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.

“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.

It allows taxpayers that cannot afford to fully pay their delinquent tax liability the opportunity to settle permanently for a reduced amount.

Before an Offer in Compromise is submitted and the negotiation process begins, our Tax Attorney will perform a detailed and comprehensive review of your case to verify and confirm that your account is in compliance with the IRS. If your Offer in Compromise is not prepared or submitted correctly or if the taxpayer is not in compliance, the IRS can and will reject the Offer. This is why it is very crucial to have an experienced and qualified Tax Attorney on your side. Our Tax Attorney will negotiate on your behalf to settle your IRS tax debt for the lowest amount allowed by law. Besides a highly-skilled negotiation process, the Offer in Compromise consists of many complex formulas that determine the minimum amount the IRS will accept.

During the initial FREE Consultation, our tax consultants complete a detailed financial interview with the taxpayer, to determine if an Offer in Compromise is in the taxpayer’s best interest. If any tax relief company guarantees you an IRS tax settlement without being familiar with your entire financial situation, then it is most likely too good to be true.  Make sure to look up the company’s accreditation with the Better Business Bureau.  If your tax debt settlement is originally denied by the IRS, Direct Tax Relief will represent you within the IRS Appeals Division, with no additional fees, giving you a second chance of having your Offer in Compromise accepted.

If you cannot pay your tax debt in full the Offer in Compromise program is for you.  The Offer in Compromise program has given countless taxpayers the opportunity for a fresh start, enabling them to get back on track with their lives. Contact Direct Tax Relief and talk to our tax professionals including enrolled agents and tax attorneys. As a tax debt relief company, our tax professionals will review your situation, explore your options and recommend a solution to resolve your back taxes.

The post What is an IRS Offer in Compromise? appeared first on Direct Tax Relief.

Direct Tax Relief can prepare past returns using various substitute sources when there are missing records. Those returns should be filed as soon as possible in order to avoid accumulated compounding interest and large penalties.  You should also be aware that if returns have not been filed in the most recent three tax years, those returns should be prepared immediately in order to claim any refunds that may be due.

Not filing a tax return is far worse than filing a tax return and not being able to pay the tax amount owed. If you file a tax return but cannot pay, Direct Tax Relief has many IRS tax debt solutions to help you pay the tax amount owed. If you do not file a tax return it is considered a crime and you can be punished for it. Not filing a tax return can result in a fine of up to $25,000 and a 1-year prison sentence for each unfiled tax year. Recently, the actor Wesley Snipes was convicted of failure to file tax returns for 3 years and sentenced to 3 years in prison.  Avoid costly IRS penalties from unfiled tax returns, contact Direct Tax Relief for certified tax preparation and filing services, and receive the maximum refund and deductions you deserve.

The post What is Preparing Unfiled Tax Returns? appeared first on Direct Tax Relief.

IRS audits should be taken seriously because they often lead to additional tax years being selected for examination and other tax deductions not originally stated in the audit letter.  IRS tax auditors are experts at evaluating nervous taxpayers and discovering things not covered in the initial audit notice. Having a tax professional on your side can significantly increase the odds of you getting a better outcome in your audit. Having a tax professional represent you before the IRS can be a great decision and can actually end up saving you money.

If you have received a letter of representation audit notification from the Internal Revenue Services that you are subject to a tax audit or tax adjustment, contact Direct Tax Relief immediately. One of the worst things you can do is to try and represent yourself in this circumstance.

Direct Tax Relief represents taxpayers involved in audits with the Internal Revenue Service (IRS), Franchise Tax Board (FTB), State Board of Equalization (BOE), Employment Development Department (EDD), or other State Department of Taxations.

What happens during an audit?

An audit is a process in which the Internal Revenue Service examines your tax returns and determines if you have properly reported all income and took the correct deductions while following the Tax Code.  It is your responsibility to prove to the IRS that what you filed was indeed correct and you must provide supporting documents. The IRS selects returns for audits that have the greatest potential for the additional tax to be collected.

If you represent yourself in a tax audit, the IRS auditors assume that you know the tax laws and regulations as well as a Tax Attorney. They also assume you know the Internal Revenue Manual (“IRM”) and the Internal Revenue Code (“IRC”).  It is an IRS agent’s job to act in the best interest of the U.S. Government. Many civil audits are referred to the Criminal Investigation (“CI”) division of the IRS if there are any indications of fraud or substantial underreporting of income.

The tax professionals at Direct Tax Relief are here to help. We want to help you solve your tax problems, reduce your tax penalties, minimize any damage that’s already done, and help you receive the tax defense to which you are entitled.

Protect your rights and yourself from IRS intimidation and contact Direct Tax Relief for a no-cost, no-obligation consultation! Direct Tax Relief is an IRS tax resolution services company with an expert staff of certified tax preparers, enrolled agents, and tax attorneys.

The post What is an Letter of Representation Audit from the IRS? appeared first on Direct Tax Relief.

A bank levy is issued by the Internal Revenue Service when your taxes remain unpaid and resolution has not been reached.  The IRS will freeze your bank accounts and seize any money in your bank account up to the amount that you owe, including penalties and interest.  The IRS can issue a bank levy as many times as they please until the tax debt is satisfied.  A bank levy is a very successful collection tactic that the IRS uses which serves a second purpose besides collecting back taxes – to get your attention!

The good news is that the tax experts at Direct Tax Relief can have your bank levy released!

When a bank levy is issued by the IRS, there are specific procedures that your banking institution must follow.  Even though the bank withdraws the funds from your account and/or sometimes freezes the use of the funds, a tax attorney from Direct Tax Relief can have your bank levy released. Depending upon your financial and tax situation, Direct Tax Relief will need to take different actions to handle your IRS bank account levy. An IRS bank levy can be stopped but it is important to act quickly since you will not have much time to stop the IRS once a bank levy has been issued.

The Internal Revenue Service is a very determined and fierce collection agency.  It does not make sense to negotiate with them without proper representation.  When a bank levy is issued, it is usually caused by poor or lack of communication between the taxpayer and the IRS.  The tax professionals at Direct Tax Relief keep constant contact with your IRS agent to ensure that future bank levies are not issued, as long as the taxpayer remains in compliance.   Direct Tax Relief will secure a collection hold on your account for a specified period of time; protecting you from future enforced collection action.  While your account is placed on a collection hold, our Tax Attorney will carefully analyze and evaluate your specific situation and determine the best course of action for you.

If you’ve been threatened with an IRS bank levy, let the tax experts and professionals at Direct Tax Relief represent! Direct Tax Relief is an IRS tax debt resolution company and can help put end to your problems with the Internal Revenue Service.

The post What is a Bank Levy Release? appeared first on Direct Tax Relief.