Thursday, June 22, 2017

IRS Wage Garnishment: How an IRS Tax Wage Levy Works, How to Stop It


An IRS wage garnishment is the confiscation and seizure of money from an employee’s monetary compensation resulting from unpaid IRS income taxes. Most likely this should not be a surprise as the IRS will only levy one’s wages after repeated letters and warnings about the taxes owed. An IRS wage levy is one of the IRS’s most aggressive tax collection mechanisms and should not be taken lightly. The IRS would rather resolve income tax debt in a different manner but the IRS will levy when they feel the have run out of other options. It is important to understand how an IRS garnishment works to ensure you take the appropriate actions to avoid them or stop the IRS from taking your wages, paycheck, Social Security, Social Security Disability (SSDI) and/or Veterans Pension.

What is IRS Wage Garnishment? What Should I Expect?

You should expect to waive good-bye to your paycheck. You should expect to miss paying your rent. You should expect to miss paying your car note. You should expect to miss having cash in your pocket.

An IRS wage garnishment is the legal way for the IRS to collect taxes from you without you actually paying them by having the taxpayer’s employer garnish their wages and send them to the IRS. 

Stopping IRS Wage Garnishment – Release an IRS Wage Levy

There are many ways you can prevent or stop a tax levy. The method you use should be determined by your financial and tax situation. Even if you do not qualify for any of the methods to stop a wage levy there are still ways to negate the effects of the levy. Know your options to make a wise decision about how to stop the wage levy and to protect your assets from the IRS.

Wage Garnishment FAQs

Can an IRS wage garnishment be stopped once the IRS has started to garnish my wages?

  • Yes a garnishment can be stopped once the IRS has started the levy. The IRS would actually prefer you to make some other form of arrangement than to enforce a garnishment. Some options can be to pay the IRS in full, enter into an installment agreement, file for an offer in compromise, get declared uncollectible, file bankruptcy, change employers or quit your job. The most common methods to stop a levy are to enter into an installment agreement, pay in full or file for an offer in compromise.

How much of my wages can the IRS take?

  • The IRS does have some guidelines as to how much they can take from you. They try to leave you with enough to pay your required expenses to live but this typically does not happen. IRS guidelines go by the national average of required amounts to live and if your rent is higher than the average, you will be left with an amount not high enough to pay your required expenses. The IRS can garnish upwards of 80% of your wages until they have collected the entire amount of your tax liability.

What kind of wages can the IRS take?

  • The IRS can seize salaries, commissions, bonuses, wages, retirement money and pension earnings. The IRS can take a minimum of 15% of your Social Security, Social Security Disability (SSDI) and/or Veterans Pension. If you do not have any of those they will likely try to seize any other property you have.

How can I stop the IRS from garnishing my wages?

  • The short answer is: The best way to stop an IRS wage levy is to call the best IRS help team at Flat Fee Tax Service, Inc.
  • You must stay on top of all required tax filings and pay all tax amounts owed to the IRS. If you cannot afford to pay the IRS you must come up with another form of agreement with the IRS to ensure that you pay back your taxes. The IRS has many methods available to those taxpayers that cannot afford their taxes, the method you pick depends upon your financial and tax situation.

What are the IRS rules / laws on garnishments? What are my Rights?

  • The IRS must send a final notice of intent to levy and notice of your right to a hearing at least 30 days before they can begin to levy your wages.
  • The IRS could have sent the final notice years ago and can send it to any address that the IRS has on file for you. This means that you may never know when the levy will hit.
  • The IRS must have assessed a tax liability and sent you a notice to demand payment prior to the levy.
  • You must have neglected or refused to pay the amount that was assessed by the IRS.

How can a tax professional help with an IRS wage garnishment?

  • A tax professional can help more than most people realize in a situation where a wage levy is involved. If the levy has already begun a IRS Tax Attorney at Flat Fee Tax Service, Inc. can put a hold status on your IRS wage levy while our team negotiates a tax settlement on your behalf. The hold will be in place the entire time an IRS settlement is negotiated which ensures that you do not have any more money seized. Flat Fee Tax Service, Inc. has a team of tax professionals who will analyze your financial, tax and work situation to come up with the best IRS settlement method for your unique situation. They will ensure that you get back into good standing with the IRS while keeping in mind your financial needs.

Flat Fee Tax Service, Inc. -  IRS Wage Garnishment Help -
                           Stop Your IRS Levy In One Day



Do need help stopping a wage levy? The IRS Tax Attorneys at Flat Fee Tax Service, Inc. can not only help, our team can stop and have your IRS wage levy released in one day. Understand the benefits of using a tax professional when dealing with a wage levy. Request a free and confidential consultation to talk with our experienced tax specialists and get back on track to financial freedom.

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Thursday, May 11, 2017

Selecting an IRS Tax Attorney - Flat Fee Tax Service

Selecting an IRS Tax Attorney

Tax professionals in a local tax practice (CPAs, accountants, enrolled agents, attorneys) have an inherent “conflict of interest" for aggressive representation of any one client because they do not want to antagonize the local IRS revenue officer or examiner in a way that will have a negative impact on their other clients. The IRS will take advantage of the timid local practitioner who finds it necessary to generate a positive image for the balance of his client base.

The IRS Tax Attorney(s) at Flat Fee Tax Service, Inc. specialize in dealing with IRS controversies, problems and issues of every kind throughout the United States. We have active cases pending throughout the United States. Our IRS Tax Attorney(s) understand the most effective ways to deal with the IRS to advocate a reasonable solution to resolve your IRS problems.




