Tax Resolution
Take control of IRS problems with a structured plan.
If you’re dealing with tax debt, IRS notices, or enforcement actions, the situation won’t fix itself—and waiting usually makes it worse.
We help you understand where you stand, what your options are, and how to move forward with a clear resolution strategy.
When your unpaid taxes reach a certain threshold, the IRS will become very forceful in their collection tactics and can make your life miserable until you find a way to pay. They can hit you with exorbitant penalties, garnish your wages, or even use a levy to seize your property in an effort to pay the tax debt. If you’re experiencing one of these tax problems or any of the others listed below, contact Phillips E.A. & Associates now at(XXX)XXX-XXXXfor straightforward tax advice and a timely solution.
Common Resolution Paths
Back Taxes - Filing Delinquent Returns
For individuals or business owners with multiple years of missing filings.
Failing to file your personal or business taxes on time can happen for many reasons. You might not have the money to pay your taxes, were busy dealing with serious health concerns, or could have been distracted by any number of issues in today’s fast-paced world. At Phillips E.A., & Associates, we understand that if you’ve fallen behind on your taxes for multiple years, you might be feeling uncertain about resolving the problem. If you’re afraid that you owe penalties and interest or are overwhelmed with the idea of locating lost paperwork, we’re here to provide the personal attention and assistance you need to file your delinquent tax returns and get a fresh start with the IRS. Call us at (XXX)XXX-XXXX now or request a consultation online to get started and we’ll guide you through the process.
Our friendly and responsive staff takes the pain out of filing your back tax returns and will be with you every step of the way. We’ll help you track down your missing W-2 and 1099 forms, mortgage and bank interest statements, and any other financial documentation required to prepare your back taxes. Once we have all the paperwork we need, we’ll accurately prepare and file your delinquent tax returns to get you up to date with the IRS.
Avoid Tax Problems by Filing Back Taxes Now
If you owe back taxes to the IRS, don't ignore the issue. Before you know it, tax penalties and interest can accrue, creating a tax debt that can snowball into a more serious tax problem like wage garnishment or a tax lien. Act now before your tax debt gets out of hand, and if you do owe back taxes that you can’t afford to pay all at once, we can work with the IRS to establish an installment agreement or another tax relief solution to pay off your tax debt over time.
IRS Audit Representation
For clients facing audits or needing professional representation.
It’s essential to secure representation from a tax professional if you’ve received an IRS audit notice. Even if you feel confident that you’ve paid your taxes accurately and are not at fault, the auditor may have a trick up his sleeve. IRS auditors are trained to encourage taxpayers to divulge more financial information than is legally required so they can find reasons to collect more of their hard-earned money. Don’t let this happen to you! The average taxpayer is no match for an IRS auditor so contact us for assistance with your tax audit and we’ll make sure you get fair representation and the best possible outcome at your audit.
IRS Audit Representation from a Qualified Tax Professional
When defending an IRS audit, not all tax professionals are adequately qualified to represent you. Some CPAs or accountants dabble in tax resolution and may work on a few audits a year, but don't possess the experience and expertise needed to successfully navigate your particular case. At Phillips E.A., & Associates, we specialize in all forms of tax problem resolution with an emphasis on IRS audit representation so we know how to deal with the IRS. We've helped many taxpayers get through an IRS audit with minimal financial consequences. And if you do end up owing some back taxes, we can find ways to reduce tax penalties and arrange for an affordable payment plan like an installment agreement.
Have You Received an Audit Notice?
If the IRS has flagged you for an audit, you might be wondering why you're being audited and aren't sure what to expect. When you enlist our assistance, we'll be by your side throughout the process to answer questions and resolve any tax problems quickly. Call us now at (XXX)XXX-XXXX or request a free initial consultation through our website.
Installment Agreements
For clients who need structured monthly payments to resolve their balance over time.
Setting up an installment agreement with the IRS allows you to pay off your back taxes over time while remaining in good standing with the taxing authority. This is a good option for people that want to get rid of their tax debt but don’t have enough money to pay it off all at once because it breaks the amount down into affordable monthly increments.
Many taxpayers like installment agreements because the IRS may reduce certain penalties once the agreement has been established. Please read on to learn more about how this arrangement works and if it’s a possible payment plan for you.
How an IRS Installment Agreement Works
Similar to other payment plans offered by the IRS, any delinquent tax returns must be filed before applying for an installment agreement. When you’re ready to apply, Phillips E.A. & Associates will file IRS Form 9465 on your behalf to request an installment agreement. The IRS charges a fee to set up the agreement and even if they grant it, you'll continue to be charged interest as you pay off your tax debt.
