Tax Concerns?
IRS and state tax problem resolution is a special area of professional practice involving unfiled tax returns, unpaid taxes, tax liens or levies, audit representation and any other type of tax controversy. Our principal, Rui DaSilva, EA (See What's an Enrolled Agent?) specializes in tax resolution. He is uniquely qualified to represent taxpayers before the IRS and other taxing authorities. Some of the specialized services we provide in this area include:
YOUR IRS OR STATE INFORMATION FILE:
We will secure your IRS file without raising any red flags. Filing under the Freedom of Information Act (FOIA) is one way we can review and interpret the IRS transcripts for you. This record reveals your history with the IRS (according to them). Additionally, if you find yourself needing help with the IRS, the states are usually not far behind. We can also gather information in your state file using similar methods. We may also anticipate their moves based on this information posted to your account.
UNFILED TAX RETURNS:
Many taxpayers fail to file required tax returns for many reasons. What they may not be aware of is that a failure to file a tax return is a criminal offense! This type of criminal act is punishable by one year in jail for each year not filed! It is one thing to owe the IRS money, but it is another to potentially lose your freedom for failure to file a tax return. In most situations we can prepare and file delinquent returns avoiding exposure to such harsh penalties. In some cases, the IRS may even file a SFR (Substitute For Return) tax returns for you. This is the IRS's version of an unfiled tax return. Because SFR returns are filed in the best interest of the government, the only deduction you'll see is the standard deduction. On a SFR return, you will not get credit or deductions that you may be entitled like interest and taxes on your home, cost of any stock or real estate sales, and business expenses, among others. Therefore, the amount of tax assessed is higher than the amount we would calculate considering appropriate deductions and exemptions.
INNOCENT SPOUSE:
Taxpayers often find themselves in trouble with the IRS because of their spouses or ex-spouse's actions. The IRS realizes that these situations do occur and to help taxpayers that are subjected to IRS collection actions because of their spouse's actions, special new rules went into effect under the 1998 IRS Restructuring Act. These new rules created guidelines where a person may qualify as an Innocent Spouse. This means if a taxpayer can prove they fit those guidelines, they may not be subject to the taxes caused by their spouses or ex-spouses. The IRS is currently considering additional new regulations, which would make it even easier to qualify as an Innocent Spouse. If the IRS is trying to collect tax related to the income of a spouse or ex-spouse that you believe you don't owe, call us and schedule your consultation today.
PENALTY ABATEMENT: The IRS increases the amount a taxpayer owes by adding penalties and interest to the unpaid tax amounts. In many cases a taxpayer could pay the tax, but thanks to the penalties and interest, the ever-growing balance quickly becomes unmanageable. There is hope! Taxpayers that are hit with IRS penalties can request the penalties to be abated, which means to completely or partially remove. Often we are able to have the penalties and interest abated by providing reasonable cause. We may be able to include penalty abatement with an Installment Agreement as well.
STATUTE OF LIMITATIONS: The IRS has a limited amount of time to assess the tax they want from you. Then, once they make this assessment, there is a limitation on the time they have to collect all taxes, penalties, and interest from you. This is known as the Statute of Limitations. You do not owe the IRS anything after this statute of limitations date has passed. As part of our engagement, we use copies of your IRS transcripts to verify the assessment date, so we can compute when the statute of limitations will expire, taking into consideration special circumstances that could affect this statute date. In addition, we use this date to determine its effect on other remedies as well, such as Partial Pay Installment Agreements as explained above. Once expired, we inform the IRS that they no longer have the right to collect this tax liability, and they must write off all the tax liabilities which have expired.
LIENS, LEVIES, AND GARNISHMENTS: The IRS may take money from your paycheck or bank account, seize assets, or place a Lien on your home or other assets. We can often prevent this or have these lifted so you can afford to pay your bills. If you are presently dealing with, or concerned about a lien, levy, or garnishment we can help. Remember, the earlier we address the problem the more successful we are likely to be. Ignoring a tax problem is usually asking for a bigger problem and may limit our ability to help you out of it.
A Lien is filed by the IRS on your home or other assets that you have now, as well as future assets you acquire during the duration of the lien. Liens are filed to protect the government's interests. If you then sell an asset with a Lien attached, the IRS tax debt is settled with the proceeds before you receive the remainder (if any). This also affects your Credit, since it becomes public record, affects your credit report, and will affect your ability to get credit. Even if you file for bankruptcy, your lien may continue after the bankruptcy.
