What does being “Compliant” mean?

Compliant means you have to be current on your taxes. You have to make sure you have filed your tax returns for the last 6 years. If you do not know if you filed or not, don’t fret. Most people are not sure which years have been filed or not. We will run transcripts for you and find out what tax years are missing and how much you owe. Before you can work on a resolution, the IRS and the state requires that all your taxes are filed and up to date.

What are your fees?

Unlike other firms that charge a percentage of what you owe, we do not do it here. We charge by what we need to do for you. Please see our very affordable Services and Fees. If you need to file returns, there is a fee for that as we also do tax preparation. As for the resolution, it depends on which is the best resolution that you quality for. We are transparent in our fees.

How long will it take to get a resolution?
Once, you are compliant and up to date on filing all of your tax returns, and you have all of the documents we requested for a resolution, it should take no more than a couple of weeks to get you into a resolution. These resolutions include an Installment Agreement, a (CNC) Currently Non Collectible, or a (PPIA) Partial Payment Installment Agreement.

For an Offer in Compromise, it can take 6-8 months to get a response and up to a year to complete it. According to the IRS, it can take up to 24 months depending on inventory levels and case complexity. We always want to be transparent with you.

Why do other companies take months and even years to get a resolution?

Based on my experience, most companies are understaffed. At Optima, people were with them for years with no resolution. In was mind boggling. Even the small company of 20 that I worked for would take a few months or more because they had more clients than Enrolled Agents to get resolutions. Clients were put in a “Queue” which could take up to a month or 2 to get to your case. If something was needed or missing to get a resolution, it had to go to the back of the “Queue” again. You are not put in a “Queue” here. We work on your case right away because we know that interest and penalties accrue fast. We also know that you want a fast resolution and we are fully staffed to give you one.

Will I go to Jail for unfiled or unpaid taxes?

No. The IRS will also not come to your house or kick you out. I’ve talked to many people behind on their taxes and there are enough people that think this that I have to mention this. You will not go to jail and you will not be kicked out of your home. The most they can do is put a lien on your home but you NEVER have to sell your home. Now if you’re actively committing fraud and tax evasion, that’s another story and it may be a possibility. But for the most part, if you simply did not file and are behind, all you have to do is file your back taxes.

Will I get garnished?
You can get garnished if you have ignored their letters letting you know they will garnish your paycheck. You can also get garnished by the state too. If it’s at this point, please call us immediately with all the information that you have regarding the garnishment so we can take care of it.

What is a lien?

A tax lien is imposed upon a property by law in order to secure the payment of taxes. If they attach a lien to your house, it does not mean you have to sell it. But if you do, you will have to pay that lien first. It affects your ability to sell or transfer property and getting a loan. If you don’t plan on moving, the IRS will not force you to sell it.

Can I speak to the tax preparer?

Definitely. We will also give you a mock return for your approval before we file it. If you have any questions or concerns, you can talk to the tax preparer to ease your concerns. You will always have access to your tax preparer.

I got an IRS notice. What should I do?

You should call us immediately so we can know the severity of the notice.

Can I pay make payments?

Yes, we finance with 25% down. We are flexible with payments and you can schedule your payments weekly, bi-weekly, or monthly. You also have to be at least 90% paid before we can close your case.

Why is your Investigation Fee of $250 and $375 Non Refundable?

The Investigation Fee is non refundable because as experts, we essentially give you a ROAD MAP of what you need to do to get a resolution whether you decide to work with us or not. We believe it is a fair and reasonable fee. It also does require a bit of work such as going over a detailed Financial Analysis with you, pulling transcripts for you, and giving you detailed resolution options. The good news is you can get a credit of the Investigation Fee applied to your Resolution Fee should you decide to work with us.

What is an Enrolled Agent?

An enrolled agent is the highest credential awarded by the IRS. Along with an attorney and a CPA, enrolled agents are the only professionals that can represent you and help you with tax resolutions.

Will I have access to the Enrolled Agent?

You sure will. You can talk to your Enrolled Agent at any time. You will also have access to your tax preparer.

Do you those with under $10,000 in IRS debt?

We do help those under $10,000. Everyone needs help and we will help you if you owe under $10,000. We will help you with your taxes and help you get compliant. Then we will help you get a resolution just like anyone else.

How much should I withhold?

What you should withhold depends on many factors including marital status, dependents, how much income you make, etc…

If you owed last year, a good rule of thumb is to divide what you owe by 12 months and start withholding at least that amount. For example, if you owed $6,000 last year, divide that by 12 months and you would get $500. You need to withhold at least an additional $500 a month in taxes a month. If you get paid every 2 weeks, you need to withhold at least an additional $250 in taxes per paycheck.

If you don’t know what you owe last year, you can go on the IRS website and go on their withholding calculator. Tax Withholding Estimator | Internal Revenue Service

Do you do state taxes?

Yes and most states have some time of hardship program. These state DO NOT have income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

What is the 10 year statute of limitations?

The IRS generally has 10 years from the assessment date of a tax year to collect unpaid taxes. CSED is short for Collection Statute Expiration Date. Each tax year has it’s own CSED. The Partial Payment Installment Agreement (PPIA) takes into account the 10 year CSED and gives you a low monthly installment agreement until the 10 years expire.

Does Interest and Penalties ever stop accruing?

Unfortunately, interest and penalties NEVER STOP ACCRUEING until the day you pay if off. It is similar to a credit card. Interest cannot be abated, only penalties can be abated. We will help you with getting rid of your penalties if you qualify.

What type of penalties are there?

There are many penalties but 99% of people will have: Failure to File Penalty, Failure to Pay Penalty, Accuracy Related Penalties, Erroneous claim for refund or credit penalty, and underpayment of estimated tax by individual penalties. You can find out more about penalties and interest here.

What is Hardship based on?

Hardship is based on your monthly income and expenses. Other factors include IRS standards. This is what the IRS allows for food, clothing, housing, car, etc… The IRS will also look at the assets that you owe to determine your hardship. Assets include, but are not limited to, equity in home, stocks, retirement, bank accounts, jewelry, etc…

For Hardship Programs like Offer in Compromise and Partial Payment Installment Agreements, what documents do I need to qualify?

For these programs, the IRS wants to make sure that you are in a hardship and will require many documents including all sources of income, your monthly income and expenses, proof of all of your expenses (rent/mortgage, utilities, car loans, car insurance, health insurance, etc.), your latest bank statements (last 3 months), last 3 paystubs. They may ask for additional documents based on your circumstances.

What is the Fresh Start Program?

The Fresh Start Program is a series of resolutions the IRS offers. It was originally just the OFFER IN COMPROMISE but has expanded to Installment Agreements, Currently Non Collectible, and Partial Payment Installment Agreement.

Will I continue to receive IRS notices in the mail?

Yes. They are sent automatically and some will be certified which can feel really scary. Just read it and give us a call and we’ll explain it to you.

Do you offer any discounts?

We offer a 10% discount to senior citizens 65 years and older.

We’re not very tech savvy. Can you help us out?

Yes, of course. We will help you along the way however we can. We can mail you documents with a return envelope for you to send back. If you are local to Long Beach, you can always stop by our office.