The IRS has the power to administratively reduce a penalty that qualifies for the “First Time” Penalty Reduction Policy. You may qualify for the administrative penalty reduction under this rule if: 1. You are not required to file a return or have no pending penalties in the 3 years prior to the year in question. 2. If you are up to date with your statements or if you have sent the extension for the current year on time. 3. If you have paid, or agreed to payments with the IRS. 4. Another administrative way to reduce is by having received the wrong recommendation from an IRS agent.

If you are unable to pay immediately, you can make monthly payments through a payment agreement. As long as you pay in full, you can reduce or eliminate the payment of penalties or interest, and avoid the fee associated with setting up the agreement. Before requesting a payment agreement, you must submit all required tax returns. You may be eligible to request an online payment agreement if: 1. Individuals $ 50,000 or less in individual combination of taxes, penalties, and interest, and all required returns have been filed. 2. Companies $ 25,000 or less in payroll taxes and all required returns have been filed. If you meet these requirements, you can request a payment agreement online. Even if you are not eligible for an online payment agreement, you can still pay in installments.

Injured Spouse Assignment Form.

If you file a joint return and all or part of your refund is applied against federal taxes, state taxes, child or spousal support, or federal non-tax, such as a student loan, you may be entitled to injured spouse relief. To be considered an injured spouse, you must have made and submitted tax payments, such as federal income tax withheld from wages or estimated tax payments, or claimed a refundable tax credit, such as the earned income credit or the additional child tax credit on joint filing, and not being legally obligated to pay the amount due. Injured Spouse Allocation Form is most commonly used and can be filed online with your tax return or submitted on its own after filing the tax return if necessary. This form allows you (the “injured spouse”) to get back your portion of a jointly filed refund if it was taken or offset to pay for your spouse. You must file jointly when using this form. Additionally, submitting the form will delay your federal refund for up to 14 weeks.

Application for Innocent Spouse Relief.

Many married taxpayers who choose to file a joint tax return due to certain benefits that this filing status allows them. When you file a joint return, both taxpayers are jointly and severally liable for the tax and any additions to taxes, interest, or penalties that result from the joint return, even if you later divorce. Joint and several liability means that each taxpayer is legally responsible for the entire liability. Therefore, the spouses in a joint filing marriage are generally liable for all tax due, even if one spouse earned all of the income or claimed improper deductions or credits. This is also true even if a divorce decree states that a former spouse will be liable for unpaid amounts on previously filed joint returns. In some cases, however, a spouse can get joint liability relief. Innocent Spouse Relief provides additional unpaid tax relief if your spouse or former spouse did not report income, incorrectly reported profit, or claimed improper deductions or credits. The form is not sent with your tax return and is completed to request tax relief, so you believe that only your spouse or ex-spouse should be held liable. You will have to prepare and submit this form to the IRS manually. Remember, you must file for innocent spouse relief or liability relief separation no later than 2 years after the date the IRS first tried to collect the tax from you. To be sure that you have the right to an affected or innocent spouse called Spouse Relief call Mi Casa Tax Services. We will provide you with all the documents you need and one of our specialists will guide you through the process quickly and productively.

Each year, the Appeals Office helps more than 100,000 taxpayers resolve their tax disputes without having to go to Tax Court. It is an independent organization within the IRS, whose mission is to help taxpayers and resolve tax disagreements determined by the Government. Appeals also offers mediation services through Fast Track Settlement and other programs. These mediation programs are designed to help you resolve your dispute as early as possible in the audit or collection process. The IRS will send you a report and / or letter explaining the proposed adjustments or collection action proposed or taken. The correspondence also informs you of your right to request a meeting with an Appellant or Settlement Officer, as well as how to make your request for a conference. In addition to exam adjustments, many other things can be appealed such as fines, interest, penalties, trust fund recovery, offers in compromise, liens and fees. If you request an Appeal conference, be prepared to support your position with records and documentation. Appeals conferences are informal meetings. You can represent yourself or have an attorney, accountant, or an individual registered to practice before the IRS represent you. If an agreement cannot be reached with the Appeals or Settlement Officer or if you do not wish to appeal within the IRS, you can appeal certain actions through the courts. You can get all the documents you need for your appeal here at Mi Casa Tax Services. We will make sure you have all of your records and help you understand the appeal process. It may sound complicated, but it will become clear with our help.

An IRS account lien allows the legal seizure of your property to satisfy a non-payment of tax. You can garnish your wages, take money from your bank or other financial account, hold and sell your vehicle (s), real estate and other personal property. If you receive a bill from the IRS titled Final Notice of Intent to Levy and Notice of Your Right to a Hearing, please contact us immediately. If you receive a notice from the IRS of a lien against your employee, vendor, customer, or a third party, it is important that you comply with the rate.

Back taxes are the taxes that have been paid in the year in which they were not paid. Taxpayers may have unpaid back taxes at the federal, state, and / or local level. Back taxes accrue interest and penalties on a regular basis. The IRS has turned over the collection of unpaid back taxes to a private collection agency. Taxpayers who do not have the means to pay taxes can often negotiate a minor settlement through an offer in compromise with the IRS either directly or through a tax attorney. Having unpaid back taxes and not being able to pay is a very common thing to the IRS. Since this is such a common problem, you can be sure that there are many solutions. The IRS and we at MC Tax Group can work with you to make sure you get paid. Typically, the IRS will try to collect the maximum amount of tax that is owed from you with the least amount of effort, and this is a good thing to keep in mind if you intend to settle your back taxes for less than the amount. that you must pay. The sooner you recognize the problem with back taxes and take action, the easier it will be to deal with the IRS. If back taxes are not paid you can be sure the IRS will find you and eventually take action. The IRS has a highly automated process that it goes through routinely in order to get people to pay. When you can’t pay: When you have unpaid taxes that you cannot pay, you are still expected to pay the IRS. For those who cannot pay in full, the IRS offers many other forms of payment. These methods range from making monthly payments for the outstanding tax amount to paying only a fraction of what is actually owed and still being. Depending on your financial situation, the IRS will always be willing to work with you. For some direction on how to pay your back taxes and help you negotiate something with the IRS, call the best in the business, Mi Casa Tax Services.

A divorce is a complicated situation all around, no matter how you look at it. In addition to all the emotional problems you have to struggle with, you also have to sort through a list of financial issues when it comes to separating merged finances. Many married couples have joint accounts, own property that they both own, and have been filing income taxes jointly for years. So what are you going to do after you get a divorce and how much back taxes do you owe? At Mi Casa Tax Services we understand that getting a divorce is a long and difficult process, which is why we want to make your financial problems a short and easy process. We are here to make your life easier by finding solutions to your problems.