The truth behind Innocent Spouse Relief from tax attorney

What is Innocent Spouse Relief?

If you owe the IRS money because of your spouse and you were not involved in what is owed you will not be liable for the balance.

Did something like this happen to you?
Did your spouse lie on your joint return? Do you owe the IRS money and is there anything you can do? Do you worry about your personal liability from the taxes on a joint tax return? Did your ex-spouse report the wrong income, not report income at all, or claim improper deductions to the IRS?

Joint and Individual Liability

When you file a joint return with your spouse, each spouse is jointly and individually liable for the entire amount of tax owed based on that return. In other words, the IRS can go after either spouse to collect the full amount of tax due including penalty and interest. Unfortunately, this also true if a couple divorces and the divorce decree states that one of the spouses are liable for taxes due. Innocent spouse is very difficult to get accepted because the IRS takes the view that you knew about the tax problem and you have to prove that you did not. Three different Innocent Spouse Relief provisions.

First, Relief for Innocent Spouse

You want to attempt this type of relief if your spouse understated the taxes owed. This can be from a mistake, unreported income or deductions that were not allowed. To qualify for this you need to prove you did not know about the tax problem and you could not have known. You can qualify for this if you are still married or divorced.

Second, Seperation of Liability

This is exactly how it sounds. When you file a joint return and you want to seperate what you are liable for and what your former spouse is liable for, you would attempt this type of Innocent Spouse Relief. In order to qualify for this you must no longer be married, legally seperated or lived apart for the last 12 months.

Third, Equitable Relief from Liability
If you do not qualify for the previous to Innocent Spouse Relief provision you may qualify for this relief. To qualify for unpaid tax, you need to show that when the return was filed, you did not know and had no reason to believe that the tax would not be paid, and you thought the tax was paid.

To get this relief you need to download an 8857 form from the IRS. Make sure to attach a statement to the request saying why you qualify. BE VERY CAREFUL, there is a statute of limitations of 2 years for Innocent Spouse Relief and Seperation of Liability. That means you have 2 years from the date the IRS started to collect this from you to file an innocent spouse request. However, the IRS recently changed the rules for Equitable Relief from Liability where you do not need to file within the 2 year period.

To better understand if you qualify for Innocent Spouse Relief please Contact us by calling 888-965-3829 or visit us at www.wtaxhelp.com.

Offer In Compromise. The facts you need to know

Every company or attorney that provides tax relief will want to tell you how they got a client into an Offer in Compromise. An Offer in Compromise is a tool a taxpayer can use to get finality to there tax problem. However, getting an Offer in Compromise ("Offer") accepted is not an easy task and is not for everyone. Here is the truth behind an Offer In Compromise.

The purpose behind the IRS Offer in Compromise is to collect as much taxes from a taxpayer that they can, as soon as possible, on the full amount, without wasting more time and money. This program makes it so any taxpayer who owes back taxes to the IRS can make them an Offer that will put an end to there tax problem once and for all.

The IRS when they determine whether you qualify for an Offer will look at your Reasonable Collection Potential ("RCP"). In determing your RCP they use a financial formula as well as other factors.These other factors make it so the IRS can reject an offer based on their belief they can collect money from you in the future. So if you qualify for an offer based on your financial circumstances they can still reject you.

Three different types of Offers exist. The first being, Doubt as to Collectibility. The IRS has a statute of limitations that is 10 years. This means that the IRS has 10 years to collect on the money you owe them. In this type of Offer you are saying that it is unlikely that you will pay your debt off in full before the statute expires.

The next type of Offer is Doubt as to Liability. This is exactly as it sounds. This type of Offer is if you believe you do not owe the entire amount for some reason and you want to offer them what you believe you do owe. Types of problems include, you are not entirely responsible, accuracy as to the tax, calculation is incorrect, etc.

The last type of Offer is Hardship, which is the most common. This is when the debt you owe would have substantial ramifications that you and your family would not recover from.

To learn more information about an Offer in Compromise and whether you qualify contact attorney Evan Wolf at 888-965-3829. Free Confidential Consultation.

