Frequently Asked Questions

General Questions

Tax Relief, also known as tax resolution, or tax problem resolution all essentially mean the same thing, which is taking advantage of IRS or state programs designed to help taxpayers who defaulted on their tax obligations to meet these obligations. In some cases, these programs may help the taxpayer in the way they pay back their debt, such as when approved for a payment installment plan, and other times the help comes in the form of a reduction in the principal amount due, or the penalties added to the principal amount, or some or all of these.  Also, relief is available to individuals and businesses, and at every level of income. 

 

It’s very important for us at Bullseye Tax Relief to assess every situation as a unique case, deciding if tax relief is suitable for you, and what type of tax relief fits your situation

 

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It depends. Although a very large percentage of taxpayers with tax issues can find some form of relief, it is not always guaranteed.  What we need to look at is the amount you owe, and if the fees to retain our services or similar service, is justified. For example, if the fees will turn out to be higher than the anticipated relief, then engaging a tax relief service may not be the best for you, in which case we will direct you to free resources that can help you manage the situation on your own. 

 

In some rare cases, we have situations that can not be worked out using the tools and programs available, In these case, we will advise you to save your financial resource  

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Add Bullseye tax relief, we believe that that's problem resolution is a science and art combined together.  The science of understanding the tax code and available programs provided by tax authorities to help taxpayers with outstanding tax debt, combined with a deep understanding the taxpayer’s situation, and the art of putting all this knowledge in to work for you, selecting the best strategy and presenting it to the tax authorities in a way that maximizes the chances for success. 

 

Our 3A process is unique in our industry, where most firms are concerned about how many cases they can push every day, which makes them think of themselves more as practitioners, hired to complete a task, and while many of them are very reputable and truly care, they still miss the importance of the advisory aspect of tax relief. We put a great emphasis in our process on being your advisors, and we take the time to tell you what options you have available and what we believe is best for you. 

 

Check our process page for more details 

 

Last but not least, we guarantee to all our clients that we will perform a thorough analysis, and will do the work using our secure process to ensure the privacy of your data. We also guarantee that our communication will be frequent enough to keep you informed, and all our instructions will clear so you can act on them. We promise to charge fair fees and make it easy for you to pay it 

 

Contact us as soon as you are ready. You can call, email or send an online inquiry to have someone contact you. We will discuss your situation with you, for free, and tell you if we can  help. 

 

It may be useful to have the most recent correspondence from the IRS or other tax authority ready and accessible when we make contact, so we can assess the urgency of the matter and see if there is something we need to get on immediately as in the case of liens and tax levies. 

 

The short answer is, it depends.  there are some actions that can be done fairly quickly such as when a lien is placed on a property or your bank account is levied,  which are more of emergency measures that can be taken to stabilize your situation,  however to resolve the underlying problem and provide you the relief that you are long waiting for, every situation is different. 

Although, there are some guidelines & best practices that can help us give you a rough estimate of the timeline, there are always cases that take a lot less or a lot more than the averages. The ultimate factor of the length of time it takes to have a decision made on your case is the tax authority that is handling your case. 

 

Having said that, by doing things right from the first time, by helping you gather the info and documents we need, by keeping on top of the process, by frequent communication with the tax authorities, and by presenting them with an appealing proposed solution, we reduce or eliminate delays that can be within our control.

 

Although, in some situations, tax payers end up paying a few cents on the dollar, please be aware of any advertising or claim of such promises. The offer in compromise and at times Partial Installment Agreements, which are the two strategies that can lower the amount you pay below the outstanding amounts, have certain rules and requirements that have to be met. They are not a free pass to lower your taxes or to bargain with tax authorities.

 

Having said that, please be assured that if your tax situation is such that warrants the use of these strategies, that we be presenting these solutions to you.

 

Fees

Just like it is hard to tell how long it will take for you case until we study the specifics of your case, we can not give you an accurate estimate until we have a chance to speak to you, gather some preliminary information and ask you some basic questions about you tax situation, before we can give you an estimate of fees. The good news is, we are very likely able to do so once we get a chance to look at you tax records which does not take long at all. Once we do and we give you an estimate, you can then decide to retain us or not. It’s our pleasure to inform you that we are a no-pressure company, and we will never try to make you commit to anything as fast as possible so we can lock you in as a client. We want you to be sure of the decision you made and feel comfortable about the process, the fees and the timeline presented to you.

