Tax Debt Solutions Blog

Tax Relief: Hire A Tax Professional

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Tax Professionals

Many ads claim they can assist you to pay an IRS debt for less.  They profess knowledge to reduce your awful tax bill.  Many call this ‘pennies on the dollar’.

They may have helped a few taxpayers pay less, but it’s not easy.  It is probable that even more taxpayers cannot reduce tax bills even with their assistance.

Such companies hand in an OIC (Offer in Compromise) for the client.  In certain situations it’s an alternative where the IRS accedes to an amount lower than the taxpayer’s complete bill.  The IRS only does this when it’s more gainful to obtain money fast instead of spending years and money getting the taxpayer to settle in full.

The ads promise it’s an easy route.  However, realistically they can’t decide on an amount and the IRS approves it.  You must complete an OIC (form 656-A).  In addition, you must attach a completed CI (Collect Information).  CI (form 433-A) gives your financial data.  The CI data must verify inability to make full payment and your proposal must be reasonable.  A $150 fee must go with form 656-A (OIC).  Only proof of little or no finances will allow a reduced fee.  An additional 20 percent is required if you make a complete OIC amount.  For an installment OIC arrangement a first payment is required.

So, the reality is the IRS doesn’t make it easy to reduce your tax bill.  ‘Offer in Compromise mills’ or ‘pennies on the dollar companies’ aren’t your best solution.  Tax experts and the IRS share this view.  You must pay such companies whether they fulfill their promise or not.  There is a belief the IRS is going to penalize such companies for misleading taxpayers.

A qualified tax professional has the expertise to follow IRS regulations and processes on your behalf.  He or she will give you an honest estimation of your tax situation.  This is preferable to wasting time and cash on a company that doesn’t fulfill its promise to reduce your tax bill.                

What Are the Easiest Ways to Get A Tax Levy Release?

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If you have already received a notice that says “intent to levy” from the IRS, you only have 30 days before the IRS will send collections to seize your assets. This could be anything from property to vehicles and more. During these 30 days, it's imperative that you work fast and get everything in order. The easiest ways to get a tax levy release are:

Payment Agreement

The IRS wants their money and they'd rather cooperate with you to make payments over a longer period of time than try to auction off your assets. A payment agreement is similar to an installment agreement except you will normally pay less than the total amount you owe the IRS and you will also make smaller payments. For this to be an option, you have to prove you don't have the ability to follow the standard installment agreement.

Pay It Off

If you pay what you owe immediately, the tax levy release will happen right away. This usually isn't an option for many people by the time they reach this point but if you can do it, all your problems pretty much go away overnight.

Offer in Compromise

This is very similar to what a credit card company offers if you've owed them money for a long time. You can make an offer that is less than the total amount that you owe and you can go from there. If accepted, your tax levy release will happen right away. If not, you will have to try some other type of payment options.

These 3 options are the fastest and easiest methods to get a tax levy release. Since you don't have a lot of time, these methods ensure you handle it immediately.

5 Ways to Get a Tax Levy Release

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If you are unfortunate enough to get a tax levy, this means the IRS has given you chances but you didn't cooperate with them, or maybe just threw that mail away.  Either way, you will need to work fast to make sure you don't end up with collections coming after your assets.  Here is a small list of 5 ways to get a tax levy release.

1. Pay what you owe.  This is the fastest and easiest way to resolve the situation before any of your assets get seized.  This could cost a lot of money but it may be easier to pay small interest for a bank or other loan so you can handle this right away.

1. Ask the IRS to let you set up a payment agreement.  This is much like the installment agreement the IRS allows but the payments you make will be smaller.  This is a great option to get a tax levy release while still taking care of your debt with the IRS.  Make sure you keep to the payment schedule and don't miss any payments at all.

1. Prove that your assets don't have equity.  If you are already facing hard times and your car is a piece of junk, let the IRS know this.  They won't seize your vehicles if they are old, need severe repairs, or don't run. They don't know the car you bought 2 years ago was destroyed by vandals but a picture will help you get that message across clearly and immediately.

1. Appeal.  Yes, you can appeal the IRS levy right away then you may not have to worry about a tax levy release at all.  Sometimes collectors won't use ethical practices when dealing with you. If you suspect they weren't honest with you, that's definitely grounds for appeal.

1. File Bankruptcy.  This should be a last resort option but this can be a tax levy release by order of the courts.  This isn't a step that should be rushed so make sure you consult your accountant or a tax professional.