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What Happens If You Don’t File Tax Returns for 10 Years or More?

There are numerous reason for having unfiled tax returns, It’s not hard to get behind on your taxes. Perhaps there was a death in the family or you suffered a serious illness. Perhaps you got divorced or lost your job. Whatever the reason, once you haven’t filed for several years, a taxpayer may become too frightened to file. However, not filing taxes for 10 years or more exposes you to steep failure to file penalties and a potential prison term.

There’s No Time Limit on the Collection of Unfiled Tax Returns

If you have unfiled tax returns, it may be tempting to believe that the IRS or state tax agency has forgotten about you. However, you may still be on the hook 10 or 20 years later. If you don’t file and owe taxes, the IRS has no time limit on collecting taxes, penalties, and interest for each year you did not file.

It’s only after you file your taxes that the IRS has a 10-year time limit to collect monies owed. The state tax agency has their own rule and many have more time to collect. For example, California has up to 20 years after you file to collect.

You Could be Charged with a Crime

The IRS recognizes several crimes related to evading the assessment and payment of taxes. Penalties can be as high as 5 years in prison and $250,000 in fines. However, the government has a time limit to file criminal charges against you. If the IRS wants to pursue tax evasion or related charges, it must do this within six years from the date the unfiled return was due. Non-filers who voluntarily file their missing returns are rarely charged.

Determine If the IRS Filed a Substitute for Return (SFR)

Having an unfiled tax return doesn’t mean the IRS won’t file one for you. The IRS may file a Substitution for Return (SFR) on your behalf. Don’t think of this as a complementary tax filing service. The IRS won’t give you any of the exemptions or deductions that rightfully belong to you. The IRS will also pile on “failure to file penalties”.

Once a Substitute for Return (SFR) is filed, you will be sent a notice to accept the tax liability as filed in this alternate return. If you don’t respond, the IRS will issue a notice of deficiency. At this time the tax is consider owed by you and the IRS can begin to enforce collection via tax levy and tax liens. To encourage payment, a tax levy can be placed on your wages (IRS wage garnishment) or bank accounts. A federal tax lien may also be placed against your real property.

If a Substitute for Return was filed, you don’t have to accept the outcome. An IRS Substitute for Return can be challenged. You can go back and refile those years and include any available deductions. Chances are you can decrease the tax owed, as well as the interest and penalties.

File Your Missing Unfiled Tax Returns

You may want to file your old unfiled tax returns before an IRS demand is made. There’s no time limit for submitting a previously unfiled return. However, if you’d like to claim your refund, you have up to three years from the due date of the return. It may be a good idea to speak with an experienced tax attorney before filing old returns. But, here’s some benefits of getting missing tax returns filed:

  • Protect your Social Security benefits: If you’re self-employed and don’t file, you won’t receive credits toward Social Security retirement or disability benefits. The IRS can levy your Social Security benefits to the tune of 15% per the Federal Payment Levy Program (FPLP).
  • Avoid issues obtaining loans: Loan may be denied or delayed if you cannot prove income by providing tax returns or reportable income.
  • Not having to worry about your unfiled tax returns: Once your tax issue is resolved, it will free up your time for more enjoyable pursuits.

Negotiate Your Tax Bill

If your tax assessment is too high, you may be able to negotiate a better deal. Penalties may represent 50 percent of what you owe to the IRS. Getting these removed can make a real difference.

If your debt is more than $10,000, you might consider a Partial Payment Installment Agreement (PPIC) where the IRS agrees to accept less than the total you owe. The IRS will only agree to a PPIC if it’s clear that the monthly payments you can make will not cover your total taxes due for many years.

An Offer in Compromise (OIC) is the ultimate IRS settlement agreement between a taxpayer and the IRS that settles a taxpayer’s tax liabilities for less than the full amount owed. In 2016, the IRS approved approximately 42% of all Offer in Compromise submissions. Find out if you qualify to settle your tax debt.



Still Have Questions About Not Filing Taxes?

