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Michigan Tax Resolution Blog

Avoid Scams – Get Tax Resolution You Can Trust

At Michigan Pure Tax Resolution, we strive to not only help our clients properly resolve tax problems, but also to educate local taxpayers on the scams and disingenuous practices in the tax resolution industry.  The fact is, when you are an individual or business in Metro Detroit with detrimental tax problems, you may find yourself in a desperate situation. Your financial and personal welfare might be in serious jeopardy, and many “tax resolution firms” easily prey on these folks, by offering fancy promises and credentials they simply cannot backup. In fact, they are purposely ripping people off.

The biggest culprits are on the radio and television, who claim they can automatically reduce or eliminate your tax debt. They throw 1-800 numbers at you trying to get you to pick up the phone, where you really don’t know who you are talking to.  Their intent is to get your hopes up and collect fees from you up front. After that, they either hit you with inflated costs you aren’t ready for, don’t deliver on their promises, or worse, BOTH.

We remember the “Tax Lady” Roni Deutch. A well-known tax help gimmick in California that found herself facing a $34 million lawsuit because she collected millions upfront from desperate taxpayers, only to leave them hanging. The California Attorney General paid out $435,000 to the victims of this scam. And we can’t forget JK Harris, who went bankrupt after still owing $20 million in unsettled claims, while at the same time leaving their employees hanging without a pay check.  The truth is, these shady firms know how desperate taxpayers can get, and will prey on those who don’t do their homework.

Where Can You Find Reliable Tax Help In Michigan?

The flaky TV and radio ads are all over the place in Metro Detroit, and it’s hard to avoid them.  We aren’t saying that every tax resolution service you see on the TV or radio is looking to rip you off, but chances are your tax case will be flushed down the pipe, as these companies are nothing more than a marketing agency that sells leads to miscellaneous firms.  This leads to a lot of uncertainty and your confidentiality being compromised, adding to the unwanted stress you already have.  You can easily avoid this by contacting a professional, trustworthy, and local tax resolution firm that puts an emphasis on offering proven tax relief with an emphasis on customer service.

Michigan Pure Tax Resolution has helped hundreds of individuals and businesses in Michigan by providing honest and personalized tax relief to taxpayers struggling with crippling tax problems.

If you are a victim of IRS or State back taxes, tax penalties, IRS audits, wage garnishments or levies, business tax problems, or tax debt problems of any kind, our in-house team of IRS Tax Attorneys and Enrolled Agents are prepared to listen to your unique needs and offer realistic and effective solutions to your tax problems.

We offer free personal consultations (over the phone or at our office), up-front pricing (no hidden costs), 24 hour availability, and top-notch customer service from start to finish. If you are experiencing tax problems and need professional relief, contact us today to speak directly with our President, Tim Halcomb.

Michigan Pure Tax Resolution
1181 N. Milford Rd  Suite 207
Milford, MI  48381

(248) 329-1160
info@puretaxhelp.com
www.michiganpuretaxhelp.com

 

The Truth behind an “Offer in Compromise”

Offer in compromise

Many who are dealing with the burden of IRS back taxes are aware of the four most common IRS back tax relief methods:

  • IRS Full Installment Loan
  • IRS Partial Installment Loan
  • Offer in Compromise
  • And Currently not Collectible

While all of these are great methods to deal with back tax debt, an offer in compromise is the most sought after. To refresh your memory an offer in compromise allows the taxpayer to settle their debt for far less than they owe. Unfortunately, this relief method is one of the least awarded because it is only available to a small percentage of taxpayers.

The IRS carefully checks and considers the applicant’s unique facts and circumstance, regarding:

  • Ability to Pay
  • Income
  • Expenses
  • And Assets

Simply put, if the IRS believes you have the ability to repay the back taxes they will be less forgiving in granting an Offer in Compromise.

