Welcome to the Crest Tax Group Resource Center!
Dealing with the IRS can be one of the most stressful and intimidating experiences you can go through. And, IRS tax problems don’t go away on their own. Crest Tax Group understands your anxiety and believes the key to IRS tax relief is an informed client. This resource center is here to educate you on the problems you may be facing, and provide you information necessary to put your tax problems behind you and get on with your life.
If you have a general question regarding a tax problem, take a look at some frequently asked questions.
If you’ve ever worked on your taxes before, you’ll know that one of the most critical first steps to getting favorable results is to get your paperwork organized. A lack of organization is one of the biggest reasons why people tend to struggle with their tax returns. If you are getting ready to do your taxes, simply make sure to organize the following documents, and you will find a lot of the stress of doing your taxes will quickly disappear, not to mention the efficiency and speed with which...
Did you know that doing a short sale can result in thousands of dollars in tax debt to the IRS/State? In 2010 alone, more than 3 million foreclosures were expected to take place. In an effort to avoid becoming yet another statistic, more and more Americans are resorting to what is known as a short sale. A short sale is a process which allows upside down homeowners (upside down is a term that defines a mortgage that is greater than the value of the property it underwrites) to...
When the real estate bubble burst in 2007, a property, once appraised at seven figures, plummeted to Great Depression lows and yet the interest rates on the home loans remained unaffected. In February of 2009, the Obama administration reacted accordingly by implementing the Home Affordable Modification Program (HAMP) in order to provide economic relief to downtrodden American homeowners. As a direct response, many Americans have been scrambling to negotiate an adjustment in their mortgage...
In its hay day, the real estate bubble allowed ambitious house-flippers with good enough credit to purchase property with borrowed money. Then came the financial crisis of 2007 when the bubble burst and those not fortunate enough to cash out in time were left with the burden of paying inflated mortgages, or in other words, having an upside down mortgage. What was once a property valued at $1million, lost $400 thousand in value virtually overnight, and yet the monthly mortgage payments...
When dealing with the IRS, it always essential to keep yourself organized in every possible way. Making even the smallest mistakes can stall the process and cause potential problems. To help with the organization process, we want to provide you with a few of the most essential IRS tax forms that are required.
A Power of Attorney is a document that grants permission to a 3rd party to act on behalf of an individual, for the purpose of representing that individual to the IRS. The individual granting the power is called the principal, and the party permitted to act on the behalf of said individual is the agent or attorney. It is important to understand that Form 2848 Power of Attorney will not be applicable in any circumstance outside of representation to the IRS.
Form 8821 is intended to authorize an individual or a firm to receive and evaluate confidential information relating to personal financial matters. In the event that you are using a 3rd party to resolve your IRS tax debt and negotiate down your amount, this form will need to be submitted in order for the process to begin.
Form 433-A is a Collection Information Statement for Wage Earners and Self-Employed Individuals. Completing this form is essential in submitting a successful Offer in Compromise application to the IRS. It is a form that documents an individual’s unique financial situation, including the reasons for financial hardship.
Form 433-B is a Collection Information Statement for Businesses. This form must be completed and submitted with every Offer in Compromise application by self-employed individuals and/or Businesses. Failure to properly complete this form will result in the return of your Offer in Compromise application.
Form CP 90 - Final Notice of Intent to Levy and Notice of Your Right to a Hearing
When the IRS fails to collect the taxes that are owed, they may take an active role in collecting the outstanding debt in the form of imposing a levy against the debtor, often in the form of wage garnishment or a lien against a property. When the IRS intends to levy on certain assets, the CP 90 form is sent out, informing the receiver of what steps are needed to be taken to prevent this action from taking place within 30 days of the issuance of the notice.
Welcome to Crest Tax Group’s general questions and answers area. We specialize in providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS or State Taxing Authorities. Here, we feature some of the most frequently asked questions from our clients.
How is the amount of the offer calculated in an Offer in Compromise?
There are two parts to the formula. The first is the equity in assets you own, the second is based on the income you have available each month after paying for allowable expenses, multiplied by a factor of 48 or 60.
After we settle, will I be in good standing with the IRS/State?
Yes. For the next five years, however, you must remain in compliance with the tax laws. This means you must file and pay all subsequent tax returns in a timely manner. You must also make timely estimated tax payments if required.
Is the IRS/State required to give me a payment plan?
If you owe the IRS less than $10,000 of tax and it can be paid in 5 years, you have the legal right to a payment plan. The IRS also has a streamlined plan that can be arranged if you owe a total of less than $25,000 including penalties and interest, and if it can be repaid in 5 years. This is not a legal right, but it is IRS policy. The professional cost to secure one of these should be a low fixed fee. State Taxing Authorities policies differ within each state.
How long does it take to negotiate a settlement with the IRS/State?
It usually takes about 7 months to settle with the IRS/State. First we need to gather evidence for the case, which would include financials for an Offer in Compromise and a narrative for Penalty Abatement. This takes approximately one month. Then we submit the OIC to the IRS/State for review and to verify financials. This takes about 3 or 4 months, after which the IRS/State will either accept or reject the OIC. If the OIC is rejected, it takes about 2 months to appeal the judgment.
What can I do about the tax liens?
Depending upon the size of the tax lien that's secured, the debtor can move to pay it off if he has, or can borrow, the funds. Sometimes this can be done by direct negotiation with the IRS/State to agree on the secured value of the lien.
Other times, the debtor may have to resort to bankruptcy options, such as paying off the value of the secured debt in a Chapter 13 plan. This also may require an action in court to determine the value of the collateral, and hence the equity to which the tax lien attaches. Sometimes a challenge to the validity of the lien may be available, if grounds exist, such as:
* The notice of tax lien was never recorded, although the IRS/State said it was.
* The notice was recorded after the automatic stay took effect.
* The notice was filed against assets that do not belong to you
* The lien was based on an invalid assessment.
* The lien expired. The life of the lien is ten years, unless re-recorded.
What if I can't pay all my back taxes at once?
Most people can't. This is, after all, why most of our clients are in the position they're in. It is our function to lower the amount of taxes owed and work out an affordable monthly payment, while at the same time protecting your assets.
What are my options if I can't reach an agreement with the IRS/State?
The IRS/State is always interested in reaching some sort of settlement with delinquent taxpayers. Keep in mind though; it's not their goal to make your life miserable by garnishing your wages and levying your bank accounts. It's to get you into compliance and collect as much money as they can, as quickly as possible.
What can I do about all the penalties and interest?
In some cases Crest Tax Group can argue for an abatement of all penalties and the associated interest. There has to be extenuating circumstances surrounding the reasons you accumulated the tax debt.
What do your services cost?
Our services vary in cost depending on the amount of work entailed in the case, type of resolution and whether or not you are in the collections process. Our initial consultation is free, and we won't take on your case unless we're confident we can reach a resolution you'll be happy with.
Why can't I just deal with the IRS/State myself?
Actually, you can attempt to resolve your tax issue yourself, but it is a very difficult process. First, there's the frustration of dealing with endless complicated forms and publications and long hold times with waiting for an agent. Then there's the issue of knowing how to negotiate with revenue officers. It's important to note that over 85% of offers are rejected by the IRS, simply because the average person doesn't understand the process. The professionals at Crest Tax Group have decades of experience handling all kinds of tax issues, so you can be assured we'll negotiate the best solution possible.