Reach Out to an IRS Tax Attorney

The interest and penalties on back taxes can be substantial. If it’s likely that you owe money, it’s a good idea to talk with an experienced IRS Tax Attorney before filing your unfiled tax returns. Our IRS Tax Lawyers can negotiate with the IRS or state tax agency and set up a payment schedule you can reasonably meet. It may also be possible to reduce the fines and fees assessed against you.

IRS Tax Relief In San Diego – Tax relief Southern California

Are You Looking For IRS Tax Relief In San Diego – Southern California

There are many types of tax issues that we can resolve. They include, but not limited to these types of IRS Tax relief:

Can’t Pay Back Taxes?

Unpaid taxes is the start of the IRS collection process, and the IRS tax relief team at Flat Fee Tax Service, Inc. can take action take action early for you and prevent penalties and interest. Our IRS Tax Lawyers will find the best tax relief solution for your Federal and State Taxes situation.

IRS Penalties and Interest Removal

IRS Interest and Penalties removal – arise from the Internal Revenue Service determining you have unpaid back taxes or you have made a late filing, Flat Fee Tax Service, Inc. knows all of the updated laws and we can use them to your advantage to possibly get some penalties removed. We can help get IRS tax relief for your account.

IRS Notices and CP Letters

Once the IRS has determined you owe back taxes they will then begin to take collection actions against you. The IRS tax relief team at Flat Fee Tax Service, Inc. knows the proper way to respond to the IRS & State Agencies based on the letter you have received. Our IRS Tax Attorneys can take action before collection issues arise on your behalf and protect you from bank levies, wage garnishment, property seizures and other forms of IRS Collection methods.

IRS Tax Lien

An IRS tax lien is another step the IRS takes toward the forced collection of back taxes owed. A tax lien will significantly hurt your financial situation and future ability to take out loans or borrow on credit. It could destroy your credit. Flat Fee Tax Service, Inc. can work for you to get these tax liens removed & help restore your credit rating which also helps your future employment opportunities.

IRS Tax Levy

An IRS  tax levy is the strongest weapon of the IRS, this is when they will begin seizing any assets and property that they can legally take from you. This includes your wages, paycheck and/or bank account(s).  Flat Fee Tax Service, Inc. can protect you from these egregious actions.

IRS Currently Not Collectible  (CNC)

An IRS Currently not Collectible status means that the IRS has determined that the amount owed to the IRS is not collectible at the present time.   If a taxpayer’s financial situation improves, the IRS will take the account off the Currently not Collectible (CNC) status and begin the collection process again.  Flat Fee Tax Service, Inc. can help you in getting your Currently not Collectible status and negotiate an interest and penalty removal.

IRS Wage Garnishment

IRS wage garnishment is one of the most common forms of levy used by the IRS. An IRS wage garnishment / IRS wage levy is “continuous” which means it goes on and on until the wage garnishment pays the tax debt in full or is stopped and released. The IRS Tax lawyers at Flat Fee Tax Service, Inc. understand how a wage levy works and what laws can be used to release your tax levy. We can help get your levy released in one (1) day.

IRS Bank Levy

An IRS bank levy can be a financially devastating enforcement mechanism used by the IRS. You have twenty-one days to get your money back. This includes Saturdays, Sundays and holidays. You have no time to lose. Our tax relief team understands how the IRS bank levy process works and what can be done to stop the levy or prevent the IRS from using a bank levy again. We will put our team of experts to work for you to get a levy released.

IRS Payment Plan

IRS payment plan is one of the most common forms of tax settlement used by the IRS.  Before you agree to an IRS Installment Agreement, call our tax relief team first. You may agree to a payment plan much larger than need be. We understand how a wage payment plan works and what laws can be used to release the levy. We can help get your IRS payment plan started.

IRS Offer in Compromise  (OIC)

An IRS settlement through the Offer in Compromise program is offered by the IRS to settle your tax debt for less than the full amount owed.  There are three major considerations for an IRS Offer in Compromise which will affect your the outcome.  If you qualify, your San Diego Offer in Compromise tax solution could be considerably less than you currently owe.  Call us now to see if you qualify for the IRS Offer in Compromise program.

