In honor of our anniversary, we’ve refreshed our website with an updated look – one we hope will encourage our clients to continue to work with us and find financial freedom from tax debt. Not only did our website get an upgrade, but we created this short video as a fun way to share how our tax resolution services are changing lives. We had a lot of fun creating this video that gives you a taste of our history, experience, and everything our team has to offer.

At Direct Tax Relief, our goal has always been to take away the fear people have about back taxes by becoming a trusted and reliable source for all of your tax needs. Enjoy our video!

Connect with us on social media and let us know what you think! We’d love to hear from you.

The post Celebrating 15 Years of Direct Tax Relief appeared first on Direct Tax Relief.

Jay is originally from South Africa and emigrated to the United States in search of better opportunities.  Jay went to college at Southern Illinois University and Northeast Missouri State University, before settling down in Los Angeles. He has worked in both the legal and finance industries, and has experience with accounting, tax preparation, and payroll. Before becoming an Enrolled Agent, Jay operated his own paralegal services business for 24 years.

Throughout his decade in tax resolution services, Jay has represented thousands of taxpayers who desperately needed help. From a client who hasn’t filed taxes in 10 years to a small business owner who owes over $100,000 in back taxes to the IRS, Jay has seen it all. His experience, calm demeanor, and valuable relationships have helped him successfully resolve his cases with positive results – which have made his clients very happy!

In his free time, Jay enjoys jogging and cheering on his favorite basketball, soccer, and football teams.  We are grateful to have a wonderful asset such as Jay at Direct Tax Relief. Jay is looking forward to resolving many more cases for his clients and relieving them of the burden of IRS back taxes.

The post Meet Jay Soni, Sports Fan & Beloved DTR Agent appeared first on Direct Tax Relief.

Why?

Because a professional not only understands the range of programs available to pay off and/or settle your tax debt, but also how to speak to the IRS, how to file the necessary paperwork, and can answer questions along the way, saving you time, worry and confusion.

Though your debt may feel hopeless at first, Tax Practitioners are able to analyze your situation and resolve it based on laws that may benefit you, the taxpayer, thus reducing the total amount that you pay. For example, there are tax relief programs such as the Offer in Compromise (OIC) where you may settle your total debt for less. There are also programs available to have your penalties removed, thus helping to reduce your debt. These are just two of many programs available to help with your back tax situation, but every program has different qualifications and rules that must be followed before a settlement can potentially be reached. That’s why having an expert there to guide you helps save time, headaches and, ultimately, money. So before you whip out that checkbook and send the IRS the full amount you owe, it’s always a good idea to get a free and confidential consultation with an experienced tax advisor.

When you do contact a tax relief or tax resolution company, there are many factors to consider. Don’t hire a firm solely based on low fees. Fees that are lower than the industry standard usually mean that the firm will be cutting corners and may not properly settle your debt, or be safe to trust your sensitive financial and personal information with. Some important questions to ask potential tax relief or resolution firms are: How long have you been in business? What are your ratings with the Better Business Bureau, Yelp and Google? Are the owners and management staff properly disclosed on the website?

If a company fails to disclose vital information such as management staff or their public ratings online, that’s a red flag that should have you seriously considering whether to work with them. You should also confirm that they provide a free and confidential consultation with an experienced tax advisor – not a commissioned salesperson.

As previously mentioned, a key advantage of hiring a tax relief firm is to avoid unnecessary stress, confusion and incorrect filings when resolving a debt with the IRS. And that’s not to mention the time that you’ll save. Current hold times to speak with IRS agents can be up to 3 hours long and several phone calls are required throughout a tax resolution case. If you’re busy running a business, maintaining a career, or taking care of your family (or all of the above), the time spent just trying to contact the IRS can add up to having a whole additional job – and a stressful one at that. A resolution expert can help contact the IRS to keep the process moving along, saving you precious time to get back to your life – all with less worry hanging over your head.

If you are ready to have an experienced tax professional help resolve your IRS or State back taxes, give us a call today or contact us here.

