Welcome to Your Tax Relief Team

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Frequently Asked Questions

General Questions

I received an audit letter from the IRS. What do I do now?

The best decision you can make is to contact a qualified tax professional.

Congratulations on making that step by visiting with us. An audit is not something to take lightly and the possibility of owing more taxes can be overwhelming. Our team of tax relief experts work with people undergoing investigation by the IRS every day. Our goal is to remove the stress while guiding you through the process every step of the way. As your representative, we stand between you and the IRS to ensure the best available outcome. Tell us your story, and let us start helping you reclaim your life.

What does “filing a tax extension” mean?

Filing a tax extension simply means that the IRS gives you extra time to file your taxes. Instead of submitting your taxes on April 15th, you can wait 6 additional months until October 15th, as long as the tax extension is approved. Businesses with a March 15th due date, are extended 6 months to September 15th. However, an extension to file your taxes does not relieve your responsibility to pay taxes by the due date of the tax return or estimated tax payment.

What is “penalty abatement"?

Penalty abatement is a complicated way to say that taxpayers can request the removal of all or a portion of the penalties for filing late, paying late, and certain other statutory penalties applied to their account.

What is a bank levy?

A bank levy allows the IRS to remove funds from your bank account. When a levy is placed on your account, time is of the essence. The bank must hold the funds for a short period to allow you a chance to dispute the levy and obtain a release from the IRS. We prevent levies from being placed as well as remove existing levies as part of our process for relief.

What is tax compliance?

Tax compliance in its simplest terms means

  1. filing your tax returns by the due date or extended due date, and
  2. paying your taxes or estimated taxes (for business owners) when due.

If you’re behind on taxes or have NEVER filed, we can help. IRS procedure requires only the last six years for non-filed returns to be filed to be considered compliant as far as filing the returns.

What is the IRS Fresh Start Program?

The IRS Fresh Start Program refers to several debt relief options offered by the IRS. The purpose is to provide relief for individuals and businesses who are experiencing financial hardships and are otherwise compliant. 

Some of the most common solutions are;

  1. The offer in compromise allows taxpayers to reduce their tax debt in full fo pennies on the dollar;
  2. An installment agreement allows taxpayers to break the tax debt into smaller payments over time;
  3. Penalty relief allows all or a portion of the penalties to be removed; and lastly
  4. CNC or Currently Non-Collectible Status allows taxpayers who cannot pay relief from any payment at all during the time of hardship. 

We understand everyone’s story is different and your situation is unique.  We take time to review and advise the best alternative or set of alternatives that apply to your case. Let one of our tax experts help you find out if you qualify for this program today.

Why is the IRS garnishing my wages?

If you owe back taxes, the IRS may garnish your wages. There are a couple of ways the IRS captures money from your paycheck. A wage garnishment requires your employer to take funds from your net paycheck and send them to the IRS to pay your debt. Often confused with a wage garnishment is a withholding order from the IRS. This order affects individuals who have owed year over year without paying and who claim too many exemptions on their W-4 form throughout the year. The order requires your employer to withhold the maximum federal taxes (single and 0) from your paycheck. But we can help! Reach out and let’s start examining your options together.

Can the IRS seize my bank account?

The IRS can garnish your wages, seize your property, and take money from your bank account if you owe back taxes.

How far back can the IRS audit?

The IRS has up to 3 years after the filing date of your tax return to open and close an audit. In most cases, an audit is selected and becomes active in the 2nd year after filing. This allows the final year for working on and resolving the audit. Once a year is selected for audit, the following year will also be reviewed and considered for opening up an audit, automatically. This is why it is important to get a knowledgeable representative to assist with resolving your audit and bring it to a close sooner rather than later.

Can tax debt be forgiven?

Yes, it is called an Offer In Compromise and happens on a daily basis for taxpayers who qualify. Our initial case assessment is designed to determine if you qualify and if so, find the best strategy for obtaining a settlement based on your situation.

Can the IRS take money from my bank account without notice?

The IRS must provide you with written notice before they take any money from your accounts, seize your property, or garnish your wages. There is an opportunity to challenge the IRS’s claims before they can take your money or property, but you must act immediately upon receiving the notice to make a timely challenge to stop the levy.

What is power of attorney?

A power of attorney, or POA, is a document that gives another party the legal power to act on your behalf. With regard to tax relief, your power of attorney can be your CPA, an attorney, or an IRS enrolled agent.

Why do I want a power of attorney on file?

A POA allows you to hand off the stress of dealing with the IRS to us. We can negotiate with the IRS on your behalf and act in your best interests without you needing to be present every step of the way. This allows us to deal with the IRS while you handle your business and your life.

Audit Questions

What is a mail audit?

A correspondence audit is conducted by mail and is the most common type of IRS audit. It is the lowest level of IRS audit and is usually less intrusive than field or office audits.
This audit typically begins with a computer-generated letter (CP2000) or a correspondence letter (Letter 566). If you’ve received either notice, time is of the essence; contact us immediately. We can help.

What is an office audit?

