Tax Relief Services St Paul

St. Paul Tax Relief

MWB Tax Solutions has a team of tax professionals and CPAs with many years of experience helping individuals and businesses solve their tax problems. We take pride in our ability to provide tax help to St. Paul taxpayers in need of IRS tax relief. You can count on us, even if the IRS has already begun a campaign of aggressive tax collection activities against you, which may include the following tactics:

How an IRS Tax Lien Works

To secure the payment of a tax debt, the IRS will issue a Notice of Federal Tax Lien against the delinquent taxpayer. Many states do the same when someone fails to pay their taxes or resolve the issue by making payment arrangements. The IRS uses a tax debt threshold of $10,000 or more before it will issue a Notice of Federal Tax Lien. But, that doesn’t mean there haven’t been notices filed for lesser amounts.

IRS Bank Levies

When the IRS levies your bank account, whatever funds you have in the account are sent directly to the IRS, up to the amount you owe in back taxes, interest and penalties. The IRS will first contact your bank to advise them of the unpaid tax debt. Your bank will then freeze your account for 21 days starting on the date it receives the IRS notice.

If you do nothing to resolve the matter during that time, your bank will end up sending your money to the IRS. If your bank notifies you that your account is frozen due to an IRS tax levy, you are strongly advised to consult with a tax expert or CPA for their tax help in resolving the matter once and for all.

The IRS levy on your bank account will only affect the funds currently in your account, which means that once the bank acts on the levy, any future deposits you make will not be affected. However, the IRS does have the option of issuing another levy at a later date if the problem hasn’t been resolved, although this hardly ever happens

How MWB Tax Solutions Provides St. Paul Tax Help & Tax Relief

The IRS offers taxpayers a number of tax help and tax relief programs for people with unresolved tax problems. Please contact MWB Tax Solutions if you are unable to fully pay what you owe in Minnesota or IRS taxes and are at risk of aggressive collection activities. Individuals and businesses alike often experience financial difficulties, which can result in the inability to pay their taxes in full. If you are in this situation it’s important that you seek tax help from a reputable tax professional or CPA. You may find out that you are eligible for an IRS tax relief program, as follows:

First Time IRS Penalty Abatement

St. Paul IRS penalty abatement may also be approved if it’s the taxpayer’s first offense and the request is the type of penalty abatement the IRS allows. The IRS’s First Time Penalty Abatement Program (FTA) is only for taxpayers who have a good record of compliance, not repeat offenders.

St. Paul IRS Penalty Abatement Help

Working with a reputable team of tax professionals always increases your chances of prevailing with the IRS. MWB Tax Solutions can help pull together all the required tax records to show the IRS that you are entitled to have the penalties removed. This will reduce your tax debt and allow you to make smaller payments. Please give us a call so we can start working to resolve your tax problems and get your penalties removed.

Requesting an IRS Installment Agreement

Making monthly installment payments on your unpaid tax debt might be the best way to resolve the matter if you do not have the money to fully pay your federal taxes. However, this won’t work if you cannot afford to make monthly payments. If you are already stretched to the breaking point financially, a better option might be to try and have the IRS declare your case “uncollectible.”

Another option might be to take out a low-interest loan for enough to fully pay what you owe in order to avoid accruing the interest and penalties, which will continue until your debt is fully paid. Interest would compound daily at a rate of anywhere between 6% and 12%, as it updates quarterly. The late payment penalty remains constant at 0.25%. So, it may be less expensive if you could get a low-interest loan instead.

If taking out a loan is not an option, you can apply to make monthly payments by entering into an IRS Installment Agreement, as follows:

Guaranteed

This is the easiest type of Installment Agreement to get for those who are eligible and meet the requirements established by the IRS. Your tax debt must not exceed $10,000 and you must have the ability to pay off the full amount within three years or prior to the Collection Statute Expiration Date (CSED).

Financially Verified

These types of Installment Payment Plans are for individual taxpayers and businesses that are not eligible for a streamlined payment agreement because they owe too much. As the name implies, taxpayers requesting a Verified Financial Installment Agreement must disclose all the details of their finances by completing Collection Information Statement Form 433.

This plan is for taxpayers who do not want their payments automatically deducted from their paycheck or debited from their bank accounts and owe more than $50,000. Verified Installment Agreements require a lot more paperwork because applicants must provide the IRS with very detailed financial information regarding income, expenses, assets and liabilities.

IRS Installment Agreement Request Instructions Form 9465

If you do not want to go online to request an installment payment plan using the IRS’s online program (or your tax debt is too high to qualify), just complete IRS Installment Agreement Form 9465, which is designed for individual taxpayers. However, a business that is no longer operating can also use this form to apply for an Installment Agreement.

IRS Uncollectable Status for Hardship Cases

When taxpayers find themselves suffering unforeseen financial hardship and they have no way of paying their IRS taxes, they may apply for uncollectable status. The IRS is sympathetic to people in dire financial straits and has the authority to declare their case uncollectible. The person must first show the IRS proof that being forced to pay these taxes would cause them severe financial hardship.

Uncollectable status is also referred to as “status 53” and when you have this status the IRS will temporarily cease all collection activities. The IRS will check back in several months to determine whether the taxpayer’s financial situation has improved any, and if it makes sense to resume collections. Uncollectable status does not offer a permanent solution to tax problems, but it does take the pressure off so that the taxpayer has some time to get his/her finances in order.

IRS Offer in Compromise

Taxpayers in serious financial trouble who cannot pay their federal taxes may be allowed to settle their IRS tax debt for less than they owe through a tax relief program called an Offer in Compromise. If you are having serious financial issues, this may be an option for you. However, you should know that last year the IRS only accepted 42.8% of the offers submitted.

Before submitting your offer it would be wise to have an experienced tax professional or CPA help you prepare and file your paperwork. There is a lot of financial information that must be completed and filed correctly to prove that you meet the eligibility requirements. Furthermore, your offer must be the absolute most you could possibly pay or the IRS will reject your offer out of hand. With so much at stake, you need to get the kind of tax help necessary to dramatically increase the chances of your offer being accepted.

If your offer is accepted, you have two options for paying the IRS the money you offered, and your St. Paul tax experts would certainly help you make the payment arrangements. The terms of your tax relief settlement under this program would require that you remain in compliance with all your tax obligations for the next five years. If the IRS rejects your offer, you have the right to appeal their decision.

MWB Tax Solutions has many years of experience successfully navigating the IRS Offer in Compromise program for clients in St. Paul, MN and would be happy to work with you to settle your IRS tax debt once and for all.