The post What to Look for In a Tax Relief Firm appeared first on Direct Tax Relief.

No matter what your situation is, the process for tax resolution remains the same. Whether you have unfiled tax returns or back taxes owed to the IRS or State, the seasoned professionals here at Direct Tax Relief can help you.

There are many reasons why hiring a tax advisor can be beneficial. First and foremost, an expert tax advisor can save you time, money – and stress. Tax law is often very complicated, and attempting to resolve problems with the IRS or state tax agencies alone is difficult. Hiring representation gives you a valuable lifeline to help navigate fair tax solutions for your situation.

The first step in our process is a consultation with a qualified tax advisor. During this detail-oriented meeting, we’ll listen to your tax problems and create a comprehensive plan to help resolve the back taxes or unfiled tax returns. The consultation is free, confidential, and with no obligation for further services. Any information discussed during the consultation stays between the taxpayer and the tax advisor.

Once our firm is hired for representation, the next steps involve discovery, protection of assets, prevention of garnishments, contact with IRS and state tax agencies, and negotiation. If tax return preparation is required, those returns will need to be completed as well. These tasks are done to ensure that all of your relevant finances are accurately documented. During this time, your tax advisor will work with you to collect any relevant documents. It is likely you will be required to provide various documents, such as bank statements, past tax returns, and more. The time to complete these tasks will vary based on several factors for each case, including the amount owed and how many years of tax returns need to be filed.

The final step in the tax resolution process is negotiation. It takes several months of work to reach this phase, but after we complete our detailed financial analysis, we are one step closer to resolution. There are many different tax resolution solutions and programs available, including an Offer in Compromise, Installment Agreement, Currently Not Collectible, Partial Pay Installment Agreement and several more. With our thorough understanding of your financials and situation, we will review the options available and determine which tax solutions are just right for you.

If you owe more than $10,000 in back taxes or have several years of unfiled tax returns, contact the trusted experts at Direct Tax Relief today for your free and confidential consultation. We’re here to help.

The post Our Tax Resolution Process appeared first on Direct Tax Relief.

If you have ever had a tax bill you couldn’t afford to pay, don’t be swayed by false ads promising “total IRS debt forgiveness.” In most cases, complete forgiveness of tax liability — except in the case of bankruptcy — is unlikely. But don’t think that you’re out of options just yet. Should the Internal Revenue Service (IRS) send you a letter saying you owe them tens of thousands of dollars, don’t avoid it.

How To Make An Offer In Compromise 

An Offer in Compromise could be the best tax relief option for you. The IRS’s Offer in Compromise (OIC) is a program that allows you to settle your back taxes for less than you owe. But don’t assume that you can just call the IRS, offer them a specific amount (for example, 50% of your debt), and the IRS will make an immediate decision to approve or deny it. Rather, the Offer in Compromise is a formal and rigorous program that requires:

• Completed application form 
• Application fee, typically $205
• A down-payment and deciding on a lump sum or periodic payment plan offer, along with Form 656
• Personal and/or business financial statements, including Form 433-A OIC
• Substantiating documents, such as a mortgage, rent, automobile expenses, medical and health and insurance documents

The Three Main IRS OIC Categories 

Even if you submit all these documents and fees, you must still meet the strict qualifying criteria. An Internal Revenue Service Offer in Compromise will fall into one of three broad categories:

• Doubt as to liability: Used if there is a genuine dispute about the amount you owe or whether you owe anything at all
• Doubt as to collectibility: The IRS believes your tax debt may not be fully collectible due to your assets and income being less than the full amount of the tax liability
• Effective tax administration: When there’s no doubt that you owe the full amount but paying in full would create a financial hardship or there are extenuating circumstances that would make it unfair for the IRS to collect the full amount

The Importance of Having An IRS OIC Representative

So let’s say you’ve decided to apply for an Internal Revenue Service Offer in Compromise. You’ve gathered all of the information and documents, and organized, packaged, and mailed them to the IRS. The next step in the process involves the Internal Revenue Service assigning your Offer in Compromise to a Process Examiner. This agent will review the information sent and correspond back if any additional information is needed. In some cases, they may reject or return the OIC based on incomplete information or documents. Since the OIC is a rigorous program that takes several months, not everyone who asks for one will be approved. Taxpayers who submitted an Offer in Compromise without a representative have had a much lower chance of having the Offer accepted, according to data from the IRS.