You’re summoned to appear at your local IRS office for an in-person meeting with an IRS examiner in an office audit. You are requested to bring supporting documentation at a specific time and date. The IRS office audit process is more formal than the correspondence audit, and it is usually conducted for more serious issues on the tax return.   The good news is you don’t have to show up. Our team can take action to ensure your positions are fairly represented.

What is a field audit?

A field audit is the most detailed kind of IRS audit. In a field audit, an IRS representative will visit your home or business to examine records. Like an unwelcome houseguest, they come in and stay at your location for the audit duration. You don’t have to deal with a field audit alone; we can host the IRS in our offices so you can focus on your business while we work towards defending your legitimate tax positions. We don’t recommend facing the IRS alone, get our team behind you.

Common Notices Questions

What if I received a CP504 or CP504B?

If you received a CP504 notice (CP504B for businesses), you have a balance due to the IRS for past taxes and have not paid the balance despite prior notices.

The purpose of the CP504 notice is that failure to respond will result in the seizure of your state or federal tax refund. If there is still an outstanding balance after applicable refund levies, the IRS may then commence levying other property as well, most commonly including:

  • Bank accounts
  • Wages
  • 1099 Income from your Customers and Payors
The IRS may also file a Notice of Federal Tax Lien notifying creditors that the government has a right to your interest in your assets. It can negatively impact your client’s credit score and ability to obtain credit.
 
You can stop this enforcement by satisfying the tax liability in full, setting up a payment plan, or establishing some other formal agreement with the IRS, such as an offer in compromise. 
 
If a levy or lien is active on your account, contact us. We can help.

I received a CP90 letter; what do I do?

The purpose of the CP90 letter is to notify you of the IRS’s intent to levy certain assets for unpaid taxes. Included with this letter is a notice of your right to a Collection Due Process hearing with the independent office of appeals if you don’t believe you owe or you cannot pay the balance. You should take action immediately as time is of the essence. You should take action to resolve your balance or request a hearing within 30 days of the date on this notice to protect your income from seizure.

I received a CP11 letter; why do I owe?

The IRS mailed a CP11 notice to inform you of taxes due due to the IRS adjustment. However, in most cases, the IRS changed the tax return filed during processing because of a perceived math error. Therefore, you must review your return with a tax professional if you disagree with the adjustments.

Why am I getting a CP14 notice?

A CP14 balance due notice shows taxes, interest, and penalties that are owed as well as any applicable credits and payments that have been applied to your account. The IRS sends this notice to notify you of an underpayment of taxes after a return has been filed. Think of this as an initial invoice for payment.
 
Receipt of this letter is your cue that the IRS is aware of your balance and NOW is the time to take action before the balance proceeds to collections enforcement. In many cases, you still have time to set up an installment agreement online through the IRS website. However, we’re here should you need our assistance.

Why am I receiving letter 1058?

Either you filed a tax return with the IRS without paying all taxes, interest, and penalties in full or have a balance created from a previous audit. By the time your receive this notice, the IRS has sent notices requesting payment but you’ve still not paid.

Failure to respond to the notice may result in imminent enforcement including bank levy, wage levy, income capture from payors, seizure of property and/or the filing of a Notice of Federal Tax Lien.
 
A levy can be prevented by satisfying the tax liability in full, setting up a payment plan, or establishing some other formal agreement with the IRS within 30 days.

What is Currently Non-Collectible Status?

Currently Non-Collectible Status, or CNC Status, means that the IRS has decided that you are not able to make tax payments. The IRS will refrain from garnishing wages, seizing property, and levying your accounts. The collection statute time period of 10 years (120 months) continues to pass during this time. In some cases, for low-income taxpayers, the statute can expire and the balance will become uncollectible and removed from your account at the end of the 10-year period.

Do I qualify for Currently Non-Collectible Status?

If you do not have money after paying for essential living expenses, you may qualify for CNC status. Our team of tax relief experts can assist you in determining whether or not you qualify.

How long does the IRS tax relief process take?

That depends on the type of tax relief that will fit your unique needs. An Offer in Compromise typically takes 12-14 months for IRS approval while you may be approved for Currently Non-Collectible Status in two weeks. Flowers & Associates Tax Relief can help you determine the tax relief you need and work with the IRS on your behalf.

Do you help with delinquent tax returns?

Yes. We can file delinquent tax returns, assist with audit representation, and help with IRS tax settlement.

Reach out today and let’s work together to take back your life.

Can you help with my tax liens and levies?

Yes. Flowers & Associates Tax Relief has a Signature Process that will identify and resolve the tax problems that you’re currently facing, including tax liens and levies. 

Offer in Compromise Questions

What is an Offer in Compromise?

An Offer in Compromise is an IRS program that lets qualifying taxpayers settle their debts for less than they owe.

Can I get an Offer in Compromise if I am making installment payments?