What should I do if I could not file my return or extension by the deadline?

If you forgot to file your return or extension by the April 17, 2012 deadline do not get too worried. In fact, if you have a refund the IRS will not add interest and penalties.  However, if you are going to owe the IRS money make sure to file your tax return, even if it is going to be late.

When you file late, the IRS normally charges a late filing penalty of 5 percent per month up to a maximum of 25 percent. If you file the return more than 60 days passed the due date, the minimum IRS penalty will be $135 or the balance due, whatever is less.

Not only does the IRS make you pay a penalty for late filing or paying, they also charge interest on the amount you owe. It is normally half a percent per month, as well as, interest at 3 percent per year, compounded daily. Therefore, it is in your best interest to file as soon as possible and pay any balance due off in full. However, if you can't pay your balance in full contact the IRS or let someone from Wolf Tax Consultants help save you the most money possible. To contact Wolf Tax click here or call (888)

WOLFTAX (965-3829).

Tax Day is approaching, make sure to final an extension if you can't file on time.

Tax day is April 17, 2012. If you are a taxpayer and can't file or pay your taxes on time, do not worry.  You have the right to file an extension and it is very easy. To access the form click here on form 4868. Just be careful because this is an extension to file; not an extension to pay. The extension gives you until October 15, 2012 to file.

If you have any questions, do not hesitate to call Wolf Tax at  (888) 965-3829 or visit at www.wtaxhelp.com.

Don't be fooled by one of these tax scams!

The IRS has just released their lists of the top scams that taxpayers fall prey too. Be careful that you are not one of them.  If you are solicited by someone saying that they can save you money, get you lost refunds and get you free money from your tax return be very careful that you are not a victim of one of these scams.

If you believe you have been contacted about one of these scams make sure to report the person or parties immediately because if and when they are caught all the returns they prepared will then be re-examined.  Once re-examined those returns will be adjusted and will most likely destroy your life. These illegal scams will result in significant interest, penalties and possible criminal prosecution.

What to watch out for?

When you sign your return make sure the person preparing the returns has signed it and put his/her information on the line before yours. If they have not, you should not pay for the return or submit it.

If you have any questions, make sure to call 888-965-3829 or visit http://www.wtaxhelp.com.

IRS or State Tax Help From a Trusted Tax Resolution Company! Wolf Tax Help

We at Wolf Tax Consultants want to settle your tax problems. Whether its having to deal with a difficult state agent or someone from the IRS automated collection system, we are here to help. We will do everything we can to fix your problem. We can help you with an offer in compromise, removing a lien or levy, removing penalties, getting you into an installment agreement and so much more.

Wolf Tax Consultants was founded to change the way the industry operates. Unlike JK Harris, Ronie Deutch and Tax Masters we care about our clients and do not believe full payment, a large retainer and exhorbinant fees are acceptable. We will be honest and upfront about your situation. If you like what you hear, we would love to help you out. If you hire us, we will do the talking to the IRS or the state for you. You can rest assured we will do everything in our power to solve your tax problem. We truly do have your best your interest at heart, let us prove it.

If you want some free advice, visit us at Wolf Tax Consultants or give us a call at (888) 965-3829.

Ronie Deutch, JK Harris, Now Tax Masters have all filed for Bankruptcy

A very sad an unfortunate situation if it has not already will personally affect many individuals and companies that have hired Ronie Deutch, JK Harris and Tax Masters. These companies and individuals have paid a lot of money for services and help they will not receive. That is because these three major companies in the tax resolution industry have just filed bankruptcy.

The most recent addition to this list, Tax Masters is the biggest company in the tax resolution industry.
Houston's KHOU is reporting, the bankruptcy filing "coms as the Texas Attorney General's Office is set to begin a trial against the tax resolution firm for misleading consumers under Texas' Deceptive Trade Practices Act." More specifically, Tax Masters it would not start working on a case until it got all its money even if that meant missing important IRS deadlines. Tax Masters took advantage of its clients and that is clearly not acceptable.