An IRS Levy is the action taken by the IRS to collect taxes by seizure. For example, the IRS can issue a bank levy to obtain your cash in savings and checking accounts. Or the IRS can levy your wages or accounts receivable. The person, company, or institution that is served the levy must comply for face their own IRS problems. The additional paperwork this person, company, or institution is faced with to comply with the levy usually causes the taxpayer's relationship to suffer with the person being levied. A levy can also be issued to seize other assets. Levies should be avoided at all costs and are usually the result of poor or no communication with the IRS.
WAGE GARNISHMENTS: The IRS wage garnishment is a very powerful tool used to collect taxes owed through your employer. Once a wage garnishment is filed with an employer, the employer is required to collect a large percentage of each paycheck. The paycheck that would have otherwise been paid to the employee will now be paid to the IRS. The wage garnishment stays in effect until the IRS is fully paid or until the IRS agrees to release the garnishment. We can assist with getting the garnishment released so your paycheck goes to you and not to the IRS!
What To Do if You Get a Letter From the IRS
If you receive an audit letter from the IRS, do not disregard it. Contact us as soon as possible so that we can respond to it promptly. If an IRS agent contacts you, we recommend that you demonstrate the utmost kindness, but calmly advise them that you will have a representative of RDS Financial Services contact them ASAP regarding your case. If the IRS agent continues to question or harass you, simply repeat that a representative of RDS Financial Services will be contacting them on your behalf. This is important because whatever information you provide them with will be used against you.
What exactly is an IRS audit?
Taxpayers are anxious and terrified of getting audited by the IRS for very good reasons. After all, during an audit the IRS makes every effort to confirm all of the numbers and detailed sums that you've put on your tax return(s). Almost all taxpayers can't help but to become confused when it comes to an invasive IRS audit. Most individuals are unsure of what an audit actually is and what may be involved. An audit is defined as an, "official examination and verification of accounts and records, especially of financial accounts", but there's much more to it than that.
There are three types of IRS auditing methods:
• Correspondence – Mail-away audit.
• Office Audit – You're asked to appear at an IRS office with your tax documentation.
• Field Audit – The IRS auditor(s) may come out to meet with you at your residence or place of business.
What Should I Do?
We understand, and we're here to help you through it. With our help, you can make things right with the IRS and/or State Department of Revenue. We will work out a solution to resolve your specific situation, and represent you before the IRS so that you don't have to represent yourself.
Call Us Today, Or Click Below To Schedule A Consultation.
Tax Concerns?
IRS and state tax problem resolution is a special area of professional practice involving unfiled tax returns, unpaid taxes, tax liens or levies, audit representation and any other type of tax controversy. Our principal, Rui DaSilva, EA (See What's an Enrolled Agent?) specializes in tax resolution. He is uniquely qualified to represent taxpayers before the IRS and other taxing authorities. Some of the specialized services we provide in this area include:
YOUR IRS OR STATE INFORMATION FILE:
We will secure your IRS file without raising any red flags. Filing under the Freedom of Information Act (FOIA) is one way we can review and interpret the IRS transcripts for you. This record reveals your history with the IRS (according to them). Additionally, if you find yourself needing help with the IRS, the states are usually not far behind. We can also gather information in your state file using similar methods. We may also anticipate their moves based on this information posted to your account.
UNFILED TAX RETURNS:
Many taxpayers fail to file required tax returns for many reasons. What they may not be aware of is that a failure to file a tax return is a criminal offense! This type of criminal act is punishable by one year in jail for each year not filed! It is one thing to owe the IRS money, but it is another to potentially lose your freedom for failure to file a tax return. In most situations we can prepare and file delinquent returns avoiding exposure to such harsh penalties. In some cases, the IRS may even file a SFR (Substitute For Return) tax returns for you. This is the IRS's version of an unfiled tax return. Because SFR returns are filed in the best interest of the government, the only deduction you'll see is the standard deduction. On a SFR return, you will not get credit or deductions that you may be entitled like interest and taxes on your home, cost of any stock or real estate sales, and business expenses, among others. Therefore, the amount of tax assessed is higher than the amount we would calculate considering appropriate deductions and exemptions.
INNOCENT SPOUSE:
Taxpayers often find themselves in trouble with the IRS because of their spouses or ex-spouse's actions. The IRS realizes that these situations do occur and to help taxpayers that are subjected to IRS collection actions because of their spouse's actions, special new rules went into effect under the 1998 IRS Restructuring Act. These new rules created guidelines where a person may qualify as an Innocent Spouse. This means if a taxpayer can prove they fit those guidelines, they may not be subject to the taxes caused by their spouses or ex-spouses. The IRS is currently considering additional new regulations, which would make it even easier to qualify as an Innocent Spouse. If the IRS is trying to collect tax related to the income of a spouse or ex-spouse that you believe you don't owe, call us and schedule your consultation today.
