Tax Resolution

Very little is as unnerving than receiving an IRS Audit letter in the mail. Audits take significant time away from your small business and family. They require that you gather lots of records substantiating each and every item reported on your tax return and develop a comprehensive understanding of tax law.

The IRS is unwavering in its mission to determine the accuracy of your tax return. If you don’t comply with the Auditors’ wishes, the IRS will recalculate your tax and give you a new (higher) tax bill.

Many taxpayers decide to handle a tax audit themselves, and discover that’s it much more difficult than it seems. The taxpayer may avoid a representative’s fee, but will typically receive a substantial bill for a significant tax deficiency.

IRS Auditors are trained to extract more information from you than you have a legal obligation to provide. IRS Auditors know that most taxpayers fear them and don’t understand their rights. Midwest Accounting LLC is here to stand on your side!

Rarely do our clients even have to talk with the IRS. We handle it all for you so that you do not have to take time away from your small business or job to handle the bureaucracy and paperwork of the IRS. No lost wages or opportunity. You simply forward notification of an audit to us and we handle it from A to Z.

Did you file your small business or individual tax returns, but didn’t have the money to pay what was owed? When will you pay the amount due? Later this year? Next year? In a couple years? Before you know it you’ll find yourself several years in arrears. Eventually you’ll receive a notice from the IRS, stating that you owe three or four times the original amount.

It’s shocking how fast tax penalties and interest add up. You have a choice. You can write a big check and pay the full amount, including interest and penalties, or you can just keep ignoring them while the penalties and interest accrue.

Midwest Accounting LLC can help you find options when it comes to resolving unpaid taxes.

The IRS views failing to pay payroll taxes as the worst kind of delinquency because a large portion of the payroll taxes are your employees’ withholdings. Not paying your company’s payroll taxes is like taking your employees’ money in the eyes of the IRS.

As a result, penalties for failing to pay your payroll taxes and filing your payroll tax returns on time are much more severe than other types of penalties. These types of penalties can drastically multiply the amount you owe in a very short time.

If you are behind on paying payroll taxes for your company, Midwest Accounting LLC can help. The IRS however, is extremely aggressive in collecting this type of tax. They would rather seize your business assets, close you down, sell your assets at auction, and put you out of business than allow you to continue amassing additional payroll tax liabilities.

If you are behind on your payroll taxes, DO NOT meet with the IRS on your own. How you answer their initial questions can determine whether you stay in business. It is critical you hire a professional representative who knows how the IRS operates.

Federal tax liens can really make your life challenging! When your taxes are not paid, the IRS establishes a lien against all of your assets (especially real estate). This gives the IRS the legal right to collect taxes from the sale of your assets, which includes just about anything you own.

The lien can be against you, your spouse, or your small business. A lien against your company would seize your accounts receivables. At that point everything you own is in jeopardy of becoming the property of the United States Government.

Liens filed against a debtor by the IRS also show up on your credit report and often prevent you from opening a checking account or borrowing against any assets, like your home.

Levies can really do a lot of damage to your quality of life. A levy is the IRS’s way of getting your immediate attention. This course of action is the IRS’s indiation that, they have tried to communicate with you but have been ignored. Levies are used to seize your wages and whatever other assets you have. If you own it, they can take it. That includes checking accounts, auto’s, stocks, bonds, boats, paychecks, and even Social Security checks!

Midwest Accounting LLC can help. If the IRS is unable to collect enough of your cash and assets to offset your debt, they’ll claim your money until your tax liability is eliminated. Their sole objective is to collect the taxes owed.

Even worse is a wage levy (or wage garnishment). That’s when most of your pay check goes to the IRS. They don’t even leave you enough to pay the bills, and most of your check goes to the IRS each and every week until the debt is paid.

Another course of action taken by the IRS seizure of assets. The IRS will then sell your assets at auction; that includes everything you own; home, cars, boats, jewelry, motorcycles, insurance polices, retirement funds, anything of value.

We are often able to get levies released and help you get out of this terrible situation. Our goal is to help you return to good standing with the IRS, paying just what you can afford.

Imagine you received a notice of “intent to Levy” 30 days ago and you forgot or ignored it. Now it’s Payday. Expecting a paycheck, you open the envelope and find that the IRS has taken most of your money. What’s left is not enough to pay the rent, car payment, buy groceries, or pay the rest of the bills. This action will continue on every check due you, until the tax owed is paid in full.

Now you’re in big financial trouble and Midwest Accounting LLC can help. No matter how hard you plead with your employer they can not give you your money. Because once a wage garnishment is filed with your employer, your employer is required by law to collect a large percentage of your paycheck.

We are regularly retained to negotiate the release of IRS wage garnishments by arranging a payment plan. The payment plan negotiated by us is always more favorable than any IRS wage garnishment. It allows you to receive your whole paycheck without fear of future wage garnishments.

Unlike the levy which involves intangible assets such as your bank account, a seizure is the taking of physical assets, such as your home or car. Seizures usually happen in aggravated cases when someone ignores many requests by the IRS over a long period of time to pay their outstanding taxes.

A Seizure should not be taken lightly. The IRS will ultimately pursue seizure of your physical assets. Many a newspaper or television show has reported citizens being forced out of their homes after it was sold at an IRS auction, often for as little as half its value.

When the IRS seizes your assets they want to quickly sell them at auction. They often seize everything you own including your home, cars, boats, jewelry, motorcycles, insurance polices, and even your retirement funds.

Did you know that you can settle your debt with the IRS for just pennies on the dollar with their Offer in Compromise program? The program allows taxpayers to settle with the IRS on tax debt that has been incorrectly assessed or for liabilities they cannot afford to pay.

The IRS Code states: “We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential…” (Internal Revenue Code section 7122).

Often it is possible to fully and completely eliminate the taxes you owe – including all penalties and interest – at a significant discount. There is no preset bottom limit that the IRS will accept to settle your debt especially if your offer is done adeptly.

If done correctly your debt may be settled for only 5-15% of what you presently owe. The key is to determine the least amount that the IRS will accept from you before you make the offer.

If you don’t qualify for the IRS Offer In Compromise program, a Payment Plan may be the way to resolve your problem. Setting up a payment plan with the IRS gives you a little more time to pay off your tax debts.

Unfortunately, penalties and interest will continue to be charged on your outstanding balance as you pay the debt off. You are required by law to pay the interest on your tax debt.

The good news is that there’s a chance we can get your tax penalties removed.

Your back taxes, interest and penalties can be wiped out by filing bankruptcy. If you qualify, bankruptcy can be the best solution to resolve your crushing tax problems.

Unfortunately, not everyone qualifies to wipe out their tax debt in bankruptcy. Certain rules have to be met first. If you file bankruptcy and don’t meet the rules, the IRS will still be in hot pursuit after your bankruptcy is over. Proper pre-bankruptcy planning is key to determining if bankruptcy is or can be a viable solution.