CPAs, accountants, bookkeepers, enrolled agents, and attorneys without a tax specialty may not have the time, experience, education, insight or technical skill to deal with the technical analysis, legal research, identification of issues, interpretative creativity and insight, negotiating skills, knowledge of the IRS , or technical writing ability necessary to effectively prevent avoidable tax overpayments. The person who prepares your tax return may only have six weeks of training, and that training may be limited to how to put numbers into an IRS income tax return. Your bookkeeper is not an income tax debt expert.

Your CPA prepares tax returns for approximately three months out of the year and spends the balance of the time preparing books, records, and financial statements. Most, if not all enrolled agents are not tax lawyers. Attorneys may have a general or a specialized practice that does not include tax issues and problems.

Nevertheless, accountants, CPAs, bookkeepers, enrolled agents, and non-tax attorneys will usually agree to represent you if you approach them with an income tax issue even if they do not have the training or experience to handle difficult, complex, or creative tax issues. The IRS can be expected to take advantage of those representatives who are not specialists in the tax law and who do not deal with the IRS on a full-time basis.

An IRS tax attorney can do something an accountant cannot do. An experienced IRS tax attorney can thoroughly research a tax statute and master it. He will know its legislative history. He will be familiar with the Treasury regulations and IRS rulings on that statute. He will penetrate the many court decisions involved in the litigation of the tax statute. He will have read tax articles and books that deal with the tax statute. It is improbable that your accountant has the training or experience that would permit him to penetrate the complexity of the tax law on a particular tax issue. It is also not likely that the accountant can take the time out of a busy accounting practice, working with numbers and preparing financial statements, to master the vast array of difficult tax law that bears on a tax statute.


Even worse is the fact that the mind-set of an accountant is to see "black and white" rather than the "gray" because they are trained to be precise with numbers. Tax law is drenched with ambiguity where there is mostly no answer that is right or wrong. Tax lawyers are trained to seek and find the ambiguity in the law (i.e., the "gray"). Tax law ambiguity can be used as a "sword" to attack an IRS position and as a "shield" to protect the taxpayer.

However, not all tax attorneys are equal just as, for example; professional golfers have difference levels of skill and ability. Tax attorneys have different levels of creativity, insight and skill.




The most important attribute of a good IRS tax attorney is to be "creative" with the tax law. This creativity may arise in many ways. A creative tax attorney will use interpretative skill to find support of a taxpayer position. A creative tax attorney will find a gap in a statute or a regulation (a "tax loophole") that permits favorable tax treatment in situations not covered by the statute under consideration. A creative IRS tax attorney will be able to identify inconsistencies by the IRS in its published positions or private ruling letters. A creative tax attorney will use interpretative skills to spin facts, case law, regulations in favor of the taxpayer. Creativity is unlimited in its potential to interpret and apply the law or the ability to develop that knowledge through research skills.

Any attorney is a better representative than a non-attorney because “taxes" is based on law written by the Conges and non-attorneys are not trained to research and interpret tax law. As between two attorneys, a specialist in taxes is a better choice as the result of superior training and experience. As between to tax attorneys who both specialize in IRS problems and controversies, a firm that has IRS experience, as we do, have better insight to the inner workings of the IRS . Knowledge of the administrative processes of the IRS is a distinct advantage in choosing your representative.

In explaining what a tax lawyer does that other representatives cannot do, it is helpful to understand what is meant by a legal issue. Legal issues are developed from expert creative analytical, interpretative, and technical research skills. Technical research includes: determining Congressional intent from the legislative history of the tax law; a search and analysis of the provisions of the applicable provisions of the Internal Revenue Code, Treasury tax regulations, IRS revenue rulings, private letter rulings and procedures and the IRS administrative procedures and guidelines.

The fact that tax law is complex and arcane is well known. This complexity is he reason a qualified tax attorney is in a superior position to protect a taxpayer from overpaying a tax liability - provided that attorney has strong creative, analytical and interpretative skills. Interpretative and analytical skills involve the sophisticated ability to read tax legislation, regulations, cases and other authority to identify subtle distinctions, ambiguity or supportive facts, issues, and argument.






Friday, May 5, 2017

Choose Our IRS Tax Attorney - Get Your IRS Tax Problems Solved

Flat Fee Tax Service, Inc.

When you choose our IRS tax help team, you hire an IRS Tax Attorney & have your IRS tax problems solved. Flat Fee Tax Service, Inc. has the best IRS tax help and is led by our dedicated IRS tax attorney and federal tax lawyers can help find the best possible solution for your federal and state tax situation and negotiate with the IRS and state on your behalf for IRS tax relief.


Flat Fee Tax Service, Inc. offers IRS tax debt relief assistance that can help you settle income tax debt for a fraction of the income tax owed. With the help of our tax relief lawyer, you can eliminate interest charges and penalties, and even remove a federal tax liens. Our IRS tax relief professionals can prevent or stop wage garnishments (in one day), provide effective tax debt solutions to property seizures, bank levies and other tax problems.






The IRS is one of the most powerful collection entities in the world and it has an army of enforcement agents and attorneys on its side. Effective IRS representation with a tax attorney experienced in IRS and state tax debt is essential in order for you to defend your rights and protect your assets. With over 40 years of combined experience, Flat Fee Tax Service, Inc. has both the broad IRS tax law knowledge and the specific expertise in the form of IRS Tax Attorney required to handle your case. 