Unfiled Tax Returns

Unfiled tax returns can lead to some of the biggest problems with the IRS. Flat Fee Tax Service, Inc. can prepare and file all types of past & present tax forms including personal, corporate, partnership, trust funds, and non-profit return.

Small Business Tax Problems

Common problems small business face when it comes to dealing with the IRS. Every business owner should be aware of the common problems because the IRS can easily destroy any business. The IRS Tax Lawyers at Flat Fee Tax Service, Inc. can represent you and your business against payroll issues, audits, bank levies, property seizures, and other collection issues your business is facing.



IRS Settlement On Back Taxes – Tax Negotiation

IRS Tax Negotiation & Tax Settlement

What Is An IRS Tax Settlement?

A tax settlement is an arrangement which is acceptable to the IRS or state taxing authorities that allows a taxpayer to retire and settle a back tax debt for less than the original amount owed. The IRS or State Taxation authorities sometimes allow this type of tax settlement when extenuating circumstances exist that would prevent the taxpayer from honoring the full debt.  While not every situation is appropriate for engaging in a tax settlement process, individuals who owe taxes often find that tax authorities are willing to explore the individual situation to determine if a tax settlement is possible.  This is typically based on current tax regulations and the circumstances of the taxpayer.

Benefits of an IRS Settlement on Back Taxes

There are several benefits associated with attempting to negotiate a tax settlement.

  • Pay Less Now – The most obvious is that the taxpayer ultimately pays a considerably lower amount of money to the tax authority.  Assuming that the situation of the applicant meets certain qualifications, a tax settlement amount may be determined and presented within a very short period of time. Once the balance is paid based on a mutually agreeable settlement, your back tax debt is considered settled-in-full, meaning that you, the taxpayer, is no longer subject to late fees and other types of penalties that would be incurred otherwise.
  • Avoid Federal Tax Liens, Wage Garnishments, and Bank Levies – Another benefit of a tax settlement is that the taxpayer avoids the placement of federal and state tax liens on a home or business, a bank levy on one or more available accounts, or the implementation of a wage garnishment on his or her paycheck.

How Does a Tax Settlement Work?

The IRS will allow a taxpayer to either negotiate a tax settlement for less than the total amount owed or come to an agreement on another method for the IRS to collect taxes owed over time. For either of these situations, the taxpayer must meet the qualifications of one of the tax settlement programs set forth by the IRS. The taxpayer will first have to determine which type of tax settlement they would like to apply for and then submit the appropriate forms to the IRS for review before making a decision. A taxpayer can either fill out the information themselves or they can have a designated tax professional make the filing on their behalf.

Typically, the negotiation of the tax settlement remains between the individual and the IRS or tax authority involved and may include a third party if the taxpayer seeks professional tax settlement assistance. Firms that specialize in IRS tax relief programs, surprisingly, also help to lower the costs to the individual, since there is typically a very positive outcome to seeking the assistance of an IRS tax relief professional.

In many instances, a tax settlement calls for paying off the entire tax settlement amount within a specified period of time.  During that time frame, no late taxes or tax interest is assessed on the balance of the tax settlement. Taxpayers may choose to pay off the tax settlement amount in one lump sum.  If this is not possible, the IRS or tax authorities will set up a schedule of payments that are within the means of the taxpayer, with the last payment coinciding with the final date attached to the tax settlement offer. Once a settlement has been reached by both parties, the taxpayer will be considered good standing with the IRS for the tax year/years that the settlement covered (unless the taxpayer defaults or doesn’t hold up to all the terms of the agreement).


Who Is Eligible for a Tax Settlement on Back Taxes?

The IRS offers settlements to taxpayers that are struggling with their tax debts or have valid reasons to abate their penalties. Not everyone is eligible for a tax settlement. In fact, most taxpayers are not eligible nor qualified to settle with the IRS.



The main factor the IRS takes into consideration when determining if the taxpayer will qualify for a tax settlement is their financial situation. If the taxpayer is undergoing financial hardship, it’s usually a good indicator of the IRS that a tax settlement on back taxes might be a great option.