I founded Wolf Tax Consultants to change the way the industry operates. We DO NOT make you pay in full before your case gets started, in fact, we will work with you when it comes to payments. WE DO listen to your needs and do everything to make you feel comfortable. WE ARE always available to answer any questions you have.

Do You Agree With Rick Santorum Tax Reform Plan?

Rick Santorum is currently campaigning in Michigan and is harping on a tax reform plan that would definitely change the tax code.  His economic plan calls for slashing the corporate tax rate from 35 percent to 17 percent and installing a flat tax. This is definitely a lot different and more controversial than the other candidates. To learn more how the Presidential candidates tax plans would affect the deficit, click this link http://hereandnow.wbur.org/

Where is my IRS Tax Refund? IRS Refund Tool Down Again

It might take a little longer to get your IRS refund this year. The IRS tax refund tool that is accessible on there website is down again for the second straight day. The IRS issued this release from there website:

"We are aware that some taxpayers who have filed electronically and received an acknowledgement from the IRS are concerned when they visit "Where's My Refund" and are told that we have no information regarding their return. This is a temporary situation, and we expect to resolve the matter in a few days. At that time, taxpayers will be able to get an expected refund date when they visit "Where's My Refund."

This also means if you call to find out the status of your refund you are going to have to wait longer than normal. Therefore, it is in your best interest to wait atleast three weeks to call and find out the status of your refund, but in many cases do not be concerned becuase it is taking longer than that.

If you have any questions in regards to tax returns or need IRS or state tax help, give us a call at 888-965-3829 or visit us at http://www.wtaxhelp.com

What Happens if you Don't File your Return, the Dreaded "SFR"

Nobody likes recieving letters from the IRS, but if you don't file your return you can expect to get one of these letters.  When you earn income, for the most part it is then reported to the IRS. If you do not file your return for a year that you have income, the IRS will prepare a "substitute for return" (SFR).

A SFR is not a good thing as it includes income, determines the tax due, adds interest and a penalty for failure to file and does not include any expenses or deductions, such as mortgage interest, charitable expenses or doctor bills. Once it prepares a SFR, the taxpayer gets a bill and is expected to pay it.

 If you are self-employed and the IRS, you will most often find a major difference between taxable income and how much money you actually received. This is because the IRS does not take into consideration any of your expenses, such as mileage, office supplies, salaries and other expenses.

What to do if the IRS prepared a Substitute for Return for you?

You should file an original return that includes expenses and deductions. In most cases the balance that the IRS shows will be reduced if not eliminated and in some instances you might even get a refund. However, if the return is filed more than three years after its due date the refund will not be paid.

Once you receive a letter from the IRS do not throw it away or ignore it. Make sure to contact them or have someone else contact them on your behalf. Ignoring them will only cause further problems. The sooner you deal with your IRS problem, the quicker it will go away.

 Evan Wolf
Wolf Tax Consultants
1-888-965-3829

How To Select the Right Tax Resolution Company

The tax resolution industry has been under a lot of scrutiny as of late. Companies such as JK Harris and Ronni Deutch have given the industry a so called "black eye." Fortunately, not every tax resolution company is like these two and can provide you a very valuable service. The goal of this article is to help you decide what tax Resolution Company is best for you.

When looking for tax resolution representation, be suspicious of these types of companies. Companies that promise that you can settle for pennies on the dollar or what is also known as offer in compromise. In most cases, the taxpayer should have never filed the offer in the first place. The IRS in 2010 accepted fewer than 14,000 offers in compromise total. Evan Wolf founder of Wolf Tax Consultants explained, "We love nothing more than to get a successful offer in compromise accepted, however knowing when to file one is based upon thoroughly evaluating their financial situation." Also, be aware of companies that are charging you a lot of money for services that are not very complicated. Reputable companies should have a standard price for specific work and not base it upon how much they think you can pay. These types of companies also like to charge a very high retainer. Be careful paying for work that is not completed yet. These companies like to take your money and not do the work. Make sure to follow-up and keep in touch with these companies to make sure they are actually doing work on your file. Last situation to be leery of is the letters that you receive in the mail that you think are from the IRS, but in fact they are from a company trying to lure you in. Make sure who you call is a real company and they are not sending you to another company that you do not know or trust.