Flat Fee Tax Service, Inc. is an IRS tax advocacy service dedicated to protecting individuals and businesses from the financial devastation that can result from IRS income tax debt. An IRS tax problem not only affects your financial future, but can also jeopardize every area of your life. If you hire the best IRS help team at Flat Fee Tax Service, Inc. to help you stop an IRS levy, prepare your missing tax returns and/or file an Offer in Compromise, you will never, ever be sorry. 







Tuesday, May 2, 2017

How To Respond And Prevent An IRS Levy - Stop An IRS Levy Today


You just received IRS Notice LT16, warning that your unpaid taxes have been assigned for immediate enforcement action.

The letter gives you three options:
(1) within 10 days, send a check to the IRS to pay your taxes,
(2) call the IRS to make payment arrangements, or
(3) face the prospect of an IRS levy on your wages and property.

Everything has been quiet on the IRS front for a while, but suddenly, now, it appears the IRS is getting ready to rear its ugly  of the LT 16 notice. Below is the realty of the LT 16 and your best responses to protect your property and paycheck from an IRS levy.

First, the LT16 notice, standing alone, does not permit the IRS to levy your wages or seize your property. Sure, the letter states that the IRS is getting ready to wipe you out, but IRS letters often threaten collection action that they cannot actually legally take.

Here’s the truth behind the LT16: Before the IRS can levy your property, they must first send you a Final Notice of Intent to Levy, identified as Notice LT11. An LT16 is not an LT11, and does not carry the same legal weight.

The IRS has been known to send the LT16 before the LT11. When this happens – which could be your situation – the LT16 gives the IRS no power to levy.

In other words, the LT16 should be taken seriously, but is there any meat behind it?

After receiving an LT16, it is important to not blindly call the IRS out of fear, but to first determine if an LT11 was ever sent.



To know if an LT11 was sent, an IRS Tax Attorney at Flat Fee Tax Service, Inc. would first review all the IRS letters you have received to determine if you have a Final Notice of Intent to Levy, distinguishing it from other similar IRS letters that appear to put you in jeopardy of levy but actually do not.

If you are unsure that you have all your IRS mail, or more importantly, just to be safe, the best IRS team at Flat Fee Tax Service, Inc. would contact the IRS and request transcripts, which would have internal IRS entries stating if the Final Notice of Intent to Levy was ever sent to you, and if so, when.

If a Final Notice of Intent to Levy was issued, an IRS Tax Attorney at Flat Fee Tax Service, Inc. can still stop the IRS from levying by filing a Collection Due Process Appeal. If filed within one year from the date of the LT11, these appeals not only prevent the IRS from levying, but also transfer your case from the IRS Collection Division to their Office of Appeals. That means we are no longer negotiating with collection agents, but IRS Settlement Officers.



Also, it is important to recognize that the LT16 is often an indicator that the IRS is transferring your case from its Automated Collection Service to a local Revenue Officer. Revenue Officers are the highest level IRS collection agents, work in your city, and often start a collection case investigation by making a visit to your home or office.


Because the IRS may be gearing up to transfer your case to a Revenue Officer, the IRS should be contacted to confirm where your case is in their collection queue, and if the case is being assigned to a Revenue Officer. If a Revenue Officer is in your future, remember that the IRS still needs to send the LT11 to empower the Revenue Officer (RO) to levy, and if it has been sent, you may have appeal rights to prevent financial hardship.

If an IRS Revenue Officer case assignment is pending, then now is the time to prepare, to be ready when the Revenue Officer (RO) comes calling. That means getting a head start in preparing financial statements, using IRS Form 433A or Form 433B, to demonstrate to the Revenue Officer how you can repay the taxes. The Revenue Officer will want to see current income, monthly living expenses, a listing of assets, and written verification of debts. After providing the financial statements, the Revenue Officer could place you into an installment agreement, process an offer in compromise, or determine that you cannot afford to pay the taxes back, and place your account in currently uncollectible status.

Steps should also be taken to ensure that you are in compliance with tax return filing requirements, and paying your current tax liabilities. That, too, will be an early requirement of the Revenue Orficer.

Lastly, know that an LT16 is not sent by a human, but an IRS computer. When an LT16 is sent, there is not an IRS agent shining a bright light on you, watching, waiting for your call, or getting ready to pounce on your assets. That may come later, with assignment to a Revenue Officer and issuance of the LT11, but for now everything is tied to a computer. Any immediate levy action is determined by the success of the IRS computer in trying to find information about your income from W2 and 1099 reporting. In that regard, if the IRS has no information on your current income, or the information is old and outdated, your immediate levy risk is likely minimal even if an LT11 has been sent.

The IRS LT16 notice of pending enforcement gives us a heads-up that the IRS is getting ready to gear up, and that all may not be quiet on the IRS front for a while. But understanding your rights to protect your wages and property – and to know what’s coming and prepare – can help you make it through, reach resolution with the IRS, and get on with your life.



Wednesday, April 26, 2017

Got Unpaid IRS Income Tax Debt? Collectors Can Now Contact You - IRS Tax Attorney




The tax deadline for April has officially passed, but what if you have an income tax debt lingering from a few years back?

If you do, you might hear about it from an unlikely source.

The Internal Revenue Service (IRS) recently announced they’ll be using private debt collectors (again) to collect on IRS debt more than two years old. Here’s what this means for you and how to spot potential scammers taking advantage of this new development.
IRS debt collection now enforced by private companies

In an effort to collect on unpaid taxes that have been delinquent for at least two years, the IRS is now using debt collection companies to help.

