The primary focus of my practice is IRS and State Tax Resolution. Many taxpayers who come to see us in Rochester, NY are mostly frightened of having their bank accounts or wages levied by the IRS. As you might expect the discussion turns to what can we do to avoid a levy by the IRS?
The answer is simpler than you think, but it’s often not what people want to do.
Here are the three steps to avoid an IRS Tax Levy:
- Missing Tax Returns – File missing tax returns for the last 6 years;
- Current with tax payments – Up to date with current taxes (withholdings or quarterly payment) ;
- Talk to the IRS
In order to work out any deal with the IRS, a taxpayer is required to be in tax compliance. Compliance covers the first 2 steps. The reason the IRS required compliance is that it does not make any sense for the IRS to agree to get into a payment arrangement or accept an offer-in-compromise with the taxpayer if the taxpayer is going to default when they file their current return and owe money.
Missing Tax Returns
The taxpayer has filed the last 6 years of tax returns. For example, 2018-2013 tax returns must be filed. They amount due is not required to be paid only that they have been filed with the IRS.
Current Tax Payments
This means the taxpayer are making their current tax payments. For W2 employees, the current withholding is enough to cover the current tax liability. Business are required to make quarterly estimated payments. The taxpayer must be current in the current quarter.
Talk to the IRS
You need to speak to the IRS (or someone needs to do it for you). The IRS needs to know you want to resolve your tax debt and that you will work with them. It is of uttermost important to pick up the phone and call the IRS, let them know you are getting in compliance and will be submitting a proposal to resolve the tax debt. In doing so you can avoid having the IRS take collection action against you and/or your assets (tax levies).
If you or someone you know is having an IRS issue, please feel free to contact me at either (585)-210-7405, or by email at jasonzukoski@integratedtaxresolutions.com.
Jason Zukoski
Integrated Tax Resolutions
395 Helendale Rd.
Rochester, NY 14609
Ph. (585) 210-7405