Tax Services

OVERVIEW OF TAX SERVICES

Release of Wage Garnishment or Bank Levy:

An IRS levy can take the form of a wage garnishment through your employer, a levy on your personal or business bank account, business receivables, Social Security or retirement benefits.

We understand that IRS Levies interfere with the ability to meet other urgent obligations such as rent, car payments, food and utilities, and as a result can create an overwhelming feeling of despair.

Release of an existing IRS levy is our first priority. In many cases we can stop levies within 24 hours after receiving your authorization to represent you.

If you have a levy or have received a Notice of Levy, it is important to act fast. There are time limits and additional requirements that the IRS can impose depending on your situation.

Contact us for a free, no obligation consultation. A Total Tax, Inc CPA or EA will assess your specific situation, answer questions and explain what you can expect.Return to top

Offer In Compromise:

The Offer in Compromise (OIC) can be the most effective way to dispose of a burdensome IRS unpaid balance, because it settles the unpaid balance for an amount less than the balance owed.

The IRS offers this program to taxpayers who can show that they do not have the resources to repay the unpaid balance.  OICs can result in settlements for as little as 1% of the original unpaid balance.

The OIC program is extremely popular for obvious reasons, yet the overall odds of the IRS approving an OIC are approximately 2 out of 10.

Working with Total Tax, Inc can change the odds in your favor.
On average, our Case Managers have won 9 offers out of 10. That’s over 4 times more than the average.

Our knowledge of the Offer in Compromise program and our ability to successfully assess whether you will qualify are the reasons for our success.  In fact, as part of your free consultation, we will tell you whether you are a candidate for an OIC.Return to top

File Or Amend Prior Tax Years:

Filing back taxes is one of the most common steps toward resolving an IRS tax issue. It is required to establish compliance, a key element in reaching any agreement with the IRS. In many cases it can reduce the balance that the IRS claims you owe.

However, if not done correctly, filing or amending returns can create more problems and an even bigger tax bill.  Unfortunately, this is a growing problem.  Some tax relief companies take shortcuts to save time and unlicensed and unqualified management fail to identify the mistakes.

In contrast, the Total Tax, Inc team collectively has nearly 60 years of experience in Tax Accounting.  We maintain a dedicated tax preparation department staffed by skilled and experienced CPAs and EAs that understand tax law.

Working with a dedicated, licensed and experienced tax preparation experts results in lasting benefits for our clients. This is one area of resolving your tax issue that can’t be compromised since errors and omissions can lead to audits, default of IRS agreements and ongoing IRS tax problems.Return to Top

File Current Year Tax Returns And Extensions:

Staying current on your tax returns each year is an important part of resolving an active tax issue as well as making sure it doesn’t reoccur. Most settlement programs with the IRS require that you file on time and file correctly to avoid default of the agreement.

Our dedicated tax preparation department employs skilled and experienced CPAs and EAs that will work to help assure your annual filings are accurate and timely.

We will follow through with you long after your initial tax issue is resolved, and stay on top of your ongoing compliance requirements. It is our mission to put your tax issue behind you for good.Return to top

Audit Reconsideration:

If you’ve been audited by the IRS and wish to contest the outcome of the audit, an Audit Reconsideration may be an option for you. Audit Reconsiderations are generally available if any of the following criteria apply to you:

• You did not appear for your audit
• You moved and did not receive correspondence from the IRS
• You have additional information to present that you did not provide during your original audit
• You disagree with the assessment from the audit

Your Total Tax Consultant and Tax Accountant will determine if Audit Reconsideration is an appropriate option for your specific circumstances.Return to top

Installment Agreement:

If your financial situation rules out one of the more aggressive IRS tax relief programs, an Installment Agreement can be a beneficial option.

The IRS will allow you to repay the balance over time if you meet certain requirements. Your Total Tax, Inc team can clear any compliance requirements such as unfiled tax returns and negotiate a payment plan you can afford.

An Installment Agreement will resolve your tax balance and eliminate other immediate or long-term tax issues such as:

• higher interest and penalties
• unpredictable wage and bank levies

Your Total Tax, Inc Case Manager will work to get you the most beneficial tax relief solution for your situation, and will work to minimize the total amount required as well as protect you from further IRS collection actions. Return to top

Currently Not Collectable Status:

If you qualify for Currently Not Collectible status, the IRS will stop all collection actions against you, but interest will continue to accrue on the unpaid balance.  This is an alternative for clients that don’t qualify for an Offer in Compromise and can’t afford an Installment Agreement.

Your TTI Case Manager will use your financial information to demonstrate that you are unable to make any kind of payment to the IRS.  The IRS may review your financial situation annually to determine if you still qualify.

