Beware of Salesmen Promising IRS Tax Debt Resolutions - Pennies on the Dollar

Sales boiler room not best for choosing tax help pro.

Talk directly to an IRS Enrolled Agent!

This is not a knock on salesmen.  I am one, and it is an honored profession . . . at least most of the time.  If I need to buy a bike or a house, there is much to be said for having a professional sales person helping you through the process.  

However, when I am hiring someone for complicated, threatening, and sensitive professional services, I want to talk to the person who is personally delivering those services, not a sales person trying to sell me something.   

Specifically in the tax resolution services business there have been many companies that have become quite well know for TV pitchmen and call center salesmen.  When you hear that smooth talker tell how they will talk the IRS into reducing your tax debt to just “pennies on the dollar,” it is understandable that the hope sounds worth exploring. 

The truth is that just as many of those companies go out of business as start in business every year.  Why, because the hope they are selling is not for every tax debt and in fact, very few qualify for the “pennies on the dollar” solution.   Moreover those companies took your money after a sales pitch, and then did very little to help the client, much less deliver on their pennies on the dollar claim.   Listen to those company names.  Seriously?  Research how long the company has been in business.  Then look for a representative like you would an attorney or accountant.  You know, where their name is on the door for everyone to see.

You see, the IRS does offer something called the Offer in Compromise, which can potentially allow you to drastically reduce your outstanding tax debt.   However, the process is  expensive, can take months or even years to get an answer, and only a very few taxpayers qualify for that kind of relief.  When you talk directly to Mike Montano, EA or Jim Demetriou, EA, you are going to get the straight scoop as to whether you have any chance of qualifying for an Offer in Compromise.  They will also be very upfront with you about the costs and the risks of even applying.  

When you are trying to decide who will help you put together a workable solution for you tax debt issues, go with a company where you speak to the professional that will get the job done, not with a salesman who is just in it for the commission.  

Do you owe at least $20,000 to the IRS right now?  Pick up the phone and ask for Jim Demetriou or Mike Montano, and let’s get the ball rolling on a solution that will be perfect for your unique circumstances.   888-987-1040

Demetriou, Montano & Associates - Tax Resolution Specialists

12301 Wilshire Blvd. Suite 318
West Los Angeles, CA 90025
310-581-2900

888-987-1040jdemetriou@taxrepair.com
http://taxrepair.com

My Husband Did WHAT with the IRS?

If your spouse ran up a huge tax debt without you knowing it, you may be protected

Linda is separated from her husband.  All of her mail isn’t even being forwarded yet.  Yesterday when she went to pick up their son,  she noticed that right on the top of the pile of mail were two letters from the IRS.  One was addressed to her and the other to her husband, Tom.  She opened hers, and Linda’s eye’s double in size at what she saw.  The IRS was trying to collect $175,000.

Linda was in shock.  As she read the notice of possible lien on their property, she began to sense that this wasn’t the first notice about the issue.  In fact, there was even more than one tax year in question.  Her heart began to race. How would she confront her husband about this, especially since he had apparently been withholding even her mail?

Linda worked as a nurse for the local hospital and earned a good income of $77,000.  Her income tax was deducted from her wages.  Tom was in business for himself and had some good years and some bad years.  He would say, if asked, that he was making low six figures.  So their lifestyle was like that of a couple making $200,000.

When Tom realized he was caught, he told her everything at the first sitting.  This was not all they owed.  The IRS had not yet started collection on the last year that they filed.  The final amount was going to be much higher Linda, already feeling marital stress because of Tom’s controlling and overbearing manner, did not want to pay for his old tax debt! In the strictest interpretation of the tax code, Linda was on the hook for all of the tax debt. 

In fact, if Tom stopped working and had no income, she would be responsible to pay the entire amount.  She and Tom had signed each tax return jointly and by doing so she had taken on the liability for the entire tax.  She had not waited for Tom to fill in the final amounts of tax owed on the returns, and had no idea that he had not paid all taxes. She owes the tax, feels it is wrong, but is it?

Linda might fit under the Innocent Spouse provision of the tax code

and that code has become more helpful to some spouses due to changes in the IRS approach on these matters.

According to a recent Forbes article:

Internal Revenue Code Section 6015 authorizes the IRS to grant a spouse relief from a joint return, where it is inequitable to hold the spouse bound for the return. In Revenue Procedure 2003-61, the IRS set forth the following eight factors to be weighed in deciding requests for innocent spouse relief:

Marital status. Whether the spouse requesting relief from the joint income tax return (“requesting spouse”) is separated or divorced from the nonrequesting spouse.

