Friday, March 28, 2014

Help! I'll Never Be Able to Pay Off My IRS Tax Debt!!

Social Security Doesn't Go Too Far - Even if Twice this Amount

The IRS Might Reduce What You Owe - Offer in Compromise

Dear Demetriou, Montano & Assoc:

I am 66 years old and owe the IRS over $50,000.  I have set up a payment plan of $700 a month forever.  This was based on my ability to pay.  I am still working and earning a substantial income.  If I were to quit my job or be forced to quit, thereby reducing my income to just social security, I would no longer be able to afford the $700 a month.  I'd be lucky to afford $50 a month.  What can I do?

George L

Dear George:

If you make a permanent decision to go on Social Security, you may be a candidate for the Offer in Compromise.  The IRS collection division understands that they can't get blood out of a turnip.  On the other hand, they don't like to see taxpayers bailing out on their obligation.  Before they are going to approve a reduction in your obligation, they will look to see if you have any equity in assets and analyze your monthly income and living expenses.  

If your Offer is accepted and if you do not file and fully pay your taxes for the next five years, the IRS could rescind the Offer in Compromise and the entire tax liability with penalties and interest would come back and the IRS would be after you again.   

With our experience in these matters, we can easily evaluate your specific circumstances and give you wise counsel on the best direction to take in the matter.  We will work hard to minimize your tax debt or even eliminate it completely.  However, since every case is very different, the outcome cannot be predicted with 100% accuracy.  That is why it is hard for citizens to go through the collection negotiations on their own.  Using an Enrolled Agent (EA) like Jim Demetriou EA or Mike Montano EA gives you the best chance of an excellent result.  

Demetriou, Montano, and Assoc, Tax Resolution Specialists

12301 Wilshire Blvd. Suite 318
West Los Angeles, CA 90025


Tuesday, March 25, 2014

The IRS Grabbed All the Money in Your Checking Account? Now What?


 What Is the Real Cost of an IRS Tax Levy?

No matter which line you get into at the grocery store, there is always that one customer who has returns, coupons, and not quite enough money for all they bought, so they have to take some things out of the cart.  Today is that kind of day.  Finally it's your turn, and you have a cart full.

You swipe your debit card and put in the pin, but something is wrong.  It won't work.  You try again, but nothing.  You would use a credit card, but you know those are all maxed out.  Red faced, you slink out of the store and head to the ATM.  You put in your card and check your balance.  $00.00.  How can that be?  You just put your payroll check in yesterday.  Why didn't it clear?

You go into the bank and talk to the teller.  "I'm sorry Mrs. Smith, there is an IRS tax levy against your account.  When that happens we are required to put a hold on all funds up to the amount of the levy.  The entire $2800 balance in your account was not even enough to satisfy the levy."

Your heart flutters and sinks.  Your mouth goes dry.  "What about the outstanding checks," you ask?

"Two checks were presented today.  One for $950 and another for $325.  Both of those were returned," she tells you.

Your mortgage and cell phone bill!!  You recognize those two right away.  Other checks will be presented tonight for your water bill and a credit card payment.

Exasperated, you ask the teller if there is anything that can be done to get rid of that levy.  The teller says that she has no idea.  Her supervisor tells you that there is nothing the bank can do.  She suggests you call the IRS.

How much will this levy cost you?  At least 4 bounced checks, unless you can find someone to help you cover the two hitting tonight.  At $35 each, that is $140.  Then the mortgage lender will have a returned check fee, and if you don't pay within 15 days of the due date, a 10% late charge.  The water company will likely charge $10 for the returned check, and the credit card company could increase your interest rate.

In addition, the mortgage company might require certified funds or cash on your next payment.

You call the IRS when you get home.  The man sounds really nice, almost grandfatherly, as he explains that you've had several notices that you haven't responded to.  He says he can reverse the levy if you can full pay the $23,000 outstanding.  He helpfully suggests you set up a payment plan.  He sounds so nice.  But his job is to collect every possible dime from you possible.

You are shaking by this time, but somehow manage to kindly end the conversation.  Then you lose it.

Dealing with the IRS after a levy or wage garnishment is not easy.  Once they have that kind of leverage, they like to keep it.  However, a phone call to Jim Demetriou, EA or Mike Montano, EA may result in a reversal of a levy.  Call 888-987-1040.  We know all the right buttons to push with the IRS.  In the few cases where we are not able to reverse the levy, we can at least stop further collection efforts by the IRS for a month, even a year, while you get your financial house in order.

Call Demetriou, Montano, and Associates right now if you have a tax problem.  We can help.

Demetriou, Montano & Associates - Tax Resolution Specialists

12301 Wilshire Blvd. Suite 318
West Los Angeles, CA 90025


Friday, March 21, 2014

Wages Garnished? How Do You Explain That to the Boss?


