Tax Resolution Services

The Tax Resolution Institute has been resolving our client’s tax matters for more than 30 years.  Below is just a sample of the types of services we provide.

In addition to helping taxpayers get back on track, we teach tax professionals and attorneys how to practice in this area.  Based upon our years of experience, you can feel confident that we will provide the best service possible to ensure that you can move on with your life…

The IRS and State have determined that any person or persons that “willfully” chooses to not pay payroll tax liability is a “responsible person”.  What this means is that a responsible person is personally liable for the Trust Fund portion of payroll taxes withheld from employees’ pay.

The employee’s tax withholding as well as their portion of Medicare and Social Security tax withheld is referred to as the “Trust Fund” portion of the payroll tax liability.  If payroll tax liability is not paid; in addition to the company being held liable, the responsible person will also be held liable.  If you are deemed responsible, you may be forced to personally pay for any shortfall that exists.  A person may be deemed responsible regardless of the type of entity under which the business operates including LLC’s and sole proprietorships.

Keep in mind that a there may be more than one responsible person and they not need be a business owner.  A responsible person may be anyone including a CFO, payroll manager or bookkeeper.  They may also be considered to be responsible solely because they are listed on the company’s bank signature card.

The Tax Resolution Institute not only helps businesses address a company’s Trust Fund Recovery issues by entering them into an agreement with the taxing agencies, but we also help individuals tied to the company that may in the future or already have been deemed a responsible person.

It is extremely important that you act quickly if you have not yet been deemed a responsible person.  If we can get you “off the hook” personally, it will greatly work in your favor when looking at the overall picture as it relates to your tax matters.  If you have been deemed responsible prior to coming to us, there are ways we can keep the IRS from coming after you personally…

Read in detail about the Trust Fund Recovery Penalty

If you owe the IRS or State more than you can afford to pay, you are allowed to make payments over a given period of time.  Assuming you have the ability, the IRS allows you to pay your balance in full over a 72-month period.  This is known as a streamlined installment agreement.

If you cannot pay off your balance in full you may claim hardship where you make payments based on your ability to pay and not on the amount you owe.  If the circumstances apply, you may not need to pay anything.

This process sounds simple but you should know that the IRS has strict rules on what they consider to be necessary and reasonable living expenses when considering what you can afford to pay.  If the IRS sees that you are paying for items they will not consider in their calculations, you may be forced to pay a monthly amount that is unaffordable.

The Tax Resolution Institute knows EXACTLY what the IRS will and will not allow.  By planning properly and creating a comprehensive package to submit to the taxing agencies, we ensure that if you enter into an installment agreement, it will be for an amount you can comfortably afford over an extended period of time…

Read in detail about Installment Agreements…

An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS that resolves the taxpayer’s debt for less than they owe. The IRS and most State have the authority to settle or “compromise” tax liabilities by accepting less than full payment under certain circumstances. A tax debt may be legally compromised under any of the following conditions:

Doubt as to Collectability – Doubt exists that the taxpayer would ever be able to pay the full amount of tax owed.

Doubt as to Liability – Doubt exists that the assessed tax is correct.

Effective Tax Administration – There is no doubt the assessed tax is correct, and there is no doubt that the full amount owed could be collected, but an extraordinary circumstance exists that allows the IRS to consider a taxpayer’s OIC. To be eligible for a compromise on this basis, the taxpayer must demonstrate that collection of the tax would create an economic hardship or would be unfair and inequitable.

Taxpayers should be aware of false claims that their tax debts can be settled for “pennies on the dollar” through the Offer in Compromise Program. While this is true in some instances, it is imperative that they check the OIC requirements to verify if they qualify to submit an offer in compromise.

Learn More About Offers in Compromise

We assume you have come to this page because you want to know if your interest and penalties can be waived.

Typically interest will not be waived.  On the other hand penalties may be waived if (1) you can show cause or (2) you are a 1st-time offender.  When determining whether to request abatement of penalties, the Tax Resolution Institute weighs the prize versus the price.  Aside from the cost of requesting a penalty abatement, we consider how much of a burden will be placed on the client (sometimes doing so requires substantial documentation) as well as the time lost in doing so.

