HELP WITH TAX DEBT
CONSEQUENCES OF TAX DEBT
Do you owe the IRS, or your state back taxes? If so, you need tax resolution services. Howard Tax Prep LLC Chicago tax resolution services can help you settle tax debt, negotiate monthly payments, or apply for a tax debt hardship.
Howard Tax Prep LLC has a network of experienced tax preparers with AFSP records of completion, and tax resolution consultants that are here to represent YOUR best interests in resolving your tax situation. We will work diligently to prevent any enforced collection action such as bank account and accounts receivable levies and seizure of assets. Howard Tax Prep LLC will also work with you and your Revenue Officer, if assigned, to demonstrate current compliance and create a good footing for you going forward.
If you have received an IRS notice CP2000, IRS notice CP504 intent to levy letter, or a notice before collection action letter, please contact us IMMEDIATELY.
WHAT HAPPENS IF DO NOTHING?
The Federal Government has the authority to seize your personal property & bank accounts, garnish your wages, and place liens on your assets. While owing the Federal government is scary, sometimes owing the state can be even scarier. If you owe Illinois tax debt, per the Illinois department of revenue the tax debt collection process is as follows.
- Revoke, suspend, or hold your business certificate or professional license. This includes nursing license, insurance license, securities license, CDL, real estate license, etc.
- File a lien (fancy word for place a hold on to stop you from selling) on your property that can be ENFORCED FOR 20 YEARS. A lien filing will have a negative impact on your credit rating. Also, if the state files a lien on your real estate or personal property, in most cases you cannot sell or transfer your property.
- Seize (fancy word for TAKE) your real estate and personal property. Personal property includes automobiles and business assets.
- Levy (aka garnish/take) your wages, salaries, bonuses, & commissions. Your employer must deduct up to 15 percent of the gross amount to pay your past due tax.
- Levy (also known as garnish/take) your bank accounts, requiring the bank to hold for 20 days all monies in your account up to the total past due tax, penalty, and interest. After 20 days, the bank will forward the money to the department of revenue.
- Hold you personally responsible for business taxes. The IDOR has the authority to assess the tax, penalty, and interest owed by a business against its officers or others responsible for filing and paying sales and withholding taxes.
ADDITIONAL ACTIONS
- Corporations who owe past-due taxes may not have their corporate charters renewed.
- Lottery licenses can be revoked or not renewed for nonpayment of taxes.
- The Comptroller’s Office may offset any money that the Illinois state government owes you and apply that amount to your delinquent tax liability.
- They may ask the Internal Revenue Service to pay your federal income tax refund to the state of Illinois.
- Your name may appear on our delinquent taxpayer list that is published on our web site.
- They may ask the Secretary of State to not renew your dealer’s license.
- They may apply your (or your spouse’s) credit or refund to another tax liability.
- A collector may visit you at your home or business.
- Liquor license revocation or non-renewal.
- Revoke your sales tax business certificate.
- Refer your account to a collection agency.
Ignoring this problem will not make it go away. The IRS & the States have strict deadlines that need to be met in order for you to start an appeal. We can help you, but only if you contact us.
We typically charge a flat fee for tax debt relief services. The amount of the flat fee varies from case to case depending on the circumstances. Here is a breakdown of the average flat fee we charge for common tax debt relief services:
Consultation: We offer a TIMED FREE 15 MINUTE PHONE/EMAIL CONSULTATION. After your 15-minute consultation, consultations are available in 30 minute increments. Our consultation fees are $75 for ½ hour, and $125 for an hour. Should you continue with your tax resolution services we will be more than happy to apply the consultation fee against the cost of any services that you hire us to provide, which in effect makes it free if you decide to work with us.
Basic Payment Agreements: The flat fee we charge for setting up a payment plan with the IRS, and payments depend on the total amount of tax that is owed. This is because the IRS has different standards for accepting installment agreements that get progressively more stringent the higher the balance due. The flat fee we charge is for preparing & submitting financials, stopping collections, receiving documents, communicating with the IRS, and negotiating. Fee:
- Less than $10,000.........$250
- 10,000- $25,000 .........$425
- $25,000-$50,000...........$850
- More than $50,000........$1,800
Settlement offer: Debt settlement for substantially less than you owe. For example, a good offer in compromise would be to settle a $150,000 debt with a mere $4,000 payment. The flat fee we charge is for preparing & submitting financials, stopping collections, receiving documents, communicating with the IRS, negotiating, and securing a settlement of tax debt with the IRS. Cost depends on the amount of the tax owed, as the more one owes, the more complex the case is. Fee:
- Less than $5,500..........$375
- $5,500-$10,000 ..........$825
- $10,001-$25,999...... ...$1,250
- $26,000- $49,999...... ..$2,750
- $50,000-$99,999..........$3,750
- $100,000-$299,999......$5,750
- $300,000-$750,000......$8,750
- More than $750,000.....$12,750
TAX RESOLUTION PRICING
Tax Resolution Investigation of Liability Need to know where you stand with the IRS? What's the bare minimum of tax returns you should file? What do you owe? When are your tax liabilities going to expire? How should you resolve your tax problem? Includes Initial Research, IRS correspondence, Power of Attorney, Transcripts, receiving of notices. $250
Collection Information Data.