A new law surrounding IRS income tax debt, enacted by Congress in December 2015, is now taking effect. It “requires the IRS to use private collection agencies for the collection of outstanding inactive tax receivables.”

Essentially, if you owe any IRS income tax debt from two or more years ago, don’t be surprised if you are contacted by a debt collection company. If your unpaid income taxes are sent to collections, you’ll receive a letter from the IRS, followed by a letter from the collection company the IRS assigned to collect on your unpaid taxes. For this reason, it’s important to know the difference between legitimate IRS debt collection and a predatory tax season scam.

What you need to know if you are contacted

by IRS debt collectors

One of the most alarming things about this development is that many previous debt collection scams revolved around tax debt. Therefore, it’s important now more than ever to be vigilant if you’re being contacted by debt collectors.




Luckily, there is a set of rules debt collectors have to play by. 

Here’s how you can tell if the agency contacting you about unpaid taxes is legitimate:
(1) The IRS debt must be at least two years old.
(2) You’ll receive a letter about the unpaid taxes first – not a cold call.
(3) You will not be asked to pay via a prepaid debit, iTunes, or gift card; you will be informed about electronic payment options via
(4) Your unpaid taxes will only be sent to one debt collection company.

(5) The collection agency must abide by the IRS code. 
(6) You have rights.
(7) You can settle through the Offer in Compromise program.

There are currently four companies working on behalf of IRS debt collection:
CBE Group. Address: PO Box 2217, Waterloo, IA, 50704. Phone number: 1-800-910-5837
ConServe. Address: PO Box 307, Fairport, NY, 14450. Phone number: 1-844-853-4875
Performant. Address: PO Box 9045, Pleasanton, CA, 94566. Phone number: 1-844-807-9367
Pioneer. Address: PO Box 500, Horseheads, NY, 14845. Phone number: 1-800-448-3531

There are also a variety of accounts for which affected taxpayers are not subject to this collection, as outlined by the IRS:
Taxpayers who are deceased
Anyone under the age of 18
Those in designated combat zones
Victims of tax-related identity theft
Taxpayers currently under examination, litigation, criminal investigation, or levy
Accounts subject to pending or active offers in compromise
An account subject to an installment agreement
Accounts subject to a right of appeal
Those classified as innocent spouse cases
Taxpayers in presidential declared disaster areas and requesting relief from collection
How to pay back your unpaid taxes and IRS debt

Wondering how to repay your IRS debt?

Before you agree to pay,

Find out if you can settle for less.

Regardless of which of the four designated collection agencies contacts you about unpaid IRS debt, the only entity you should be paying is the IRS.

You can do this electronically on the IRS website or by check. Make all checks payable to the U.S. Treasury and send them directly to the IRS. Do not send a check or electronic payment to any entity other than the IRS.




Also, just because you owe unpaid taxes doesn’t mean you don’t have rights. Here are a few taxpayers’ rights outlined in Time:

Debt collectors can’t call before 8 a.m. or after 9 p.m. unless you tell them they can.

A debt collection company can’t threaten to arrest you.

If you want to be sure you owe the money, you can ask for a validation notice.

You can also double-check any balance you owe the IRS.

If any collections agency breaks these rules, file a complaint with the Treasury Inspector General for Tax Administration. Even if you owe the money, you are not allowed to be harassed.


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Tuesday, April 25, 2017

The IRS Hires Private Debt Collectors - Get IRS Protection - IRS Tax Attorney

In 2009, the Internal Revenue Service (IRS) decided to end a three-year program that used private debt collectors to chase down delinquent taxpayers after an internal report found that it was actually losing the government money and that government employees were much more efficient at collecting debt than their private sector counterparts. This was the agency’s second attempt at using such a program.

Despite both failures, Congress passed the “Fixing America’s Surface Transportation Act” (FAST) in 2015, which requires the IRS to employ private debt collection agencies as a means of helping fund road improvement projects.



In apparent reluctance, the IRS waited until earlier this month to make it official, announcing on April 4 that it “will begin sending letters to a relatively small group of taxpayers whose overdue federal tax accounts are being assigned to one of four private-sector collection agencies.” According to NBC News, the IRS has hired four collection agencies – CBE, ConServe, Performant and Pioneer Credit – to collect outstanding tax debts from taxpayers who have been contacted several times by the IRS but still have not paid.

The U.S. Treasury plans to assign up to 1,000 delinquent accounts to each of the four companies on a monthly basis, who have been offered the incentive of retaining 25 percent of the tax bills they collect.

One of the agencies hired by the IRS – Pioneer Credit – had its contract with the Department of Education terminated in 2015 after it was found to have made “materially inaccurate representations” to struggling borrowers “at unacceptably high rates” in its attempts to collect on defaulted federal student loans. Pioneer Credit’s parent company, Navient, was also fined $97 million by the federal government in 2014 for overcharging military service members and misrepresenting late fees on student loans.

In addition to the troubling history of some of the collection agencies that have been hired, consumer advocates have expressed concern over the IRS’ third attempt to use private debt collection to claim unpaid taxes, arguing that the move is likely to cause a host of problems, such as the mistreatment of borrowers and an increase in tax fraud.

Chi Chi Wu, a staff attorney with the National Consumer Law Center, told NBC News:

“There are so many reasons why it’s a bad idea that the IRS has been forced to use private debt collectors. They’re the most complained-about industry to the Federal Trade Commission [FTC] and the Consumer Financial Protection Bureau. All too often, consumers are being mistreated by debt collectors and now taxpayers are at risk of that in the collection of tax debt.”

