The law firm of Bilfield and Associates, located in Cleveland, Ohio represents taxpayers in Ohio and throughout the Midwest who owe IRS back taxes. We are dedicated to helping individuals and businesses develop tax debt relief solutions so that you can regain peace of mind and a fresh start. We provide permanent solutions to a wide range of tax debt problems for:
- Individuals & Independent Contractors
- Self-Employed & Professionals
- Small Businesses
What We Do: Bilfield And Associates Provides Permanent Solutions To Your Tax Debt Problem:
- Stop IRS Seizure Of Assets, Personal And Business Property
- Stop IRS Levies Of Bank Accounts And Garnishment Of Wages
- Release Tax Liens On Property
- Negotiate Low Settlements For IRS Back Taxes (Offer In Compromise)
- Prepare And File Back Tax Returns To Get You Back Into Compliance
- We Meet With The IRS So You Don’t Have To
- Get Back Peace Of Mind
You should file your back tax returns as soon as possible, regardless of the reason for not filing. Failure to file your return on or prior to the due date will result in penalties and interest. Filing on time but not paying in full will result in a failure to pay penalty. Interest will be charged on unpaid taxes and interest is charged on penalties.
You may be eligible for a reasonable payment plan to pay over time or an offer in compromise (OIC).
If you qualify, the IRS may accept an offer in compromise (OIC). An OIC is a very complicated process that may settle or compromise all federal tax liabilities by accepting less than full payment under certain circumstances. The process may take up to 1 year or more.
Business, employment or payroll taxes are also known as trust fund or fiduciary taxes, because the employer actually holds the employee’s money in trust until a federal tax deposit is made. Those payroll taxes consist of income and social security tax withheld. A federal law exists for the assessment of a trust fund recovery penalty. Should the IRS wish to assess you for the trust fund recovery penalty, IRS will send a letter indicating that you are the responsible person, which gives you a very short time to appeal. If you fail to respond, the penalty will be assessed. Interest and penalties may be charged by IRS on any unpaid balance.
First, review the audit letter to determine the reason for the tax audit. Not all audits require a face-to-face meeting. IRS may wish to audit a portion of the return or may audit the entire return. However, some audits can be handled by supplying requested information without personal appearance.
Secondly, there are certain applicable time limitations on IRS audits and collection procedures. In general, there is a 3 year statute of limitations for the IRS auditing a tax return, and a 10 year statute of limitations for collecting an unpaid tax debt.
A lien is different from a levy in that a lien is a legally filed document which is used as a security interest to pay the tax debt owed, similar to a mortgage filed by a bank. A lien does not automatically cause an asset to be sold or foreclosed as in the case of a house. A lien enables the IRS to gain priority against any other creditor and is filed only after IRS has completed the following:
- Determined The Tax Liability Of The Individual Or Company
- Sent A Notice And A Demand For Payment To The Taxpayer Or Company Officer
- There Is A Refusal To Fully Pay The Tax Debt Within Ten Days Of Notification
Tax liens are filed as public records in the county in which you live, or where your business operates. A properly filed federal tax lien will impede the ability to sell or transfer the property liened, and has an immediate and dramatic effect on your credit.
Can a lien be released after it is filed?
There are provisions for releasing a lien filed by IRS. There are multiple options available to resolve the underlying tax problem which caused the federal tax lien filing. It is critical that immediate action be taken in response to the filing of a federal tax lien.
An IRS bank levy requires the bank holding the account (savings or checking) to forward to IRS, within 21 days, all funds in the particular account(s) on the day of the levy, up to the amount of tax owed. Quick action within that 21 day period to address the tax debt problem may preserve the funds in the account(s).
Levy On Property Or Business Assets
A levy is different from lien in that it is an actual legal seizure of property, such as a car, boat or trailer, or business assets, such as construction equipment, which is then sold to satisfy the tax debt. Prompt communication by an attorney experienced with IRS procedures may prevent the seizure of property. A levy is a very serious proceeding and should not be ignored. There are some limited circumstances under which a seizure may be abated due to severe hardship.