Installment Agreement Payment Plans
Certain plans only require a small monthly payment until the statue of limitations is reached and then the rest of the tax debt is cleared. Other kinds of plans may demand a full repayment and require a larger monthly payment but, even in these cases, the increments are designed to be reasonable so the goal of paying off the tax debt can be achieved. The designated amount of the monthly payment will be determined by weighing the overall tax bill against what the taxpayer has the ability to pay. These installments must be consistently paid on time to avoid defaulting on the agreement.
What Type of Installment Agreement is Right for You?
The IRS offers different types of installment agreements and some have specific requirements you must meet in order to successfully set up the payment plan. An installment agreement is often fairly easy to obtain when the amount of taxes you owe doesn't exceed $25,000 and you have a qualified tax professional like Phillips E.A, & Associates helping you file the necessary documentation. Even if you owe a larger amount, our firm will work with the IRS to find the best solution to settle your tax debt. Call us at (XXX) XXX-XXXX now or request a consultation through our website.
Offer in Compromise
For those who may qualify to settle their tax debt for less than the full amount owed.
An offer in compromise (OIC) is a unique settlement option where the IRS agrees to accept less than a taxpayer actually owes. For taxpayers that feel the assessed amount of their tax bill was unfair or for those who may never be able to pay their entire tax bill due to a financial hardship, this could be an attainable settlement option. Obviously, the IRS does not easily accept this type of offer. But, if your case meets the requirements, a skilled firm like Phillips E.A., & Associates can construct a sufficient offer. First, you'll need to find out if you qualify for an offer in compromise under current IRS guidelines.
Have You Received an Audit Notice?
If the IRS has flagged you for an audit, you might be wondering why you're being audited and aren't sure what to expect. When you enlist our assistance, we'll be by your side throughout the process to answer questions and resolve any tax problems quickly. Call us now at (XXX)XXX-XXXX or request a free initial consultation through our website.
Do You Qualify for an Offer in Compromise?
To find out if your particular situation qualifies for this type of tax relief, review the information below then call us at (XXX)XXX-XXXX or request a consultation online to discuss your case. We understand what kind of evidence needs to be presented to the IRS in order to agree to reduce your tax debt.
Doubt as to Liability
To qualify for this provision, a taxpayer must deliver ample evidence that the assessed tax liability is incorrect and consequently, they should not be liable for the full amount.
Doubt as to Ability to Pay
If a taxpayer can show that they don’t currently have the ability to pay their tax debt and the IRS probably never will recover the full amount, then they may qualify for a reduced bill under this category.
Effective Tax Administration
This relatively new option was created for taxpayers who are unable to work to pay off their tax debt because they’re elderly or are in very poor health and can’t work.
Types of Offers in Compromise
There are a few main types of offers. The actual payment will be calculated based on your income, expenses and asset equity.
Lump Sum Cash Offer
This is the most common and least costly type of payment option. To establish the amount to be paid, the IRS calculates the taxpayer’s future earning potential and determines a net available income by comparing gross income and allowable expenses.
Short Term Period Payment Offer
This payment option requires the taxpayer to pay the tax debt off through monthly payments over a 24 month period. Although they will have more time to pay off the tax debt, the total offer amount will be higher than the Lump Sum Cash Offer.
Deferred Payment Offer
This is the most costly type of offer and doesn’t always provide a significant benefit to the taxpayer. It allows the person to make monthly payments based on their calculated net available income over a longer period of time, but they will continue paying for as long as it takes to pay off the tax debt.
Penalty Abatement
For reducing or removing penalties when reasonable cause exists.
Penalties incurred from filing taxes late or failing to pay taxes on time are not only frustrating but costly for many U.S. taxpayers. The IRS will sometimes agree to an abatement of these tax penalties, but most people are unaware of this provision.
