The list of Penalties that the IRS can assess a taxpayer is long, to say the least.  The most common of the penalties are the failure to file, failure to pay, and civil penalties. 

Once a taxpayer is assessed penalties for a particular tax period, these penalties can quickly double the amount of tax owed for that tax period, making it seem impossible to pay past due taxes.  These penalties are intended to be a slap on the wrist, and a deterrent from late and delinquent payments and filings; however, the reality is that once these penalties accrue they are much more than a simple slap on the wrist.  Often times sending fearful taxpayers further off the tax compliance track than they would have otherwise been.   

The best way to avoid penalty assessments by the IRS is to file and pay your taxes on time. 

If you find that you have been assessed a penalty, consider a penalty abatement request based on reasonable cause as an option to reduce or eliminate the penalty that you have been assessed. 

For more information on how we can help you reduce or eliminate your IRS penalties, call our office for a free consultation at (800) 877-6534

A Federal Tax Lien is the government’s legal claim against property when a taxpayer does not pay their tax bill.  This lien protects the government’s interest in a taxpayer’s property, including real estate, personal property, and financial assets. It includes assets that a taxpayer has when the lien is filed and assets that are acquired after the lien is filed, while the lien is still effective. 

Further, a Federal Tax Lien is like the “Kiss of Death” on your credit report.  Once a Federal Tax Lien is filed, it is reported to the major credit bureaus and will limit your ability to obtain financing.  It can also prevent you from obtaining employment. 

All hope is not lost, if you find that the IRS has filed a Federal Tax Lien against your property.  There are ways to get rid of the tax lien.  The best way is to pay your taxes in full; however, other options exist to help you carry on with life.  Some of these options include: 

• Discharge of Property from a Federal Tax Lien
• Subordination
• Withdrawal of the Federal Tax Lien

Caution: Filing bankruptcy is not likely to remove a Federal Tax Lien. 

A Levy is not the same as a lien.  A Levy actually takes a taxpayer’s property to pay the tax debt. The IRS can Levy wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, and the cash loan value of your life insurance.  It is also possible for the IRS to seize and sell personal and real property that a taxpayer has an interest in.

 A Levy is serious business! If you find that IRS has sent you a copy of a Levy Notice, contact our office immediately so we can help you keep your money and property.  Call (800) 877-6534.

 Note: Liens and Levies are generally filed against taxpayer’s who don’t pay their tax bills.  The best way to avoid having a lien or levy is to pay your taxes in full.  If you cannot pay your taxes in full DO NOT IGNORE THE IRS.  You have options! See Offer in Compromises and Installment Agreements for more information.

The IRS will allow you to settle your tax debt for less than the full amount you owe under the Offer in Compromise program.  Under the Fresh Start Initiative program employed by the IRS,with less stringent requirements for calculating the offer amount, the Offer in Compromise option has become more tangible for taxpayers .

 The Offer in Compromise program is not for all taxpayers!  It is dependent on an individual’s unique set of facts and circumstances including:

•  Ability to pay
• Income
• Expenses
• Asset equity

 If you hire a professional to file an Offer in Compromise for you, be sure to check his or her qualifications. In 2011, approximately 34% of offers made to the IRS were accepted. Here, at Buelow Tax Service, our acceptance rate is more than double this amount. We take our client cases seriously, and file for the best possible offer amount that can be accepted by the IRS. For more information on our credentials Read Here or Meet our Staff

 Filing an Offer in Compromise is a lengthily process. 

 What you should know before filing an Offer in Compromise:

1.  You must be current with all tax return filings.
2. You are not eligible, if you are in or have filed for Bankruptcy.
3. You must submit your offer and financial statements, pay the appropriate filing fees, and pay the down payment on the offer amount.
4. After you have submitted your offer, it will be evaluated. While it is being evaluated, the following applies:

• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing Installment Agreement; and
• Your offer is automatically accepted, if the IRS does not make a determination within two years of the IRS receipt date.

Caution: Once your offer is accepted, you will have to maintain compliance with your tax filings and payments for a specified period.

The IRS will allow you to make payments on your tax debt, if you’re not able to pay your tax debt in full.

 This has always been an option for struggling taxpayers, but under the IRS’  New Fresh Start Initiative program Installment Agreements are easier to obtain and more affordable.

 The new rules for a streamline agreement allow taxpayers, who owe less than $50,000, to pay their tax debt over 72 months. Additionally, in most cases, the tedious financial statements previously required can be avoided.

 The IRS has provided criteria for Streamline Installment Agreements in two categories:

 The criteria to qualify for streamlined Installment Agreements with a balance due of $25,000 or less are:

• You owe $25,000 or less, at the time the agreement is established. If you owe more than $25,000, you may pay down the liability before entering into the agreement, in order to qualify.
• The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.
• You must be compliant with all filing and payment requirements.
• Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).
• Defunct businesses, including any type of entity and any type of tax (Form 940, 941, 943, etc.).

 The criteria to qualify for streamlined Installment Agreements with a balance due of $25,001 to $50,000 are:

•  You owe $25,001 to $50,000, at the time the agreement is established. If you owe more than $50,000, you may pay down the liability before entering into the agreement, in order to qualify.
• The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.
• You must be compliant with all filing and payment requirements.
• Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).
• Businesses are limited to defunct sole proprietors who owe any type of tax (Form 940, 941, 943, etc.).
• You must enroll in a Direct Debit Installment Agreement.
• A limited amount of financial information may be required during the application process.
• Operating businesses are limited to income tax liabilities only (Form 1120).

Caution: An Installment Agreement is a good option for taxpayers who cannot afford their entire tax bill immediately.  Since penalties and interest still accrue while under an Installment Agreement, it should not be considered an option for someone who can afford to pay their tax bill.

Do you pay summer day camp or day care expenses while you work or look for work?  If you do, this expense could qualify you for a tax credit. To learn more click here

In 2012, there has been an increase in incidents of suspected Identity Theft reported by Professional Tax Preparers.  It has raised concerns for many in the industry and in the community.  For information on how cyber criminals have been using stolen identities to file tax returns and for tips on not becoming a cyber-victim read the full article -

Click Here – Identity Theft and Tax Fraud

Buelow Tax Service offers Business Services! 

• Business Setup
• Bookkeeping
• Payroll
• Tax Preparation
• Advice

 Call Today to Set Up a Free Consultation!  

Our First Shred-A-Thon was so successful that we’ve decided to do it again.  Gather all of your confidential papers, bring them to our office and our trusted shredding company will shred them for you.

SAFEGUARD YOURSELF FROM IDENTITY THEFT-

THE NEXT EVENTS ARE SCHEDULED FOR:

Friday, November 18, 2011 from 9:00 a.m. until 11:00 a.m. and

Friday, January 6, 2012 from 9:00 a.m. until 11:00 a.m.

We hope that you found the last Shred-A-Thon beneficial and that you’ll join us again.  If you didn’t use this service in October or November, 2010, why don’t you consider coming this time?

Tell your friends about the Buelow Group Shred-A-Thon – they can come too!

 Contact us with what day you plan to come.

941-625-6534

Light Refreshments will be served while you wait