Legacy Tax & Resolution Services, LLCPremier Tax Preparation and Resolution Services 480-907-6644
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More Frequently Asked Questions
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Q: Do I have to appear before the IRS in person?
A: No! One of the benefits of hiring our firm, in most situations, you will not have to meet with the IRS in person. In fact, you should not receive another phone call!
Q: What can I do if I can not pay all of my tax liabiity at once?
A: Most people can't. Most likely this is the reason that you have not dealt with it to this point. Our firm will determine the true tax liability and explore opportunities for penalty abatement and Offer In Compromise.
A. No. Unlike a Bankruptcy or a credit card chargeoff, a Offer In Compromise will not negatively affect your credit report. The IRS may have already filed a tax lien which does effect your credit score. In time, the lien can be removed.
Q. How is the amount of an Offer In Compromise calculated?
A. There are tow part to the formula. The first is based on a percentage of the equity in assets. The second part is based on the available disposable income above the allowable expenses, multipled by a factor of either 12 or 24.
Q: If a debt has been satisified, can I get the IRS to remove the lien?
A: Yes. Once the debt has been satisfied, the IRS has up to 30 days to remove the lien. Unfortunately, this is not always an automatic process and you may need some help to push the process along.
Q: After the debt is settled, will I be in good standing with the IRS?
A: Yes. For the next five years, you will be required to remain in compliance. Compliance means that you will be required to timely file your return, adjust withholdings to avoid balances due and timely make estimated tax payments, if required.
Q: What can I do about all of the IRS penalties and interest?
A: In some cases our firm can argue for an abatement of the penalties and the associated interest.
Q: Is the IRS required to give me a payment plan?
A: If your debt is under $10,000 and you are in compliance (all returns filed), can pay the debt within 5 years, you have a legal right to a payment plan. The IRS also has a streamlined plan if your debt is under $25,000, you are in compliance and can pay withing 5 years. This plan is not a legal right, however, it is IRS policy. Above the $25,000 and outside the 5 year payoff is open for negotiations and is much more difficult to obtain. A word of caution, payments plan negotiations can be fraught with dangers, you need to be aware of the information that is being provided and possibilities associated with an installment agreement.