401(K) OR IRS TAX DEDUCT? SINCE 1982, LET FORMER IRS AGENTS FIX YOUR PROBLEM

If you owe IRS taxes on distributions from your 401(k) or IRA, we can help.

In these tough economic times, millions of people have liquidated their pension plans, taken withdrawals from their 401(k)s, or IRAs just to survive. Consequently, many will owe the IRS back taxes on their withdrawals.

The combination of economic downturns, job losses, and business closures has left an unprecedented number of people in this predicament. Within six weeks of filing a tax return that shows a balance due, the IRS will begin sending tax notices demanding full payment. Each individual must take action to address their situation.

WHAT THE IRS WILL DO:

  1. Notices: The IRS will send an initial notice (a tax bill), followed by a second notice, and finally a Final Notice of Intent to Levy. This process takes about 90 days.
  2. Enforcement: Thirty days after the Final Notice of Intent to Levy, the IRS will start taking enforcement action.
  3. Levy and Garnishment: The IRS can issue a Federal Tax Levy to third parties, like your bank, or garnish your wages through your employer.
  4. Tax Lien: The IRS will file a Federal Tax Lien, which will appear on your credit report.
  5. Continued Enforcement: The IRS will continue enforced collection actions until you contact them, settle, and close your case.

ACTIONS TO TAKE AFTER YOU HEAR FROM THE IRS:

  • Establish a Plan of Exit: Have a strategy in place for handling your tax debt.
  • Speak with the IRS: Complete the Collection Information Statement and attach all necessary paperwork before contacting the IRS.
  • Maintain Current Status: Verify that all of your taxes have been filed and are current.
  • Handle Your Case: Be ready to resolve your case through an Installment Agreement, Hardship Status, or Offer in Compromise.

HOW THE IRS CAN ASSIST YOU:

Your case needs to be closed in their Collection Computer System. The IRS will close your case in one of three ways after receiving a completed and documented Collection Information Statement (Form 433-A or 433-F) from the taxpayer:

  1. Offer in Compromise: The IRS may accept an Offer in Compromise to settle your overdue taxes. This program is designed for individuals who need to settle their tax debt permanently. The Offer in Compromise process is intricate and best managed by tax experts. Last year, 90% of the approximately 11,000 accepted Offers in Compromise were resolved by professionals. There are four types of offers, and knowing which one is best for you requires expertise.
  2. Installment Agreement: The IRS can accept a payment plan or installment agreement for overdue taxes. They use a National Standards Test to determine the most suitable payment plan based on your financial situation. Expert knowledge and techniques can help arrange the most affordable payment schedule.
  3. Hardship Status: The IRS can place your case in a Hardship Status, meaning they determine you currently cannot pay the tax in full and prefer to have your case worked at a later date. This is based on a completed and documented Information Collection Statement and the results of the National Standards Test. Penalties and interest will continue to accrue.

WHY WORK WITH FORMER IRS AGENT MICHAEL D. SULLIVAN:

  • Expert Knowledge: Michael D. Sullivan knows all the nuances and loopholes to get you the best deal.
  • Professional Experience: Our team includes professionals who have worked at the IRS and know the programs inside and out.
  • Quick and Economical: We expedite your settlement process and keep costs low.
  • Honesty and Reliability: Michael D. Sullivan is among the most honest and reliable businesses in the industry today.

How to Release Your Federal Tax Lien

If the IRS has filed a Federal Tax Lien against you for unpaid taxes, you likely received a copy of the Notice of Federal Tax Lien. The original recording of this lien was made public record when it was filed at the nearest courthouse to your residence.

Ways to release or remove a federal tax lien include:

  • Full Payment of Overdue Taxes
  • Successful Offer in Compromise Complete the terms and make all required payments.
  • Expiration of the Ten-Year Statute
  • Administrative Claim If the lien was filed in error, make a claim with the IRS to have it lifted.