 

Visit our payment page for some more information

No in Bullseye we request that demons are made up front for the work that is going to be performed, however, we have several payment options that you can take advantage of. Please check our payment page for more details.

 

Yes, you can use our third party partner that will help you make payments over time, and it will allow us to start working on your file right away, while you are silk making payments towards your fees.

 

Services

Offer in Compromise

Offer in Compromise (OIC) allows you to settle your tax debt for less than the amount you owe. Offer in Compromise was created for those in tax debt that could not pay off their debt in full without experiencing financial hardship from doing so.

 

The ability to offer and possibly have your offer accepted to pay less than what you owe on your taxes. Although anyone can be eligible to submit an offer in compromise, given they are currently in compliance with their taxes, not everyone will be accepted. As matter of fact, a minority of the people that request an offer will receive it. At Bullseye tax relief we work with you to see if an offer in compromise is the best solution for your particular situation or you are better off with other available strategies and solutions.

 

It’s hard to say, but many offers can be accepted in about 6 months or less, unless there are delays that increase the time required to process and decide on your offer, with some taking less or more than that. The most important thing we do in Bullseye is to help you avoid delays that can increase the length of the process.

 

A big factor that influences the time it takes, is how well the offer is prepared in such a way that reduces or eliminates delays caused by having the wrong figures, wrong calculations, or wrong assessment of what the offer amount should be.

 

Another factor is not being in compliance, such as having unfiled tax returns for the years the offer is covering, or outside of these years.

 

At Bullseye, we educate you on what needs to be done avoid such delays, and we employ state of the art technology to help you get and stay in compliance, and avoid all the delay factors that we can control.

 

Unless you were only required to file taxes for a few years, and you failed to do so, in most cases, clients are in compliance and have paid or received a refund for several years before the defaulted on filing and paying, in which case the offer will cover only these years. Also, in some cases it's not such a clear cut and we may have to use multiple strategies to  cover different parts of debt.  

 

At Bullseye tax relief we study your case very carefully,  we sent you with the best plan of action

 

Currently Non-Collectible (CNC)

If you agree that you owe money to the IRS but your financial situation makes it impossible to do so without causing financial hardship you may qualify for a Currently Non-Collectible status.

 

If you financial situation changes, where you are able to pay your tax debt or a portion it, then you may be required to pay back your debt, as long as your statute of limitation has not expired. 

 

If your financial situation remains as such you are not able to pay part or all of your outstanding tax debt, you will not be required to make payments.

 

We will gather information from you about your tax situation as well as your financial situation. We will work with you to see what your estimated future income might look like, and then we will advise you on making use of the CNC program, if it’s appropriate for you. 

 

Penalty Abatement

Penalty Abatement relieves you from facing penalties due to failing to file taxes or make payments on time as an individual or failure to deposit certain taxes as a business.

 

The short answer is most of them can, however in some situations there are penalties which can’t  be removed or abated.  It's also important to note that first time penalty abatement requests are so much easier than repeat requests.

 

Yes, it is possible. We have to first see what makes up your tax debt obligation, how many tax periods, the causes of the penalty and more and then we can have a idea of which penalties are likely to be removed with penalty abatement.

 

Installment Agreement

Penalty Abatement relieves you from facing penalties due to failing to file taxes or make payments on time as an individual or failure to deposit certain taxes as a business.

 

No, once you file you do not HAVE to make your installment payment until it is approved, however we highly recommend that you start making these payments right away, as if your plan is approved.

 

Aside from our fees, there is a cost for applying. Check the costs at the IRS site https://www.irs.gov/payments/payment-plans-installment-agreements#plandef

 

Partial Payment Installment Agreement

IRS agrees to allow you to pay only a portion of your debt over the allotted amount of time the IRS gives you. In this situation, you are paying an amount less than the original tax debt amount.

 

An installment agreement is expected to pay off the outstanding tax debt obligation, the Partial Payment Installment Agreement however expected to be paying off LESS than the originally owed amount. 

 

When what you can afford to pay in a monthly installment is less than the monthly amount required to pay off your entire debt over the remaining periods and before you reach your statute of limitation.

 

One of the biggest factors is your financial situation, including your income, cash on hand and other assets you own. If your financial situation does not allow you to make full payment, but you are still able to make some level of payment towards your debt, a partial payment installment agreement can possibly be the right strategy for you. When you contact us, we will be able to assess if your agreement will likely be accepted or not, or if other strategies are more suited to your situation.