Initiate protection from IRS collection actions, pull debt records to see how much is owed at time of representation, when the debt arose, what kinds of penalties have been assessed, calculate IRS 10 Year Debt Expiration Dates (CSED), check your IRS account for changes such as audits, liens, collections, significant balance changes, and determine your options for resolving the tax debt. Flat fee of $275.
Financial Analysis Federal All tax debt solutions (whether Federal or State) are based upon a client's financial standing. The financial analysis includes your credit report, court record search, a summary of debt owed, calculation of available credit, trade account pay off dates, value of real property, value of retirement accounts, bank statement analysis, and analysis of necessary monthly expenses. $250
Financial Analysis State All tax debt solutions (whether Federal or State) are based upon a client's financial standing. The financial analysis includes your credit report, court record search, a summary of debt owed, calculation of available credit, trade account pay off dates, value of real property, value of retirement accounts, bank statement analysis, and analysis of necessary monthly expenses. $250
Financial Analysis Federal/State Combo All tax debt solutions (whether Federal or State) are based upon a client's financial standing. The financial analysis includes your credit report, court record search, a summary of debt owed, calculation of available credit, trade account pay off dates, value of real property, value of retirement accounts, bank statement analysis, and analysis of necessary monthly expenses. $375
State tax representation. Includes power of attorney, receiving of documents, request for levy/lien release, license suspension orders vacated, negotiating of payment plans, hardship waivers, stopping collection activity, and negotiating settlements if possible. $875 to $1,500 PER STATE.
IRS Tax Lien Removal If you are trying to sell or refinance your home and have a federal tax lien filed on your home, you may need a lien withdrawn, or moved into second place. The flat fee we charge is for preparing & submitting financials, stopping collections, receiving documents, communicating with the IRS, and negotiating. Fee: $950-$1,550.
Payroll Tax Debt Form 941/940 taxes. Representation and resolution of tax problem whether your business is open, closed or soon to be closed. The flat fee we charge is for preparing & submitting financials, stopping collections, receiving documents, communicating with the IRS, and negotiating. Fee: $1,275 to $6,500.
Penalty Removal: Completion of official document requesting penalty & interest waiver/abatement on personal or business taxes (includes appeals). The flat fee we charge is for preparing & submitting financials, stopping collections, receiving documents, communicating with the IRS, and negotiating. Fee: $575 to $1,800.
Partial Pay Payment Plan. Once we file your tax returns we may find that you qualify to pay a small portion of the debt, and the remaining debt in payments made over time. If this is the case, our office will then need to prepare a personal financial statement showing what you can afford to pay monthly after your personal expenses. Self-employed clients will also need to have business profit and loss statements completed. The flat fee we charge is for preparing & submitting financials, stopping collections, receiving documents, communicating with the IRS, and negotiating.
Fee: $650-$1,850
Hardship unable to collect status: Once we file your tax returns we may find that you qualify for a special hardship with the IRS. We will prepare a personal financial statements that confirms if you were forced to pay your tax debt, and necessary living expenses, you would face a financial hardship. Being classified as uncollectible does not mean that the debt goes away. It means that the IRS has determined that you cannot afford to pay the debt at this time. Penalties and interest will continue to be added to the debt **THIS DOES NOT EXTEND THE TIME THE IRS HAS TO COLLECT YOUR TAX DEBT!** The flat fee we charge is for preparing & submitting financials, stopping collections, receiving documents, communicating with the IRS, and negotiating.
Fee: $875 to $1,500.
Other Miscellaneous Services:
- Garnishment/Levy Release: $775- $1,500
- Injured Spouse Relief: $575 – $2,500
- Innocent Spouse Relief: $2,500 – $4,500
- Tax Resolution Billable Hours-$85 an hour