A client of BC Tax recently received news that they will save over $100K after we found an error the IRS made applying payments the client was making to the wrong periods. This specific client owed over $180k but with our help is now only paying $100 a month! The Collection Statues will run before this will be paid in full thus saving the client well over $100K. This is just another example of what our monitoring services can provide while and after working with us.
This client came aboard with BC Tax needing help after having numerous Federal Tax Liens filed against him. He had a liability to the IRS of over $350,000 spanning from 2008 through 2013. BC Tax was able to negotiate on behalf of the client with the Appeals Division of the IRS numerous times before successfully securing a CNC resolution. This resolution secured the client the ability to move forward in life without such a large liability looming over them.
A client came on board with BC Tax in January 2016, owing roughly $78,000 to the IRS. After financial analysis with the client and extensive negotiations with the IRS, BC Tax was able to establish a Partial Pay Installment Agreement of only $50/month with the IRS. This extremely affordable resolution that BC Tax negotiated and secured with the IRS could ultimately save the client over $70,000.
BC Tax helped a Washington state business save close to 90% of the original debt to the State Department of Revenue. The client owed roughly $33,000 for Use Tax and/or Deferred Sales Tax for a four year period going back to 2011. With our experienced staff and their strong negotiation skills we were able to lower the total amount owed to just $337.
The original balance of the liability was a little over $330,000.00 for 10 periods of 941 taxes. We initially submitted penalty abatements a few months back, however, the taxpayer needed to correct some documents. Once they were corrected, submitted, processed, and posted we submitted the request again in January of this year. We had successfully negotiated the removal of all the penalties and related interest for all the assessed periods this March. This resulted in the client saving over $123,000.00.
Since the beginning of this case, we also secured a levy release of over $50,000, structured an installment agreement, and negotiated the abeyance of Trust Fund Recovery Penalties without the IRS filing any personal liens.
Here at BC Tax… thats what we call SUCCESS!
BC Tax was able to successfully resolve our client’s Employment Tax issue with the State of California recently. The client originally owed the State taxing authority a little over $90,000 when BC Tax first started working on the case. The senior associate at BC Tax working on this case was able to negotiate a successful State Audit for the client which resulted in the client saving over $68,700.
Tax debts can be overwhelming, especially for those who aren’t expecting them. If you are hit with a huge bill, you might be tempted to charge it all to your credit card. At least that gets the IRS off your back, right?
Even though you may be able to escape the government with your credit card, you could face a slew of other problems that you need to know about. Here are some issues to keep in mind:
- Your credit score could drop because you have a higher debt to available balance ratio.
- You may lose some of your emergency funds because your card is maxed out.
- You might be charged large fees because some credit card companies assess this as a cash advance payment.
- You may face higher interest payments, depending on which card you use.
- You will limit the amount of credit you can apply for in the near future.
- You still will have to pay everything back.
If you can get around these negatives, by all means give it a try. In most cases though, it is easier to work out an installment plan directly with the government. You’ll owe the same money no matter what. You might as well take out the middle man. Before you try to swipe yourself out of debt, consider some of the alternatives.
BC Tax recently resolved a California based client’s Internal Revenue Service (IRS) liability with an Offer In Compromise. The client originally owed the IRS $54,804.81. After the offer In Compromise was accepted, the client was able to settle the liability for only $50.00.
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Are you overwhelmed with the sea of back taxes that currently consumes your life? Are you trying to figure out how you could ever get out from underneath the debt you have developed over the past few years? If so, rest assured that you are not alone. There are thousands of people living with tax debt in the world, and they all have to figure out what they are going to do with their current balances. Now it is your turn to assess your options and come up with a plan that works for you. Here are some of the best ways to pay back taxes as they crop up.
If you choose to work with a consultant at BC Tax Tax Resolution, you may be able to reduce the amount of money you owe to the IRS. One of the professionals here can draft a tax settlement for you so that you only have a small sum to pay upfront. If you have some money put aside for your taxes, this could be a great opportunity to cut down your costs.
If you can’t afford to pay for your taxes all at once, you may want to set up an installment plan instead. This will give you a chance to pay your back taxes over time through small monthly payments. You will pay more money in the long run this way because the IRS will charge you interest. Nevertheless, it is an option to help you keep your head above water.
If you can avoid tax debt in the first place, you may not have to worry about the options above. Work with the IRS to make quarterly tax estimates throughout the year, and then pay those as they come up. If you can do this consistently, you should be able to bypass the need to pay a ton of money to the government.
BC Tax successfully negotiated with the Commonwealth of Virginia a settlement for a client. BC Tax was able to resolve the client’s roughly $55,000 liability with an Offer In Compromise of $12,000, saving the taxpayer over $42,000.
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BC Tax successfully negotiated with the Internal Revenue Service (IRS) a release of levy for a client in Michigan. BC Tax was able to prevent the IRS from seizing the taxpayer bank account balance of $30,000.
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Some people use the terms “tax preparation” and “tax resolution” interchangeably, assuming that they mean the same thing. They represent two entirely different services though. Before you start working with a tax professional, you may want to know which kind you actually need. Here are some definitions to help you out.
Tax preparation happens when your taxes are due every year. If you’ve ever gone in to “get your taxes done,” you’ve worked with prep before. All a tax preparation expert will do is go over your financial documents and tell you how much you owe the government, if anything. Then he or she will turn in your paperwork for you.
Tax resolution occurs after your taxes have been filed. If you owe more than you can afford to pay or you think there is an error in your tax debts, you need resolution services to fix the problem. Tax resolution does not work for all situations, but it can potentially help you save money on your debts. It’s just a matter of seeing what you have to work with.
Figure out which type of service you need, and then you’ll be able to pick the right team for the job.