If you are currently seeking back tax relief the IRS has a pre-qualifier questionnaire (located here: http://irs.treasury.gov/oic_pre_qualifier/) to see if you qualify for an Offer in Compromise. If it seems that you could be a contender, you must submit:

  • Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
  • Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
  • $186 application fee (non-refundable)
  • And Initial payment (non-refundable) for each Form 656

Our qualified tax resolution professionals can assist in preparing this complex package for you and would be happy to assist your case in any other way possible. We are available 24/7 by phone or in-person to begin working on your case.

IRS Tax Penalties & Your Options

IRS penalty abatement

With tax season coming to an end, those who filed and paid on time are able to breathe a sigh of relief. Unfortunately for those who have failed to file or pay their taxes in a timely manner, greater potential stress is on the horizon. Significant tax penalties can and will be imposed until the tax debt is paid off. The IRS does not take these situations lightly and imposes a penalty of 5% of the tax debt due a month and can even extend to 100% (or $135, whichever is smaller). Over time the IRS will utilize their tools of tax liens, wage garnishments, and/or notices, summons and seizures which can damage your reputation and credit score and place your job and family in severe financial jeopardy.

Fortunately, there is a great option available to combat these threats and stressful situations. IRS Penalty Abatement refers to the reduction in penalties imposed by the IRS. We provide penalty abatement services not only for filing late or failing to file tax returns, but also for:

  • Accuracy-related penalties
  • Penalties for tax fraud
  • Penalties for under-payment of tax, and
  • Combined penalties

We are also able to assist in making payment agreements with the IRS to settle IRS back taxes, through:

  • A short-term, time to pay extension
  • Installment Plans, OR
  • Offers-in-compromise

If you have failed to file or pay your tax debt on time and believe you will be subject to strict IRS penalties, please do not hesitate to call the tax resolution professionals at Michigan Pure Tax Resolution at (248) 329-1160. We are available 24/7 and strive to give our clients, and taxpayers, the financial freedom they deserve!

Tips for filing taxes early

Maxmize your tax returns today

There are two types of people during tax season: those who hate it and those who do not mind it. Either way, procrastination is very high as most do not like to take the time to file or do not have the time to file. Buckling down and filing early can prevent damaging IRS repercussions, such as late fees. If you do not know where or how to start, here are a few helpful tips brought to you by the attorneys at Michigan Pure Tax Resolution.

 

  1. Set up your own deadline

The IRS deadline is April 15, but setting an earlier deadline will help you focus. It will feel like a huge relief to get the filing process accomplished before the main deadline.

 

  1. Get started ASAP

There is nothing more stressful than leaving yourself limited time to file, even if you are using a filing service. Remember, the sooner you start the sooner it will be over! Starting the process sooner prevents mistakes or long office wait times.

 

  1. Break it up!

Use your organization skills and plan to do a little bit at a time. Instead of tackling the whole thing at once, try to accomplish one task each day until it is complete. It will seem like less of a task and will give you more free time to do whatever you want!

 

If you fail to file on time and face late fees, do not hesitate to call the professional tax attorneys at Michigan Pure Tax Resolution. We are available 24/7 at (248) 329-1160 to speak or meet with you to handle all of your IRS troubles.

A Friendly Reminder for Businesses this Tax Season

IRS penalty abatement

Many owners of new or even established businesses tend to forget, or do not even realize, that they must file a Form 941 with the IRS. This form must be filed quarterly and with the April 30th deadline quickly approaching, it is important that you file. A Form 941 is directly related to payroll taxes. Employers are responsible for withholding federal income taxes, in addition to other taxes, from each employee’s paycheck and subsequently forwarding it to the IRS.

Generally, any person or business that pays employees must file this form each quarter in order to avoid payroll tax problems and harassment from the IRS. Failure to file a Form 941 generally results in a penalty of the tax amount due, capping out at 25 percent. If you make the payments late or pay less than you owe the IRS will being to charge you anywhere from 2-15 percent. To prepare a Form 941, you must state the number of employees you have, in addition to the total wages paid and taxes withheld.

As experienced tax attorneys and CPA’s, we have assisted many businesses who have failed to file this form and understand the problems that can occur. It is important to note that the four annual deadlines for filing are April 30, July 31, October 31 and January 31. If you have missed the January 31 deadline, it is imperative that you file immediately or seek assistance from the professionals at Michigan Pure Tax Resolution to attempt to prevent the IRS repercussions. We are available 24/7 at (248) 329-1160. Our attorneys welcome the opportunity to speak with you.

