No matter what life stage you’re in or what your experiences have been, there’s one thing pretty much everyone can agree on: Tax issues are nerve-racking. Working with an attorney who’s also a CPA means you can feel confident your concerns will be handled in the most appropriate and effective way to help you achieve the best possible outcome.
Tax Problem Resolution
Every year, it seems the tax code becomes longer and more complex – and if you’re not a CPA or tax attorney, it’s easy to run afoul of the law and wind up facing a serious tax problem. As a CPA and a tax attorney, J. Kevin Webb helps clients navigate the complicated maze of tax laws, creating real solutions aimed at helping clients protect their rights and limit their liability.Common tax problems include:
- Delinquent tax returns
- Tax liens and levies
- Wage Garnishment
- Tax audits
- Notice of Deficiency
- Payroll tax problems
Many taxpayers are unaware of the many opportunities available to them to deal with IRS and State of Alabama collection efforts.J.K. Webb can analyze your circumstances and recommend the best alternatives for your situation.Some of these solutions include:
Filing Missing Tax Returns
Taxpayers stop filing tax returns for various reasons.Regardless of whether you are self-motivated to file old returns, or whether the tax authorities have contacted you about the missing returns, J.K. Webb can help get you back on track with the IRS and the State of Alabama. We can also help you obtain the necessary income information to report on the delinquent returns.In some cases, we may be able to collect refunds that have gone unclaimed.
If after filing all past due returns we determine that you have a tax liability, we can help to negotiate a payment plan or investigate other tax relief options to deal with the liability.We may also be able to get penalties reduced in certain circumstances.
Having unfiled tax returns is a stressful situation. Call J.K. Webb today to let us help you navigate this process to remove this stress from your life.
Offer in Compromise
The IRS will enter into an agreement with taxpayers to allow the taxpayers to settle old tax debts for an amount less than what is owed. Perhaps one of the most misunderstood tax resolution techniques, the IRS will enter into such an agreement only upon the following grounds:
- Doubt as to Collectibility – This arises when the taxpayer’s asset equity plus earning potential is less than the amount needed to satisfy the tax liability in full.
- Doubt as to Liability – This arises when the taxpayers has a legal claim that the IRS has incorrectly determined the amount owed.
- Effective Tax Administration – This applies when there is no doubt as to collectability or doubt as to liability but requiring the taxpayer to full pay the tax debt will result in economic hardship.
The Offer in Compromise (“OIC”) is an effective tax resolution technique for taxpayers that qualify. We can help you determine if you qualify for an OIC, and if so, we can help you assemble the required documentation to give your offer the best opportunity to be accepted.
Unfortunately, the State of Alabama does not have an offer in compromise program for state taxes
An installment agreement will allow the taxpayer to satisfy their tax obligation over time. This option is available to taxpayers who do not qualify for an offer in compromise and do not have the ability to pay their tax debt all at once.
In order to qualify for an installment agreement, the taxpayer must be up-to-date with all tax returns, i.e., all tax returns must have been filed. There are different types of installment agreement arrangements, and depending on the amount of tax owed, the IRS may require that the taxpayer provide financial information to support how much monthly payment the taxpayer can afford to pay. The monthly payment amount is also sometimes dependent on the amount of time left for the IRS to collect on the tax debt. The State of Alabama also allows taxpayers the ability to pay a tax debt over time.
Regardless of the amount owed, J.K. Webb can analyze your situation to determine the best installment agreement for your situation.
Releasing an IRS or State of Alabama levy, such as a wage garnishment or the levying of a bank account, requires immediate action. Generally, a levy will occur after the tax authority has sent numerous notices. If you have received a “Notice of Intent to Levy”, then your bank accounts and/or paycheck is at risk and you should take immediate action to resolve your tax situation.
In most cases, the tax authority is willing to release the levy if the taxpayer will enter into an arrangement, such as an installment agreement.A levy may also be released if the taxpayer can document that the levy will cause an economic hardship.
If you have received a “Notice of Intent to Levy”, or if you have received a notice that the IRS has levied your bank account or intends to garnish your wages, then call J.K. Webb today to see how we can help.
Innocent Spouse Relief
Many married couples file joint tax returns, which generally results in a lower tax liability. However, a consequence of filing a joint return is that both parties are fully responsible for the tax due (including applicable penalties and interest). This “joint and several” liability continues even after the parties get divorced. If one spouse made mistakes on the tax return or failed to properly report income, then the “innocent spouse” may be able to seek relief from the IRS.
The three types of relief for this situation include:
- Innocent spouse relief – provides the “innocent spouse” from joint and individual tax liability that resulted from a spouse or former spouse failing to properly report income or deductions on a joint tax return;
- Separation of liability – Provides for the division of a tax liability between the spouses; and
- Equitable relief – If the other types of relief are unavailable, then option may be available if the facts and circumstances support a finding that it would be unfair to hold the “innocent spouse” responsible for the tax liability.
Qualifying for Innocent Spouse Relief requires that you meet certain criteria in order to be eligible. Plus, every case is very fact specific. Call J.K. Webb today to let us evaluate your situation and determine if you are eligible for Innocent Spouse Relief.
Tax return penalties, such as a “failure to file” or “failure to pay”, are costly. However, penalties can be removed (generally referred to as “abatement”) under certain circumstances. The following are some of the typical reasons that tax return penalties may be abated:
- Medical illness
- Death in the family
- Reliance on advice given by a tax professional
- Ignorance of the tax law
The IRS will also allow certain taxpayers to have penalties forgiven for first time offenders. If the taxpayer has not incurred any penalties in the last three years, then the IRS may abate the penalties from a single tax year.
Each case is fact dependent, but if the taxpayer has “reasonable cause” or has not incurred any penalties in the last 3 years, then there may be options to eliminate some or all of the penalties.
Interest accrues on all tax debt until it is paid in full. Generally, even though penalties may be abated, the same rules do not apply to interest. The IRS will only eliminate interest if the IRS has made an error that has negatively impacted the taxpayer.
Some IRS and State of Alabama audits are routing while others can be quite complex and time consuming. We can review your IRS or State of Alabama Notice to help you determine how to respond to the taxing authority, as well as navigating through the appeals process.
Some audits can be handled by correspondence, while others require meeting with a Revenue Office or Revenue Examiner. In either case, we can assist you
Tax Court Litigation
Once the IRS has made a determination that the taxpayer owes additional taxes, it will issue a Notice of Deficiency for the additional amount due.At this point the taxpayer has a choice: 1) pay the tax (and perhaps see a refund), or 2) continue to fight the IRS by going to Tax Court.
Battling the IRS is a scary proposition, and the outcome of a tax-related lawsuit case can have devastating consequences. Working with a skilled tax attorney who knows and understands tax laws is the most important step you can take to make sure your rights are protected every step of the way. Unlike most tax resolution firms that only focus on collection matters, J.K. Webb can advise and represent taxpayers throughout the entire tax litigation process.
Leading Tax Attorney in Birmingham, Alabama
As a trusted tax attorney, J.K. Webb helps clients in and around Birmingham, AL, handle all types of tax-related matters, providing critical legal expertise and assistance with audits and audit strategies, tax appeals, and tax preparation and planning. If you’re facing a tax issue or you want to learn more about preparation and planning services, contact J.K. Webb today.