Tax Relief Blog

Straight from IRS notice 746, the information below explains the combined Failure to File and Failure to Pay penalties.

"Filing and Paying Late - IRC 6651 — We charged a 5% combined penalty of 4-1/2% for filing late and 1/2% for paying late because, according to our records, you filed your return late and didn't pay your tax by the due date of your return. The combined penalty is 5% of your unpaid tax for each month or part of a month your return is late, but not for more than 25% (22-1/2% l...

This is a question that we hear frequently.  I think there are quite a few salesmen out there that tell prospective clients that without a tax attorney, they won't be able to do certain things while negotiating their back taxes with the IRS.  This really isn't true.  The IRS states that Enrolled Agents, certified public accountants and attorneys have unlimited practice rights before the IRS.  This means that any of them can fully represent a delinquent taxpayer before the IRS Collection divis...

I don't carry cash anymore.  I use my credit card or debit card, and sometimes it gets me into trouble.  I'm not alone in this.  A lot of my clients over the years have been in credit card debt along with the IRS and state back taxes.  It's something we commonly see at Fresh Start Tax Relief. 

Credit card debt is unsecured debt.  IRS and state back tax debts are secured debts.  Once a tax lien is filed and made public, the IRS or state has a lien position and right to assets.  Read more abo...

If you owe back taxes to the IRS and you've received a notice from the Service, your case may be in IRS collection status.  Once the IRS starts issuing notices to collect a past due tax debt, the machine is moving forward and the collection process has begun. 

We understand that is never fun to receive a letter from the IRS let alone open it and try to figure what in the world it means.  When you owe taxes personally to the IRS, the Service will not give you any courtesy calls to set up arr...

The average IRS Offer in Compromise takes a tax professional about 35 hours to complete from start to finish.  Multiply that by an hourly rate of just $100 and you have a $3,500 fee on your hands.  Good luck finding a tax resolution professional that's any good to work for less than $200 per hour.  And if you're hiring an attorney, that hourly rate is likely to be between $250 and $500. 

A lot of tax resolution professionals out there sell their clients the IRS Offer in Compromise before they ...