Minneapolis Tax Help for Residents Trying to Get Minneapolis Tax Relief
The federal agency responsible for enforcing the U.S. tax laws is the Internal Revenue Service (IRS). A major aspect of that responsibility is tax collection. When U.S. residents do not file their returns or pay what they owe in taxes on time, the IRS takes action. It is not surprising that taxpayers become overwhelmed when their mailbox begins filling up with letters from the IRS. We at MWB Tax Solutions are here with Minneapolis tax help when you need it.
Minneapolis IRS Tax Relief
MWB Tax Solutions has decades of experience providing Minneapolis tax help and tax relief. Our team of highly skilled Minneapolis tax experts work with individual taxpayers and businesses to resolve their state and federal tax problems. If you need IRS tax relief, you can turn to us for answers, even if you are already under siege from aggressive tax collection tactics against you, which may be any of the following:
IRS Interest & Penalties
In order to motivate taxpayers into complying with the law by filing their taxes and paying what they owe on time, the IRS will impose civil and criminal penalties on delinquent taxpayers. The IRS also charges interest. The IRS has different types of penalties they impose, which vary in amount and increase according to the severity of the violation, as follows:
Penalty for Failing to Pay & Underpayment
If someone fails to pay their taxes on time or underpays, the IRS typically imposes a penalty of 0.5% of the amount due for every month that goes by without payment, up to a maximum of 25%. Other provisions may mitigate this, which MWB Tax Solutions can help you with.
Penalty for Failing to File IRS Tax Return
In the eyes of the IRS, failing to file is a worse infraction than failing to pay your taxes. This is why the penalty is worse. For filing late there is a 5% per month penalty on the amount of unpaid taxes. The maximum is 25% of the full amount due. This could go even higher if you include the interest that would be charged as well.
Penalties for IRS Tax Fraud
The U.S tax laws require U.S. residents to accurately and honestly complete their IRS tax returns. These figures determine how much you owe. There are harsh civil and criminal penalties awaiting taxpayers who lie on their tax returns. This is called tax fraud and is penalized very severely.
Penalty for Filing an Inaccurate IRS Tax Return
This is usually discovered during an IRS tax audit. It could be from negligence, a large understatement of the amount of tax due, intentionally disregarding IRS tax rules and regulations, a significant misstatement of valuation, significantly overstating pension liabilities or significantly understating the valuation of gift or estate tax. The penalty for filing an inaccurate IRS tax return is usually 20%.
Criminal Penalties Include Tax Evasion
U.S. taxpayers are subject to criminal penalties upon conviction. If your auditor discovers criminal activity he/she could file a report with the IRS Criminal Investigation Division. You would then be tried and if convicted face fines and possible incarceration.
Penalties as a Result of an IRS Audit
Just because the IRS decides to audit you does not mean you will be penalized. It all depends on what is found. That being said, the IRS often finds discrepancies on tax returns and will determine if more taxes are owed and if penalties should be imposed.
Minneapolis Tax Relief & IRS Penalty Abatement
If you find yourself facing any of these IRS tax situations you need immediate tax help from Minneapolis tax professionals like MWB Tax Solutions so that you can resolve your tax problems once and for all.
Wage Garnishment Help for IRS Tax Wage Levy
If you are delinquent in paying your taxes the IRS is well within its rights to garnish your wages through a tax wage levy. The IRS would order your employer to withhold money from your paycheck and send it to them until the full amount you owe in taxes is paid. This would only be after the IRS had sent you many notices warning you that they may take this action. If they get no response, they will eventually garnish your wages.
When your employer receives a tax wage levy against you he/she must obey the order. If you are at risk of having your wages garnished, reach out to MWB Tax Solutions. We are very experienced in providing Minneapolis wage garnishment help and would be able to thoroughly review your case and advise you of your options to prevent it, or if your wages are already being garnished, help you in getting it lifted.
How to Prevent or Lift an IRS Wage Garnishment
MWB Tax Solutions can help you get a Collection Due Process (CDP) hearing with the IRS Office of Appeals. This is a separate organization that acts independently inside the IRS and is not part of the Collection Office that would have initiated your wage levy.
Once you receive a final notice of the IRS’ intent to levy, you have the right to ask for a CDP hearing. If you follow through and move forward with the hearing you can expect that all collection efforts will stop, with some exceptions.
You would need to complete and submit Form 12153, sending it to your IRS Revenue Officer or to the address indicated on your notice. Your best chances of prevailing at your CDB hearing would be if you had Minneapolis tax help from experienced experts like MWB Tax Solutions who could represent you at the hearing and negotiate a good resolution to your tax problems.
