FAQs

1. What are Delinquent Taxes?

The law requires qualified taxpayers to file their income tax return every year. Delinquent taxes are those that a taxpayer has not paid by the due date. If you don’t pay your delinquent taxes, the balance will keep accumulating, which comprise the original balance and interests. The IRS may impose various civil and criminal penalties if taxpayers fail to file returns. Our team of experts can assist you to fix all types of IRS tax debt issues. Once you file your returns, we will help you throughout to resolve your outstanding taxes.

2. Will the IRS consider me a tax evader if I don’t file tax returns?

The IRS usually takes a persistent approach with taxpayers to get them comply with the filing of all returns and paying off their taxes. If there has been a willful evasion of the return filings, you may need to consult an IRS Tax attorney.

3. What are my options if I can’t pay all of the delinquent taxes?

Taxpayers have several rights in the US. We can evaluate your financial circumstances and help you understand which program best suits your needs if you can’t pay all of your taxes. The IRS may consider you for an ‘Offer in Compromise,’ an ‘Installment Payment Agreement,’ ‘Uncollectible Status,’ or even a ‘Tax Bankruptcy’ (Chapter 7 or Chapter 13).

4. How do I qualify for a tax relief?

Taxpayers with back taxes are eligible for tax relief. If you are seeking tax relief, you need to follow certain rules enforced by the IRS and Tax Code. Some forms of relief are obtainable by establishing proper communication with the IRS. Others are achievable by filing an appeal in a timely fashion or through a complete understanding of the IRS policies, procedures, and tax law. There are short-term tax reliefs such as wage garnishment, bank levy or tax lien. On the other hand, more permanent tax relief forms are tax settlements, installment agreements, and penalty removals. You can take the assistance of tax resolution specialists to solve your IRS-related or State tax matters.

5. How can you help me with IRS Tax Investigation?

Though you are allowed to access your tax records by requesting them from the IRS, requesting your tax transcripts on your own can trigger red flags at the U.S. Government Taxation Agency. Our team of experts carries out IRS tax investigation by requesting your tax transcripts from the IRS containing red flags if any. In addition, we are capable of negotiating with the IRS code; helping you to find out what the IRS audits reveal about your tax issues. We also help you to obtain information on the period which the IRS may pursue you for past dues.

6. Does the IRS impose interest or penalties for late filing or payment?

Yes. If you fail to file and pay your taxes on time, the IRS charges you interest on any unpaid balance. You may also be subject to penalties, including the failure-to-file and failure-to-pay penalties. Here are some certain penalties for delinquent taxes that taxpayers may have to pay. Interest charged on any unpaid tax daily compounds from the return due date until the date you pay in full. The federal short-term rate plus three percent makes up for this interest rate. The failure-to-pay penalty is 0.5 percent of the tax owed every month or part of the month that the tax remains unpaid after the due date. The penalty may accumulate up to 25 percent of your unpaid taxes.

7. How can a tax lien affect me?

A Federal Tax Lien is one of the legal claims by the IRS against your property if you are unable to pay your taxes. A Tax Lien does not allow you to sell any assets. At the Law Offices of Nick Nemeth, PLLC, we help our clients comprehend the complex process involved in lien discharge and lien subordination. Our team of experts has a comprehensive know-how of identifying taxpayers who qualify for the ‘IRS Fresh Start Program,’ and provide them the most strategic solution to their tax lien issues. This IRS tax lien assistance offers lien withdrawal or prevention for those who qualify.

8. Can you help solve payroll tax problems?

If your business has unpaid employment taxes, the IRS collects them from your business assets. In the case that your business fails to pay the debts, the IRS holds the employer responsible and imposes the ‘Trust Fund Recovery Penalty.’ To address payroll tax problems that companies face, ‘Offers in Compromise’ and ‘Installment Agreements’ can effectively be used. The tax consultants at The Law Offices of Nick Nemeth carry out a thorough analysis to solve your current payroll tax problems. So far, we have successfully guided business owners through their payroll tax issues; helping them deal with their unfiled or unpaid payroll taxes.

9. What is the Offer-in-Compromise Program?

The Settlement and Offers in Compromise (OIC) Program, better known as the ‘IRS Fresh Start Program,’ allows the IRS to settle a tax debt that is less than the amount owed. An IRS collection statute, typically, lasts for ten years. In May 2012, the IRS expanded its offer-in-compromise program under its Fresh Start Initiative (FSI), including more flexible terms, therefore, allowing more taxpayers to qualify. Your debt is settled for a fraction of what you owe if you also qualify.

10. Can I roll my IRS debt into bankruptcy?

There are two types of Bankruptcy. The first one is Chapter 7 – The Full Discharge wherein you go to a Bankruptcy Court and within a few months, you are out of your unsecured debt. You can discharge or wipe out debts for Federal Income Taxes in Chapter 7 Bankruptcy only if your debts are related to income taxes, has minimum three years of age, you have already filed a tax return, passed the “240-day rule”, and committed no tax fraud or willful evasion. The other type of Bankruptcy is a repayment type of Bankruptcy, i.e. Chapter 13 Bankruptcy in which the IRS debt is always rolled back into the repayment plan.