FIND OUT. CALL 1-800-589-3078

IRS Tax Relief – IRS Tax Lawyers San Diego

The IRS may now purport to be a “kinder and friendlier” agency, but don’t be fooled into thinking that its tax agents are your friends. They’re not; they’re just doing their job: to collect the maximum amount of taxes, penalties, and interest from you.

If you owe money to the IRS, the simple fact is that you are no match for their relentless collection techniques.

Every day, individual and business taxpayers make the costly mistake of representing themselves in a conflict with the IRS or their state’s Department of Taxation.

Although IRS Revenue Officers initially present themselves in a friendly way and seem willing to settle your tax liability problems, keep in mind that IRS employees are required to protect the interests of the United States Treasury. They are always striving to achieve the highest recovery for their employer, the government.

In such a situation, the unknowing and inexperienced taxpayer often mistakenly agrees to a stiff payment plan that ends up costing far more than it would have had the taxpayer retained competent tax representation. The fact is that experienced professionals are far better equipped than you to protect your rights, seek a resolution that is in your best interest, and settle your tax problems.

The IRS will take advantage of a taxpayer that is not knowledgeable about tax law and IRS collection procedures.

Frankly, taxpayers need to be protected from IRS error, abuse, and intimidation.

Taxpayers frequently overpay their tax liability either as a consequence of inappropriate IRS actions or because they do not have the counsel of a skilled and experienced tax professional.

That’s why the IRS tax relief team at Flat Fee Tax Service, Inc. was founded: to represent you, the taxpayer, against them, the IRS.

Put an IRS Tax Lawyer Between You and the IRS

When you seek an IRS tax relief program with Flat Fee Tax Service, Inc. you can stop IRS action, penalties and intimidation. Once you have an IRS tax relief program that fits your situation, the IRS cannot contact you. Thereafter you will not be required to have any personal contact with the IRS whatsoever.

Our IRS Tax Lawyers will help you resolve all of your tax problems including outstanding taxes, penalties, and interest, audits, liens, levies, garnishments, and seizures.

Because our IRS tax relief teams are dedicated to only representing taxpayers, we put all our training, knowledge, and skills as experienced IRS Tax Lawyers to work for you. With decades of experience and thousands of completed tax negotiations to our credit, we know how to plan and prepare an acceptable Offer in Compromise in an amount that is often drastically lower than the taxpayer ever hoped.

Due to our highly experienced IRS tax relief team, Flat Fee Tax Service, Inc. delivers a high rate of acceptance by the IRS of Offers in Compromise, Request for Innocent Spouse Relief, Equitable Relief, Collection Due Process Appeal, Abatement of Penalties and Interest, reduction of tax liability determinations, protection from harassing communications, and in some cases, even relief from all taxes due.

Not Filing Your Tax Return Is A Serious Matter!

The IRS may construe your failure to file tax returns as tax evasion — a criminal act punishable by a prison sentence for each year a return is not filed. Where do you turn for IRS tax help?

Needless to say, it’s one thing to owe the IRS money but quite another to potentially lose your freedom for failure to file a tax return.

The IRS can file “SFR” (Substitute For Return) Tax Returns on your behalf but without your approval. A Substitute For Return is the IRS’s version of an unfiled tax return. Because SFR returns are filed in the best interest of the government, the only deductions you’ll see are standard deductions and one personal exemption. You will not get credit for deductions to which you may be entitled such as exemptions for your spouse and children, deductions for interest and taxes on your home, cost of any stock or real estate sales, business expenses, and more.

Notwithstanding any action by the IRS and no matter how late it may be, you have the right to file your original tax return. However, as you can see, such filings can bring great risk unless properly handled by an experienced tax consultant.

Get Help With Your Back Taxes!

The IRS Offer in Compromise program provides taxpayers who owe the IRS more than they could ever afford the chance to pay a small amount as a full and final settlement.

This IRS tax relief program also offers taxpayers who don’t agree that they actually owe the taxes in the first place the chance to file an Offer in Compromise and have those tax liabilities reconsidered.