We know that you work hard for your money; therefore there is no reason to throw it away. However, by hiring the right company you can save a lot of money. The bottom line, no one can tell you what IRS settlement program you qualify for until they thoroughly review your financial situation. Make sure the company you call is not selling you false hope. No matter what situation you are currently in, if you have a company representing you or not, Wolf Tax will treat you fairly, give you an honest evaluation of your situation, propose a strategy and successfully execute that strategy.

If you need help or are ready to get started, give us a call toll free at 888-965-3829 or visit http://www.wtaxhelp.com.

"Survivor" Winner Richard Hatch wants to Reduce IRS Payment

Do you remember "Survivor" winner Richard Hatch. He was the first winner of the show back in the year 2000. He got into IRS trouble when he did not pay taxes on the $1 million he won. Hatch was ordered to pay 25 percent of his gross income to the IRS as part of his sentence for failing to comply with the terms of his release from prison.  Hatch is now asking the judge to reduce his pay because of his income.

You may ask, how does this relate to me?  Well, if you owe money to the IRS and you can't pay it in full you have options just like Richard Hatch. Richard Hatch is essentially in an installment agreement to pay back that he owes. He wants to enter into a lower payment which is called a partial payment installment agreement because of what he says is his income.

Just like Richard Hatch you have the ability to enter into an installment agreement or even a partial pay installment agreement with the IRS. To learn more about it give us a call at 888-965-3829 or visit us at http://www.wtaxhelp.com.

CP 90/CP 297 Notice of Intent to Levy

Notice: This is sent to inform you that the IRS will take collection action if you do not set-up. You may ask what kind of collection action can they take? The IRS can withhold salary, Social Security benefits, retirement benefits, bank accounts, real estate, business assets, etc.

Make sure to see if it is a CP 297A as this is more serious than a CP 90/297 because it says a levy has been issued and this can be on Federal reimbursements, retirement funds, employee travel costs, contractory payments, etc.

What do I do when I receive a CP 90/297/297A?

If you receive one of these notices make sure you respond immediately. You can either pay the money that is due, but for a lot of you this will be difficult. The other option is to get into one of many resolution options the IRS allows. These options include installment agreement, hardship status, offer in compromise, etc.

If I get one of these Notices who Can I talk To?

We advise you talk to the IRS at the number that is listed. However, the IRS can be intimidating and enter you into a deal you can't realistically afford. We at Wolf Tax can help get you into the best resolution possible. Give us a call at 888-965-3829 for a free confidential consultation.

What If I Don't Think I Owe that Much Money or the IRS Made a Mistake?

This is one of the few notices that allow you to file a request for an appeals hearing, but you MUST do this within 30 days of receiving the notice.

CP22A and CP22E

CP22A and CP22E

As previously stated, once you receive a notice from the IRS you should pay in full or respond immediately and the same holds true for the CP22A and CP22E.

What to do When I recieve a CP22A or CP22E Notice?

The notice will tell you how much money the IRS says you owe. If you pay the listed amount in full you never have to worry about this amount. Make sure to send your payment in the slip provided, if not, send in your payment to the address listed with your social security number, tax form you file and the year you owe the moeny for.

What do I do if I can't Pay Back the Taxes in Full?

You should contact the IRS and set-up some type of tax agreement with the IRS. This can be an installment agreement or another type of tax resolution.

What Should I do if I Disagree with the CP22A and CP22E Notices?

Contact the IRS if you do not agree with the assessment. It is possible they made an error and your assessment should be adjusted. By calling you can find out what is going on with your case and at the minimum discuss your options if the assessment is correct.

If you have any questions you can always call a tax resolution expert at 888-965-3829 or go to the site http://www.wtaxhelp.com.

CP11

CP 11

This is sent to a taxpayer informing them that a change was made to there tax return and that change resulted in a balance that is now due and owing to the IRS.

What to do if you Recieve a CP-11 Notice?

You should always pay the money that is due to the IRS, however for a lot of people this is not an option.

Should I Respond to the Notice?