What to do if you can’t pay your tax debt

IRS penalty abatement

So you’ve just filed your tax return and found out that you owe money to the IRS. A disappointing and discouraging feeling for anybody, but more so if you cannot afford to pay. First things first, do not panic. You are not alone. The IRS has prepared ways to help in this situation and the experienced tax attorney’s at Michigan Pure Tax can assist!

 

Although you cannot fully pay your tax debt, it is important that you still file your return in order to avoid late-fee penalties. Next, you should figure out how much you can actually afford to pay—even if it is only a small fraction of the debt because you will reduce the late payment penalties and interest. Of course, there are ways to make extra money to pay off this debt. You can sell assets, borrow money through family, friends, or loans, or pay it off with a credit card (we do not recommend this if you will find it difficult to pay the credit card debt).

 

If any of these methods do not seem feasible or still do not generate enough money, fortunately, the IRS has options for you and the tax resolution specialists at Michigan Pure Tax can help.

 

  1. Get a Short-Term Extension: This is a great option if you believe you can pay your taxes in 120 days or less. You must apply for the extension plan through the IRS website. Our tax attorneys have great knowledge in this area and can help if needed.

 

  1. Offer in Compromise: An offer in compromise is highly sought after as it allows you to settle your full debt for significantly less than you owe. Though despite what you may have heard, an OIC is rarely granted as the IRS simply will not accept if they believe you have the income and assets to repay your debt. Fortunately, the Fresh Start initiative has recently broadened the qualifying guidelines so some taxpayers who weren’t able to obtain an offer in compromise may now qualify. Our tax attorneys will be able to review your tax case and successfully determine if an OIC is appropriate for you.

 

  1. Monthly Payment Plan: Installment plans allow you to pay off your debt in small increments over time.

 

To find out what option is best for you, feel free to call the Michigan Pure Tax team any time at (248) 329-1160. We are available 24/7 to assist.

A “Thank You” from Michigan Pure Tax

With 2015 now in full-swing, we just want to take the time to say how appreciative we are of the continued business and support of our Metro-Detroit clients. We are humbled and overjoyed knowing that we have been able to help our clients with all of their tax resolution needs. 2014 was a year of expansion for Pure Tax Resolution and we hope to assist many more in 2015. This year our goal is to better serve our clients and ensure that each and every person is satisfied upon the finalization of their tax matter.

We would like to take a moment to restate our business model and philosophy. Pure Tax Resolution was founded in an effort to provide people with an honest, ethical, and local option for their tax needs. We offer tax resolution services for both individuals and businesses throughout the greater Metro Detroit area to eliminate the stress and financial insecurity that comes from owing IRS back taxes. Our experienced tax attorneys and CPA accountants represent clients from all over the United States to resolve common tax dilemmas including: back taxes, tax penalties and interest, innocent spouse relief, tax levies and wage garnishments, business tax resolution, and more. In addition, we provide fixed, fair quotes, quick response time, and open communication

If you live near Detroit, our experienced IRS tax attorneys would welcome the opportunity to speak with you or to meet with you in person. We are available 24/7 to assist. The consultation is and always will be FREE, so we invite you to contact our Detroit-area tax resolution attorneys whenever the need arises at (248) 329-1160.

End of Year Tax Return Maximization Tips

Maxmize your tax returns today

As the end of 2014 draws to a close, there are still many things you can do to maximize your April tax return. With the holidays approaching it seems silly to worry about taxes, but with a little time you can maximize your tax refund with these few tips!

 

  1. Donate!

Winter is the season of giving, so why not give a little and receive something extra. You can donate any item you no longer want to thrift stores or simply donate money to worthy cause. This can significantly raise your tax refund amount—just be sure to get a receipt!

 

  1. Contribute to your Retirement

This will not only reduce your tax return burden but also help your plan for the future! You must contact your company’s HR department to get started.