The Offer in Compromise program allows taxpayers to get a fresh start. All back tax liabilities are settled with the amount of the offer. All federal tax liens are released upon IRS acceptance of an Offer in Compromise and payment of the amount offered.

If the filed Offer in Compromise is based on your inability to pay, the IRS reviews your current financial position and considers your ability to pay, as well as your equity in assets.

When reviewing an Offer in Compromise, the IRS considers many factors including but certainly not limited to:

  • The amount collectible from your assets.
  • The amount collectible from present and future income. The IRS will consider the present value of money in relation to future collection potential. In other words, by accepting the offer the IRS will get money that is worth more today than in the future.
  • The amount collectible from third parties.
  • Sources of funds that are available to you but not subject to IRS collection action.

This is a complex tax environment, one in which our IRS Tax Lawyers have worked for many years, and have established an outstanding record with a high rate of Offer in Compromise acceptance for our clients. Using our extensive experience and knowledge of IRS review processes, procedures and “hot buttons”, as well as the results of thousands of previous rulings and decisions on cases we have brought forward, our tax professionals have been uncommonly successful in representing clients to compromise all types of IRS taxes, penalties, and interest. Even unpaid trust-fund payroll taxes have been compromised.

If you qualify for this IRS tax relief program, our IRS Tax Lawyers can help you save substantial amounts of dollars in taxes, penalties, and interest. You must meet the following minimum rules to get help with your back taxes:

  • You must have filed all tax returns. It’s alright to owe money but you must have filed your returns.
  • You will need to disclose all assets owned including all cash and bank accounts.
  • You must not have adequate cash available in a checking, savings, money market, or brokerage account to pay the IRS.

Even if you don’t meet these criteria now, our tax consultants service can help you get into a position for submission of your offer. Just because you don’t meet the qualifications, the IRS will not back off. We can help protect you from aggressive IRS collection tactics while bringing you closer to submitting your offer.

There are many tax services providers on the Internet who offer to submit your Offer in Compromise, but you should know that these providers do not complete the forms. Rather, they have you fill in all the forms and then they will simply forward them to the IRS.

These cut-rate “experts” do little more than pass forms between you and the IRS. Anyone can mail in an IRS form. Such “service” is not professional tax representation.

This is the Flat Fee Tax Service, Inc. difference:

1. We have reduced the amount our clients owe the IRS by many Millions of dollars!

2. We advise taxpayers on the numbers during our initial tax relief consultation. This is critical because, to the extent that you have assets in excess of liabilities, the IRS is not likely to accept an Offer in Compromise that is less than the net value of your assets.

Example: If you think that you have a net equity of $83,000 in your home, and you note $83,000 as the net equity value of your home, the IRS is likely to argue that your Offer must be at least $83,000 (assuming no liabilities in this example). But an argument can be made that might reduce that $83,000 to zero or some other low number and, therefore, reduce the Offer by $83,000.

3. Our IRS Tax lawyers have the requisite skills gained through thousands of Offers in Compromise.

4. Our IRS tax relief team will be able to advise you on evaluating your assets and liabilities. For example, we will work with you to best determine your net equity in your home, on how to calculate your income and expenses and advise you on the amount of the Offer you should make.

Flat Fee Tax Service, Inc. has the level of seasoned experience necessary to best argue your case.

  • Our IRS Tax lawyers know the tax rules and IRS internal procedures.
  • Our IRS tax relief teams know how to argue the facts, the rules, and the procedures.
  • Our IRS Tax Attorneys are known among and credible with IRS agents.
  • Flat Fee Tax Service, Inc. has extensive IRS experience so we know how the IRS thinks.
  • Our IRS Tax Lawyers know IRS procedures.
  • Our IRS Tax lawyers know the limits of IRS discretion with IRS tax relief programs.
  • When necessary, we can write a technical memorandum on the facts and the IRS rules and procedures to accompany your request for an Offer in Compromise

5. We know when to take the Offer in Compromise to an Appeals level.

  • We know why an Offer should be taken to Appeals.
  • We know the Appeals procedures.
  • We know the discretion that an Appeals Conferee has and how to present an Appeals case.