Wu added that most of the people who will be targeted are likely to be struggling financially, making them eligible for certain compromise programs or non-collectible status – information that private debt collectors are likely to withhold from borrowers, as it benefits those companies financially. “The collectors don’t have any incentive to do that because they get paid a commission for every dollar they bring in. Their main incentive is to collect money, come hell or high water,” Wu said.



Furthermore, as tax professor Adam Chodorow noted in an article for Slate, the use of private collection agencies to obtain unpaid taxes increases the likelihood of tax fraud, as private entities impersonating the IRS may harass innocent taxpayers and pressure them into paying debts that don’t actually exist.

Susan Grant, director of consumer protection at the Consumer Federation of America, echoed Chodorow’s concerns, telling NBC News: “We’ve always warned not to believe anybody who calls you claiming to be from the IRS because the IRS doesn’t call trying to collect delinquent taxes. And now, people will be calling.”

While the Federal Trade Commission and the IRS both plan to issue updated warnings about imposter scams, the potential for abuse from both scammers and the officially-hired private collection agencies remains high.


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Friday, April 21, 2017

IRS To Use Private Collection Agencies - IRS Tax Attorney

Private Collection of Some Overdue Taxes

The IRS Will Be Using Private Collection Agencies

Starting this month, the IRS will begin sending letters to a select group of taxpayers whose overdue federal tax accounts / income taxes are being assigned to one of four private-sector collection agencies.

We all know how abusive over zealous collection agencies can and will be. Imagine a collection agency employee feeling he/she has the power of the Federal Government to use against you. It's a recipe for disaster. 

You have rights. Don't be abused and bullied. You need an IRS Tax Attorney.

This is a new program that was authorized under a federal law enacted by Congress in December 2015 which enables these designated contractors to collect, on the government’s behalf, unpaid income tax debts. Taxpayers being assigned to a private collection agency would have had multiple contacts from the IRS in previous years and still have an unpaid tax bill.


John Koskinen, the IRS Commissioner stated, “The IRS is taking steps throughout this effort to ensure that the private collection firms work responsibly and respect taxpayer rights. The IRS also urges taxpayers to be on the lookout for scammers who might use this program as a cover to trick people. In reality, those taxpayers whose accounts are assigned as part of the private collection effort know they have an income tax debt.”

How Does the New Program Work?

The IRS will always notify a taxpayer before transferring their account to a private collection agency (PCA). First, the IRS will send a letter to the taxpayer and their tax representative informing them that their account is being assigned to a PCA and giving the name and contact information for the PCA.

Only four private collection agencies are participating in this program: CBE Group of Cedar Falls, IA; Conserve of Fairport, NY; Performant of Livermore, CA; and Pioneer of Horseheads, NY. The taxpayer’s account will only be assigned to one of these agencies, never to all four. No other private collection agencies are authorized to represent the IRS.


Once the IRS letter is sent, the designated Private Collection Agency (PCA) will send its own letter to the taxpayer and their representative confirming the account transfer. 

To protect the taxpayer’s privacy and security, both the IRS letter and the PCA’s letter will contain information that will help taxpayers identify the tax amount owed and assure taxpayers that future collection agency calls they may receive are legitimate.



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Tuesday, April 18, 2017

IRS Penalties and Interest - IRS Tax Attorney - IRS Penalty Abatement



It seems like the Internal Revenue Service (IRS) loves punishing taxpayers with penalties and interest. Income Tax penalties began as a way to encourage prompt payment for income taxes owed to the IRS. These IRS penalties are added so often now that the extra charges have become a primary money-maker for the Internal Revenue Service. According to the Internal Revenue Service Data Book, 2014 $25.5 billion dollars of civil penalties were assessed.

The best IRS help team at Flat Fee Tax Service, Inc. will work to help you, the taxpayer, who may qualify for removal of IRS penalties or penalty abatement.

What is an IRS Penalty Abatement?

An IRS penalty abatement is defined as removal of certain penalties assessed by the IRS.
Two common penalties that can meet criteria for possible abatement are:
1. Failure-to-File: “A failure to file penalty may apply if you did not file by the tax filing deadline”. (IRS Tax Tip 2013-58, April 18, 2013)
2. Failure-to-Pay: “A failure to pay penalty may apply if you did not pay all of the taxes you owe by the tax filing deadline”. . (IRS Tax Tip 2013-58, April 18, 2013)

Each of these income tax penalties are calculated a bit differently. Although both IRS penalties are capped at a maximum of 25% of your unpaid tax. The Failure-to-File penalty is generally 5% of your unpaid tax for each month the return is late. The Failure-to-Pay penalty is generally .5% of the unpaid tax for each month it is late. The IRS will assess penalties for partial months.

As an example: If you owed $100,00.00 on your individual income tax return and filed an extension, but paid the total when the extension is due on October 15, your penalty would be approximately $3,000. If in the same situation you do not file an extension, your failure-to-file penalty may be capped, resulting in a much higher total IRS liability.

Interest generally accrues on unpaid tax in addition to penalties until the debt is paid in full. According to, topic 653, “The interest rate is determined quarterly and is the federal short-term rate plus 3%”, and is compounded daily. The complexity of the calculation can cause taxpayers to owes thousands of dollars in addition to the original income tax liability.

Unlike income tax penalties, interest continues to accrue until it is paid in full. If the IRS penalty abatement is granted the calculation for interest is adjusted accordingly.