 

Theoretically, the agreement will last until you reach your statute of limitation or until you have paid your debt in full, however, a partial installment agreement payment amount is generally less than what the monthly payment should be in order to pay your debt in full before the expiration of the statute of limitation.

 

Federal Tax Lien

A tax lien affects your financial assets, personal property and your real estate. Tax liens can vary based on your individual situation and are the government’s way of protecting their interest in the case that you fail to pay your tax debt in a timely manner.

 

All assets including cars, home and other real estate, stock, bonds, and more.  Having a lien on your assets makes it hard for you to use your assets as you please. For example, if you a lien is placed on your real estate, you will not be able to freely refinance the loan you have on the property until you receive a tax lien subordination or if you are able to discharge or have the lien withdrawn.

 

Tax Lien Discharge

A tax lien discharge removes your tax lien from a specific property. If you request a tax lien discharge and the IRS accepts your request, they will give you a Certificate of Discharge.

 

You would have to contact the IRS or use the services of a licensed profissional. Several forms must be completed to show good reason for the request of the discharge and meet one of the reasons that the IRS allow or accept for a tax lien discharge.

 

On average, it takes from 30-60 days to get the lien discharged, however, any errors in completing the forms or if the documents are all in order, you can expect that the process will take more time.

 

Tax Lien Subordination

A tax lien discharge removes your tax lien from a specific property. If you request a tax lien discharge and the IRS accepts your request, they will give you a Certificate of Discharge.

 

While lien discharge is best used for the sale or transfer of a property and in refinancing it, lien subordination works in the case of refinance but not necessarily when selling your property, since it just allows others to put a lien on the same property, and to take the first priority, moving ahead of the IRS. Creditors, specifically secured loans or creditors, would want to place a lien when funding you and therefore, a lien subordination or discharge will be absolutely necessary when you want to refinance a property.

 

You will have to apply for a certificate of subordination by following the instructions and completing the right forms. The IRS also has some self-help videos on several topics, including self-help for tax subordination. 

 

You will have to make a case that the lien subordination will be to the advantage of the IRS. for example, if refinancing will improve your financial situation to allow you to make payments towards your debt, or increase the amount of your current payment  or if you will receive cash from the refinance that will allow you to pay part or all of the outstanding debt amount.  Because there specifics unique to every situation, please contact us to discuss your case.

 

Similar to the case of lien discharge, on average, it takes from 30-60 days to get the lien subordinated, however, any errors in completing the forms or if the documents are all in order, you can expect that the process will take more time. 

 

It’s advisable to apply as soon as you start thinking of refinancing you loan to avoid delays that can be a result of the subordination process.

 

Tax Lien Withdrawal

You may be eligible for a Tax lien withdrawal if you have entered into a direct debit installment agreement or have come to some sort of an agreement regarding your tax debt.

 

The IRS may withdraw a lien if it is for the best interest of the taxpayer and the IRS. Generally speaking, if you make arrangements for your tax debt, such as an installment agreement or a partial pay installment agreement, you are likely to be able to get your lien withdrawn. 

 

Of course, paying off your debt is the surest way to have your lien released or withdrawn, however, we understand that circumstances may allow you to do so. To learn more, contact us and we will assess your situation and inform you of the best way to deal with your lien. 

 

Eligibility includes:

 

  • You can provide evidence that the tax lien was not in accordance to IRS procedures or it was filed prematurely.
  • You entered into an installment agreement to Pay off the past due tax lien.
  • Your tax debt is under $25,000.
  • You've entered into a direct deposit installment agreement.
  • You believe that the withdrawal tax debt is in the best interest of the government and yourself.
  • Withdrawal of the lien would allow easier repayment of the tax debt.

Forms can get a bit complicated and they require clear and detailed communication of the reasons why you think the IRS should withdraw your lien. Multiple errors can be made on the forms, such as missing information or a missing signature. 

 

Also in choosing the reasons, you have to pick the right reason and attach the appropriate back up to support your reasoning. 

 

We strongly recommend you be very careful completing these forms, or get the help of a licensed professional, in order to maximize your chances of getting your withdrawal request approved. 