If at the hearing you do not offer an acceptable defense (e.g. a claim of hardship or innocent spouse relief), the IRS wage garnishment order may resume after the IRS Office of Appeals makes a determination. This is why it is vital that you get the help of qualified tax experts who can successfully navigate the appeals process on your behalf.
How IRS Tax Liens Work
Taxpayers who do not pay their federal taxes risk having an IRS tax lien placed against their assets. This will likely be the first step in an aggressive collection effort to persuade the taxpayer to pay their back taxes. IRS tax liens stay active until the tax liability is paid in full. If you are delinquent in paying your taxes you are at risk of having tax liens placed against any real estate or personal property you own.
It is far easier to avoid having tax liens placed against your assets than getting them lifted after the fact. If you are dealing with an outstanding tax debt and worried about liens being issued and need Minneapolis tax relief, please contact the experienced tax experts at MWB Tax Solutions to schedule an IRS tax consultation.
The first step in this process is the IRS issuing a Notice of Federal Tax Lien, which is placed against the taxpayer. Many states use this collection tactic as well because it motivates the taxpayer to contact the taxing authority to make payment arrangements. The tax debt must be at least $10,000 before the IRS will issue the Notice. However, there have been liens filed for tax debts of lesser amounts.
How to Get an IRS Tax Lien Lifted
The best way to go about getting an IRS tax lien released or lifted is to seek qualified Minneapolis tax help through the professionals at MWB Tax Solutions. You can set up a consultation with an IRS tax expert who can explain your options. These would include appealing the IRS tax lien, discharging the federal tax lien, or subordinating the IRS lien.
MWB Tax Solutions will help you choose the method that will work best in your financial situation and guide you in working out a resolution to prevent an IRS tax lien or to get it lifted if it’s already in place.
Minneapolis Tax Relief for IRS Bank Levy
Issuing a levy on a taxpayer’s bank account is one of the most aggressive collection tactics that the IRS can use. When the IRS levies your bank account for unpaid taxes, it seizes the funds in your account to pay off your tax debt including interest and penalties. First, the IRS contacts your bank advising them about your unpaid taxes. At that point your account will be frozen for 21 days, giving you time to resolve the matter.
If you’re smart this is when you’ll consult with a Minneapolis tax expert to work with the IRS to resolve your IRS tax problems. If you don’t come to a resolution with the IRS during these 21 days, the bank will have no choice but to send the money in your account (up to the amount you owe) to the IRS.
The bank levy from the IRS will only apply to the money currently in the account. This means that any deposits you make in the future won’t be seized unless the IRS issues another levy at some later date. That is always their option, although this is a rare occurrence.
Expert IRS Bank Levy Help
To be safe it would be wise to consult with a Minneapolis tax professional or firm like MWB Tax Solutions for the tax help you need to resolve your state and federal tax problems once and for all.
How MWB Tax Solutions Offers Minneapolis Tax Help & Minneapolis Tax Relief
The IRS understands that people can often suffer financial setbacks, which prevent them from having the money to pay their taxes. Therefore, the agency has several programs that people in this situation can take advantage of to resolve their tax problems. If you need Minneapolis tax help so that you can come to an agreement with the IRS to avoid aggressive collection tactics, please reach out to MWB Tax Solutions. You may qualify for one of tax relief programs offered by the IRS, as follows:
IRS Installment Payment Agreements
As long as you do not owe any more than $50,000 in outstanding federal taxes, you can apply online using IRS Form 9465. There are quite a few different types of IRS payment agreements so it may be advantageous if you consulted with a Minneapolis tax expert who can discuss the various options, help determine which payment plans you qualify for and negotiate by phone with the IRS on your behalf.
While an IRS Installment Agreement may seem like the best option if you cannot fully pay your taxes, you must be able to afford the monthly payments in order to qualify for the program. If you are at your limit financially, a more realistic option might be to seek “uncollectible status” with the IRS, which will be discussed later in the article.
You might also consider taking out a low-interest loan to pay off your taxes. This would avoid you accumulating interest and penalty charges, which continue on until the debt is paid off in full. Interest on your tax debt would compound daily at 6% to 12%, updating quarterly. Penalty charges would be 0.25%, so if you could qualify for a low-interest loan it would save you money.
Applying for an IRS Installment Agreement
There are quite a few types of IRS Installment Agreements, each with different eligibility requirements and time frames, as follows:
You must not owe the IRS any more than $10,000 and be capable of paying off your debt within three years.