Call the best IRS help team at Flat Fee Tax Service, Inc. for your FREE and confidential consultation. You won't be sorry that you called.


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Monday, April 17, 2017

The Fresh Start Initiative - IRS Offer in Compromise - IRS Tax Attorney



The IRS, in 2012, expanded its Offer in Compromise program with what is known as the Fresh Start Initiative. The Fresh Start Initiative continues to help taxpayers who are unable to pay their taxes due to financial difficulties. The Fresh Start Initiative, in addition to providing relief to American taxpayers, also helps the IRS keep a check on the number of tax default cases, as it encourages more taxpayers to pay an IRS settlement and "start over fresh".

What Income Tax Relief Will The IRS provide?

The IRS, under the Fresh Start Initiative, provides a number of relief options to financially-distressed taxpayers.

1. IRS Penalty Relief

The initiative allows eligible taxpayers up to a 6-month extension to pay their taxes. The penalties for not paying income tax by April 15 is waived off until October 15. If, however, the taxpayer fails to pay the taxes beyond the revised date, a penalty is charged.

The penalty relief is available to two categories of taxpayers
Wages earning individuals who have been unemployed for a minimum of 30 consecutive days.
Individuals who experienced a dip of 25 percent or more in their income due to a slowdown.

How Do You Qualify

If you are married and filing jointly, your adjusted gross income must not exceed $200,000. If your filing status is single, qualifying widower, head of household, or married filing separately, the adjusted gross income must not exceed $100,000. In addition, if you have an outstanding of more than $50,000, you will bot be qualified to receive a waiver.
2. IRS Installment Payment Plan

The IRS Installment Agreement provision allows taxpayers to pay their taxes, in installments, in a scenario wherein they are unable to pay in full. It also gives taxpayers more time to pay. The threshold for the maximum amount of debt against which an installment plan can be prepared has now gone up from $25,000 to $50,000, with the maximum term for the repayment of installments being 6 years. Though you need to pay less in penalties, the interest will continue to accrue on your outstanding dues.

Taxpayers can set up an installment agreement using the Online Payment Agreement without any intervention of an IRS assistor. It is, however, essential that they agree to pay the installments through a direct debit mode.
3. Offer in Compromise (OIC) - IRS Settlement

The Offer in Compromise program allows taxpayers to settle their outstanding income taxes for less than what they actually owe to the IRS. After the expansion of “Fresh Start” initiative, it has become easier for taxpayers to qualify for an Offer in Compromise, as the IRS has relaxed the qualification standards, and therefore, more people are now eligible for an IRS settlement.


To apply for an Offer in Compromise (OIC), the taxpayer needs to file Form 433-A (OIC) or Form 433-B (OIC), and deposit a non-refundable application fee of $186. If, however, the taxpayer qualifies under the Low Income Certification guidelines, they would not have to pay the application fee. In addition to the form and application fee, the taxpayer may also be asked to pay the first month’s installment or 20 percent of the settlement amount, at the time of filing.

If you are eligible to settle your income tax debt through the Offer in Compromise program, you would be silly not to take advantage of your opportunity to get a "Fresh Start".



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Thursday, April 13, 2017

IRS Wage Levy - IRS Bank Levy - IRS Seizure - IRS Tax Attorney


An IRS Levy is among the most destructive tools the Internal Revenue Service (IRS) will use to collect the income tax debt you owe them. An IRS bank levy effectively freezes the available funds in your bank account. The IRS freezes the funds in your bank account often leaving you with no money. Your assets are then used to pay toward your outstanding tax debt. Any resulting unpaid checks or bank fees only add to your financial problems. Any account with your name on it may be at risk of a bank levy – even if the money isn’t yours. Financial institutions must comply with IRS requests or face severe penalties. Even if your paycheck is directly deposited into your account(s), you may not be able to access the funds. You have 21 days, including weekend and holidays, to get your money back.


An IRS wage levy also known as a wage garnishment, presents similar challenges. In these situations, the Internal Revenue Service (IRS) sends your employer a written notice requesting a major portion of your pay as payment for your outstanding tax bill. Like an IRS bank levy, your employer must obey the IRS’s request or face legal punishment.

The IRS can exercise complete control of your existing and future assets. You need to know that if you are self-employed, your clients or customers will receive a demand for collection in what’s known as a “payor” levy. The payments they owe you are then sent to Internal Revenue Service. Bank and wage levies may allow the IRS to control every decision and financial move you make.

The IRS can also seize your Social Security, your Social Security Disabilty (SSDI) and your Veteran's Pension. The IRS can seize a minimum of 15% from these checks under the Federal Payment levy Program (FPLP).

Your IRS wage garnishment remains in place until you pay your entire income tax liability or until a levy release is negotiated.

Receiving a notice from the IRS of Intent to levy requires immediate attention. The best IRS help team at Flat Fee Tax Service, Inc. can help release a levy within twenty-four (24) hours. In most cases our IRS Tax Attorney can resolve your IRS problems before a bank or wage levy begins.

Call Flat Fee Tax Service, Inc. for your 
FREE confidential consultation.

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Wednesday, April 12, 2017

IRS Revenue Officer Help - IRS Tax Attorney



An IRS Revenue Officer is one of the last people you want appearing on your doorstep. Armed with an extensive arsenal of collection weapons, such as liens, levies, garnishments, and seizures, IRS Revenue Officers have all the means to make you pay unpaid taxes. Financial stress, however, is not the only problem at hand, as the IRS Revenue Officer can also contact your neighbors, relatives and colleagues, causing public humiliation.