Reviewing the IRS OIC and Next Steps

Should the OIC make it past the Process Examiner, it will then go to an Offer Examiner. This agent’s job is to review the entire application and financial documents to reach a decision. As they review, the IRS will take into consideration your assets, income, expenses, and financial obligations. There are specific formulas that both the taxpayer and IRS need to follow to determine the reasonable collection potential, which is the lowest amount the IRS will consider to settle your entire debt.

Accepting the IRS OIC

Once the review is done, the IRS will reach a decision. If the IRS accepts your OIC, you’ll need to meet all the terms of your agreement. Should you fail to comply with the agreement, the IRS will assess you for up to the original amount of the tax debt plus penalties and interest (minus any payments you’ve made). But if the IRS rejects your offer, you’ll have 30 days to file an appeal. Additional financial analysis and Offer in Compromise guidelines need to be reviewed for the appeal process. In the event of an appeal, new information and documents need to be provided, along with a competent argument as to why the OIC should be accepted by the IRS.

Direct Tax Relief Can Help With Your IRS OIC

An Offer In Compromise is a complicated process and not a cure-all for back taxes. However, by finding the best tax relief options for your situation, you can confidently handle your tax debt. If you think you might be eligible for an OIC, take your time to go through the process with a tax relief specialist. With their help, you may be able to settle with the IRS for less than what you owe.

If you have a debt to the IRS or state for more than $10,000 and would like a free and confidential consultation to see how Direct Tax Relief can help resolve your debt with tax relief services. Call us a call at (800) 505-4134 to reach one of our tax resolution experts and get on your way to peace of mind.

The post How Does the IRS Offer in Compromise Program Work? appeared first on Direct Tax Relief.

At Direct Tax Relief, it’s our mission to bring our clients peace of mind through tax debt resolutions while making the scary work of dealing with the IRS a lot less lonely and a lot more effective. Our certified professionals are experienced at handling cases from beginning to end, removing the stress and guesswork that can come with these often complex situations. Each Direct Tax Relief client is assigned a personal case manager who provides tailored, comprehensive services to find the best tax relief options. From settling delinquent back taxes and preparing unfiled tax returns, to payroll tax problems and payroll trust fund recovery penalties, our firm of tax preparers and tax resolution specialists work together to provide expert resolutions and tax debt help to individuals and small businesses across the country.

Our Specialties

Every client is unique; and at Direct Tax Relief, their success is our success. That’s why our team of experts is skilled at providing solutions for all types of tax problems, big and small. Whether we settle your debt through the Offer in Compromise program or have your penalties removed through Penalty Abatement, the tax relief specialists at Direct Tax Relief will work with you to get results.

• Tax Resolution Services: Representing individuals and small business owners, our tax professionals are dedicated to resolving tax debt for our clients. With specialized training, knowledge, and experience, our certified tax experts and attorneys work to find the best solutions for our clients’ issues. These resolutions include offers in compromise, payment plans, collection statute expirations, and others. No matter the size or situation, Direct Tax Relief works with you to resolve your tax debt.
• Tax Preparation: The United States Tax Code is thousands of pages long, and filing incorrectly can lead to major headaches, fines, and money left on the table. Our expert tax preparers will make sure you get the maximum refund and deductions you deserve while saving you time—and headaches.
• Accounting, Bookkeeping, Payroll Services, and Business Formation: In 2014 alone, the IRS issued $4.5 billion in penalties resulting from improperly prepared payroll taxes. Our in-house team of enrolled agents, certified bookkeepers, and tax preparers have the expertise to help your small business grow and stay successful. Whether you need assistance with payroll, accounting, or bookkeeping, our services are designed to keep your business organized and up to date.