6. We were founded by a distinguished IRS Tax Lawyer.

Think about it: the issues of your case are based on facts and IRS regulations. We know how to interpret the regulations to best protect you so you can come away with the best and lowest Offer.

7. We are not intimidated by aggressive IRS Offer Specialists.

The fact is that the IRS may take advantage of a taxpayer who represents himself, and likewise if the taxpayer’s advocate is weak. If the IRS can push and intimidate, they will push and intimidate. IRS Offer Specialists generally have “collection backgrounds” — they want to collect as much money as possible.





Disputing IRS Tax Collections: It Can Be Done & You Do Have Options

Can you fight the Internal Revenue Service (IRS) if you believe that you don’t owe what the IRS claims? Absolutely, encourages David Isaac, Managing Attorney for Flat Fee Tax Service, Inc. that has been resolving IRS tax debts for American taxpayers for over 10 years. Attorney David Isaac says that you not only have the ability to dispute the collection action being proposed by the IRS but that you also have several options for resolving your IRS tax debt.

IRS tax debt dispute

As part of the IRS tax relief process, the IRS is required to send taxpayers a series of letters. The final letter states that if the IRS tax debt isn’t paid in the next 30 days, the IRS has the right to take collection actions such as a bank levy or wage garnishment.

If you don’t agree with the amount the IRS says you owe, you can dispute tax liability with the IRS department of appeals. This is known as a public collection due process hearing. The IRS tax relief team at Flat Fee Tax Service, Inc. cautions that most of the time, the individual actually does owe the money that the IRS claims they owe and the IRS has met all of its procedural requirements. If this is the case, the individual must resolve their IRS tax debt through one of the options available.

Resolving IRS back taxes

Our IRS tax relief team describes several options available to taxpayers seeking to resolve IRS tax debts:

  • Installment Agreement. This is a way for a taxpayer to pay their IRS tax debt over a period of time through monthly payments or installments. Most Installment Agreements are monthly payments based on an individual’s ability to pay.
  • Currently Not Collectible Status. If you can prove to the IRS that you have no ability to pay your IRS tax debt, you may be eligible for placement into Currently Not Collectible status, which means that the IRS cannot attempt to collect on your IRS tax debt unless your financial situation significantly changes. You will continue to accrue penalties and interest while your IRS tax debt is in Currently Not Collectible status. However, you will end up owing nothing to the IRS if you remain in Currently Not Collectible status until the time for it to collect on your IRS tax debt expires.
  • Offer in Compromise. In this IRS settlement program, the IRS will settle IRS tax debt for an amount less than what the taxpayer owes. The IRS requires an in-depth, complicated analysis for this program, in which the taxpayer must prove that there is no way he or she will be able to pay their IRS debt before the time for the IRS to collect expires.



IRS Tax Relief – The IRS Revenue Officer and You

If an IRS Revenue Officer comes to your door or your office, you need to contact

Flat Fee Tax Service, Inc. immediately

A visit from IRS Revenue Officer means that the IRS has been assigned an IRS Revenue Officer to your tax debt case. This means that your tax debt case is no longer being “HANDLED” by the IRS computer but has been given to a Revenue Officer. You now have a personal tax collector to deal with, in addition to the back taxes you may owe.





This also implies that your case is considered a priority case by the IRS. An IRS Revenue Officer will be extremely demanding on you. IRS wants the revenue officer to maximize the tax debt collections from you. If a situation occurs, it is your right to seek for legal representation. You should do so immediately. It is not in your best interest to deal with a Revenue Officer for any length of time only to find out “you are screwed”.

If you choose not to take the help of an IRS Tax Attorney and talk to the assigned Revenue Officer yourself, you may provide the information to the Revenue Officer who may cause harm to yourself and your family. The Revenue Officer will be assigned for the following reasons:

  • Your tax debt is in “the large balance” department.
  • The IRS  has been unable to collect the tax debt from the normal collection method.
  • You have a record of non-compliance of taxes. (You haven’t filed your tax returns for years).
  • You own an ongoing business and have been paying your payroll taxes.

