
- You have not paid certain types of taxes (e.g. payroll taxes)
- You owe a very large amount
If you are contacted by a revenue officer, you should immediately try to resolve your tax liability. Revenue Officers often have absolute collection authority and often attempt collection action (i.e. freezing a bank account or garnishing wages) quickly.
Dutton Legal Group has successfully resolved cases assigned to Revenue Officers and state taxing agency representatives many times. We are not intimidated and quickly act on your behalf to resolve the matter in your best interest.
ABOUT TAX BALANCE RESOLUTION
The IRS and state taxing agencies can take extreme collection action (i.e. freezing bank accounts and garnishing wages) if tax debts remain unpaid. We recommend you take action as soon as possible to resolve your back taxes to avoid these unpleasant and potentially economically crippling actions.
Dutton Legal Group’s FREE initial consultation allows us to carefully consider your individual circumstances and identify the most probable, effective and affordable tax resolution strategy. Tax balance resolution is not a one size fits all situation, it is a variable process, and each case is affected by its own unique circumstances. The attorneys at Dutton Legal Group understand the IRS and state tax systems very well and can create a customized tax relief strategy specific to your needs. The most important parts of any tax resolution are that the resolution is affordable to your monthly budget and that you are put in a position to avoid tax debt in the future. We make certain your resolution options include these ingredients.
Our approaches include:
Installment Agreements (i.e. payments over time)
In most situations, the IRS and state taxing agencies offer you the option to repay your back taxes by way of monthly payments over time. This option is a good one for many taxpayers, avoiding the need to come up with money to pay your entire tax balance all at once - particularly if you owe large sums of back taxes.
Dutton Legal Group has successfully negotiated repayment of tax debt (in full AND in part) over time for many of our clients.
Hardship/Currently Not Collectible Status
The IRS and some state taxing agencies understand (sometimes) when you just don’t presently have the ability to repay any of your old tax debt. The IRS calls your inability to pay back your tax debt “currently not collectible status.” The IRS does not seek any payment, for an extended period of time, from taxpayers in “currently not collectible status.” Some states also have a corresponding “hardship” status.
Dutton Legal Group has negotiated “currently not collectible status” with the IRS and “hardship” status with state taxing agencies for many of our clients, giving them the relief from IRS and state back tax repayment pressures plus a brighter economic future in the process.
Offers in Compromise
An offer in compromise is an agreement between a taxpayer and the Internal Revenue Service (IRS) or state that resolves the taxpayer's tax liability. The IRS and some states have the authority to settle, or compromise, tax liabilities by accepting less than full payment under certain circumstances which include your ability to pay the full taxes owed, or whether payment in full will result in an unusual economic hardship to the individual. It is one of the least accepted options and requires a certain degree of expertise to discern if this option is viable for you and to navigate the process. If the liabilities can be fully paid through a payment plan or other means, the taxpayer will in most cases not be eligible for an OIC. The IRS specifically has detailed information regarding the qualification for this program on their website. We do not recommend that you navigate this process alone, as it is already a limited acceptance program. Let Dutton Legal Group help you consider resolution strategies with the highest degree of acceptance and benefits to you based on your individual circumstances.
Dutton Legal Group has successfully negotiated IRS and state Offers in Compromise, allowing taxpayers to pay a fraction of the tax debt they owed and achieve closure to their tax problems.
Wage Garnishment Relief
The IRS and state taxing agencies have the capacity to seize assets like your personal paycheck through wage garnishment or levy. Through this process, money is deducted from your paycheck as installments towards the taxes you owe. If you already owe back taxes, the act of wage garnishment can put you further in financial tension, aside from its unfortunate emotional effects on you. Dutton Legal Group can act quickly to prevent or stop this activity through a variety of options that may be available in your circumstances.
Dutton Legal Group has successfully avoided and stopped IRS and state wage garnishments, allowing our clients to resolve their tax problems much more on their own terms.
Bank Levy Releases
The IRS and state taxing agencies are legally empowered to take money from your bank account in order to satisfy tax debts owed. This can have a crippling effect on you, especially since your accounts can be frozen for many days, causing checks to “bounce” and stopping your ability to pay other obligations. Once a bank account is levied, the agency will be able to deduct any funds necessary for covering the back taxes, penalties, and interest that you owe. Money seized through this method is very difficult to recover. We recommend that you act promptly if you receive a notice that the IRS or your state taxing agency intends to levy you.
Dutton Legal Group has successfully avoided and released IRS and state bank levies, allowing our clients to resolve their tax problems much more on their terms.
The IRS and some state taxing agencies allow for abatement (removal) of the penalties they have imposed for the late filing or payment of taxes and inaccuracies associated with filed tax returns. Things happen. And when you have a good excuse as to why tax returns were not timely filed/paid, or prepared correctly, there are occasions where you can eliminate 100% of the associated penalty. When the IRS and state taxing agencies agree to abate penalties, the interest corresponding to the penalties is also abated.
Dutton Legal Group has received full and partial abatements of penalties (and associated interest) for our clients, reducing the amount necessary to bring their IRS and state taxing agency obligations to $0.00.
Innocent Spouse Relief
If your spouse (or former spouse) improperly reported or omitted items on your jointly-filed tax return, IRS/state taxing agency Innocent Spouse Relief can relieve you of responsibility for paying this tax, interest, and penalties. Generally, the tax, interest, and penalties that qualify for relief can only be collected from your spouse (or former spouse). However, you are jointly and individually responsible for any tax, interest, and penalties that do not qualify for relief. The agency can collect these amounts from either you or your spouse (or former spouse). You must meet several conditions to be eligible for this resolution option.
Dutton Legal Group has successfully requested Innocent Spouse Relief with both the IRS and state taxing agencies, removing our clients’ obligation to pay tax, interest, and penalties for which their spouses/ex-spouses should have been responsible