Tax Resolution

Addressing Tax Problems & Dealing With IRS

Tax resolution is one of most heavily marketed and misunderstood services within the tax preparation industry. The most common situations that demand tax resolution occur when taxpayers still owe the IRS from a previously filed return or when people have failed to file a tax return. One way to define Tax Resolution is that it’s the process of addressing outstanding issues that will clear the slate and get people back into the good graces of the IRS. Basically, tax resolution is the umbrella term for services that aid taxpayers when they run afoul of the IRS or any state tax agency.

In our experience at Trucker CFO, we have worked with owner-operators, independent contractors and fleet owners who have come to us with some sort of tax problem. It could have been from multiple years. It could be just from a couple of years. For example, they could have filed a tax return, had a balance due and not been able to have the funds to pay it.

When it comes to Tax Resolution issues, our Trucker CFO Team has seen a variety of situations come across our desks, and we’ve seen a lot of crazy things happen with people over the years. One memorable situation that comes to mind is a client who had actually been in hiding from the IRS for 10-plus years. He had spent some time up on a fishing boat. He had not filed his taxes for 20-plus years. Ultimately, he finally had enough of hiding. He called Trucker CFO and we helped him through to get things resolved with the IRS.

When you engage the services of Trucker CFO to resolve your tax issues, you are hiring us to assess the entirety of your tax problem and to speak with the IRS or State on behalf of you or your business. We invite you to listen to our podcast on Trucker CFO's approach to tax resolution.

We mentioned that Tax Resolution is one of the most intensely marketed services in the field of taxes and accounting. There is no shortage of ads on TV and radio promoting quick fixes to eliminating tax debts. While every tax situation is always unique, the reality is that tax resolution is not a magic wand process.

Tax resolution has become a big business where there are promises made by firms connecting you with an unlicensed and inexperienced salesperson. These firms will pitch you on an investigation phase where you can pay thousands of dollars simply to determine what needs to be done.

After the investigation, you are asked to pay an additional fee to address the issue. Quite often, instead of taking a magic wand to your tax problems and making them disappear, people who have used these well-marketed services find themselves still holding a tax debt and owing big dollars for the service that didn’t resolve their issue.

At Trucker CFO, we take a much different approach and we deliver effective strategies for addressing your tax resolution needs. First of all, we start with a free and comprehensive evaluation of your individual and business tax problems. Based on that evaluation, we will determine the next course of action. The fees you pay will be determined by and dependent on the scope of your tax issues and the predetermined course of action.

Our Trucker CFO Tax Resolution Process

Consultation

We provide you with a one-hour consultation to discuss your issues with a member of our Trucker CFO Tax Resolution Team. Our professionals hold a deep level of experience in the field of tax resolution, and, during this no-obligation consultation, we’ll have an opportunity to explore your case.

Investigation

Our Trucker CFO Tax Resolution Team will serve as your legal representative in your case, and you will no longer have to speak to the IRS. We handle the communication with the IRS, and it is during the investigation process that we begin to evaluate your tax resolution options.

Resolution

During this phase of the process, we will work to establish IRS compliance by filing any unfiled tax returns and entering you into a qualifying settlement program. When it comes to finding a qualifying settlement plan, we will line you up to utilize the plan that best fits your tax situation.

Freedom

Your case will be closed and your tax nightmare will be over. As part of gaining your freedom through this overall process, our Trucker CFO Team will work with you to establish a plan that will help you stay compliant with the IRS and state tax agencies going forward.

Common Tax Resolution Actions


Unfiled Returns

Having unfiled returns is not a situation to take lightly. The fact is that failing to file your tax returns is a criminal offense. If you do not file, you can be prosecuted and punished, which can include time behind bars. The sentencing guidelines for failure to file are one year for each year not filed. You should never put your freedom on the line over failing to file your tax returns.

At Trucker CFO. we have helped thousands of professional truck drivers resolve their tax issues by simply filing delinquent tax returns. Let us give you peace of mind by helping you get into compliance with the filing requirements. If you voluntarily file your delinquent returns, you’ll likely avoid further problems other than having to pay the interest and penalties.

If you wait for the IRS or your state of residence to file your returns for you (with a Substitute for Return or SFR), those returns will be prepared in the best interest of the government. The IRS will not include exemptions, deductions, or credits that could reduce the tax amount.

In most cases, you will likely owe taxes, interest and penalties after the returns are filed. Once we see how much is owed, we’ll design a plan of action to resolve that, too.