11. Do I need to be an attorney to represent my case before the IRS?

No, you don’t need to be an Attorney to represent your case or that of somebody else before the IRS. You can either be an Attorney, Certified Public Accountant (CPA) or an Enrolled Agent with the IRS. Enrolled Agents should be licensed by the US Treasury, and they must demonstrate competence in taxation. Hiring a licensed attorney is, however, better.

12. Which of my assets can the IRS seize?

Bank levies and wage garnishments are two common seizures that the IRS engages in all the time. The Tax Code authorizes the seizures of the taxpayer’s assets. If the IRS considers taking seizure action against you, it may pursue any or all of your personal and tangible property containing enough equity. They can even confiscate your intangible property. Taxpayers can protect themselves by ensuring correct handling of their IRS case. The Law Offices of Nick Nemeth can help you resolve this issue by reducing the possibilities of an IRS seizure.

13. How can I qualify for Innocent Spouse Tax Relief?

If you wish to file an innocent spouse tax relief request, you need to prove to the IRS that you had no actual knowledge or no reason to know about understatement or underpayment of tax liability. In other words, Innocent Spouse Tax Relief eases the spouse who was unaware of understatement or underpayment of taxes. A few of the reasons that may be considered as justification for requesting Innocent Spouse are a signature forgery by the other spouse, denial of access to financial records or fear of asking for information due to spousal abuse. In a majority of the cases, there is a two-year limit to file a Request for Innocent Spouse Tax Relief.

14. How long after receiving a notice of a bank levy, do I have before funds are removed from my account(s)?

Absent certain circumstances, the IRS must provide taxpayers with a 30 day notice of any form of a levy. You have a right to schedule a hearing before any levies commence within this 30 day time frame. Past this 30 day time frame, the IRS can send a notice to levy your bank, and within 21 days of receiving the notice, the bank will transfer your funds to the IRS to satisfy your tax debt.

15. Will I be able to pay my bills if my bank has received a notice of intent to levy?

A bank levy is not continuous. Once the bank receives the notice from the IRS, the bank is obligated to freeze all your funds. However, if you were to add more, those funds will not be part of the bank levy, unless the IRS issues another levy notice. If you are unable to pay your bills, you have 21 days to come to a resolution with the IRS. If you can claim “economic hardship” the IRS may release the funds, however it is a rigorous standard.

16. How can I get my property back once it has been levied?

Once the funds have been taken it can be extremely hard to get the funds back unless you do not owe the tax debt. That is why it is important to contact a Tax Attorney as soon as you receive a notice of a levy.

17. What kind of levies can the IRS issue me?

The IRS is able to issue levies on just about anything that you own or any source that provides income in order to satisfy your tax debt. This can include but not limited to wages, pension, bank accounts, social security payments, accounts receivable, insurance proceeds, and 401.

18.If I get married, will my new spouse take liability of my tax debt?

First, if your spouse has tax debt we recommend considering a prenuptial agreement. If you do get married or gotten married without a prenuptial agreement, the IRS will not transfer the taxability to the spouse. However, your income, and your refunds can be subject to a levy, especially in Texas, a community property state. If you file a joint return, you can request “innocent spouse relief” to get your share of the return.

19. What is a lien and what are they able to do?

A federal tax lien is the government’s claim on all your assets. The effect of liens filed can range from a hit on your FICO score, to the seizure of your property (including your home). Even if you file a bankruptcy, your tax debt may not be forgiven, and even if forgiven the tax liens may survive the bankruptcy.

20. What is the difference between a lien and a levy?

Liens and levies are not the same thing. A lien notifies the world that the government has an interest on all your property. A levy is when the government garnishes your wages or the seizure of your bank accounts.

21. I am currently in a payment plan for my debts on a prior tax year, am I eligible to receive a refund for the current tax year?

No. As one of the conditions of your installment agreement, the IRS can take your refunds and automatically apply it towards any taxes you owe.

22. The IRS says I have a tax debt, what is the first step?

Getting any form of correspondence from the IRS can be absolutely terrifying, but you must remain calm. The first step should always be to contact and retain an expert tax attorney. The Law Offices of Nick Nemeth, PLLC offers a free, confidential and no obligation consultation for any IRS problems you may have. During this consultation, Attorney Nick Nemeth will provide a step by step plan on getting to a solution for your IRS tax debt situation.

If you need more information on tax-related matters or need to resolve any IRS debt problems, please contact us. You can fill out our Free Case Evaluation form or feel free to call us at (972) 484-0829 for a free consultation with Attorney Nick Nemeth.