It is possible to be making installment payments and qualify for an offer in compromise. The IRS will set you up on an installment agreement without any consideration as to whether or not you qualify for settlement. If you qualify for a lump sum settlement, we will stop your installment payments or help you redirect your payments to apply towards your settlement. For partial pay offers, installment payments will continue while the IRS evaluates the Offer in Compromise under review. Our initial case assessment is designed to determine if you qualify and if so, find the best strategy for obtaining a settlement based on your situation.

How long does the IRS take to approve an Offer in Compromise?

The IRS has up to 2 years to make a decision on your offer package, however, in most cases, the negotiations begin 10-14 months after submission. While the IRS reviews the Offer in Compromise, all collection activities will be suspended.

Will an Offer in Compromise stop a levy?

Yes. The IRS cannot continue collection activities like property seizure or levies while they evaluate your Offer in Compromise.

Questions About Installment Agreements

What are Installment Agreements?

At their simplest, Installment Agreements are set monthly payments you make to the IRS to pay off your tax debts.

Are there different types of Installment Agreements?

There are four types of Installment Agreements from the IRS: guaranteed, streamlined, partial payment, and non-streamlined agreements.

    • Guaranteed Installment Agreements: To qualify, you must owe less than $10,000; you cannot have entered an Installment Agreement in the last five years; you must pay off your tax liability within three years; you must be unable to pay your tax liability within 120 days; and you must pay at least the minimum monthly payment.
    • Streamlined Installment Agreements: To qualify, you must owe less than $50,000; you must pay off your balance within 72 months; the proposed payment must be greater than or equal to the minimum acceptable payment.
    • Partial Payment Installment Agreements: You must complete the applicable 433 Form (based on your types of income) in orderto report your income and living expenses to the IRS. The IRS will then review your information and can then approve you. Once approved, you need to participate in a financial review once every two years.
    • Non-Streamlined Installment Agreements: If you owe more than $50,000, this is your best option. This agreement is one negotiated based on your unique financial and/or life situation. Not sure if you qualify for an installment agreement plan? Contact us today to find out how we can help you get this process started.

How long are IRS payment plans?

It depends. Your Installment Agreement will determine the length of your payment plan, but the most common plans involve you paying over a 36-month period, a 72-month period, or up to 120 months.

Our team of tax experts will negotiate with the IRS on your behalf to determine the best payment plan for your unique situation. 

Do IRS payment plans affect my credit score?

IRS payment plans are not loans and are therefore not connected to your credit score. However, it is important to take action to get on a plan as soon as you determine the balance due to avoid credit impacting liens.

Questions about Currently Non-Collectible Status

What is Currently Non-Collectible Status?

Currently Non-Collectible Status, or CNC Status, means that the IRS has decided that you are not able to make tax payments. The IRS will refrain from garnishing wages, seizing property, and levying your accounts. The collection statute time period of 10 years (120 months) continues to pass during this time. In some cases, for low-income taxpayers, the statute can expire and the balance will become uncollectible and removed from your account at the end of the 10 year period.

Do I qualify for Currently Non-Collectible Status?

If you do not have money after paying for essential living expenses, you may qualify for CNC Status. Our team of tax relief experts can assist you in determining whether or not you do qualify.

Tax Relief Questions

How can Flowers & Associates Tax Relief Team help me?

As soon as you partner with us, we’ll get between you and the IRS. We’ll then follow our signature process to stop the bleeding, identify the problem, and negotiate on your behalf with the IRS to get you back on track with peace of mind and freedom from tax stress.

What is tax relief?

“Tax relief” is a blanket term that refers to any number of programs and initiatives that can help you settle or reduce your tax debts.

How do I qualify for tax relief?

The IRS looks at a few factors when determining who is eligible for tax relief. Our initial case assessment is designed to determine if you qualify and if so, find the best strategy for obtaining a settlement based on your situation. Tell us more about your situation and we can help determine if you qualify for tax relief.

How can I reduce my tax debt?

Our tax laws are quite complex and apply differently depending on your filing status or business structure. If you are not trained in tax preparation and tax law, it is best to contact a CPA or a qualified tax professional for assistance. It’s important to understand the ins and outs of the tax system to achieve optimal results. People in the optimal tax position, typically invest in planning throughout the year to ensure they implement tax-saving alternatives in real-time.

How We Help

How long does the IRS tax relief process take?

That depends on the type of tax relief that will fit your unique needs. An Offer in Compromise typically takes 12-14 months for IRS approval while you may be approved for Currently Non-Collectible Status in two weeks. Flowers and Associates can help you determine the tax relief you need and work with the IRS on your behalf.

Do you help with delinquent tax returns?

Yes. We can file delinquent tax returns, assist with audit representation, and help with IRS tax settlement. Reach out today and let’s work together to take back your life.

Can you help with my tax liens and levies?

Yes. Flowers and Associates has a Signature Process that will identify and resolve the tax problems that you’re currently facing, including tax liens and levies.

Our Services

Do you charge for initial tax relief consultations?

No, your initial phone consultation is free.

What areas of the United States do you serve?

We help taxpayers nationwide find tax relief and become compliant with their tax filings.

How do I schedule a tax relief consultation?

That’s easy! Just contact us.