Installment Agreement

Under an installment agreement, the taxpayer agrees to pay the entire amount of their debt in monthly installments over a period of up to six years. This method allows the taxpayer to pay in small, manageable amounts so that the debt is not overwhelming. For total tax balance amounts under $50,000, our Trucker CFO team works to position our clients with a streamlined and guaranteed instalment agreement. For amounts over $50,000, additional financial disclosures are required.

Partial Payment Installment Agreement

A partial payment installment agreement, or PPIA, is an installment agreement that doesn’t have to be settled in full due to a combination of the statute of limitations and the taxpayer’s ability to pay means that the tax debt.

The statute of limitations (CSED) prohibits the IRS from attempting to collect on a given tax debt indefinitely, regardless of a taxpayer’s ability to pay. This is typically 10 years from the date the tax was assessed, although there are numerous actions that can extend the CSED. Once the CSED has passed, the IRS can no longer legally collect the taxes in question, and the debt is effectively forgiven.

Inevitably, some taxpayers are unable to fully pay off their tax debt before the collections statute expires. Still, the IRS recognizes that partial payment is better than no payment, so they encourage taxpayers to pay as much as they are able until the collection date has expired. The result is an PPIA.

Offer In Compromise (OIC)

An offer in compromise (OIC) is an option offered by the IRS that allows a taxpayer to settle their debt for less than what is owed. This option is great for a taxpayer because it gives them a fresh start with the IRS. The goal of an offer in compromise is to come to a legal agreement for payment that’s in the best interest of both the taxpayer and the IRS.

The three reasons for submitting an offer in compromise are doubt as to collectability, doubt as to liability and effective tax administration.

First-Time Penalty Abatement

First-time penalty abatement, or FTA, is essentially a one-time, get-out-of-jail-free card of sorts for abating certain penalties. The abatement is intended for taxpayers who are typically on top of their taxes, but, for a variety of reasons, life hit them broadside and they fell behind one year.

If the taxpayer meets the specific set of qualifications, they are eligible for the abatement. However, because FTA is a one-time option, you may want to look at a few other options prior to taking this particular road.

Reasonable Cause Penalty Abatement

When you come to the IRS and invoke Reasonable Cause to get a penalty abatement, we are essentially saying the taxpayer has a really good excuse for whatever behavior it was that led to their tax penalty. Because Reasonable Cause situations are often multifaceted and complex, Reasonable Cause can’t be quantified in the same way as FTA. However, this also means we have much more room to work when trying to use Reasonable Cause in order to get penalties abated.

There are dozens of scenarios that can qualify as Reasonable Cause, including death, serious injury or unavoidable absence. A Reasonable Cause can often overlap, allowing you to cite more than one at a time.

Lien Relief

By issuing a lien, the IRS is asserting a legal right to a taxpayer’s property as a security against debt the taxpayer who owes to the IRS. Essentially, the IRS is stating their claim on the taxpayer’s assets. That claim, if left unchecked, will eventually end with the IRS seizing the taxpayer’s assets, namely bank accounts, valuables, real assets with equity to fulfill the outstanding tax debt. The purpose of issuing a lien is to inform other creditors that the IRS now has legal right to the taxpayer’s property.

Lien Release

When a lien is released, your assets are no longer encumbered and subject to seizure by the IRS. A lien release gets rid of most of the immediate effects of a lien. Because the IRS no longer has any interest in the assets, the taxpayer may sell or transfer their assets at will. The IRS will release a lien 30 days after the tax debt has either been satisfied or it becomes legally unenforceable. The IRS is also legally obligated to release a lien if the tax debt has been discharged in bankruptcy or if the statute of limitations (CSED) has expired for the collection of the tax debt.

Lien Withdrawal

While a lean release is an acceptable solution, a release does not solve all the problems created by a lien. Most notably, a lien release does not address damages done to your ability to obtain credit.

A lien withdrawal actually erases the lien as though it had never existed, allowing a path for restoration of the taxpayer’s credit score to pre-lien status.

Let Trucker CFO Help You With Tax Resolution

Are you in a situation where you currently have a tax balance with the IRS or a state tax agency? Have you failed to file your federal or state tax returns in previous years? The IRS has begun ramping up enforcement for those people who owe tax balances and for those people who have failed to file their returns. Now is the time to get your outstanding tax issues resolved, and our highly experienced Trucker CFO Tax Resolution Team can help you.

If you are in need of tax resolution assistance, please call us at 800-533-4230 or schedule a free consultation with the Trucker CFO Tax Resolution Team. You can ask us any question that comes to mind regarding tax resolution and your particular situation. We will be glad to explore your specific needs and our team will work with you on taking the first step toward finding the best tax resolution strategy.