Tax Resolution
Our Services
We’re a qualified, licensed representative that knows the appropriate procedures to help you with your tax issues. We know the ins and outs of working with taxing authorities.
Empower My Tax specializes in multiple IRS debt reduction programs to make your tax resolution as smooth as possible.
Installment Agreement
If a taxpayer is unable to pay their tax due immediately, the IRS may allow the taxpayer to make monthly payments through what is known as an installment agreement, or “IA.” For most taxpayers, this is the most realistic option for settling a tax debt that cannot be paid in full.
There are three basic types of IAs, which have varying requirements.
Streamlined installment agreement
The streamlined installment agreement allows a taxpayer with less than $25,000 of debt to pay their tax debt over the course of 72 months.
Staggered installment agreement
The staggered installment agreement has all of the same benefits and requirements as the streamlined installment agreement. The only difference is the added benefit of starting out with a lower monthly payment, which then would step up to a higher payment after a certain amount of time, usually 1 year.
Fresh Start installment agreement
The Fresh Start installment agreement is an IRS initiative launched several years ago in order to help taxpayers whom do not qualify for the normal streamlined IA due to a balance in excess of $25,000.
Contact Empower My Tax to find out if an IA is right for you.
The IRS or AZ may reduce the overall liability you owe by way of a penalty reduction or “abatement”. There are several reasons why people may qualify for an abatement of which are as follows; death in the family, sickness in the family, absence from work, unable to work, natural disaster, wrong advice from a competent tax advisor, wrong advice from IRS personnel, etc.
As your tax resolution service, Empower My Tax will look into every reasonable cause you may have fallen behind both personally and through your business. Don’t be fooled by promises to abate interest and penalty. The IRS and AZ will review serious requests and so will we. We have an array of options concerning how to go about requesting a reduction in penalties.
Innocent Spouse
Many married taxpayers choose to file joint tax returns due to certain benefits this filing status allows. When filing jointly, both taxpayers are jointly and severally liable for the tax and any additions to tax, interest, or penalties that arise from the joint return even if they later divorce.
Joint and several liability means that each taxpayer is legally responsible for the entire liability. Thus, both spouses on a married filing jointly return are generally held responsible for all the taxes due, even if one spouse earned all the income or claimed improper deductions or credits. This is also true even if a divorce decree AZs that a former spouse will be responsible for any amounts due on previously filed joint returns. In some cases, however, a spouse can get relief from joint and several liability.
Let Empower My Tax guide you through your best options for this tax resolution.
Audit Representation
Tax audit representation, also called audit defense, is a service in which a tax or legal professional stands in on behalf of you, the taxpayer during an IRS or AZ income tax audit. During an income tax audit or examination, the IRS and all AZs allow the taxpayer to have an authorized representative. That representative must have permission to practice before the IRS or AZ, and specific credentials are required.
As a licensed tax representative, Empower My Tax develops a strategy to defend your position. We will assist you in preparing all documents requested by the taxing authority, attend all meetings and handle correspondence on your behalf.
ƒWhen the IRS issues a notice that it intends to levy and seize your assets you have 30 days to challenge the levy. You need to attempt tax resolution or pay the amount due.
If you cannot pay the tax debt in full before the IRS is scheduled to seize your assets, you may be able to remove the levy anyway with proper tax resolution by setting up an installment plan with the IRS or by making other arrangements. But the best course of action is to work out a mutually agreeable solution with the IRS – and avoid the levy altogether.
If your tax problem is too complex, you don’t have to go it alone. The experienced members of Empower My Tax are available to help you deal with the IRS.
The IRS is far from perfect, and does make mistakes. There are a few perfectly legitimate ways to remove a tax lien if you know where to start.
A lien can be removed with tax resolution on appeal if:
- The tax debt has already been paid in full.
- The lien was filed in error.
- The lien was filed in error and the IRS made a processing error with your return.
- The IRS did not follow proper procedures.
- You were going through bankruptcy when the lien was filed.
- You weren’t given a chance to dispute the amount assessed by the IRS.
- You wish to make spousal defenses by claiming that your spouse should be liable for the lien.
- You want to discuss collection options, like through the Fresh Start Initiative.
- The statute of limitations of 10 years on collecting the tax debt has passed.
- On the notice of the lien, you are given the option to request a Collection Due Process hearing with the Office of Appeals. This request for an appeal must be made within 30 days after the fifth day of the lien being filed, or by the date indicated on the notice.
Empower My Tax can deal with the IRS and provide assistance with filing an appeal, or requesting a lien withdrawal.
Trust Fund Recovery
When you are running your business, it’s not uncommon for things to fall through the cracks. Unfortunately, employment taxes are often one of those things. If you’ve failed to pay employment taxes when they are due, you are at high risk for a Trust Fund Recovery Penalty.
Trust Fund Recovery involves the collection of employment taxes by the IRS from the owners of a business that’s failed to pay employment taxes. This penalty allows the government to reach parties otherwise shielded from tax liability, such as officers, shareholders, employees or a corporation, partnership or LLC, and in some cases, outside entities.
If penalized, you should begin taking action immediately. Luckily, Empower My Tax is there to help get your business out of this sticky situation. To begin, the most important thing you can do is get familiar with what a Trust Fund Recovery Penalty means, why it happened and how you can get this situation taken care of.