Qualifying for Tax Penalty Abatement
To qualify for penalty abatement, a taxpayer has to meet certain criteria and offer an acceptable reason for failing to pay their taxes or paying their taxes late. The taxpayer must submit evidence to support their claim and convince the IRS that their situation qualifies in order to benefit from this provision. The reasons for penalty abatement according to current IRS guidelines include:
- Reliance on a tax professional
- Ignorance of tax law
- Medical illness (personal or a family member)
- Natural disasters
- Significant financial hardship
- Death in the family
First-Time IRS Tax Penalty Abatement
First-time non-compliant taxpayers can request penalty abatement (FTA). This request applies to certain kinds of penalties in a single tax period but could end up saving taxpayers considerable money in penalty fees. Individuals can request a FTA for failure to file or failure to pay penalties and businesses can also request it for failing to file payroll taxes. Of course, the IRS does not forgive these penalties easily. In order to qualify, the taxpayer must file their late taxes or have filed a valid extension. They also must have a three-year clean penalty history. If the IRS concludes that the taxpayer has demonstrated payment compliance, they may accept the request and abate the penalties.
How Do I File for Penalty Abatement?
Before filing for penalty abatement you'll need to be sure you qualify and are able to communicate a convincing argument to the IRS. For assistance, turn to Phillips E.A. & Associates. We understand what types of situations will qualify a taxpayer for penalty abatement and can help you file the necessary paperwork. To learn more or discuss your circumstances, contact us at (XXX)XXX-XXXX or request a consultation through our website.
Innocent Spouse Relief
You shouldn’t be held responsible for a tax situation you didn’t create.
According to IRS guidelines, when a married couple files their taxes jointly, both parties are liable for the taxes owed no matter how much taxable income each person earned individually. If your spouse or former spouse made mistakes on your joint return or misrepresented a portion of the income, the IRS doesn’t care who made the errors, they will go after whoever they can find first. Even if you’re divorced, they will do all they can to recover back taxes, penalties, and interest. If your spouse or former spouse has put you in this unfair and potentially expensive situation, you may qualify for innocent spouse relief.
If you qualify for innocent spouse relief, you won’t be responsible for back taxes and fees owed on a joint tax return that intentionally neglected to report your full joint income. If you think you may qualify, review the information below then call Phillips E.A. & Associates at (XXX)XXX-XXXX or request a consultation through our website. We help individuals get the innocent spouse tax relief they deserve.
Types of Innocent Spouse Relief
Classic Innocent Spouse Relief
With classic innocent spouse relief, you won’t be responsible for paying back taxes, penalties, and interest if your spouse or former spouse failed to report income on your joint tax return.
Relief by Separation of Liability
This type of tax relief allows you to divide the understatement of tax plus interest and penalties between you and the other party.
Equitable Relief
If you don’t qualify for the other types of innocent spouse relief, you may still be able to get relief for an underpayment or understatement of tax through Equitable Relief.
Currently Not Collectible (CNC)
For clients experiencing financial hardship and needing temporary relief from collections.
Ordinarily, if a taxpayer owes back taxes and penalties, the IRS will use any collection tactic at their disposal to get their money and will not let up until the tax debt has been paid or a payment plan has been arranged. However, if a taxpayer truly cannot afford to pay their tax debt and doing so would contribute to their economic hardship, the person can apply for Currently Not Collectible Status. This special temporary status does not forgive the tax debt but protects people dealing with major financial difficulties from potentially devastating collection methods like wage garnishment and levies. When the IRS agrees to consider your tax debt Currently Not Collectible, they won't attempt to collect their money during this time period but the penalties and interest resulting from your tax debt will continue to grow.
How Currently Not Collectible Status Works
In order to obtain Currently Not Collectible Status, the IRS must be convinced that you're experiencing financial hardship. They will review your household income against your monthly living expenses like rent, utilities, medical bills, and other essential expenses. If they find you don't have any money left to pay off your tax debt after your monthly bills are paid, they will mark your account as uncollectible. They'll periodically go back and review your situation and if your circumstances have changed, they will revoke this status and start collection procedures.
Do You Qualify for Currently Not Collectible Status from the IRS?
There are many types of financial issues a taxpayer could experience that may qualify them for Currently Not Collectible Status including:
- Unemployment
- Living on a fixed income
- Suffering from an illness that makes you unable to work
Phillips E.A. & Associates can review the evidence and determine whether or not you qualify for this status. We’ll use IRS guidelines to accurately calculate your gross monthly income, allowable monthly expenses and assets and compare these figures with your back-tax liability. If we establish that you are a good candidate for this status, we’ll help you compile the necessary financial documentation and tax forms needed to pursue this avenue of tax relief.
Put an End to Your Tax Problems
When you consult with a firm like Phillips E.A, & Associates our goal is to find a long-term solution to your tax problems. Call us at (XXX)XXX-XXXX today to learn more about how we can find a suitable tax relief option for you or request your consultation online.