FAQ

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability or doing so creates a financial hardship.  The IRS will consider your unique set of facts and circumstances:

• Ability to pay
• Income
• Expenses
• Asset equity

Generally, the IRS will approve an offer in compromise when the amount you offer represents the most they can expect to collect within a reasonable period of time.

This taxpayer solution is often overlooked.  This solution is normally used when a taxpayer and/or representative have attempted to solve the tax problem with IRS Automated Collections (ACS) and/or with IRS Tax Practitioners Hotline (TPH) without any positive results.  In other words, all known solutions have been attempted without positive results.  When to use:

* The taxpayer is experiencing economic harm or is about to suffer economic harm.

 * The taxpayer is facing the immediate threat of adverse action.

 * The taxpayer will incur significant costs if relief is not granted (including fees for professional representation).

 * The taxpayer will suffer irreparable injury or long-term adverse impact if relief is not granted.

 * The taxpayer has experienced a delay of more than 30 days to resolve a tax account problem.

 * The taxpayer did not receive a response or resolution to their problem or inquiry by the date promised.

 * A system or procedure has either failed to operate as intended or failed to resolve the taxpayer’s problem or dispute within the IRS.

 * The manner in which the tax laws are being administered raise considerations of equity or have impaired or will impair the taxpayer’s rights. 

This taxpayer solution is often overlooked.  Mistakes can happen.  Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040, 1040A, 1040EZ or electronically filed return.  Taxpayers realize that an amended return is needed to help save on taxes when they have (not all inclusive):

* Missing deductions, 

* Missing credits, 

* Missing rollovers from a prior year

* a math error

* Income overstated

*  or other mistake

At Don Fitch Accountancy, we have developed effective and timely methods to get an contractor’s levy released, in most cases, within 72 hours. This protects the contractor’s paycheck while a payment plan is negotiated with the IRS. 

One in five taxpayers will have a tax problem sometime in their contractor career. It is our goal at Don Fitch Accountancy to provide contractors with a solution that removes the threat of an IRS Contractor Levy and replaces it with peace of mind. We look forward to working with you and to answering any questions you may have. 

This taxpayer solution is often overlooked.  Nothing good can happen to you by not filing your past due tax returns.  Not filing tax returns is a crime.  By filing any and all tax returns removes the criminal element to your case.  Allow us to Help you complete your Federal Past Due Tax Returns for the past 30+ years and for any of the 50 States.  Tax returns include:

1040 – Individual

1041 – Trusts

1065 – Partnership

1120 – Corporation

1120S – S Corporation

706 – Estate

709 – Gift

990 – Exempt Org

5500 – Benefit Plan 

This taxpayer solution is often overlooked.  If the IRS has not collected from you within 10 Years after you filed your tax return, then the 10 Year Statue to Collect has run.  In other words, you no longer owe the balance for the year the statue has run.

An IRS audit is a review/examination of an organization’s or individual’s accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct.

IRS audits either are by mail or through an in-person interview to review your records.  In either case, Don Fitch Accountancy recommends that you obtain representation. Now is the time you need experienced tax professionals.  The interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or Don Fitch’s office (field audit).  

Don Fitch Accountancy has been successful in obtaining “No Change IRS Audits” for many of their clients.  

An IRS Exploratory is having a CPA find out where you Stand with the IRS! An IRS Exploratory will not call any IRS attention to any IRS case. When there appears to be several unknowns with the IRS (missing tax returns, outstanding balances, what is the IRS planning to do, etc.),   the IRS Exploratory is the 1st step to complete.  In other words, you will find out where you stand with the IRS with an IRS Exploratory.

Upon the completion of the IRS Exploratory, the below findings will be written and discussed relating to the overall findings. An IRS Scope/Exploratory includes the following:  

• IRS Statute of Limitation dates and/or Assessment dates for each and every tax year (if any). IRS balances due by year and amount (if any).
• Tax returns unfiled for any and all tax years (if any).
• IRS Liens filed for each and every tax year (if any).
• IRS income information (SUPOL and/or IRS EARP, etc.) information is requested if taxpayer has outstanding tax returns.
  
• Reconciling IRS tax returns on file to Taxpayer provided tax returns.
  
• Determining what tax returns have been filed by the IRS for the Taxpayer (if any).  Tax returns filed by the IRS are generally referred to as an SFR’d (substitute for return) return.  The IRS may file a tax return for a taxpayer when there is reported income and a tax return is required but not filed.
• IRS account status is generally within one of the following (not all inclusive):

      1) IRS ACS Collections (ACS),
      2) IRS Offer in Compromise (OIC),
      3) IRS Revenue Officer (RO),
      4) IRS Taxpayers Advocate Office (TAO),
      5) IRS Installment agreement,
      6) IRS Uncollectible Status (53 Status),
      7) Bankruptcy,
      8) All Clear Status All returns filed and paid.

• Determining what types of IRS enforced collection activity is present (if any). IRS Enforced collection activity includes (not all inclusive):
        1) IRS Bank levies,
        2) IRS Wage Levy’s (Wage Garnishments),
        3) IRS Vendor Levy’s, and
        4) IRS Seizures.

An installment agreement may be requested if you cannot pay the liability in full.  This is an agreement between you and the IRS for the collection of the amount due in monthly installment payments.  To be eligible for an installment agreement you must first file all returns that are required and be current with estimated tax payments.  If you are an employer, you must be current with your federal tax deposits.