PENALTY ABATEMENT: The IRS increases the amount a taxpayer owes by adding penalties and interest to the unpaid tax amounts. In many cases a taxpayer could pay the tax, but thanks to the penalties and interest, the ever-growing balance quickly becomes unmanageable. There is hope! Taxpayers that are hit with IRS penalties can request the penalties to be abated, which means to completely or partially remove. Often we are able to have the penalties and interest abated by providing reasonable cause. We may be able to include penalty abatement with an Installment Agreement as well.
STATUTE OF LIMITATIONS: The IRS has a limited amount of time to assess the tax they want from you. Then, once they make this assessment, there is a limitation on the time they have to collect all taxes, penalties, and interest from you. This is known as the Statute of Limitations. You do not owe the IRS anything after this statute of limitations date has passed. As part of our engagement, we use copies of your IRS transcripts to verify the assessment date, so we can compute when the statute of limitations will expire, taking into consideration special circumstances that could affect this statute date. In addition, we use this date to determine its effect on other remedies as well, such as Partial Pay Installment Agreements as explained above. Once expired, we inform the IRS that they no longer have the right to collect this tax liability, and they must write off all the tax liabilities which have expired.
LIENS, LEVIES, AND GARNISHMENTS: The IRS may take money from your paycheck or bank account, seize assets, or place a Lien on your home or other assets. We can often prevent this or have these lifted so you can afford to pay your bills. If you are presently dealing with, or concerned about a lien, levy, or garnishment we can help. Remember, the earlier we address the problem the more successful we are likely to be. Ignoring a tax problem is usually asking for a bigger problem and may limit our ability to help you out of it.
A Lien is filed by the IRS on your home or other assets that you have now, as well as future assets you acquire during the duration of the lien. Liens are filed to protect the government's interests. If you then sell an asset with a Lien attached, the IRS tax debt is settled with the proceeds before you receive the remainder (if any). This also affects your Credit, since it becomes public record, affects your credit report, and will affect your ability to get credit. Even if you file for bankruptcy, your lien may continue after the bankruptcy.
An IRS Levy is the action taken by the IRS to collect taxes by seizure. For example, the IRS can issue a bank levy to obtain your cash in savings and checking accounts. Or the IRS can levy your wages or accounts receivable. The person, company, or institution that is served the levy must comply for face their own IRS problems. The additional paperwork this person, company, or institution is faced with to comply with the levy usually causes the taxpayer's relationship to suffer with the person being levied. A levy can also be issued to seize other assets. Levies should be avoided at all costs and are usually the result of poor or no communication with the IRS.
WAGE GARNISHMENTS: The IRS wage garnishment is a very powerful tool used to collect taxes owed through your employer. Once a wage garnishment is filed with an employer, the employer is required to collect a large percentage of each paycheck. The paycheck that would have otherwise been paid to the employee will now be paid to the IRS. The wage garnishment stays in effect until the IRS is fully paid or until the IRS agrees to release the garnishment. We can assist with getting the garnishment released so your paycheck goes to you and not to the IRS!
What To Do if You Get a Letter From the IRS
If you receive an audit letter from the IRS, do not disregard it. Contact us as soon as possible so that we can respond to it promptly. If an IRS agent contacts you, we recommend that you demonstrate the utmost kindness, but calmly advise them that you will have a representative of RDS Financial Services contact them ASAP regarding your case. If the IRS agent continues to question or harass you, simply repeat that a representative of RDS Financial Services will be contacting them on your behalf. This is important because whatever information you provide them with will be used against you.
What exactly is an IRS audit?
Taxpayers are anxious and terrified of getting audited by the IRS for very good reasons. After all, during an audit the IRS makes every effort to confirm all of the numbers and detailed sums that you've put on your tax return(s). Almost all taxpayers can't help but to become confused when it comes to an invasive IRS audit. Most individuals are unsure of what an audit actually is and what may be involved. An audit is defined as an, "official examination and verification of accounts and records, especially of financial accounts", but there's much more to it than that.
There are three types of IRS auditing methods:
• Correspondence – Mail-away audit.
• Office Audit – You're asked to appear at an IRS office with your tax documentation.
• Field Audit – The IRS auditor(s) may come out to meet with you at your residence or place of business.
What Should I Do?
We understand, and we're here to help you through it. With our help, you can make things right with the IRS and/or State Department of Revenue. We will work out a solution to resolve your specific situation, and represent you before the IRS so that you don't have to represent yourself.
Call Us Today, Or Click Below To Schedule A Consultation.