There is one major difference between the IRS Automated Collection System (ACS) which is the computer and an IRS Revenue Officer from IRS handling the case. An IRS Revenue Officer has greater enforcement power than the normal collection system.  The IRS Revenue Officer can expedite the seizure of your wages, bank accounts, files, and property.

What Does The IRS Tax Relief Team At Flat Fee Tax Service, Inc. Offer?

Our IRS Tax Relief teams are led by seasoned IRS Tax Lawyers who offer the best possible solution for your IRS tax problem.  Flat Fee Tax Service, Inc. has an impeccable record of success and we maintain an A Plus Rating with the BBB. Our IRS Tax Lawyers will get your missing tax returns prepared, stop an IRS tax levy, and prepare your IRS settlement through the Offer in Compromise program.



Winning! IRS Settlement in Oxnard, California

Our IRS Tax Relief team has come through again. Flat Fee Tax Service, Inc. never gets tired of winning!

Our client, Carlos G. from Oxnard, California, has been informed that the IRS has his accepted his $3,948 settlement on his $67,000 tax debt.

Carlos called our tax defense team on March 7, 2017, for his free consultation.  Carlos had an IRS levy and was missing two (20 tax returns.

Carlos decided that our IRS tax relief team was the right fit for him and today we announce his Offer in Compromise acceptance. Our IRS Tax Lawyers have come through again.

No matter where in the USA that you live, our IRS tax relief team can provide you with a tax defense at very affordable fees.



IRS Settlement In Monroe, NC

Today, August 21st, 2018, our IRS tax relief team celebrates an Offer in Compromise success story. Our client, Lacey H., from Monroe, NC, has received word that his IRS settlement has been accepted.

Lacey called our IRS tax defense team on April 15th, 2017. He owed $65,000. Lacey had an Installment Agreement with the IRS. He had a 401K. we provided Lacey with his options during his free and confidential consultation.

Our IRS Tax Lawyers prepared his 2016 tax return to make Lacey compliant with IRS law. We then proceed with his Offer in Compromise. Today, our IRS tax relief team announces that Lacey settled his $65,000 tax debt for a grand total of $11,846.

Our IRS tax relief team provides tax defense to Americans throughout the United States.

For your free and confidential consultation, call 1-800-589-3078.

IRS Tax Relief in Mississippi – IRS Settlement

Our client, David T. from Olive Branch, MS has received his IRS Offer in Compromise settlement. David has settled his $67,000 for a grand total of $500.00.
David came to Flat Fee Tax Service, Inc. in July 2016. He had not filed his tax returns in 10 years. The IRS was ready to levy (garnish) him. Our IRS tax relief team, led by our Tax Attorneys, provided David with a tax defense and we have settled his tax debt. Today, David has his Fresh Start.
Our IRS Tax lawyers provide IRS tax defense for Americans throughout the United States.
If you have an IRS tax debt and need help,
call our team at 1-800-589-3078.

The Difference Between A Tax Levy And A Tax Lien

Federal tax liens and tax levies are the enforcement staples of the Internal Revenue Service. They are two of the very common methods because they are the easiest to implement. The IRS computer matches up the taxpayer’s name with their tax debt and current employer. There isn’t an individual sitting at a desk looking at your case.  The IRS uses a tax levy to get the money it’s owed if a taxpayer doesn’t write a check voluntarily, or for that matter, quickly enough.

