Why can't I just deal with the IRS myself?
Actually, you can attempt to resolve your tax issue yourself, but it is a very difficult process. First, there's the frustration of dealing with endless complicated forms and publications...and long waits on hold. Then there's the issue of knowing how to negotiate with revenue officers. It's important to note that over 85% of offers are rejected by the IRS, simply because the average person doesn't understand the process. The experts at Progressive Tax have decades of experience handling all kinds of tax issues, so you can be assured we'll negotiate the best settlement possible.
Do I have to appear before the IRS in person?
No. One of the benefits of hiring Progressive Tax is that not only do you not have to meet face to face with the IRS, you won't even have to speak with them on the phone. Our firm will be your personal liaison with the IRS.
What can I do about all the penalties and interest?
In some cases Progressive Tax can argue for an abatement of all penalties and associated interest. Call us for a free consultation to see if you qualify.
What are my options if I can't reach an agreement with the IRS?
The IRS is always interested in reaching some sort of settlement with delinquent taxpayers. Keep in mind, it's not their goal to make your life miserable by garnishing your wages and levying your bank accounts. It's to get you into compliance and collect as much money as they can, as quickly as possible.
What if I can't pay all my back taxes at once?
Most people can't. This is, after all, why most of our clients are in the position they're in. It is our function to lower the amount of taxes owed and work out an affordable monthly payment, while at the same time protecting your assets.
What can I do about the tax liens?
Depending upon the size of the tax lien that's secured, the debtor can move to pay it off if he has, or can borrow, the funds. Sometimes this can be done by direct negotiation with the tax agency to agree on the secured value of the lien.
Other times, the debtor may have to resort to bankruptcy options, such as paying off the value of the secured debt in a Chapter 13 plan. This also may require an action in court to determine the value of the collateral, and hence the equity to which the tax lien attaches. Sometimes a challenge to the validity of the lien, may be available, if grounds exist, such as:
The notice of tax lien was never recorded, although the tax agency says it was.
The notice was recorded after the automatic stay took effect.
The notice was filed against assets that do not belong to you.
The lien was based on an invalid assessment.
The lien expired. The life of the lien is ten years, unless re-recorded.
How long does it take to negotiate a settlement with the IRS?
It usually takes about 7 months to settle with the IRS. First we need to gather evidence for the case, which would include financials for an Offer in Compromise and a narrative for penalty abatement. This takes approximately one month. Then we submit the offer to the IRS for review and to verify the financials. This takes about 3 or 4 months, after which the IRS will either accept or reject the offer. If the offer is rejected, it takes about 2 months to appeal the judgment.
When can I get the liens on my property removed?
The tax liens on your property and credit will be removed within 30 days of the satisfaction of your settlement.
What should I do if it's been several years since I last filed?
Actually, you can attempt to resolve your tax issue yourself, but it is a very difficult process. First, there's the frustration of dealing with endless complicated forms and publications...and long waits on hold. Then there's the issue of knowing how to negotiate with revenue officers. It's important to note that over 85% of offers are rejected by the IRS, simply because the average person doesn't understand the process. The experts at Progressive Tax have decades of experience handling all kinds of tax issues, so you can be assured we'll negotiate the best settlement possible.
Is the IRS required to give me a payment plan?
If you owe the IRS less than $10,000 of tax and it can be paid in 5 years, you have the legal right to a payment plan. The IRS also has a streamlined plan that can be arranged if you owe a total of less than $25,000 including penalty and interest, and if it can be repaid in 5 years. This is not a legal right, but it is IRS policy. The professional cost to secure one of these should be a low fixed fee.
After we settle, will I be in good standing with the IRS?
Yes. For the next five years, however, you must remain in compliance with the tax laws. This means you must file and pay all subsequent tax returns in a timely manner. You must also make timely estimated tax payments if required.
Will an Offer in Compromise show up on my Credit Report?
NO. Unlike a bankruptcy or credit card charge off, an Offer in Compromise does not get reported to the credit reporting agencies. An offer in compromise will not negatively affect your credit score. However, ignoring the problem will cause the IRS to file a notice of federal Tax Lien, with your county recorder, which WILL show up on your credit report.
How is the amount of the offer calculated in an Offer in Compromise?
There are two parts to the formula. The first is the equity in assets you own, the second is based on the income you have available each month after paying for allowable expenses, multiplied by a factor of 48 or 60.
