Liens, Levies and Tax Evasion

Did you knw that a lien is increased by 10%;if you owe back taxes, you have a lien. Even if the CSED (Expiration Date) balance expires, the IRS can reduce a lien to a judgement and reinstate the the CSED. Most people are terrified of getting caught for tax evasion. When a lien is placed upon your property, and you transfer that assett into someone else's name or trust;be prepared for to serve time for tax evasion. The IRS thinks unfavorably upon hiding debt and will have an IRS Revenue Agent to seize your asset. I have been in the tax consultant industry for a very short time. However, I am finding more and more examples where of the enormous amounts of taxpayer's with IRS tax problems. There is tax amnesty out there to help you feel confidennt of a your tax debt relief !

Collection Process; Part 2

Did you know that the last notice sent before a levy is placed upon your account an action is an L1058? The IRS is serious about an action of this severity. It is very difficult to get levies and liens lifted from a delinquent taxpayers account. Levies are never released until tax is paid in full. Taxpayer's are under the impression that it is easy to get this type of release, but it's not. This is not an expediant process once the IRS places this type of action. Henceforth, whatever the balance is at the time they implement the bank levy, this will be the amount deducted from your account. Fortunately, large banks don't allow a complete depletion of your account at the time of the levy. Say for instanc, a taxpayer owes $10000.00 and one day he deposits this same amount of money, large banks will not deduct this exact amount. They are aware of how bank levies work and know thatmore than likely, your account will be hit again in 22 days or so. However, small banks (mom and pop banks,if you will) are not as likely to be so keenly aware of this. They will just comoply with the IRS and their complete instruction.
In essence a taxpayer will wound up making "minimum wage" at the time of the wage garnishment targets your place of business.

Collection Process

Those who owe back taxes with the IRS are not considered compliant and can be considered as having a serious irs tax problem.If a payment plan such as an Installent Agreement (full or partial pay) is not met, then a levy or tax lien can be placed on the account.There are several notices sent, in the following order i.e. CP 501,503,504,L1058. In defense of the IRS, taxpayers have a considerable amount of time where they can attempt to find a resolution for their delinquent tax problems. Therefore taxpayer's should not be surprised when wage or bank levies are enforced ! The IRS has to take action at some point, or taxpayer's will abuse the governments genorosity. If a lien is placed upon your account and a Revenue Agent examin's your account, where he finds dissipatee assest; you have to report this to the IRS immediately. Hiding assessts is not favorable upon the IRS.
If you have experieced this enforced action, or you are just in question on how to get immediate action from a group of trained tax consultants...act now !

Being Compliant With The IRS

What is being compliant with the IRS mean?

The IRS requires you to have all of your returns filed (Buisness/Individual) as a prerequisite to a resolution. Secondly, paying your taxes is considered being compliant with the IRS. Tax Consultants at Effectur Inc. can help get you compliant on all of your income and payroll taxes as well as your returns that need filing. It is imperative as a business to stay current on all your tax payments i.e. estimated tax payments (sole-prop) and or Federal Tax Deposits.
The Internal Revenue Service have two departments that enforce collection on those who are perpetual late filers and owe back taxes. Those departments are Revenue Agents and Revenue Officers. Revenue Agants, handle/review filed and unfiled returns, file Substitute For Returns, make assessments and conduct Audits. Whereas the Revenue Officer and ACS (collection dept.) collect on assessed balances asn ensure past,present and future compliance on all you invidual income and payroll taxes and return filings.

If you owe taxes and need IRS tax relief, Effectur can help with the above concerns.

Liens, The second part

A lien is not released until tax is paid in fill or an Offer In Compromise is accepted or tax abated. Furthermore a lien can expire 10 years from the date of the assessment (CSED-Expiration Dates). However it can be extended by many transactions such as Bankruptcy and Offer In Compromise. After the CSED expires, the IRS can't collect and the lien is self-released.
Any taxpayer owing more than $5 k dollars will have a lien placed upon their property. This will act as an encumbrance on all property rights, owned and acquired after the date of assessment.
If you have a lien placed on your property, or if you have IRS debt, Effectur has trained specialists (tax consultants) that can assists you on a variety of tax needs.

Liens

Have you ever been confused about a levy vs. a lien ? A lien is primarily when a taxpayer owes back taxes and they have secured property (house,car) that the government could seize the profits if one happens to sell that property to another individual. The government has to be paid after the financial lenders before the original owner can make a profit. A lien is a public notice where you can only get lifted at your area courthouse when all debts are paid in full to the IRS.
Most taxpayers don't realize that when a public lien is filed and you try to sell your property, the prospective buyer will need to have the lien subordinated or the lien will attach itself to the new homeowner. If the IRS has placed a public lien (which is what a lien consist of) upon your property, don't wait to talk to someone about working towards getting that lien removed.
However, the IRS will not file a lien under the following circumstances:

-If one becomes deceased
-Owes less than $5000
-Currently in a Streamline Installment Agreement; not if the total or accessed is over $25K
-If in anyway cause the Taxpayer not to be able to pay liability (i.e. lien effects his ability to earn or borrow).

Effectur is a company where there are well trained tax-consultants that can help with liens and tax deliquent issues.

Second Part-Offer In Compromise

I wantd to continue my discussion about Offer In Compromise. When you owe taxes There are four factors that determine Reasonable Collection Potential.

-Future Income : Monthly Dispobably Income
-Asseets: Your Net Equity in assets
-Assests Collectible from 3rd parties : Transferee liability,assests held by others
-Income /Assests out of reach of the Government: i.e foreigh assests and income

Other factors include:
-Age
-Health
-Buisness owner, value of business
-Future earning ablity
-Asset appreciation
-Many other factors

When you have delinquent taxes, you must first be compliant on all of your returns. First you need to settle your filing requirements before you can receive IRS Help on the back taxes you owe.
-You cannot immediately full pay or full pay through an installment agreement
-You must be compliant on all filing requirements and certtain payment requirements,including estimated tax payments and federal tax deposit requirements.