Federal Tax Levies

A tax levy is not available for the general public to see and does not by itself affect your credit rating or prevent you from selling your property. However, if the IRS serves a tax levy on your bank, then it is required to send all of your money to the IRS. The bank can not immediately send your funds to the IRS. Instead, Internal Revenue Code Section 6332(c), provides that the bank must hold onto the funds for 21 calendar days.  Needless to say, you do not have a minute to waste. The 21-day “bank hold” includes Saturdays, Sundays and holidays. You can expect that the bank will notify you of its receipt of the tax levy. However, this may take a few days until after the bank receives it and that 21-day clock continues to tick. The 21-day period is extremely important because it gives you an opportunity to negotiate with the Internal Revenue Service to release the tax levy before the bank sends the funds. While it can be difficult to get the IRS to agree to release the tax levy, an experienced IRS Tax Attorney can sometimes get this accomplished, but it will depend on your overall situation including such factors as:

  • How much money is in the bank
  • The value of your other assets
  • The amount of your income and expenses
  • The total amount of your tax bill
  • Whether you have been cooperating with the IRS by responding to their inquiries
Don’t expect to get rapid notification from the IRS that they have sent a tax levy. The internal operating procedures of the IRS known as the Internal Revenue Manual specifically instruct its employees to delay sending a copy of the tax levy to the taxpayer.
A tax levy sent to the bank is a “one-shot” tax levy. It only attaches to the funds in your account at the minute tax levy is received.
A tax levy on wages (wage garnishment), commissions, or other similar payments is a continuing levy. That means that unless the IRS agrees to release the levy, your employer will have to continually send the bulk of your paycheck to the IRS until your entire tax liability has been satisfied.
If the IRS sends a tax levy to your employer, it is required to send your paycheck to the IRS minus a very small amount which is exempt. There is no 21-day holding period. The tax levy is effective with your very first paycheck after the employer receives the tax levy. Since there is no holding period, if you find out the IRS has served a tax levy on your employer, it is extremely important to engage an IRS Tax Attorney to begin immediate negotiations with the IRS BEFORE your next paycheck. Once your funds have been forwarded to the IRS either by the bank or your employer, you are not getting them back.
CALL 1-800-589-3078

Federal Tax Liens

A tax lien first arises when a person who owes tax fails to pay the tax after an official “demand” by the Internal Revenue Service. The federal tax lien is sometimes referred to as a “secret lien” because even though at first there is no public record, it attaches to all of the taxpayers’ property and rights to property – both real estate and personal property – as of the date the tax is assessed. The consequences of this is that if taxes are assessed against you on July 1st and you give the property a third party as a gift on July 2nd, the tax lien continues to attach to that property even though you had no knowledge of the existence of the tax lien and even though the person who received the property didn’t know that the tax lien had arisen.

This occurs frequently in divorces when one spouse who owes taxes to the IRS transfers ownership of a property to the other spouse as part of a marital dissolution. Even though neither spouse is aware of the tax lien, it continues to attach to the property in the hands of the spouse who didn’t have any tax liability, and the IRS can collect the taxes owed by seizing and selling the property.

Certain third parties are protected from the impact of the secret tax lien. These are generally people who gave “fair value” for the property received. For example, if your home was subject to a secret IRS tax lien and you sold it to a third party for its fair market value, the IRS could not go after your home once it had been transferred to someone else. To be clear, this rule would not be of any help if the person who received the home paid less than its actual value.

When most taxpayers or tax attorneys refer to a federal tax lien, they are actually referring to a “Notice of Federal Tax Lien” (NTFL). A Notice of Federal Tax Lien is a document filed in a public place such as a County Recorder’s Office or with the Secretary of State. It is a notice to the world that you owe taxes. A Notice of Federal Tax Lien generally lists the amount of the taxes owed, the type of tax, and even the years for which taxes are owed. It also lists the date the tax was assessed. It is worth noting that the Notice of Federal Tax Lien is a static document. Therefore, if you make payments on your tax liability, the Notice of Federal Tax Lien will continue to list the same amount due. Likewise, as interest and penalties accrue it will not be updated to reflect the additional amounts due. That is why the amount listed in the NFTL is not a true reflection of your tax liabilities.

The Notice of Federal Tax Lien will be picked up by the various credit reporting agencies and will cause significant credit problems. If you own real property and try to sell it, the IRS will be paid the equity in your property. The tax lien does not, however, take any money out of your bank account.

We hope this information regarding tax levies and tax liens was useful. Should you find yourself with either IRS problem, our IRS tax relief offers a free and confidential consultation.