What happens when the IRS says you owe money they are wrong.

28 Oct

We recently had a client who the IRS had filed both a tax lien and a judgement against for $24,000. He expressed his concern with the tax lien and the liability that he said was untrue. We worked on this case diligently defending the clients stance and within 60 days had the IRS agree the client owes $0 and tax lien was improper in use. Below is the testimonial from that client.

Testimonial Received 10/28

“I had recieved a letter from the irs saying I owed 24,000 so I called first class tax relief to investigate it to find out why I owed it and they found out that the irs had made a mistake and I owed $0.. Now Im free and clear of the 24,000 thanks first class tax relief.”

OWED $24,000.00 PAID $0.00 SAVINGS $24,000.00

Sean P. – Buckley, Washington

First Class Tax Relief Is Offering a FREE Tax Consultation with the IRS for Former Clients of JK Harris

18 Oct

With the news last week that JK Harris filed for bankruptcy many taxpayers are actively seeking a knowledgeable and reputable tax resoulution firm.

First Class Tax Relief will offer a free IRS consultation to current and past client of JK Harris and Company.

Many times the tax situation will only become worse over time which increases a taxpayers odds of getting garnished, levied or having an Revenue Officer assigned to their case. The IRS will non stop collections or seizing assets eventhough taxpayers may have been a client of JK Harris.

The staff of First Class Tax Relief are ex-IRS agents, CPAs and Enrolled Agents with more than 20+ Years of Direct Expereince working with the IRS.

Do not wait for the IRS or state to start collecting on your behalf.

Call 877-865-4561 to speak with a consultant and get your FREE IRS Consultation.

Tax Resolution Testimonial

22 Sep

The nature of helping clients with tax problems is that the IRS or state is highly aggressive with collection efforts and at times
relentless in their approach when collecting. One important key to have when trying to fight the IRS or state with tax resolution
is finding someone to help. First Class Tax Relief has always maintained to treat people fairly and help to the best of our abilities when
handling a clients problems. Below is the recent testimonial from a client who the IRS was aggressive collection upon although mistakes
were made which were the IRS fault.

We started to work on Mr. Duffey’s behalf on 7/12/2011 at that time the IRS claimed he owed 17,000 and the IRS wanted payment in full. They
has also placed a federal tax lien on the client which was effecting his credit report.
We completed the case on 9/12/2011 the client paid back less than half of the amount the IRS claimed he owes and the lien was discharged because
the client paid the settled amount in full.

Hello Mr. Jim Reed,

I felt compelled to take the time and thank you for your courtesy,
patience, professionalism and always following up with me on your every
step as you fight on my behalf while resolving my tax debt/s with the
IRS; You are truly an asset to your department and the peoples champion
when tax issues seems impossible to bar are even think about, you have
always displayed confidence and assured me that you can and will
champion me with the Internal Revenue Service.

You have reduced my debt to less than one-half of its worth and I am
proud to say, with honor that I am debt free of the IRS and feel like a
productive citizen once more with and hold my head up high.

Thanks to you and your hard work which you’ve handled effortless and
charismatic!

You Rock!!!

Very respectfully,

Ronald D.
Client #10052
Texas

If you are in need of Tax Help or Tax Resolution Please give us a call today at 1-877-865-4561.

What is a Federal Tax Lien?

3 Sep

Over 20,000 a week wake up to find that there has been a federal or state tax lien filed against them. A federal or state tax lien is by definition is as follows:

Internal Revenue Code section 6321 provides:

Sec. 6321. LIEN FOR TAXES.

If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, belong to such person.

Internal Revenue Code section 6322 provides:

Sec. 6322. PERIOD OF TAX LIEN.

Unless another date is specifically fixed by law, the lien imposed by section 6321 shall arise at the time the assessment is made and shall continue until the liability for the amount so assessed (or a judgment against the taxpayer arising out of such liability) is satisfied or becomes unenforceable by reason of lapse of time.

Why was a tax lien filed?