BC Tax successfully negotiated with the Internal Revenue Service (IRS) a settlement for a client in Texas.
BC Tax was able to resolve the client’s roughly $89,000 liability with an Offer In Compromise of $9,500, saving the taxpayer nearly $80,000.
BC Tax was able to negotiate for the client to pay this settlement over a 24 month period via a monthly payment plan.
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BC Tax successfully negotiated with the Internal Revenue Service (IRS) a settlement for a client in Indiana.
BC Tax was able to resolve the client’s roughly $81,000 liability with an Offer In Compromise of $5,500, saving the taxpayer nearly $76,000.
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BC Tax successfully negotiated with the Internal Revenue Service (IRS) a settlement for a client in Massachusetts.
BC Tax was able to resolve the client’s roughly $35,000 liability with an Offer In Compromise of $1,000, saving the taxpayer nearly $34,000.
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BC Tax successfully negotiated with the Internal Revenue Service (IRS) a payment agreement for a client in Tennessee.
BC Tax was able to resolve the client’s roughly $2.1 Million liability with an Installment Agreement of $250/month.
Given the 10 year statute limit, the taxpayer will be settling this balance for only $30,000.
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Each year the IRS sends millions of letters and notices to taxpayers. Understandably, you may feel anxious if you receive one. Don’t panic. There are many reasons the IRS sends notices to taxpayers. The notice usually covers a specific issue about your account or tax return. It may request payment of taxes, notify you of a change to your account or ask for additional information or, most alarmingly of all, threaten to levy or seize your assets as payment of your past due taxes, penalties, and interest.
If you receive a notice about a correction to your tax return, you should review it carefully. You usually will need to compare the information in the notice to the entries on your tax return.
There is no need for you to call or visit an IRS office to answer most IRS notices. However, you should act quickly to ensure the best results. Please call us now toll free at (800) 457-2434 for a consultation to discuss your situation and possible resolutions.
Taxpayers often believe they must wait a certain length of time before seeking help with their tax debts. This is like waiting for the engine to drop out of your car before you get an oil change. There is no set timeframe for seeking tax resolution. Get help as soon as you think you need it.
Why the rush, you ask? The longer you wait to make a move, the more time your debt has a chance to accrue interest. In other words, every minute you spend debating whether or not you need help is money out of your pocket. Tax debts are just like credit cards and any other debts you owe. You have to take action before they get out of hand.
If you are now overwhelmed with debt, set up a consultation with one of our tax resolution professionals, who will be happy to discuss your situation with you to determine whether you should pursue reduction efforts. Every case has a potential solution; you just have to find yours. Act now to ensure the best results.
Back taxes owed at the state level may include but not be limited to:
- Sales and use tax
- Withholding tax
- Unemployment tax
- Excise tax
- Property tax
- Workers compensation
- Income tax
Each state handles tax liabilities differently and has its own specific procedures and collection avenues. State taxing authorities often are more aggressive in tax collection and offer fewer options than the Internal Revenue Service for tax resolution. Contact one of our tax professionals now if you are having difficulty with your state taxing authority.
Hurricanes, tornadoes, fires, floods and other natural disasters are common during the summer months. Take a few simple steps to protect your tax and financial records in case a disaster strikes. Here are four tips to help you protect your important records.
- Backup Records Electronically. Keep an extra set of electronic records in a safe place away from where you store your originals. You can use an external hard drive, CD, or DVD to store the most important records. You can take these with you to keep your records safe. You may want to store items such as bank statements, tax returns and insurance policies.
- Document Valuables. Videotape or take pictures of the contents of your home or place of business. This may help you prove the value of your lost items for insurance claims and casualty loss deductions. Keep the pictures or videotape in a safe place away from where your valuables are stored.
- Update Emergency Plans. Review your emergency plans every year. You may need to update them as your personal or business situation changes.
- Get Copies of Tax Returns or Transcripts. Contact the taxing agencies to replace lost or destroyed tax returns.
The Internal Revenue Service recently announced that interest rates will remain the same for the calendar quarter beginning July 1, 2013 as in the prior quarter. Current rates, which will remain unchanged, are:
- three (3) percent for overpayments [two (2) percent in the case of a corporation];
- three (3) percent for underpayments;
- five (5) percent for large corporate underpayments; and
- one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced were computed from the federal short-term rate determined during April 2013 to take effect May 1, 2013, based on daily compounding.
If you have not stayed current in personal or business tax filings, or if you have an unpaid tax liability, remember that penalties add up quickly and interest continues to accrue! If you owe tax and don’t file on time, the total late-filing penalty is usually five percent of the tax owed for each month or part of a month that your return is late, up to five months. If your return is over 60 days late, the minimum penalty for late filing is the smaller of $135 or 100 percent of the tax owed.
When tax debt becomes overwhelming, it is normal to seek out an all-inclusive solution. For some people, that solution comes in the form of bankruptcy. Bankruptcy is a form of debt relief that essentially wipes the slate clean, giving you a fresh financial start. However, it comes with some serious consequences.
Before you commit to filing bankruptcy for your taxes, keep in mind that your credit will be affected for years. It will be difficult to get a loan for a car, a house, or anything else you may want, because banks will not trust your ability to repay them. In addition, filing for bankruptcy will prevent you from filing again for seven years. If you accrue additional tax debt in that time, you’ll have to pay it no matter what.
Most states require you to wait a certain length of time before including taxes in your bankruptcy. That time frame is typically three years. If you want to discharge tax debt from this past year, you’re going to have to wait a while. In the meantime, you will still have to make payments to the government to remain in good standing. Otherwise, you could face serious penalties.
Why go through the hassle when there are other solutions available to you? Find a tax resolution that works and pay off what you can. You will feel more accomplished this way, and you will be able to maintain your credit score. Bankruptcy should always be considered the last resort.