Under this Installment Agreement your monthly payments would be automatically withdrawn from your bank account. Direct Debit Agreements are required in certain situations to protect the interests of the IRS in collecting the money.
Individual Minneapolis taxpayers with an IRS tax debt of no more than $100,000 or a business that owes no more than $25,000 to the IRS may qualify for a Streamlined payment plan. Sole-proprietor businesses that are no longer in business and owe no more than $100,000 may also qualify.
If you do not qualify for a Streamlined Installment Agreement because your tax debt exceeds the limit, you may need to request a Verified Financial Installment Agreement. To be approved you would need to disclose all your financial information by filling out IRS Collection Information Statement Form 433.
If you simply cannot afford the monthly payments a standard IRS Installment Agreement would require, you can request a Partial Payment Installment Agreement. This would allow the IRS to be paid something, but it would certainly be less than what you owe in total. This program would require full disclosure of all your finances.
IRS Tax Penalty Abatement
IRS penalties and interest charges can really add up, often making it impossible to totally pay off your tax debt. However, if you can prove to the IRS that there was “reasonable cause” for you not filing your tax return on time or paying late, you may be able to get your penalties reduced or eliminated. You may also be able to accomplish this if you can prove that the IRS made an error, somehow delayed your return or gave you incorrect advice that you followed and that caused you to accrue penalties and interest charges.
Minneapolis IRS Penalty Abatement Help
By obtaining the help of a qualified team of Minneapolis tax professionals you can greatly improve your odds of successfully reducing or eliminating your IRS tax penalties. MWB Tax Solutions can work with you in gathering all the tax records needed to prove to the IRS that you deserve to have them eliminate your penalty charges. Without these charges, your tax debt will be reduced and you will be able to make smaller payments. Please contact us so that we can do our best to get your penalty charges removed.
Bankruptcy & IRS Tax Debt
Bankruptcy is a complicated legal process that allows individuals, organizations and businesses to pay their debts or have them discharged under the supervision of a court appointed trustee. There are several different types of bankruptcy, called “chapters.” Each chapter treats unpaid tax debt in a different manner, so there is no guarantee that your back taxes would be discharged and there is no way bankruptcy would discharge any recent taxes.
IRS Offer in Compromise
Minnesota taxpayers who find themselves in serious financial peril and have no way of paying their federal taxes may be eligible to settle their IRS taxes for just a portion of what they owe. The IRS has an Offer in Compromise program that provides tax relief for those in desperate need. However, the IRS accepted less than half of the offers that were submitted last year.
MWB Tax Solutions can help you prepare and submit your offer since it requires quite a bit of detailed financial information. This must be completed correctly because the onus is on you to prove that you qualify for the tax relief provided by an Offer in Compromise. Also, the amount you offer to settle your tax debt must be the most you are capable of paying, otherwise your offer will be rejected. You can definitely increase the odds of the IRS accepting your offer if you get the specific Minneapolis tax help you need.
MWB Tax Solutions has decades of experience successfully helping Minneapolis clients submit offers under the IRS Offer in Compromise program. Please contact us to help you settle your outstanding IRS tax debt so that you can make a fresh start.
Innocent Spouse Relief
If, during your marriage you filed your tax returns jointly, you are both considered equally liable for any unpaid taxes. This also includes any interest and penalties that have been charged to those tax returns. The IRS can go after you both to collect any unpaid balance. If you’re now divorced and your decree says your ex must pay any outstanding taxes, the IRS can still come after you, but you can apply for Innocent Spouse Relief.
If you believe you are eligible for Innocent Spouse Relief you would be smart to consult with an experienced Minneapolis tax professional to improve your chances of having your request approved. We at MWB Tax Solutions can help you pull all the paperwork together to prove your claim so that you can get the tax relief you deserve through the Innocent Spouse Relief program.
IRS Uncollectable Status
When Minneapolis taxpayers suffer a sever financial setback and gathering the money to pay their IRS taxes is impossible, they may request “uncollectable status.” Under these circumstances, the taxpayer must prove to the IRS that being forced to pay these back taxes would cause them to experience extreme financial hardship.
This would be a temporary status since the IRS would remain in touch to find out if there is any improvement in the person’s financial situation. In the meantime, all collection efforts would stop. Uncollectable status offers taxpayers some relief so they have time to improve their situation. Contact MWB Tax Solutions for MN State and IRS tax help.Call 612.524.5811