A tax lien  is filed after the IRS or state have assessed a tax liability on a tax payer. Generally, the “tax payer or person liable for the tax” described in section 6321 must pay the tax within ten days of the written notice to pay the debt in full. If the tax payer fails to pay this debt within the 10 day period then generally the IRS or state issue a tax lien that is filed within the county clerks office in which the taxpayer resides.

Why is it filed in the county clerks office and is this public?

The reason the IRS or state will file this in the county clerks office is to to create a priority right against persons other than the taxpayer (such as competing creditors), the government generally must file the Federal Tax Lien in the records of the county or state where the property is located. Once this has been filed the public notice is given to other creditors to show the IRS or state has a claim again all property owned by the tax payer. The tax lien is a public record that can be found and sought by anyone and at this point it is on your credit report which affects your credit rating.

What happens after the lien is filed?

The Federal or State Tax Lien is the government’s statutory right to any assets or property to secure the payment of this tax.A Federal or Tax Lien applies to all property and rights to property of the taxpayer. Unlike the “intent to levy” which has restrictions. Once a tax lien has been imposed on you the IRS or state has 100% authority to garnish your wages, levy bank account, asset seizures and recover funds by any means possible.

How can I remove a federal tax lien?

A tax lien will remain until the debt has been satisfied.  An offer in compromise or payment plan does not affect a lien has been paid in full.

In order to have the record of lien released a taxpayer must obtain a Certificate of Release of Federal Tax Lien. Usually, the IRS will not issue the certificate of lien until the tax has been paid off or the IRS has no legal interest in collecting the tax. The IRS will generally remove the lien within 30 days and the taxpayer can receive a copy of the Certificate of Release of the Federal Tax Lien.

What to do if you have a federal or state tax lien?

First Class Tax Relief representatives have been helping people with tax liens for over 25 years. We are skilled in being able to contact the IRS or state quickly ensuring that no unforeseen liens, levies or garnishments take place. Once we are able to protect your assets we will get you on a resolutions plan that will be within your ability to pay and will not create a financial hardship on a tax payer.

Do not let the IRS or state seize your wages, bank account or property. First Class Tax Relief Can Help you Today.

Call us Today at 1-877-865-4561 and let one of our Tax Consultants analyze your tax situation and help you get tax resolution.

 

The joys of helping tax payers resolve their tax issues.

4 Aug

Well,

Its that time of year for taxpayers again. The letter from the IRS are starting to come in the mailbox, maybe in the HR department maybe an unkind knock at the door.

The IRS collections heat up like Texas in the summer time these days..

For people with unfiled taxes and unpaid debts the IRS starts the grind of bank levies, wage garnishments and of course tax liens.

These collection attempts usually wake up the tax payer but if not the friendly knock of a revenue officer will surely be a reminder of a debt long forgotten..

 

These are the dog days of summer they say, but these are also the IRS favorite time to collect.

 

If you have a serious tax situation such as unfiled taxes, tax liabilities, garnishments and levies call us today for a free consultation (877) 865-4561

IRS Collection Letters Explained

28 Jul

7/28/2011 (Houston,Tx)

So you have recieved a notice from the IRS? You are probably wondering why you got this letter, what it means or what is going to happen because of the situation that you are in.
I am going to explain to you what most IRS letters mean and the reason that they are sent.

CP14 – BalanceDue
This is normally the first collection letter that you will recieve. Normally, the IRS will send you this notice if you have a balance that is owed from a tax return. This bill will normally include the amount you owe minus what you have paid and any penalties and interest that have been added as well.

CP501-Balance Due (1st Reminder)
This will be the first reminder that the IRS sends to you expressing that you have an upaid balance. This will be similar to the CP14.

CP503 – Balance Due(2nd Reminder)
This is the 2nd notice that the IRS will send to you on an oustand balance owed to the IRS. It will look similar to the CP501 and is usually send 30days from the notice of the CP501.