In some cases requesting to waive penalties is a “no brainer” and we will jump at the chance to do so.  In other cases the cost of requesting the abatement may outweigh the benefit.  For example, if a client owes $100,000 that they cannot afford to pay and we can request that the IRS remove $2,000 in penalties, it may cost the client money they can better spend elsewhere and waste valuable time knowing that success will only lower the client’s liability to $98,000…an amount they can no more afford to pay.

Needless to say, if your case warrants a request for abatement of penalties, you have come to the right place.  We have over 25 years experience helping clients with issues such as yours.

Read in detail abatement of penalties and interest…

In addition to holding a company liable for unpaid payroll taxes, the IRS also holds any person or persons they determine to have “willfully” chosen to not remit the payroll withholding amounts when due (see Trust Fund Recovery Penalty).

In creating a pool of “suspects” the IRS usually begins with the owners of the company and the persons listed in the company’s bank signature card.  That being said the IRS will broaden their scope if they find others that decided not to remit the payroll tax withholding.

Once they compile a list, they conduct interviews referred to as the “4180 interview” (the IRS uses Form 4180 to record the interviewees responses).  If the IRS determines a person was not responsible, they are personally off the hook for the Trust Fund portion right away.

If on the other hand the IRS determines a person to be responsible and assessed the Trust Fund portion in the form of a Civil Penalty.  Once the determination has occurred, the responsible person has a limited amount of time to appeal the determination before it becomes final.  Once it becomes final the responsible person is held personally liable.  If this is the case there are alternative to addressing the Civil Penalty such as an installment agreement or offer in compromise.

The Tax Resolution Institute has been successful in limiting the amount of people held responsible stemming from 4180 interviews.  In addition, if it is obvious you are going to be considered responsible, we usually can get your company into an agreement and have the IRS leave you alone personally.

Read in detail about responsible person representation…

If the IRS issues a determination and you disagree with the findings, there are several options at your disposal to file an appeal.  Like most things the IRS does, navigating this area can be a daunting task.

Should you file an informal appeal and call it a day, file an appeal with the US tax court or something in between?  The answer is…it depends on the circumstances.  Even if you have a high chance of winning an appeal you must weigh the benefit of a positive outcome with the cost of doing so.

There are numerous things to consider when determining how and if you should file an appeal.  Trying to make decisions on your own or with a representative not seasoned in this arena will quickly become overwhelming and greatly increase the chance of receiving a less than desirable outcome.

You need to place your trust in someone that knows when your options are running out and when you think you’re done; you may actually have another “bite at the apple”.

Whether you are appealing a tax audit, collection matter, offer in compromise rejection or other item you want the Tax Resolution Institute on your side.  We have a full staff of CPA’s and Tax Attorneys that can take your appeal from start to finish.   

In order to reach an agreement with the IRS or State you must be in compliance.  By definition this includes having all prior year tax returns filed.  In addition to resolving tax matters, the Tax Resolution institute has over 25 years experience providing tax and accounting services.  Each one of our locations is backed by a team of traditional tax and accounting professionals.

It is important to note that simply preparing your tax returns can significantly lower your tax liability and improve your standing with the taxing agencies.  In some cases, preparing returns can remove your liability completely.

Below is a list of just some of the types of tax returns that the Tax Resolution Institute prepares:

  • Individual income tax returns
  • Corporation income tax returns
  • S-Corporation income tax returns
  • Federal payroll tax returns
  • State payroll tax returns
  • State sales tax returns

The IRS adds a 25% penalty to your liability for each tax return filed more than 5 months past the due date.  Let the Tax Resolution Institute get you back on track.

If you owe taxes to the IRS or State and ignore the problem, don’t be surprised if they respond with a “call to action”. The EASIEST way to “wake up” a taxpayer is to levy their bank account.  If you are on this page there is a good chance your bank account has been frozen.  If not but you are receiving notices it may just be a matter of time.  If your bank has been levied you need to act NOW.

