FAQ

Our most commonly asked questions are listed below. If you have a question that is not answered, please reach out to us and we will answer it for you.

Can I get a settlement to pay less than I owe on unpaid taxes?

Some qualified individuals can settle their tax liability for less than what they owe. An Offer in Compromise (OIC) is part of the Internal Revenue Service’s Fresh Start program and is an option that may result in a reduced amount owed. However, qualifying includes a number of conditions that may not be applicable to your individual situation or may not be in your best interest. If you would like to learn more about OICs and whether they are an option for you, we encourage you to schedule a free consultation with our tax experts.

What is an installment agreement and who can qualify?

An IRS installment agreement is an option for some taxpayers who are unable to pay the full amount of taxes they owe at the time of filing. It allows the liabilty to be paid off in monthly payments over the course of 72 months, and, if the taxpayers financial circumstances improve, he or she may pay the entire balance owed at any time while payments are being made. To determine if you qualify for an installment agreement, it’s important to speak with a qualified tax expert.

What is the difference between a lien and a levy?

The IRS says “A lien is a legal claim against your property to secure payment of your tax liability, while a levy actually takes the property to satisfy the tax problem.” Meaning a lien is basically collateral claimed in the event of non-payment while a levy means they are seizing the property as payment.

The IRS has sent me a Final Notice of Intent to Levy. What should I do?

A Final Notice of Intent to Levy means that the seizure of funds from your bank accounts is imminent and your retirement accounts, car, home, and other property may also be at risk of seizure. It’s critical to respond to the notice at once, so contact the tax experts at Lifeline Tax Solutions for a free consultation as soon as possible.

What do I do if I just don’t have the money to pay my unpaid taxes?

The IRS has many options for those who have filed their tax returns but can’t afford to pay the amount due. Contact us for information on payment plans such as Offers in Compromise and IRS Installment Agreements, as well as other options that may be available for you.

Penalties on my tax liability are piling up. Is there anything I can do?

The IRS does offer a first-time penalty abatement waiver for some taxpayers that can eliminate accrued penalties as well as interest on the penalties. However, the interest on the original unpaid tax amount will continue to accrue. Providing the required documentation to request a first-time penalty abatement is best done with the help of an experienced tax professional.

What can happen to me if I owe the IRS back taxes?

The IRS has a number of collection procedures and actions it can take against you if you have unpaid taxes. These can be severe and the longer you wait to resolve your tax problem, the more difficult and costly it will be. Some of the actions the IRS can take are the outright seizure of your assets or property, levies against your wages, bank accounts or retirement income, or even initiating a criminal investigation or filing tax evasion charges.

Do I really need to hire a tax attorney?

If you have unpaid tax liability or are being audited, you are not required to be represented by a tax attorney or seek advice from tax professionals. However, if you want the best possible outcome, consulting a tax law expert can help ensure that no details are overlooked during the process of resolving your tax problem or responding to a tax audit.

There are some circumstances when it’s especially important to have a tax attorney on your side. If you are a professional who must have a license, such as a medical doctor, securities broker, or an electrician, you may not be able to renew your license if you are not in compliance with state tax laws. The best first step toward resolving your tax problem is to schedule a free, no-obligation consultation with Lifeline Tax Solutions.

There are some circumstances under which it’s especially important to have a tax attorney on your side. These include owing more than $100,000 to the IRS, being self-employed, and having a particularly complex financial situation. If you have undisclosed foreign bank accounts or unreported income, expert guidance is critical. Lastly, if you are a professional who must have a license, such as a medical doctor, securities broker, or an electrician, you may not be able to renew your license if you are not in compliance with state tax laws. The best first step toward resolving your tax problem is to schedule a free, no-obligation consultation with Lifeline Tax Solutions.

Can another type of tax professional help me?

Depending on your particular circumstances, the answer may be yes. A tax attorney, however, can represent you in court for tax issues and at meetings with the IRS through power of attorney representation, which non-attorney tax professionals may not be able to do. Also, keep in mind that a tax attorney will likely have strong negotiation skills in addition to expertise in the tax code, both of which work to your advantage.