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.

This comprehensive bill targets making health care and prescription drugs more affordable, fighting climate change, taxing wealthy corporations, and more funding for the IRS.

Although the President has signed this bill, some savings in the bill won’t kick in right away. For example, efforts to lower drug prices, including caps on their costs for seniors, won’t take effect until 2025.  Studies have also shown the bill won’t reduce inflation, but others argue it will. Only time will tell.

Pivotal items in this legislation include: 

• The creation of a 15% corporate minimum tax rate: Corporations with at least $1 billion in income will have a new tax rate of 15%. Taxes on individuals will not be increased, and stock buybacks by corporations will have a 1% excise tax.
  
• Prescription drug price reform: Medicare will be allowed to negotiate the price of certain prescription drugs, bringing down the price recipients will pay for their medications. Starting in 2025, Medicare receivers will have a $2,000 cap on annual out-of-pocket prescription drug costs.
  
• IRS tax enforcement: For several years the IRS has declared they are understaffed and funded poorly, making it impossible to operate at full capacity.The bill invests $80 billion in the IRS over the next 10 years, allowing them to upgrade their systems and adequately staff their offices for resolving taxpayer issues.
  
• The IRS commissioner has pledged not to use the extra funding to audit small business or lower income taxpayers who earn less than $400,000.  He noted that other resources would be invested in hiring, training, and IT systems that will allow the agency to better serve all taxpayers.
  
• Affordable Care Act (ACA) subsidy extension: Currently, medical insurance premiums under the ACA are subsidized by the federal government to lower premiums. These subsidies, which were scheduled to expire at the end of this year, will be extended through 2025.
  
• Energy security and climate change investments: The bill includes numerous investments in climate protection, including tax credits for households to offset energy costs, investments in clean energy production, and tax credits aimed at reducing carbon emissions.

By signing this bill into law, President Biden hopes the Inflation Reduction Act will tackle the climate crisis, uplift the lower classes, and support American workers by creating good-paying, union jobs across the country.

The post Everything You Need to Know About the Inflation Reduction Act appeared first on Direct Tax Relief.

“Okay,” you say, “but what’s a third party settlement organization?” Well, you may know them by the names of eBay, Cash App, PayPal, and Venmo. 

“Okay,” you say, “but why do I need to worry about a 1099-K from an app like PayPal or Venmo?”

You don’t necessarily need to worry, but if you’re a plumber, barber, artist, or one of the other countless self-employed and/or small business owners that received more than $600 in annual payments through these apps, you will have a Form 1099-K issued at year end. That means you’ll need to report the amount as income, along with expenses, when preparing your annual  tax returns with the Internal Revenue Service (IRS). For many self-employed individuals, this is a routine they’re already familiar with whether you received any government issued forms or not. Only now, if you’re one of these businesses or individuals, you’ll have another piece of paperwork and income source to be mindful of when staying on top of your tax returns. 

Direct Tax Relief encourages taxpayers to always report all of their taxable income, regardless of the payment method or whether a tax form is generated. If all of your earned income is not properly disclosed on your tax return with the IRS, you will face penalties and interest for understatement of income. 

If you use any of these cash apps for your business—and especially if you use them for both business and personal transactions— we suggest you contact them and review your profile to decrease your chances of receiving an incorrect Form 1099-K that includes money received that was not business or service-related. Paying back your friends for dinner or movie tickets should not trigger a Form 1099-K from being issued. But if you do happen to receive a form by mistake, it will be time consuming and frustrating to clear up these matters with the IRS so that’s why it’s best to contact the cash app ahead of being issued a 1099. Another solution is to simply set-up a business-specific account to handle service transactions, or only use one app for business and the other for personal transactions. 

This may come as a drastic change for many who perform freelance and self employed work, but as long as you continue to report your correct earnings and deductions, you shouldn’t have much to worry about. There have been bills introduced that would increase the reporting threshold from $600 to $5000, but they have not been passed yet.  If you are self-employed and would like your taxes prepared professionally or are interested in other business-related bookkeeping or accounting services, call Direct Tax Relief at (800) 505-4134 or contact us.

The post Be Careful Using Cash Apps! 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.

After the rejection, Direct Tax Relief filed an immediate request with the National Taxpayer Advocate’s office to reopen the unwarranted dismissed case. For nine months, Direct Tax Relief persistently worked with three separate advocates until the IRS finally agreed to re-examine the initial Offer in Compromise. After careful review, a newly assigned Offer Examiner approved the initial debt settlement proposal! In the end, James was able to settle his IRS debt for roughly $200.

That’s right—from $118,000 down to $200 via an IRS Offer in Compromise. That is cause for celebration!

Even when things didn’t look good, Direct Tax Relief never stopped pursuing (and yes, pestering) the IRS for the debt relief it knew James deserved. And, in the end, it was all worth it.

If you owe back taxes on your income, contact Direct Tax Relief and learn about the IRS tax relief programs including IRS payment programs and the Corona Virus Tax Relief.  For example, the American Rescue Plan Act of 2021 introduced tax relief for individuals and employers.

*Information on this website, including real-life case examples, is not intended to guarantee, warranty or predict the outcome of a particular case, and it should not be construed as a guarantee, warranty or prediction. Financial information including, but not limited to, income, assets, equity, and supporting documentation will affect the specific and unique resolution options available to each client. Some names and identifying details have been changed to protect the privacy of the individuals.

The post James* Owed Over $118K to the IRS—But Not Anymore! appeared first on Direct Tax Relief.

What are Payroll Taxes?

Payroll taxes are funds paid by employers that go toward services like Medicare and Social Security. At present, the 2016 Social Security tax is 6.2% of the first $118,500 earned by an employee, and the Medicare tax is 1.45% of an employee’s entire annual salary. These taxes are calculated by the employer and, ideally, paid to the IRS each pay period or every month.

When Do Tax Problems Usually Arise?

Basically, problems occur when employers fail to pay or underpay their portion of payroll taxes.

There are several ways this type of tax debt happens. For some business owners, improper accounting can lead to under or missed payments. For others, it may relate more to an inability to pay. For instance, small businesses may experience a slump in sales or they could expand too quickly, thinning their profit margin. Both cases could result in unpaid taxes and the need for payroll tax debt relief.

How Can Business Owners Obtain Payroll Tax Debt Relief?

Employers facing payroll tax debt have a few options available to them.

• Installment Agreement (this allows employers to make payments on tax debt rather than paying in one lump sum)
• Offer in Compromise (this lets employers settle tax debt for a lower amount than owed)
• Currently Not Collectible (this option is available to small businesses and owners who have no way of making monthly payments)

How can I get started on my payroll tax debt relief?

Because of the complexities of payroll taxes and the IRS, it is recommended that employers in need seek out qualified help for this type of debt relief. Direct Tax Relief specializes in payroll tax debt relief for small businesses and the self-employed. To learn more about our A+ rating with the Better Business Bureau or our excellent reviews, give us a call at 1-877-505-4829. IRS Payment Schedule: https://www.irs.gov/businesses/small-businesses-self-employed/employment-tax-due-dates

The post Seeking Payroll Tax Debt Relief? You Have Options appeared first on Direct Tax Relief.