 

  1. Investigate “odd” deductions

There are thousands of deductions that can be used to boost your tax return. Most of these deductions must be “completed” by the end of the year. To find these deductions you can simply search the key terms or contact a tax specialist.

 

By following these tips you can potentially reduce your tax burden, boost your tax refund, and start the New Year with a stronger financial standing. If you have any questions, do not hesitate to contact our tax resolution specialists. We would be more than happy to handle your tax return or any tax problems you may be dealing with.

How to Budget with a Wage Garnishment

Stop wage garnishment of Michigan

If you have ever had to deal with a wage garnishment then you understand how difficult it is to change your financial habits to include payments to the IRS. With a significant portion of your pay going to the IRS, it is important that you budget all of your expenditures accordingly to avoid further financial distress with or without the IRS. We would like to assist and have compiled a short tip list to help make budgeting with a wage garnishment easier. If you have not had to deal with a wage garnishment, but are facing the threat of one these tips may come in handy in the future.

  1. Reduce Unnecessary Expenses

If you begin to notice that your income begins to match your expenses, you should start thinking about reducing some of your expenses to make room for IRS payments. Truth is, you can probably live without cable television or that trip to Starbucks each morning. In the long run, even the smallest expenditures will add up.

 

  1. Speak to a Financial Specialist or Make use of Free Financial Tools

There are many online and mobile money management sites, as well as specialists, who can help you get started. If fact, even our team assists customers in this matter so they do not see a repeat of their infuriating tax problems. All of these are great ways to stay on track!

 

  1. Use Mostly Cash or Debit and Limit Credit Card Use

Take a pre-determined amount out in cash to avoid over-spending. Credit cards allow people to mindlessly buy things they really do not need. Try to stick to a budget with cash or debit and only use credit when it is absolutely necessary.

 

  1. Coupons are your Friends

Most people do not care to use coupons because most only take cents off of an item. But, these coupons add up over time and can save you hundreds of dollars a year! Invest in couponing and it will soon pay off.

 

  1. Pay Down a Portion of your IRS debt before you Splurge

The trick here is to focus on needs versus wants. If you absolutely need a new refrigerator because yours is broken, it makes sense to splurge on a new one (allowing that you have the ability to do so).

 

When you retain us, we will immediately contact the IRS on your behalf, and usually, within 24 hours, we can stop wage garnishment or intent to levy. To stop a wage garnishment, we need to be able to persuade the IRS that you have a viable plan for resolving your IRS back tax debt. Sometimes, this includes a reduction in the amount due because of IRS errors, penalty abatement, innocent spouse release, hardship exemptions, and other tax resolution strategies we can employ on your behalf. Call Michigan Pure Tax for a FREE consultation: (248) 329-1160

IRS “Fun” Facts

IRS fun facts

As a part of the United States Treasury system, the IRS was created in the late 1800’s for the collection and enforcement of taxes. Many United States citizens have negative feelings about the IRS and the word “fun” most likely never comes to mind when dealing with the organization; especially if money is owed. We have compiled a short fact sheet with information about the IRS that we found pretty interesting!

  1. The IRS pays people a 10% commission to “tell” on dishonest taxpayers.
  2. Taxpayers actually have around 450 income tax forms and schedules to choose from when they do their taxes.
  3. The IRS receives over 125 million tax returns annually!
  4. The IRS decides to audit approximately 70% of all returns.
  5. Your chances of an audit increase if you do your own taxes because the IRS believe the average United States citizen does not have comparable knowledge to a CPA or tax attorney.
  6. The IRS is a large organization that has around 90,000 employees—about 2 times larger than the CIA and 5 times larger than the FBI!
  7. At one point in time, the IRS used Donald Duck as a mascot to get more citizens to pay their taxes.

If you owe money to the IRS you understand how time-consuming and stressful dealing with the IRS can be. Fortunately, our team of tax resolution experts shoulder the burden of negotiating with the IRS for you and settling your IRS back taxes, allowing you time to focus on other important matters. We are available 24/7 to assist you in any tax matter you may be facing. Allow us to be your strongest advocate!