CNC can be an effective strategy when a client has an IRS balance that is close to the 10-year statute of limitations and can be put in place to avoid disruptive collection actions until the unpaid balance expires.Return to top

Penalties And Penalty Interest:

Although there are many sources and types of penalties levied by the IRS, the most common are for:

• Not filing a tax return
• Filing your tax return late
• Paying any balance due late

The IRS’s willingness to negotiate the elimination of penalties depends on the circumstance associated with filing or late payment.

Providing a client has not had any prior compliance issues, your TT Case Manager will file for an abatement of the penalties associated with an initial tax year.

Penalties for subsequent years are often more difficult and require proof that the failure to comply was due to a significant hardship or situation beyond the taxpayer’s control.

Your TT Case Manager is very familiar with what situations the IRS will consider and will pursue further Penalty Abatement when your circumstances may qualify.Return to top

Innocent Spouse:

If you believe that the tax balance the IRS is attempting to collect from you is your spouse’s responsibility, you may qualify for Innocent Spouse Relief. If you qualify, you will no longer be liable for the tax balance. Instead, your spouse / former spouse will be responsible for satisfying the unpaid balance with the IRS.

Some things to consider in filing for this type of relief are:

• You must have filed jointly with your spouse or former spouse for the tax year(s) in question
• The unpaid balance must be the result of an error / errors on the tax return
• You must file within two years of the IRS notifying you of the unpaid balance

Your Total Tax Consultant and Case Manager can help you determine if Innocent Spouse is the right solution for your specific circumstances.Return to top

Separation Of Liability:

If your liability is the result of a joint tax return and you are not a candidate for Innocent Spouse, Separation of Liability may be an option for you. Separation of Liability allocates the tax balance according to your specific earnings so that you are not liable for more than your share of the total unpaid balance.

Some things to know before considering Separation of Liability relief are:

• The tax balance must be the result of errors on the tax return and you must not have had knowledge of those errors.
• You must be widowed, divorced, or legally separated from your spouse; or
• You must not have been living with your spouse / former spouse for 12 months
• Your separate living conditions are expected to be permanent

Your Total Tax Consultant and Case Manager can help you determine if Separation of Liability is an appropriate option for your specific circumstances and how it may be applied with other relief options to reach your best outcome.Return to top

Equitable Relief:

If you do not qualify for either Innocent Spouse or Separation of Liability and you believe that other facts and circumstances exist that make it unfair for the IRS to hold you responsible for a joint tax liability, Equitable Relief may be an option worth exploring.

Equitable Relief can be argued in the circumstance where the IRS may cause an economic hardship by collecting on the unpaid balance or when you had/have significant mental or physical health deficiencies. Some other factors to consider are:

• You had no knowledge of the error(s) related to the filed tax return or that payment of the balance due was not going to be made.
• You must be widowed, divorced, or legally separated from your spouse; or
• You must not have been living with your spouse / former spouse for twelve months

Your Total Tax Consultant and Case Manager can help you determine if Equitable Relief is an appropriate option for your specific circumstances.Return to top

Injured Spouse:

Injured Spouse Relief can be employed in situations when a joint refund is seized by the IRS for repayment of your spouse’s liability. If you believe the unpaid balance that your refund was applied to is from an obligation unrelated to you, you may qualify.

Other factors to consider when seeking Injured Spouse for one or more tax years are:

• Did you have Federal withholding from your pay or did you make estimated tax payments?
• Did you claim the earned income credit or the additional child tax credit?
• Did you claim some other refundable tax credit?

Your Total Tax Consultant and Case Manager can help you determine if Injured Spouse is an appropriate option for your specific circumstances.Return to top

Lien Discharge:

If the IRS has a lien against your property a Lien Discharge is one option that can be pursued to eliminate it. If you qualify, a Lien Discharge results in permanent removal of the lien. In some cases, the process does not involve the sale of the property.

If you are considering this option, the following factors will impact the outcome:

• Can you sell the property for more than the amount of the lien?
• What are the total liabilities and claims against the property?
• Are there creditors that have claims ahead of the IRS?

Your Total Tax Case Manager can complete the analysis necessary to determine if a Lien Discharge is the right option to pursue on your behalf.Return to top

Lien Subordination:

When the IRS has a claim to your property it can be difficult to complete most transactions involving that property. In some cases it may make sense to pursue a Lien Subordination.

The objective of a Lien Subordination is to allow other creditors to move ahead of the IRS in their claims against the property. This can allow transactions such as refinancing the property to move forward.

Your Total Tax Consultant and Case Manager will complete the analysis necessary to determine if a Lien Subordination is an option available to you.Return to Top

Lien Withdrawal:

A Lien Withdrawal removes the IRS’s claim to your property prior to the total balance owed is satisfied. The IRS may entertain this option when circumstances exist that demonstrate your efforts to gain compliance and pay the unpaid balance.

In other cases, they will consider Lien Withdrawal if it can be demonstrated that it will facilitate the repayment of the unpaid balance.

Your Total Tax Case Manager will review your case to see if a Lien Withdrawal is the right approach for you.Return to top