Assuming your funds are frozen you have up to 21 days to act before the they are remitted to the IRS.  If the 21 days have passed and the money is gone, you are not “out of the woods”.  The government will continue to levy and take other collection action until either the liability is paid in full or your enter into an alternative agreement.

Realistically speaking, most people will have trouble getting by if they cannot rely on accessing the money they deposited into their bank accounts. The IRS knows this and takes this action not to place an undue burden on the taxpayer but rather incentivize them to negotiate a more realistic payment plan.

Nonetheless it can be scary to face the possibility of or even worse to be the “victim” of a bank levy. With more than 25 years experience, The Tax Resolution Institute has been extremely successful in having the IRS and State return all or part of the amount held via a bank levy.  Instead of facing an impossible situation, call us today and use your unfortunate situation as leverage to negotiate a suitable agreement.

If you owe taxes to the IRS or State and ignore the problem, don’t be surprised if they respond with a “call to action”.  One of the easiest ways to “wake up” a taxpayer is to garnish their wages.  If you have been threatened with a wage garnishment or already have one in place, you need to act now.

The States vary as to the amount they will garnish, but unless you can show why they shouldn’t, the IRS will require that your employer withhold all but the amount that equates to minimum wage from your pay.  As if things are not hard enough, you are now faced with living on minimum wage.

Realistically speaking, most people cannot afford to live on minimum wage and the IRS knows this.  They take this action not to place an undue burden on the taxpayer but rather incentivize them to negotiate a more realistic payment plan.

Nonetheless it can be scary to face the possibility of or even worse an actual wage garnishment.  With more than 25 years experience, The Tax Resolution Institute has been extremely successful helping taxpayers remove wage garnishments and entering them into agreements they can live with.  Instead of facing an impossible situation, call us today and use your unfortunate situation as leverage to negotiate a suitable agreement.

If you owe the IRS or State more than you can afford to pay, you are allowed to make payments over a given period of time. Assuming you have the ability, the IRS allows you to pay your balance in full over a 72-month period. This is known as a streamlined installment agreement.

If you cannot pay off your balance in full you may claim hardship where you make payments based on your ability to pay and not on the amount you owe.

As mentioned above, the IRS bases your payment amount on your ability to pay.  They calculate your monthly disposable income (“MDI”) by taking the amount you take home each month and subtracting what they consider to be necessary and reasonable living expenses.  If this calculation indicates you spend the same or more than you take home, the IRS allows you to pay nothing; in essence, a $0 installment agreement.  This type of process is referred to as Currently Non-Collectible (“CNC”) status.  Not only does this take the pressure off of paying back taxes but allows the taxpayer to stay up to speed on current and future taxes.

This process sounds simple but you should know that the IRS has strict rules on what they consider to be necessary and reasonable living expenses when considering what you can afford to pay. If the IRS sees that you are paying for items they will not consider in their calculations, you may be forced to pay a monthly amount that is unaffordable.

The Tax Resolution Institute knows EXACTLY what the IRS will and will not allow. By planning properly and creating a comprehensive package to submit to the taxing agencies, we ensure that if you qualify, you will be placed into CNC status…

If you owe taxes to the IRS or State it is common that they will file a tax lien to protect their interest.  If you have ever sought to obtain financing for your home, business or even to purchase a car you know that tax liens can be hurdle to say the least.  In some cases, a tax lien can “trump” other lender’s interests and cause them to back out from active financing activities.

If you need to remove a tax lien, subordinate a tax lien, or attempt to keep a tax lien from being filed you have come to the right place.  The Tax Resolution Institute has over 25 years experience addressing tax lien matters to facilitate our clients needs.  In certain cases, even if you owe back taxes we can keep a tax lien from being filed.  Contact us today to discuss your concerns.

If you owe taxes to the IRS or State and ignore the problem, don’t be surprised if they respond with a “call to action”.  A common way the IRS wakes up a delinquent taxpayer is to garnish their wages.  If you are self-employed you may be thinking “this is not a problem for me, I do not receive a paycheck”.  While it is true that you do not receive a paycheck and therefore cannot have your wages garnished, that does not stop the IRS.  They have an “ace in the hole”…a 3rd party levy.  Not only does this procedure overcome the wage garnishment, it’s worse.