How Flat Fee Tax Service, Inc. Can Help

The best IRS help team at Flat Fee Tax Service, Inc. understand that every taxpayer’s issue is unique. Our IRS help team will follow a collaborative approach to create a customized plan of action for every client. Our IRS help team, led by an IRS Tax Attorney, has in depth discussions with clients to understand your unique issues, and the dynamics at play, such as your income, financial obligations, pending liabilities, and other such factors. Based on the information gathered, we create a holistic plan to help you get your IRS problem addressed.

Why Choose Flat Fee Tax Service, Inc.?

Flat Fee Tax Service, Inc. has a team of widely experienced associates. We are the go-to destination for IRS Revenue Officer assistance. Our IRS Tax Attorney(s) have successfully handled exceedingly diverse and complex cases of unpaid taxes, negotiating favorable resolutions with IRS Revenue Officers on behalf of our clients. Our goal is to always secure the best IRS resolution that suits our clients’ prerequisites and complies with the Internal Revenue Code. 

Other attributes that set Flat Fee Tax Service, Inc. apart include:
Comprehensive Expertise
Streak of Successful Representations
No-obligation Free Consultation
Affordable Fees
Undivided Focus
Better Business Bureau Accredited
A Plus Better Business Bureau Rating
No Client Complaints

Do You Need IRS Revenue Officer Help?

Do You Need To Be Protected From The IRS?

If an IRS Revenue Officer has come to your home or business, you need immediate help. Do not waste any time because you have no time to waste. 


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Tuesday, April 11, 2017

Offer in Compromise or Currently not Collectible - What Is Your Best IRS Solution

Failure to meet your annual income tax obligation is an invitation to severe financial and legal consequences. The IRS can and will impose legal penalties, delay reimbursement, and in worst-cases, seize your possessions and can put you behind bars. There is no escape from filing and paying your taxes, but the IRS provides a few avenues to help those who are unable to make payments due to financial difficulties. 

An Offer In Compromise and Non-Collectible status are two solutions available to help taxpayers who meet the IRS’s financial hardship criteria. Both options, however, have their pros and cons, which you need to be aware of to make an informed decision on which avenue to pursue to resolve your tax issues. To help you decide, we discuss the details in the blog post.

Offer in Compromise

An IRS Settlement through the Offer In Compromise program allows the taxpayer to settle their entire income tax debt by paying an amount that is far less than what is actually owed to the IRS. 

Certain criteria must be met, then if the IRS agrees to your Offer in Compromise, the taxpayer must file income tax returns on time and pay the tax in full for the next five years.

Offer in Compromise Advantages

(a) An Offer in Compromise (OIC) removes a Federal tax lien against the taxpayer.
(b) As your income tax debt goes away, you earn more money by not having to pay back taxes.
(c) Your Offer in Compromise settlement can be paid over many months.



Offer in Compromise Disadvantages (Minimal)

(a) You have to pay $186 as a filing fee to process the request.
(b) There is a possibility of the IRS rejecting the request.
(c) You have to be perfectly tax compliant for five years, once your Offer in Compromise settlement request is accepted

Currently not Collectible Status

If you are unable to pay your tax debt, the IRS may consider your eligibility for Currently not Collectible Status (CNC). The IRS will cease all collection activities, which includes levies and garnishments, until the IRS notices an improvement in your financial condition. 

The IRS will send a statement that includes detailed information of the income tax debt to the taxpayer every year the account is in Currently not Collectible (CNC) status. If the taxpayer is not able to pay the amount, the IRS will keep postponing the collection.

Currently not Collectible Advantages

(a) You don’t have to pay any amount to the IRS.
(b) You don’t have to worry about tax levies and garnishments.
(c) The Statute of Limitations continues to run out on your income tax debt.

Currently not Collectible Disadvantages

(a) Despite the CNC status, you still owe the IRS and a Federal tax lien will more than likely be filed against you.
(b) If you do not file a return, there is a probability of cancellation of the uncollectible status
(c) Dramatic increase in income can also lead to cancellation of the status.
(d) At any time, the IRS could rescind your protected status.

Making a Decision

The best IRS help team at Flat Fee Tax Service, Inc., use this analogy to explain the difference between doing an Offer in Compromise settlement and being declared Currently not Collectible.

Imagine that you are a marathon runner. You run a marathon and when you are 200 yards away from the finish line, you decide to stop running. Well the difference between an Offer in Compromise and Currently not Collectible is a lot like that.

If the IRS has declared you to be Currently not Collectible and the IRS has declared you cannot pay your past due income tax debt, why don't you finish the race and do an Offer in Compromise settlement?

Although, the Currently not Collectible status saves you from paying anything for a specific amount of time, the Offer In Compromise settlement is a better tax resolution avenue as you do not have to worry about the future. 


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Friday, March 3, 2017

Difference Between Currently Not Collectible and an IRS Offer in Compromise - IRS Tax Attorney

IRS Currently Not Collectible Status. What is it? Will it help?

IRS Currently Not Collectible Status can help keep IRS out of your pay check, out of your bank accounts and out of your life.

Although IRS Currently Not Collectible Status can be a great deal, being Currently Not Collectible is not as great as an IRS settlement through the Offer in Compromise program. More on that later.

You could be one of the fortunate few who get it. And it’s not easy to do. Government employees of IRS perform extensive research to determine your monthly income and expenses (see details below). 