Tax relief, and the peace of mind that comes with it, don’t have to wait. Our dedicated team of tax professionals at Direct Tax Relief can negotiate a resolution with the IRS and state tax agencies and help you find the tax relief you deserve. To get started, contact us today for a free, confidential consultation.

The post Meet Direct Tax Relief appeared first on Direct Tax Relief.

Offer in Compromise (OIC) Defined

An OIC is basically a debt settlement with the IRS that allows you to resolve your tax debt for less (often considerably less). To make this negotiation possible, you need to properly show the IRS that you don’t have the ability to pay your total tax debt. That sounds easy, right? I mean, your bank account might reflect it, your employment or business status might make it seem obvious, but…it’s not exactly that simple.

OIC Submission Process

To start, all necessary paperwork must be submitted to the IRS. Once documentation is in, an Offer Examiner will be assigned your case. Keep in mind, that doesn’t mean they will actually get started on it. In fact, these individuals have up to two years before a decision is required! Often if you (or your tax advocate) are not pushing them to make things happen, your file can fall to the bottom of the stack.

Negotiation Time

Once an Offer Examiner has made a decision, they can give a few responses following the submission of an OIC.

1. They can accept the OIC without question (rare).
2. They can request more documentation (this is often when a skilled tax negotiator is crucial).
3. They can deny the OIC.

Appeals, Appeals, Appeals

If you find your OIC has been rejected, you have the right to appeal the decision. You will have 30 days to submit your appeal, and you will need to include further information for why you should, again, be considered for an OIC. If you are at this stage, and you still haven’t used a professional, consider it. A professional tax advocate can:

1. Explain the reasoning for why your appeal was originally rejected.
2. Look into other documents that may help your case following appeal.
3. Advocate on your behalf directly with your Offer Examiner.

Don’t Lose Hope

No one wants to be in debt—especially to the IRS. While the IRS Offer in Compromise process may seem overwhelming, with the right help from Direct Tax Relief it IS possible to negotiate your tax debt down to a reasonable amount. In fact, we have helped clients whose Offer in Compromise was previously rejected.

The post The Complexity of an OIC (Don’t Try This at Home) appeared first on Direct Tax Relief.

An IRS penalty waiver does exactly what it sounds like – waives IRS penalties. For an individual filer, this procedure attacks failure-to-file or failure-to-pay penalties. For a business, these penalties also include those related to a failure to properly deposit payroll taxes. Pursuing this type of waiver is one step in the process of reducing or eliminating tax debt.

Who Can Qualify?

To qualify, you should meet these criteria:

• You must be up-to-date on all tax filings or have filed a current tax extension.
• You have not faced a large penalty from the IRS in the last three years (a small penalty may not exclude you).
• You have paid or are in the process of paying any taxes.
• You have “Reasonable Cause” for not paying or filing late. With all things related to the IRS, exceptions can be made. Not sure if you qualify? Speaking with a tax resolution professional can help shed some light on the process.

What is “Reasonable Cause”?

Usually, when filing an IRS penalty waiver, you’ll want to have a good reason for your failure to file, deposit or pay. There are many reasonable explanations for this type of delinquency. For example, a slump in business could make depositing payroll taxes impossible, or a health issue could leave you unable to file or pay on time.

A trusted tax resolution service can help with the necessary paperwork and the success of the application process (and any necessary appeals).

How Else Does an IRS Penalty Waiver Help?

As discussed, a penalty abatement absolves administrative penalties incurred by qualifying taxpayers. But did you know that it can reduce or remove any interest charged on an IRS penalty? That can mean big savings toward your tax debt. And keep in mind, even if you don’t qualify for this type of waiver, contact Direct Tax Relief as there may be other IRS tax debt resolution options available to you. Learn why our A+ rating with the Better Business Bureau matters.