The Government Didn't Ask You How Much You Could Afford Before They Just Took What They Wanted!!

How secure is your job? How will your boss look at the IRS form requiring her to go to extra trouble to change your paycheck settings? Will the company see you as having a flawed character due to your being so far behind with your taxes?  What should you do?!?!

First Step:  Don't let it get this far in the first place.  You've had plenty of warnings from the tax man that he was coming to get you.  Ignoring those warnings never made any of them disappear.  In fact, it just make the bulldog madder and madder.  If you are already getting letters or phone calls from the IRS, State, or other tax agency, call today for a consultation. 1-888-987-1040.

Second Step:  If the garnishment has already taken place, call us immediately. 1-888-987-1040. We may be able to strike a deal with the IRS.  We have done so many times in the past.  We might even be able to get them to stop ALL COLLECTION EFFORTS for a year or longer.  Wouldn't it be nice to go back to the boss with an all clear letter?

Third Step:  Relax!  Once we are on your team, we are going to do everything possible to help you get through this and on with the rest of your life.  You will no longer have to deal with the IRS or worry about what you will say or do with them.  We will negotiate with them, and we know every rule and method better than most IRS agents do.  In fact, both Jim Demetriou EA and Mike Montano EA, were IRS agents prior to switching sides and helping taxpayers like you survive the collection efforts of the toughest collectors in the business. 

If you owe less than $15,000, we will provide you with some self help suggestions on this blog.  You should be able to handle things yourself.  But if you owe $20,000 or more, the IRS has you in their cross hairs.  You will need a trained and experienced negotiator to help you get out in front of the IRS and stay out in front.  We have been providing those kinds of services for over 25 years and we have many happy clients who took the three steps and can now relax!

 Demetriou, Montano & Associates - Tax Resolution Specialists

12301 Wilshire Blvd. Suite 318
West Los Angeles, CA 90025


Thursday, March 13, 2014

Business Tax Problems Create Unnecessary Stress


There are ways to solve your business IRS tax issues

Your business has been on life support ever since the great recession started. You are actually kind of proud of the fact that you’ve kept the doors open through it all.  As you look up and down main street, you see For Lease signs on a lot of shops that didn’t have what it took to slog through these tough times. 

On the other hand there are some issues hanging over your head that are coming to the surface, fast and furious. The bounced checks are eating through a few hundred dollars in fees per month.  The  late rent charges don’t help. But more than any other single thing, there is the IRS. 

It started three years ago when you had to make a decision.  Pay the employees, pay the rent, or pay the payroll taxes. You chose the rent and employees. Your calculation was that if you don’t pay the employees and the rent, the business folds, and you won’t be paying any payroll taxes. Surely Uncle Sam would understand that.

Besides, the economy seemed to be improving. You’d pay the payroll tax next month.

Unfortunately, you didn’t have the money 30 days later, and there were other times when you chose paying your phone bill, your suppliers, or your own mortgage over paying those pesky payroll taxes. 

You got the first letter 90 days ago. The IRS would like to speak with you. You have nothing to say, no excuse, and no money to placate them, so you ignored the letter.  You’ve had phone calls.  You ignored those, too. Now the IRS collectors are getting serious.  Two days ago they hit your company checking account and wiped it out.  Today you got the levy notice.  You have no idea when or where they will seize assets next. Could be your personal checking. 

Like any such issue in business, the sooner you seek help the better things usually turn out. In this case, the situation is getting out of control. You know that you should call the IRS agent, but you have nothing to offer, and don’t know what to say!!

That’s where an Enrolled Agent comes in. We can help you get some breathing room. We will get on the phone with the IRS collector, and get him to stop all collection activity against you while we work something out that will be best for the IRS and for you. 

This is a very serious matter. Payroll taxes and penalties don’t go away when you close a business. You are personally responsible for those, even if the company is adjudged bankrupt. 

Don’t delay.  Call the experienced team of ex IRS agents at Demetriou, Montano, and Associates at 888-987-1040

Demetriou, Montano & Associates - Tax Resolution Specialists
12301 Wilshire Blvd. Suite 318
West Los Angeles, CA 90025

Monday, March 10, 2014

What Do You Do When the IRS Tax Notice Arrives in the Mail?


  IRS Tax Debt Got You by the Throat?

You feel as if the walls are closing in around you.  The IRS has finally contacted you.  It was only a matter of time, but you held out hope they would just lose your file.  You have the first letter, asking you to call them, but you can't even imagine what to say.  So you put the letter aside.  Maybe you'll win the lottery before they send the next letter.

Sadly, you probably won't win the lottery.  Your ship won't come in.  No relative is going to come to the rescue.  Now what?