 

Because in many cases, having your tax lien can impact your financial situation, affiliations, home ownership, job placement and more, there are several ways you can go about when your withdrawal request is denied, including, according to the IRS, contacting the manager overlooking your request, and filing an appeal. 

 

To avoid having to deal with denial, make sure you familiarize yourself with the forms and instructions of lien withdraws, and you have carefully completed all the sections of the forms, attached the appropriate supporting documentations, and signed the form. Doing so will increase your chances of having your withdrawal approved. You can always hire a third party licensed professional, such as our company to ensure the completeness and accuracy of the process.  

 

Wage Garnishment Release

Wage garnishment is a way the IRS can obtain your wages and earnings through your employer to satisfy a tax debt. In most situations, the IRS knows where you work and can issue a wage garnishment that is sent to your employees to garnish (take part of your wages) your wages.

 

When you obtain a wage garnishment release, the IRS agrees to not take any part of your wages to satisfy your tax obligation.

 

Besides noticing a change in your regular pay, you employer will inform you, and you would have already received one or more  notices informing you of their intent to do so and ask you to make other payment arrangements.

 

A Wage Garnishment Release is just as the name presents, a way for the IRS to release your wages from garnishment. In order to obtain a Wage Garnishment Release, you must first request it from the IRS. 

 

  • If you can show the IRS that the garnishment is causing financial hardship (there are set of parameters to determine that) 
  • If you enter into some sort of an agreement or resolution with the IRS, keeping in mind that many of the possible solutions can take more time than you can wait while having your wages garnished 

We highly advise to not ignore IRS notices and you respond to them ASAP. If you are not sure how to respond to them, you can get the help of a licenced profissional, and at times you may be able to have free help from tax advocates or other public resources. In all cases, responding to the notices, will help you not be in a situation where your wages are garnished.

 

On average you can get about 60 days, at which time you should be pressuring a resolution or agreement to take care of your tax situation with the IRS. 

In some cases, you may be able to get a longer period or, the allowed time may be less than the 60 days, based on multiple factors. 

 

If you have received notices indicating that your wages may be garnished, or if your wages have been already granshied, please call us ASAP or seek help to take action ASAP.

 

Bank Levy Release

A bank levy gives the IRS the ability to freeze your bank account and collect money you have in the bank account to pay outstanding tax debt obligations. Bank levies, like wage garnishments, do not take place before you have received multiple letters alerting you of your tax issues and the intent of the IRS to levy your bank account. 

 

A Bank levy release will do just that, releasing your bank account so the IRS does not seize funds. Bank levies can be used in conjunction with wage garnishment to collect amounts owed to the IRS. Whether you agree if you owe these amounts or not, you have to respond to the notices you receive in order to avoid bank levies and/or wage garnishments.

 

If you just received your notice, respond immediately and work on having an agreement with the IRS to take care of your outstanding balances. 

 

If you disagree or you feel that there is error with your tax situation, you can request a hearing with the IRS as long as you respond within the 30 days period you are given to respond or to request a hearing. 

 

If you have received a letter for intent to levy, or if your bank account has already been levied, you can contact our office for a quick  consultation so we can work with you on identifying the best strategy to handle the situation.

 

Yes, if you make contact fairly quickly, and make arrangements to pay your taxes or if you challenge it through applying for an appeal, you may be able to get the funds that were levied back. Please note, the faster you make arrangements, the bigger your chances of getting that money back.

 

Innocent Spouse Relief

Innocent Spouse Relief relieves you from paying any penalties, interest or taxes when your spouse is ultimately the one responsible for the tax debt.

 

The average time is about 6 months and the time can increase if there are issues while processing your request, such as contacting your spouse, and/ or how fast you are able to submit requested documents.

We advise our clients to carefully consider Innocent Spouse Relief, as it is not the fastest or the best strategy in many of the cases. 

 

If we determine that Innocent Spouse Relief is the best way to go for your case, we will advise you to do so and will provide you with all the support and guidance throughout the entire process. Just give us a call to see how we can help you.

 

Yes, the IRS will, regardless of the marital status, if you are still married or divorced.

 

You will not qualify for innocent spouse relief, if you know of the action your spouse did, which resulted in owing money to the IRS. Reason to know, take it a step further, since you not only need to know to be liable, but if you have a reason to know. There are many situations where the spouse may not have knows what the other spouse had done to manipulate, overstate income, understate expenses, or whatever else was the reason for the tax liability, but they had the reason to know, for example, the sp[ouse claiming the relief was the accounting manager for the S corporation that had an understated amount on the K1 .