IRS Penalty Waiver: https://www.irs.gov/irm/part20/irm_20-001-001r#d0e2854

The post First-Time Tax Offender? See if You Can Benefit From an IRS Penalty Waiver appeared first on Direct Tax Relief.

The Internal Revenue Service has aggressively increased its enforcement, criminal prosecution, and implementation reporting through the Foreign Account Tax Compliance Act. The Internal Revenue Service also eliminated all loopholes that have been used by some taxpayers with offshore accounts. If a taxpayer challenges in a foreign court the disclosure of tax information by that government, the taxpayer is required to notify the U.S. Justice Department of the Appeal and would most likely need professional representation. The 2012 OVDP has exceeded the collected $5 billion mark last January 2012 and has even tightened the eligibility requirement. Having a professional OVDP tax attorney presentation is highly recommended for a successful settlement.

With new tax treaties being developed at an increasing rate, more countries will be cooperating with the US to go after tax-evading U.S. citizens. The Internal Revenue Service also put taxpayers on notice that their eligibility for OVDP could be terminated once the IRS has taken legal action that increases the risk of criminal prosecution if not addressed timely.

Do you have an offshore or a foreign bank account and owe $10,000 or more in back taxes?  You have options such as the IRS Streamline Filing Compliance Procedure.  Direct Tax Relief is a tax debt relief company and can guide your offshore tax situation. Contact us today for a free consultation.

UPDATE FOR HISTORICAL PURPOSES:

The IRS closed the Offshore Voluntary Disclosure Program in early 2018. Since the program started over 56,000 taxpayers utilized the program to voluntarily comply and pay over $11 billion back taxes, interest, and penalties.

Sources:

• Offshore Voluntary Disclosure Program: https://www.irs.gov/newsroom/irs-to-end-offshore-voluntary-disclosure-program-taxpayers-with-undisclosed-foreign-assets-urged-to-come-forward-now
• Streamlined Filing Compliance https://www.irs.gov/individuals/international-taxpayers/streamlined-filing-compliance-procedures

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Many taxpayers that are new to self-employment don’t have the proper guidance from their accountant or CPA and incur a large tax liability when it’s time to file their tax return. Since many self-employed taxpayers are not aware that the law requires them to make quarterly estimated tax payments, they start having IRS tax problems and fall out of compliance with federal tax laws.

In 2012, Direct Tax Relief  helped over 1,000 taxpayers resolve their back tax problems. DTR consists of Certified Tax Attorneys and IRS Enrolled Agents that are very successful at negotiating and mediating with the IRS and State tax agencies.

Often, when a taxpayer becomes aware that they will owe a large sum of money due to self-employment or insufficient withholdings from their pay, they become frightened at the consequences and fail to file their tax return. This pattern of not filing returns usually repeats for a few more years until the IRS gets involved and files “Substitute Returns” on the taxpayer’s behalf. According to Tax Attorney and Certified Tax Resolution Specialist John Holland, this is the worst scenario that can occur, because he states “The IRS files your return based on income from 3rd party sources. You don’t choose your filing status, any dependents, or are able to claim any business expenses”.

The IRS has recently expanded its “Fresh Start” program, allowing more taxpayers than ever to qualify for an Offer in Compromise. The Offer in Compromise program allows taxpayers to settle their back taxes for a fraction of what they owe. Direct Tax Relief negotiates settlements for their clients at an average rate of 12 cents on the dollar. That means a taxpayer who owes the IRS $30,000 in back taxes can potentially settle for only $3,600!

If you have unfiled tax returns or owe the IRS or State over $10,000 in back taxes, contact Direct Tax Relief today. Contact us for a free consultation and find out if your tax situation qualifies for the IRS Fresh Start Program. If there is a fit, our certified tax attorneys and enrolled agents can manage all communication with the IRS and handle your case from beginning to end.

The post Resolving Tax Debt Problems with IRS Fresh Start for Self-Employed Taxpayers appeared first on Direct Tax Relief.