If you owe under $15,000, and if you are able to keep your new taxes current, the best option is probably to go ahead and make the phone call.  Your goal is to get a five year payment plan, which even if $15,000 is just $250 a month or so counting interest and penalties.  Be sure you can make those payments before you set the deal.

If you are out of work or have extremely limited funds, you may be able to get the IRS to hold off any collection effort for up to a year.  For cases under $15,000, you might even find the agent to be somewhat friendly and helpful.

If you owe more than $15,000, the same rules apply, but the enforcement is much more rigorous.  As you can imagine, IRS collection agents are judged by how much revenue they bring in.  If you owe $25,000 or $100,000 or even more, the revenuer is going to be like any other human.  He will see a big fish in his pond, and want that trophy to show his boss.

In those cases, DO NOT call the agent yourself.  You need an experienced and highly qualified IRS negotiation team to pinch hit for you.  IRS Enrolled Agents, like Jim Demetriou EA and Mike Montano EA, are just what you need to set up an affordable, workable deal that will give you breathing room, not just create more stress.  The last thing you need right now, given the issues facing you, is more stress.

You see, IRS agents are also human when it comes to dealing with Enrolled Agents.  The IRS agent knows that they are dealing with someone who knows the system as well as they do.  The playing field is now level, and your representative can carve out a program for you that makes sense.  That might mean all collection efforts and repayments stop for several months or longer.  It may mean establishing a payment plan immediately.  It could even mean starting a process of reducing the principle amount owed.  Jim and Mike have seen many cases just like yours, and will be able to guide you to the best possible route for a resolution of your tax problem.

Whether you are at the beginning of this process, and have merely received a threatening letter or two, or even if you have had levies or liens placed against your assets, now is the time to call.  Don't wait another minute to have a no obligation consultation that will get your situation moving towards a solution.  Call 888-987-1040

Demetriou, Montano & Associates - Tax Resolution Specialists
12301 Wilshire Blvd. Suite 318
West Los Angeles, CA 90025


Thursday, March 6, 2014

IRS Collections FAQ - How can I Get Tax Debt Relief?

Can't Sleep!!

I Need Help With Back Taxes.  What Are My Options?

There are millions of Americans right now who are having sleepless nights and anxious days because they owe the IRS $5,000, $10,000, $50,000 or even more that they are unable to pay.  Quite frankly, many of these folks are honest, hardworking, folks who never planned to end up in this predicament, and now they have no idea what to do, or even who to tell.

To make matters worse, they are now receiving threatening letters from the IRS that promise to create addition havoc on their financial lives through the use of levies, liens, and even garnishing wages.  And now April 15 is almost here, and this will just add to the problem.

If we just described you or someone you know, you might be surprised to learn that the IRS has plans that might help you resolve your issue in a way you can afford.  And if you owe less than $10,000, you would be wise to just pick up the phone and speak directly to an agent.

But if you owe $15,000 or more, the IRS is very, very interested in collecting that money.  When the dollars owed get bigger, the collection agents become tougher.  That is when you need a professional in your corner.  Someone who has years and years of experience working with the IRS.  Someone who knows what they can and will accept in your situation.  And someone who can stop the immediate collection efforts to give you some breathing room while a plan is worked out.

Demetriou, Montano, and Associates - Tax Resolution Specialists, has been the advocate for taxpayers like you for over 30 years.  The following is just one way we might be able to help you, depending on the exact facts of your case.

Short-term 30 to 90 day extensions of time to pay

Short-term 30 to 90 day extensions of time to pay can be granted by the IRS by phone. However, do not necessarily call immediately upon receiving your FIRST notice or letter. The IRS sends a series of notices, and calling the IRS after the first notice can literally accelerate the collection/enforcement process. Waiting to receive the full series of notices and calling only after receiving the Certified Mailed notice could get you as much as three to six months without having to pay anything even before you request a short-term extension.

However, if the Certified notice has been sent, and you ask for a short-term extension, and then fail to pay by the extension date, the IRS can levy banks, wages, etc. Therefore, do NOT make ANY commitments that you can't keep!

If you cannot keep ANY commitment to the IRS by a given deadline date, call the IRS BEFORE the commitment date with an alternative plan. Perhaps you can send a partial payment and the balance in another 30 days. You must keep in mind that penalties and interest continue to accrue until the taxes are paid in full.

We do this type of extension for our clients all the time.  We know exactly when and how to take each step in this process.  Of course, this short term payment solution may not fit your situation at all.  You may not have any possibility of paying the claim in full within a year or even much longer.  We can still help you.  But you need to call.

Our phone consultation with you is at no charge or obligation.  Once we have discussed your case briefly by phone, we will be able to advise you regarding the best possible next step.  Call right now and get some sleep tonight.  888-987-1040 or 310-581-2900