 

Innocent spouse is one of the more complicated strategies that require careful study before determining if it is the right strategy and we highly recommend seeking help from licensed professionals when attempting to claim an innocent spouse.

 

Statute Of Limitations

The statute of limitation is the time period established by law for the IRS to assess, review and resolve any tax related issue. Once the time period passes, the IRS does not have a claim. There are several factors that impact the calculation of the statute, when it starts and when it ends. We greatly caution taxpayers to try to make these calculations on their own, without first learning all the rules and exceptions that you need to take into considerations as you make this calculation.  If you need help, please do not hesitate to contact us.

 

There are several statute of limitations, for claiming a refund, for assessing your tax, and in collection of the taxes due. When the statute of limitation is reached in these cases, the IRS will not take any actions. So for example, in the case of a refund, the IRS has three years from the date of when a tax return is due to process refund related to that tax year. After the limitation is reached, the IRS will not process a refund of you, even if you are due a refund based on tax calculations of your refund. 

 

Same idea applies to assessment and collections, once the limitAtion is reached, the IRS can not assess or collect any more.

 

Collection Appeal

When the IRS is in the process of collecting past due taxes from you, including the placement of liens on your property, a Collection Appeal allows you, the taxpayer, to challenge the IRS’s action for collection and in many cases, either put a pause on their ability to collect or reverse the collection process and relieves you of any collection actions taken against you.

 

There is more than one appeal that taxpayers can take advantage of, including:

 

CDP (Collection Due Process)

  • Works for liens and levies 

CAP (Collection Appeal program)    

  • The rejection or termination of an Installment Agreement
  • Before or after the IRS has placed a lien, levy or any seizure action

It’s very important to understand the timeline for applying for appeal. CDP (current due process) can be applied to within 30 days from receiving of the notice for the right to appeal letter. Acting timely can make the difference of having your appeal accepted or denied. 

 

If you received a notice for your right to appeal, and you are not sure what action to take, please contact us immediately to guide you on the best action to take.

 

Administrative Appeal

If the IRS’s decision or action taken is unfair or incorrect, an administrative appeal will allow you to have a second chance to appeal the decision or action, which may lead to a more favorable outcome for your tax situation.

 

The IRS Office of Appeals. This office is separate from the IRS office, which handled your case and resulted in the decision that you disagree with. According to the IRS , generally speaking, the Office of Appeals does not discuss cases with the IRS or the offices in the IRS that issues the tax due decision.

 

It depends on the amount of tax assessed. When the amount is less than $2500, the taxpayer can request the appeal with IRS personnel who assessed you the taxes. If the amount is greater than $2500 but not greater than $25,000 then forms have to be completed or a complete and detailed written statement explaining the specifics of your dispute. 

When the amount is greater than $25,000 a full request must be submitted, which includes, in addition to forms, information related to the request such as supporting documentation. 

 

When you are in a situation where you disagree with the IRS decision in a tax assessment, and  you feel that you want or should appeal their decision, please be careful to review all the facts, do your research on the types of appeals available to you and the different use of each type. Complete required forms or statements carefully, and make sure the information is complete and accurate. 

 

If you need help, we are here to help you. Please take advantage of our free consultation where we can discuss your situation and discuss your alternative solutions.

 

Employment Tax Debt Resolution

Employers are expected to pay federal, and state taxes for and on behalf of their employees, referred to as “payroll tax”. When these taxes are not paid, a series of collection steps are enforced, with some devastating results at times. Tax resolution can help avoid or deal with these collection activities. 

A Trust Fund in terms of employment tax should not be mistaken with a trust fund in terms of wealth management. This is the payroll tax amount assessed to the officers of the business. Tax resolution can help reduce and or arrange the payment of these taxes.

 

A Trust Fund Recovery Penalty is implemented by the IRS to encourage business owners to pay their employment taxes. When someone owns a small business and they fall on hard times, they may feel tempted to tap into the tax funds that they collected from their employees to stay afloat.

 

A trust fund recovery penalty interview and investigation permits the IRS (Internal Revenue Service) to collect unpaid taxes from businesses and assets of the individuals involved in the finances of the business.

 

A Collection Due Process hearing could be your last chance to resolve whatever tax controversy you have with the IRS.

 

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