Tax FAQ

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Q
I was going to file my taxes, but I saw that I owed money to the IRS. Should I file anyway?
AAbsolutely! Even if you can’t pay your balance due immediately, you should always file your tax return. Qualifying for any type of loan requires you to be up to date with your tax return filings. Not filing your tax return prevents you from things like getting a car loan, a bank loan, a credit card, and even qualifying for buying a home.
Q
I have a tax debt that I can’t afford to pay. What options do I have?
AThere are many options you may qualify for, depending on your situation. Installment Agreements of varying types, an Offer in Compromise, Currently Not Collectible status, Innocent Spouse Exemption, Penalty and Interest Abatement, and more are some options that the IRS offers. 
Q
How do I know what option to choose for my situation?
ANavigating the different options and understanding the legal ramifications behind each one is a complex matter. If you are confused or frustrated with the process, hiring an experienced and licensed tax professional would be a good starting point. That’s why we offer an absolutely free and no obligation consultation to get you started on the right path to resolving your tax issue.
Q
What if I declare bankruptcy?
AAlthough bankruptcy can defer the collections process, bankruptcy does not always absolve you of your tax debt. With Chapter 7 bankruptcy, only certain types of tax debt are allowed to be discharged, and even then you must meet all of the eligibility requirements to do so. With a Chapter 13 bankruptcy, you will still owe the amount due. Tax liens cannot be discharged with a bankruptcy at all.
Q
What is a tax lien and how does it affect me?
AA tax lien is a legal claim the IRS places on your property and/or assets. In the case of a tax lien on your home, if you were to sell it, the IRS would be the first to get the proceeds from the sale to pay off your tax liability. When the tax lien is initially filed, it goes onto your public record. This effects your credit score, credit report, and effects your ability to get a loan or qualify for other financial needs. 
Q
I received a notice from the IRS warning me of a pending wage garnishment. What does that mean? 
AA wage garnishment is when the IRS takes your wages directly from your paycheck. The IRS doesn’t have restrictions on the amount that they can take from your paycheck, aside from your basic living expenses. Often, this can mean that they will take anywhere from 10%-85% of your earnings.  
Q
I’m on a fixed income with Social Security. Can the IRS garnish my Social Security Income?
AThey sure can! The IRS is legally allowed to garnish any income wages, including your Social Security income. However, the IRS does have a limit they are allowed to take up to 15%
Q
My bank account is empty! The bank told me the IRS levied my account. What happened? 
AThe IRS issued a bank levy, which means that the funds the IRS requested from your bank account gets released and sent directly to them. Unfortunately, this can happen multiple times until your tax debt is paid in full. However, there is a 21-day waiting period before the bank is legally allowed to release the funds to the IRS – this is intended to give you enough time to enter into an agreement with the IRS. 
Q
Does the IRS ever give up on collecting, or is this tax debt for life?
ADon’t despair! The tax debt does have a statute of limitations set by the government – 10 years. After 10 years starting from when the tax debt was assessed, the IRS will consider your tax debt as unable to be collected and clear the debt from your record. Unfortunately, during the 10 years your tax debt is valid, the IRS will become increasingly aggressive in an attempt to collect what you owe.  
Q
The IRS claims to have sent me notices about my tax issue, but I never received them. That means they can’t take action against me, right?
AUnfortunately, that is not the case. As long as the IRS has sent you a notice, they consider their warning action as complete. Often, they will also send you Certified mail to ensure that you have received the notice, especially for the severe collection actions. Even if you don’t open the letter, the IRS’s obligation to notify you has been completed.
Q
Why should I hire a tax resolution company? 
ATax resolution companies are experienced in handling all types of tax matters, from something as simple as filing a tax return to as complex as negotiating an offer with the IRS. Because the IRS is not easy to navigate, it’s always a good idea to hire a licensed tax professional to help you with your tax issue. In addition, there may be other complications to your tax concern that you may be unaware of, but a tax resolution company is well equipped to handle any matter that arises.  
Q
Is this a free service?
ANo, we are not a free service. We do charge a flat rate fee for our services. The flat fee we quote is all that we charge – no hidden costs, no bait and switch.  
Q
Do you help businesses as well? 
AYes, we do! We help with payroll tax issues, 940/941 filings, resolving business tax debt, and more.  
Q
What is a tax lien and how does it affect me?
AA tax lien is a legal claim the IRS places on your property and/or assets. In the case of a tax lien on your home, if you were to sell it, the IRS would be the first to get the proceeds from the sale to pay off your tax liability. When the tax lien is initially filed, it goes onto your public record. This effects your credit score, credit report, and effects your ability to get a loan or qualify for other financial needs. 
Q
Will your company represent me in tax court?
ANo. We specialize in resolving tax debt with the IRS, but we do not have litigators on staff to assist with tax court defense. 
Q
How long does your free consultation take? 
AWe understand that your time is valuable and that you want answers for your tax resolution. Our consultations take anywhere from 15-30 minutes of your time. If you don’t have the time available right away, you’re welcome to either send us an email at info@justice.tax or give us a call at 888-545-6007 to request an appointment for your phone consultation.  

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