If you owe $25,000 or less in combined tax, penalties, and interest, you can request an installment agreement by completing IRS Form 9465, Installment Agreement Request, along with your bill in the envelope that you have received from the IRS.  The IRS will inform you within 30 days whether your request is approved, denied, or if additional information is needed.  

You may still qualify for an installment agreement if you owe more than $25,000, but a Form 433F, Collection Information Statement, may need to be completed.  

The IRS will remove a Federal Lien when:

• The Federal Tax Lien was filed in error, or
• The balances have been paid in full, or
• An IRS Offer in Compromise has been accepted (see Offers in Compromise Engagement)
• The Lien has become unenforceable, (see 10 Year Statute Engagement).

Generally, interest charged by the IRS is not available for abatement.  However, penalties are available for abatement provided the taxpayer qualifies.  

Upon an IRS wage levy, the IRS will take most of your paycheck and leave you approximately $100 to $200 per paycheck.  For most people, this means it is a struggle to pay rent and buy groceries (emphasis added).

• WHAT WILL DON FITCH ACCOUNTANCY DO FOR ME?

Your personal tax manager at Don Fitch Accountancy will negotiate the wage levy release with the IRS, on your behalf, after receiving your taxpayer prepared financial statements.   

Generally, most wage levies are released within 72 hours from the time the taxpayer has provided Don Fitch Accountancy with required financial information (DFA Form 43A, etc).

Don Fitch specializes in Federal Tax Return Preparation and for Real Estate Agents and Brokers by recognizing the normal income and deductions of Real Estate Agents & Real Estate Brokers.  For example, IRC 469 and IRC 1031 know-how is a must.  Let us Help with your 1031 exchanges!  Allow us to Help you complete all of your Federal Tax Returns and for any of the 50 States.  Tax returns include:

1040 – Individual

1041 – Trusts

1065 – Partnership

1120 – Corporation

1120S – S Corporation

706 – Estate

709 – Gift

990 – Exempt Org

Don Fitch specializes in Federal Tax Return Preparation for Real Estate Investors by recognizing the normal income and deductions of Real Estate Investors.  For example, IRC 469 and IRC 1031 know-how is a must. Let us Help with your 1031 Exchanges!  Allow us to Help you complete all of your Federal Tax Returns and for any of the 50 States.  Tax returns include:

1040 – Individual

1041 – Trusts

1065 – Partnership

1120 – Corporation

1120S – S Corporation

706 – Estate

709 – Gift

990 – Exempt Org

This taxpayer solution is often overlooked.  Special tax law provisions may help taxpayers recover financially from the impact of a disaster, especially when the president declares their location to be a major disaster area. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes. Both individuals and businesses in a presidentially declared disaster area can get a faster refund by claiming losses related to the disaster on the tax return for the previous year, usually by filing an amended return. IRS Form 1040x.  Let us help.

Tax problems can affect the lives of employees both at home and at work. Don Fitch, CPA manages the only Tax Help Employee Assistance Program in the country.

This EAP is a comprehensive program that helps employees resolve tax problems that may adversely impact their work performance, conduct, health and well-being. This EAP addresses problems in the quickest, least restrictive, and most convenient manner while minimizing cost and protecting client confidentiality.

  Please note that an IRS employee wage levy results in 80% to 90% paid to the IRS.  In other words, the employee will not be able to pay rent or buy food.  Without assistance a valued employee will be forced to find work elsewhere.

Among the professional services we offer (not all inclusive) are:

* Wage Levy Releases (Federal and State)

* Lien Releases (Federal and State)

* Tax Returns for all 50 States (Federal and State)

Our chart of accounts for tax return preparation purposes, and

Book your Income and Expenses, and

Book any needed payroll (if needed), and

Book any and all items into the various ledgers, and

Book any and all investments and whatever else needed to be booked for a complete and accurate return.

Don Fitch, CPA is a Quickbooks Pro Advisor since 2012

Don Fitch, CPA adheres to both GAAP and GAAS. 

Don Fitch specializes in Federal Tax Return Preparation and for any of the 50 States.   Don Fitch, CPA treats every tax return as a piece of artwork leading to a tax return with the smallest income tax.   Allow us to Help you complete all of your Tax Returns and for any of the 50 States.  Tax returns include:

1040 – Individual

1041 – Trusts

1065 – Partnership

1120 – Corporation

1120S – S Corporation

706 – Estate

709 – Gift

990 – Exempt Org

Let us complete ALL YOUR YEAR END TAX PLANNING needed to generate the smallest income tax.  Let us help you save on taxes before the year closes.  We will contact you before the year end and discuss the many tax saving options available.

Upon an IRS Bank levy, the IRS will take all of your bank account until the outstanding amount is paid. 

HOW LONG WILL THE BANK LEVY LAST?

The Bank levy will be in effect for 21 days at which time monies in the account will be forwarded to the IRS.   For 21 days the monies will remain in the taxpayers account but will not be accessible.  It is Urgent that Don Fitch Accountancy be engaged to have as much time as possible to remove the Bank Levy.

WHAT WILL DON FITCH ACCOUNTANCY DO FOR ME?

Don Fitch Accountancy will negotiate for a Bank levy release with the IRS on your behalf, after receiving your taxpayer prepared financial statements.   

Generally, most Bank levies are released within 72 hours from the time the taxpayer has provided Don Fitch Accountancy with required financial information (DFA Form 43A, etc).