IRS agents make their final determination after completion of their exhausting financial investigation of your IRS Uncollectible Status request. A representative of IRS Automated Collection Service (ACS) then specifies if you are unable to pay any of your unpaid taxes. If so, your income tax account can be classified as IRS Currently Non Collectible Status. Accounts that are approved for IRS Non Collectible Status will then be temporarily suspended from any future IRS collection action. Once classified as uncollectible you will not have to make any payments to IRS on your previous unpaid income taxes.

With IRS Currently Non Collectible Status do my unpaid income taxes go away?

Unpaid income taxes do not disappear with IRS Currently Not Collectible Status. IRS does not forgive prior year unpaid taxes. We help classify your unpaid income taxes to be put “on hold.” IRS will want to re-evaluate your financial status at some point in the future. A new financial investigation will be conducted all over again at that time.

How long does IRS Currently Not Collectible Status last?

Unpaid income taxes that are placed into IRS Currently Not Collectible Status can last from six months to several years. The IRS computer will mail annual balance due notices to you. Income increases, automobile note payoffs, and rent or mortgage decreases are factors that may affect your status.

Invariably, it is almost impossible to estimate how long your IRS Currently Not Collectible Status will last. Most federal income tax negotiating experts like us have seen IRS Uncollectible Status arrangements last from one to five or more years. These are important factors to understand, indeed, so that you may maintain your status are discussed on this page.

IRS Non Collectible Status advantages.

Numerous advantages exist regarding IRS Currently Not Collectible Status. Unfortunately, taxpayers are confused because they are not prepared. Once successful in your negotiation you will not be required to make monthly payments on your old taxes. 

Agents of the IRS will not knock on your door and petrify you if your account is classified as IRS Currently Non Collectible. Federal agents making embarrassing appearances with badges at your workplace will not occur during your IRS Uncollectible Status term. Bank accounts will remain safe for you. You will not lose your automobiles to IRS seizure.

What questions will they ask for IRS Uncollectible Status?

Without exception IRS requires monthly income and expense verification to approve IRS Currently Not Collectible Status. Candidates for IRS Not Collectible Status must provide several months of pay stubs. Along with the pay stubs, all deductions on your pay stubs must be explanation in detail. You must give three months of bank statements. Rent/mortgage payments must be provided with check copies.

As the applicant, you must provide IRS copies of three months of utility payments with copies of the utility bills. IRS must see copies of car notes. You must give a list of all of your self-employed business accounts receivable because that serves as a source of cash for the IRS. Government managers and reviewers obtain statements from brokerage accounts. Copies of all credit card statements add to the list of requirements. All in all every bit of this trouble could definitely be worth it for IRS Currently Non Collectible Status classification.

IRS Currently Not Collectible Status – What you must do to stay in this status.

You remain in IRS Currently Not Collectible Status only by following all the rules. You default your CNC status by failure to meet specific requirements. One minor mistake can ruin your negotiation so please be cautious. Your must file your tax returns in a timely manner while you are in IRS Uncollectible Status. You must also pay all of your future taxes. An applicant’s failure to respond to periodic IRS requests may also result in loss of status.

What is the difference between IRS Non Collectible Status and an IRS Installment Agreement?

An IRS Installment Agreement allows you to establish an affordable monthly payment that will resolve the tax debt over a long time. IRS Non Collectible Status freezes the tax debt for a period of time to allow you to get into a better financial position so that payments can be made at a later point in time to resolve the tax debt. Unfortunately, the tax debt will continue to accrue interest during the IRS Installment Agreement period, so at the end of the non collectible status you will owe more than you did when your account was originally classified as IRS non collectible status.

What is the difference between IRS Non Collectible Status and an IRS Offer In Compromise?

The Difference Between Being Currently Not Collectible and An Offer in Compromise.

When you are Currently Not Collectible, yes, you will not make any payments on your income tax debt. You will have a Federal Tax lien filed against you. If your credit stinks, this will have little to no effect on you. If you have good credit, kiss it good-bye. 

With a successful Offer in Compromise, you will pay the IRS a very small amount in settlement of your income tax debt and there is no Federal Tax Lien. You get a Fresh Start.

We like to make the following analogy: Imagine you are running a marathon race and 200 yards from the finish line you decide to quit the race. That the difference in being Currently Not Collectible and doing an Offer in Compromise.


It’s important to remember that if you have IRS Non Collectible Status that the IRS will treat you very differently than if you have filed IRS an Offer In Compromise, which will wipe away all of your income tax debt. IRS requires the same financial information during the application process as an IRS Offer In Compromise, but IRS Currently Not Collectible Status status will reflect and prove your only inability to pay even a small monthly payment.

What about IRS penalties and interest during IRS Currently Not Collectible Status?

Your interest and penalties accrue steadily regardless of your attempts to slow them down while in IRS Uncollectible Status. However, you should not explode because IRS penalty rates are significantly lower than virtually all banks and definitely lower than credit cards. Your IRS Currently Non Collectible Status provides a safety net for you and also for your family.

A few words of warning regarding IRS Currently Not Collectible Status.



First of all, your attempts at negotiate your own IRS Currently Not Collectible Status for the very first time may prove to be exhausting. However, your hard work can be rewarding since along with your well-deserved success will come satisfaction. 

Additionally, prepared first-timers quickly learn to understand the formulas and calculations required by IRS. Regrettably, one or two slip ups or innocent mistakes can easily cost you thousands of dollars on your IRS Currently Not Collectible Status attempt. As a result, novices’ attempts are sometimes successful but are frequently extremely costly.