Yes, you should always communicate with the IRS. Without communicating with them they might start collection activity. This means they will garnish your wages and take money from your bank account.

What do I do if I can't Pay the Balance in Full?

As previously stated, it is important to stay in communication with the IRS. The IRS has several options when it comes to paying back taxes you owe. These include but are not limited to an Offer in Compromise, Installment Agreement, Currently Non Collectible Status. If you have any questions how these work talk to an experienced professional at Wolf Tax. You can either go to the website http://www.wtaxhelp.com or email evan@irswolf.com

IRS Letter and Notices: What They Mean

If you received and IRS letter or notice don't panic because you are not alone.  For the most part, these letters and notices with a harsh tone are meant to scare you into a resolution that you are not comfortable with. However, in some instances, immediate attention is required and action should be taken to protect you from IRS collection efforts. Even if action needs to be taken, a few simple protects your rights. Below are the most common letters the IRS sends out. Each letter or notice contains a description of the letter and what action needs to be taken to resolve the problem the letter adresses.

IRS Letters and Notices by Form Number

CP 11: Changes to Tax Return

Notice: This is sent to a taxpayer informing them that a change was made to there tax return and that change resulted in a balance that is now due and owing to the IRS.

CP 22A: Data Processing Adjustment Notices

Letter: This is sent to a taxpayer informing them that a data processing adjustment has resulted in a balance that is now due and owing to the IRS.

CP 22E: Examination Adjustment Notice, Balance Due

Notice: This is sent to a taxpayer when an exam tax adjustment was made on there account which results in them having a balance of $5 or more.

CP 23: Estimated Tax Discrepency, Balance Due

Letter: This is sent to the taxpayer informing them that there is a difference between the estimated payment you were supposed to make and the actual amount of money posted to your account.

CP 88: Delinquent Return Refund Hold

Notice: This is to inform you that the IRS is taking your refund. The reason for this is because you did not file a tax return in a prior year. However, if you file all necessary returns you can get your refund.

CP 90/CP 297/CP 297A: Notice of Levy and your Right to a Hearing

Letter: This is sent to inform you that the IRS is about to levy money that is due to you. This can be anything from and include: salary, Social Security benefits, pension, bank accounts, real estate, automobile, 401k, commissions and wages.

CP 91/CP 298: Final Notice Before Levy on Social Security Benefits

Notice: This is sent to inform you that the IRS is in the process of levying your Social Security benefits. If you do not respond immediately, the IRS will take up to 15% of the social security benefits that you receive.

CP 161: Request for Payment or Notice of Unpaid Balance

Notice: This is sent to inform you that you underpaid on your taxes. The notice will include how much income you reported paying, as well as any credits that are posted on your account.

CP 14: Balance Due

Notice: This is sent to inform you that you have a balance due for one or more years.

CP 501: Reminder Notice, Balance Due

Letter: This is sent to inform you that you have a balance due and usually follows the CP-14 notice.
The tone is harsh, but the IRS will not take action at this time.

CP 503: Second Request Notice, Balance Due

Notice: This is sent to inform you that you still have a balance due on your account. As the name on the notice states, is is the second request telling you about your unpaid balance.

CP 504: Final Notice, Balance Due

Notice: This very important document informs you for one final time that you have a balance due on your account that needs to be resolved. Most times, this is the fourth notice that is sent and inform you that a levy will be issued against you. Also, a Federal Tax Lien may be filed.

LT11 or L1058: Final Notice of Intent to Levy

Letter: This formal document will be sent if you fail to answer the CP 504 by failing to take adequate steps to resolving your case. This letter informs you that you have 30 days to resolve the situation before the IRS levies your bank account(s), wages and any other assets they can locate.

CP 523: Notice of Default on Installment Agreement

Notice: If you are currently in an Installment agreement and you fail to IRS procedures, the IRS will send you this notice informing you that they are going to terminate your installment agreement. Reasons that the IRS will terminate the agreement include; you failed to make a payment, you did not file your tax return and or you have balances due that are not in your current agreement with the IRS.

To learn more go to http://www.wtaxhelp.com or send an e-mail to evan@irswolf.com