Have you received a notice from the IRS stating you owe taxes or penalties? It is critical to address these issues before enforced collection action is taken. At Mopsick Tax Law, LLP, we work with our clients to find the best strategy that fits our client’s individual needs.
- Levies, Seizures and Sales – The IRS has the power to levy bank accounts, garnish wages, seize and sell assets in order to collect delinquent taxes. Therefore, it is critical to proactively address tax delinquencies to avoid the possibility of enforced collection. Our Sacramento tax attorneys are experienced in working with the IRS to resolve tax delinquencies in many cases long before the IRS initiates enforced collections. We also work with the IRS to release levies or discuss arrangements to prevent property seizures.
- Installment Agreements – An installment agreement allows a taxpayer to make monthly payments to pay back taxes, including income taxes, employment taxes, and excise taxes. An installment agreement is one of the options Mopsick Tax Law, LLP will pursue on behalf of clients to resolve an outstanding tax debt.
- Offer in Compromise – A taxpayer can settle a tax debt with an offer in compromise for less than the amount owed based on doubt as to liability or doubt as to collectability when the applicable IRS criteria is satisfied. Our attorneys can help evaluate if an offer in compromise is an appropriate strategy to resolve a tax debt.
- Currently Not-Collectible Status – Currently not collectible status places a hold on enforced collection of a tax debt. A taxpayer may be placed into currently not collectible status by proving a financial hardship to the IRS. Our office can help determine if a taxpayer meets the IRS criteria for currently not-collectible status by reviewing in detail a taxpayer’s financial situation.
- Negotiations With IRS Revenue Officers – IRS Revenue Officers are skilled IRS employees tasked with the job of collecting delinquent tax debts. Revenue Officers have powerful collections tools at their disposal. They can garnish wages and levy bank accounts. Negotiating with an IRS Revenue Officer to resolve delinquent tax accounts, like any negotiations, is an art form. Knowledge, experience, cooperation with the IRS and good faith efforts to make progress satisfying a tax debt or compliance issue are key components in resolving any case directly with a Revenue Officer.
- Penalty Abatement – The abatement of penalties can eliminate all or a portion of tax penalties under some circumstances. Abatement of penalties comes in various forms including First Time Abatement, and Reasonable Cause Abatement. Mopsick Tax Law, LLP will work with clients to develop and evaluate any potential basis for requesting abatement of penalties.
- Innocent Spouse Relief – Married taxpayers are jointly and severally liable for the taxes owed on a joint tax return. In some cases, one spouse can be relieved of the joint tax liability under provisions for innocent spouse relief.
- Discharge and Removal of Liens – Tax liens secure tax debt by attaching to and securing assets owned by the taxpayer to prevent sale of property without remittance of the sale proceeds to the IRS. Federal tax liens attach to all property or rights to property owned by the taxpayer whether tangible or intangible and wherever located. If an asset subject to a lien is sold, the IRS must be paid the proceeds of sale in the amount secured by the lien. Removal of a tax lien is difficult absent full payment, but it can be done under some limited circumstances. Subordination of a tax lien occurs where the IRS agrees to allow another creditor to move ahead of the tax lien and take a position that is senior to the tax debt. Subordination can be an alternative to a discharge when attempting to access the value of property by borrowing.
- Taxpayer Advocate and Problem Resolution – The Taxpayer Advocate is an independent ombudsman who is tasked with resolving problems causing taxpayers economic hardship and addressing broad IRS systemic and procedural issues which could not be resolved through ordinary channels. The Taxpayer Advocate has the authority to issue a Taxpayer Assistance Order requiring IRS personnel to take corrective action or cease action that is not consistent with the IRS procedure.