CP504 – Balance Due (Last Warning)
This notice is telling you that the IRS plans to issue a levy against you still have a balance due on one of your tax accounts. This also lets you know that they will be searching for assets that you have in your name and may file a Tax Lien to secure the debt. This will also give you the notice of the right to a hearing before the IRS Office of Appeals. If they dont recieve communication they they may seize (“levy”) any of the following: Wages, real estate commissions, and other income.Bank accounts,Business assets,Personal assets (including your car and home)and Social Security benefits.

CP90/CP297 – Final Notice of Intent to Levy and Notice of Right to Hearing
This notice is telling you that the IRS intends to issue a levy against any federal payments due you, such as contractor/vendor payments, OPM retirement benefits, SSA benefits, salary, or employee travel advances or reimbursements because you still have a balance due on your tax account. Property, or rights to property, such as real estate, automobiles, business assets, bank accounts, wages, commissions, and other income are also subject to levy. It is also telling you that they may also file a Federal Tax Lien, if they have not do son.
If you do not agree with the proposed action, you have the right to file an Appeals Collection Due Process (CDP) hearing request. Your request for a CDP hearing must be filed within 30 days of this notice for full CDP rights.

CP523 Defaulted IRS Installment Arrangment
This notice is telling you that the IRS intends to terminate your installment agreement and seize (levy) your wages and/or bank accounts if you take no action. The notice tells you why the IRS plans to do this as well.
So if you have any gotten any of the above letters the time to act is Now. Do not let your self continue to wait to get more of these letters and put youself in a worse situaiton.

Call us Today at (877) 865 4561 for a Free Consultation so that we can help you or visit us at

http://www.firstclasstaxrelief.com

IRS announces that it will extend help to more innocent spouses.

26 Jul

Two-Year Limit No Longer Applies to Many Innocent Spouse Requests

IR-2011-80, July 25, 2011

WASHINGTON — The Internal Revenue Service today announced that it will extend help to more innocent spouses by eliminating the two-year time limit that now applies to certain relief requests.

“In recent months, it became clear to me that we need to make significant changes involving innocent spouse relief,” said IRS Commissioner Doug Shulman. “This change is a dramatic step to improve our process to make it fairer for an important group of taxpayers. We know these are difficult situations for people to face, and today’s change will help innocent spouses victimized in the past, present and the future.”

The IRS launched a thorough review of the equitable relief provisions of the innocent spouse program earlier this year. Policy and program changes with respect to that review will become fully operational in the fall and additional guidance will be forthcoming. However, with respect to expanding the availability of equitable relief:

The IRS will no longer apply the two-year limit to new equitable relief requests or requests currently being considered by the agency.
A taxpayer whose equitable relief request was previously denied solely due to the two-year limit may reapply using IRS Form 8857, Request for Innocent Spouse Relief, if the collection statute of limitations for the tax years involved has not expired. Taxpayers with cases currently in suspense will be automatically afforded the new rule and should not reapply.
The IRS will not apply the two-year limit in any pending litigation involving equitable relief, and where litigation is final, the agency will suspend collection action under certain circumstances.
The change to the two-year limit is effective immediately, and details are in Notice 2011-70, posted today on IRS.gov.

Existing regulations, adopted in 2002, require that innocent spouse requests seeking equitable relief be filed within two years after the IRS first takes collection action against the requesting spouse. The time limit, adopted after a public hearing and public comment, was designed to encourage prompt resolution while evidence remained available. The IRS plans to issue regulations formally removing this time limit.

By law, the two-year election period for seeking innocent spouse relief under the other provisions of section 6015 of the Internal Revenue Code, continues to apply. The normal refund statute of limitations also continues to apply to tax years covered by any innocent spouse request.

Available only to someone who files a joint return, innocent spouse relief is designed to help a taxpayer who did not know and did not have reason to know that his or her spouse understated or underpaid an income tax liability. Publication 971, Innocent Spouse Relief, has more information about the program.

If you are need of help with a Innocent Spouse Situation, A tax liability or tax problems call me today (877) 865-4561

Call for a FREE CONSULTATION!! http://www.firstclasstaxrelief.com

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