Economic hardship. Whether the requesting spouse would suffer economic hardship if the Service does not grant relief from the income tax liability.

Knowledge or reason to know. Whether the requesting spouse had knowledge or reason to know that the nonrequesting spouse would not pay income tax liability properly reported on the joint income tax return (underpayment case), or of a deficiency of tax in the joint tax return (deficiency case). A tax deficiency generally results from under-reporting of gross income or over-reporting of deductions.

Nonrequesting spouse’s legal obligation. Whether the nonrequesting spouse has a legal obligation to pay the outstanding income tax liability pursuant to a divorce decree or agreement. This factor will not weigh in favor of relief if the requesting spouse knew or had reason to know, when entering into the divorce decree or agreement, that the non-requesting spouse would not pay the income tax liability.

Significant benefit. Whether the requesting spouse received significant benefit (beyond normal support) from the unpaid income tax liability or item giving rise to the deficiency.

Compliance with income tax laws. Whether the requesting spouse has made a good faith effort to comply with income tax laws in the taxable years following the taxable year or years to which the request for relief relates.

Abuse. Whether the nonrequesting spouse abused the requesting spouse.

Mental or physical health. Whether the requesting spouse was in poor mental or physical health on the date the requesting spouse signed the joint income tax return or at the time the requesting spouse requested relief from that return.

If you owe the IRS more than $20,000 for any reason, including the situation outlined above, we may be able to help you avoid all liability, reduce what you owe, or help you to work out an affordable payment plan with the IRS.  As you can see from the above, the rules are very complex.  You will benefit from having a team of highly experienced tax professionals helping you work things out.

Call us now for a no cost, no obligation, initial consultation with Jim Demetriou or Mike Montano personally. 888-987-1040

Contact Us

Demetriou, Montano & Associates - Tax Resolution Specialists

12301 Wilshire Blvd. Suite 318
West Los Angeles, CA 90025
310-581-2900
888-987-1040jdemetriou@taxrepair.com
http://taxrepair.com

Nothing Beats Experience When Choosing a Tax Debt Resolution Company

How to select a lasik eye surgeon or a tax resolution service

I have been considering getting lasik eye surgery, but have to admit that I am not that excited at the thought of having someone cut into my eye.  As I read various advertisements or watched commercials about lasik, the information that seems to penetrate my heart the most about selecting the right doctor is "over 10,000 surgeries completed."  There is great comfort in knowing that the surgeon has done this so often that he or she is prepared for any contingency and has honed their skill to a fine edge.  

Contemplating surgery on my tax debt is not that different.  I dread the idea.  The potential for disaster with the slightest slip is huge.  You need to be able to put trust in a practitioner who is going to give you the best  outcome possible.  The best way to be confident you have the best representation for the job is to hire the one who has the most experience.  That way you can have the comfort of knowing that you are dealing with someone who has seen it all, who has all the skills needed to bring you peace of mind. 

Demetriou, Montano and Associates has been helping their clients with complex tax issues for 25 years.  Prior to that, both Jim Demetriou and Mike Montano worked for the IRS enforced collection unit learning and implementing every policy, practice and procedure used by the IRS to collect taxes.  The key to their success is their personal involvement with every client and by interacting with the IRS collection function every day to implement every possible option available to clients for resolving tax debt issues.  

Seriously:

•  You would not do lasik eye surgery on yourself!
•  You would not select an eye surgeon based on a great sales pitch!
•  You probably don't want the lowest cost doctor for any surgery!

Go with experience when you select a professional to do important and complex work.  If you owe more than $20,000 in tax debt, call Demetriou, Montano and Associates now and speak with a partner about your situation.  888-987-1040

Demetriou, Montano & Associates - Tax Resolution Specialists

12301 Wilshire Blvd. Suite 318
West Los Angeles, CA 90025
310-581-2900
888-987-1040
jdemetriou@taxrepair.com
http://taxrepair.com

IRS Says Phone Scammers Are Ripping Off Taxpayers at Record Levels

 

Largest IRS Scam in history says IRS Commissioner

If you don't read anything else about this story, just read the following:
Do Not ever give credit card approval . . .

Read the rest of the story here

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
310-581-2900
888-987-1040
jdemetriou@taxrepair.com
http://taxrepair.com

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
310-581-2900
888-987-1040jdemetriou@taxrepair.com
http://taxrepair.com

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
888-987-1040
http://taxrepair.com

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