Frequently Asked Questions

Answer: If your five-year net worth is less than the total amount of your current liability, you would be a strong candidate. In general terms, if the amount of equity in your assets plus 60 times your disposable income is less than the amount you owe, you may qualify for an Offer. If you do not believe that you owe the tax, you may also be an Offer candidate. Or, if you have experienced or are experiencing a hardship, filing an Offer to reduce the debt may be in your best interest. Additionally, a taxpayer must have filed all required tax returns and made all required deposits before submitting an Offer. Please call now for a free consultation with one of our experienced representatives to see if you qualify.

2. Is the IRS or state going to levy my bank accounts?

Answer: If you delay responding to any written or verbal communication by the taxing authorities, you significantly increase the chances of bank levies being issued. This is a very intrusive but effective form of tax collection. The IRS and state revenue departments must follow proper procedures prior to issuing any levies. Most notices you will receive are time sensitive and require your immediate attention. Additionally, you are afforded appeals rights with some of the notices that are issued. Phoenix can advise you of your appeals rights. The IRS issued 1,680,844 levies in 2003, which was up from the 1,283,742 levies issued in 2002. Having proper representation will substantially reduce the likelihood of levies being issued. Additionally, in many cases we are able to have levies released.

3. Can I get my penalties and interest waived from my tax account?

Answer: Penalties can be removed provided you have a valid reason for falling behind. Interest can be adjusted in the event of an error in the application of your debt or if you can demonstrate that an IRS or state representative provided you with erroneous advice. Adjustments to your tax account could save you thousands of dollars. Our experienced staff has drafted hundreds of abatement arguments, and we can draft your penalty abatement request for you.

4. My Revenue Officer wants to meet face - to - face, what do I do?

Answer: Revenue Officers are contacting you to obtain full payment of your tax debt. When a Revenue Officer wants to meet face - to - face, they are going to demand full payment. If full payment cannot be provided, they will try and force you to enter into a payment arrangement on their terms. Once one of Phoenix's representative is on the books as your Power of Attorney, the IRS will not be allowed to contact you directly. You have rights as a taxpayer. Do not fall victim to an overly aggressive Revenue Officer. Phoenix's licensed representatives know what your rights are and how to protect them.

5. How do I find out how much I owe?

Answer: The IRS will provide a written detail of your account item by item via an IRS transcript. Transcripts will detail, when a return was filed, the amount of tax due, any payments that have been made and what penalties and interest have been assessed against you. Additionally, the transcripts will indicate whether there are any additional tax assessments on your account. When there is a problem with one of your tax accounts, the IRS will often assess you with additional tax to pay until you correct the problem. Our representatives will order and review transcripts for any period that you owe money for. In many instances, we are able to reduce our client's tax debt by reviewing and correcting issues that are displayed on the transcripts.

6. Will the IRS seize my house?

Answer: In our team's combined experience representing taxpayers in front of the IRS, we have yet to have one of our client's homes seized. Seizure of a primary residence or any tangible asset is a last resort in the collection process. In 2003 the IRS conducted 399 seizures. In most cases the IRS will not seize your home. However, there are exceptions to every rule. The longer you have had a tax balance, the more susceptible you are to a seizure. Continued accrual of a taxes will also increase the likelihood of a seizure.

7. Will the IRS or state revenue departments file a lien against my assets?

Answer: Yes. In some cases you can full pay your debt prior to a lien being filed. IRS and state revenue departments will file liens to secure their interest. Liens negatively impact your credit rating. However, liens do not have to be a blockade from obtaining financing to pay the IRS back. Additionally, they do not have to be a blockade to selling an asset. Ask one of our experienced representatives about Lien Discharges or Subordinations.

8. What is the Trust fund Recovery Penalty?

Answer: The Trust Fund Recovery Penalty is a penalty the IRS will assess against individuals who the IRS deems is a willful and responsible for a corporations tax liability stemming from 941 Withholding Taxes. The IRS will personally assess the willful and responsible individuals "The Trust Fund". The Trust Funds is defined as the amount of money withheld from an employee's paycheck that is not remitted to the IRS. It does not include the penalties and interest assessed against the corporation. The IRS must conduct an investigation prior to holding anyone personally responsible for the Trust Fund. Representation is key to preventing the Trust Fund from being assessed against non-responsible parties. Additionally, there are ways to resolutions that can prevent the need for the IRS to assess someone personally for the corporations tax debt. Ask one of our representatives about the Trust Fund Recovery Penalty.