A 3rd party levy requires your customers to remit 100% of the money they owe you over to the IRS until the taxes are paid in full.  If you are thinking you can work something out with the customer, you should know that if they fail to comply, they are personally responsible to pay the government any amount they give to you once the levy is in effect.

No one can afford to live on $0 and the IRS know this.  They take this action not to place an undue burden on the taxpayer but rather incentivize them to negotiate a more realistic payment plan.

Nonetheless facing the possibility of working for nothing is scary.  With more than 25 years experience, The Tax Resolution Institute has been extremely successful helping taxpayers remove 3rd party levies and entering them into agreements they can live with.  Instead of facing an impossible situation, call us today and use your unfortunate situation as leverage to negotiate a suitable agreement.

The IRS recently relaxed the rules under which an injured spouse can claim relief.  In addition to the requirements classified under “traditional relief”, an injured spouse may request relief via allocation of liability as well as equitable relief.  Another significant changes can be seen in the process involving streamlined determinations.

Under the new rules, the IRS is now able to weigh various factors including marital status, hardship status and knowledge associated with the return/s in question in making their determination.  Prior to the change, a request may have been denied if the requesting spouse did not meet any one of theses obstacles.

Although the rules to request relief have been relaxed, the process to have a request granted must be managed by professionals with (1) a history of practicing in this area and (2) a clear understanding of the new Revenue Procedures that apply to this area.

If you believe that you qualify for relief as an injured spouse under any circumstance, let the Tax Resolution Institute represent you using our 25 plus years experience to obtain the best outcome possible.

Most taxpayers don’t realize that income taxes may be discharged in a bankruptcy.  Treatment of tax liability is one of the most complicated aspects of consumer bankruptcy law and many professionals including bankruptcy attorneys do not always understand the rules in their entirety.

If your representative does not have all of their ducks in a row, you may miss the opportunity to discharge some or all of your tax liability.  For this reason, you want to ensure that you are properly prepared prior to “pulling the trigger” on a bankruptcy

Whether or not your bankruptcy filing relieves your tax debt depends on several factors including the nature and the status of tax liability as well as the type of bankruptcy proceeding.

In order for taxes to be dischargeable, they must have aged according to the following rules…

3 years from the due date of a return including extensions (3-year Rule); and,

2 years from the date of assessment of said tax return (2-year Rule); and

240 days from the date of assessment for audited and/or amended returns (240-day Rule).

The Tax Resolution Institute has vast experience preparing Tax Dischargeability Analyses (“TDA”) for our clients that intend to file for bankruptcy.  A TDA determines if and when your taxes may be discharged in bankruptcy.  This is an invaluable tool for someone filing a bankruptcy with outstanding tax liability.

Assuming you are here because you received a notice of audit, you are probably concerned at what lies ahead…to say the least.

Representing yourself in an audit makes as much sense as a doctor performing an operation on themselves; and, sometimes the complexity of an audit goes beyond the scope of work your tax preparer is able to handle.

In addition to knowing tax law, it is important to know what the IRS is and is not looking for in their investigation.  Some audits stem from a “red flag” having been raised and others are chosen to occur at random.  It is important for the person representing you in an audit to know which applies to you.

If your audit is “routine” based solely upon the luck of the draw, compiling and submitting supporting documents and arguing your position may be a relatively simple task.  If on the other hand, you need to defend a more serious concern, you want to ensure you have the right person in your corner.

The team at the Tax Resolution Institute has vast experience representing clients in tax audits.  We not only know where you stand with regard to the tax code but understand how to work with IRS Revenue Agents to ensure that we are presenting your case in the best light possible.

If we determine that the Revenue Agent is being unreasonable, we also have vast experience appealing determinations at all available levels including tax court.  If you believe you have an audit that is out of your tax preparer’s comfort zone, contact us to see if we can help.

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