Tax Resolution

Unfiled Tax Returns

If you have unfiled tax returns, CleanSlate Tax Resolution will work with you to get you caught up. We can prepare returns from information you’ve provided or information that we can request from the IRS that has been reported from elsewhere. A first step in resolution is often catching up on unfiled returns and maintaining ongoing compliance. The IRS often assesses unpaid taxes at the highest rates legally allowed and refuses to allow common tax deductions or credits. CleanSlate Tax Resolution will work with you to make sure that every deduction//credit is allowed and you are being taxed fairly.

Payment Plan

The vast majority of our client are unable to settle the entire tax debt at one time, so CleanSlate Tax Resolution will work directly with the IRS to negotiate the most favorable payment plan. If the IRS has burdened you with an unreasonable payment plan, or is threatening a levy on your wages, bank accounts and other assets, we can negotiate a payment strategy that will accommodate your current financial situation. If you qualify, we can also have your account deemed “currently not collectible” (“CNC”), requiring the IRS to withhold all collection activity until you are financially able to accept a payment plan or have submitted an Offer in Compromise.

Offer in Compromise

An Offer In Compromise (“OIC”) is an agreement between a taxpayer and the government to settle a tax liability by paying less than the full amount owed, often implemented when the entire tax liability cannot be collected. The government’s goal with an OIC is to obtain what is reasonably collectible at the earliest possible time and incur the least amount of cost. There are three ways in which an OIC may be accepted:

• Doubt as to Collectability – If the IRS/State believes that the amount owed can never be paid back they may be willing to take a portion of what is owed.
• Doubt as to Liability – If there is doubt that the actual debt exists, the government may accept an OIC.
• Effective Tax Administration – Even if the IRS or State of Michigan feels the tax owed is valid and that you have sufficient assets and income to pay the entire debt, the taxpayer can show that due to exceptional circumstances, it would be unfair and inequitable to demand full payment of the tax debt: for example, such a collection could put you and your family on the street.

If an OIC is accepted, payments can be made in one of three ways:

• Cash within 90 days of approval
• Short term deferred payment plan
• Long term payment plan

The professionals at CleanSlate Tax Resolution will present the most favorable OIC, giving you the best opportunity to settle the liability for the lowest amount possible.

Abatement of Penalties and Fees

For those that may have the ability to pay their tax debt in full, IRS tax penalties and interest that make up the bulk of the delinquent tax bill are often the main causes of an unmanageable tax problem. However, several IRS provisions help taxpayers get tax debt relief. The most common reasons for penalty abatement include:

• Reasonable Cause
• Correction of Service Errors
• Administrative Wavers
• Statutory Exceptions

Under reasonable cause, the IRS will first thoroughly assess the initial situation that resulted in penalties. Relief will be granted on the basis of reasonable cause if the taxpayer exercised ordinary business care and prudence in determining their tax obligations but was unable to comply with those obligations. Sometimes unavailability of funds can be deemed a reasonable cause. Other factors that can determine penalty abatement are:

• Unable to Obtain Records
• Serious Illness
• Loss of Household Provider
• Incorrect Advice from Tax Advisor
• Incorrect Advice from Service
• Natural Disasters
• Service Error

If you qualify we can assist you in getting some or all of your penalties and interest removed, or even in obtaining refunds directly from the IRS.

Bank Levy

When the IRS or State of Michigan has failed repeatedly to collect taxes, they begin to seize assets. This process is called a “levy.” The taxing authorities can legally seize bank accounts, demand payment from accounts receivable, take control of property for auction, and assume title on vehicles. Virtually anything of value can be seized to satisfy the outstanding debt.
At CleanSlate Tax Resolution, we understand how hard you have worked for your money, your possessions and the security of your family, and we will react immediately to remove or block seizure of your assets. In many cases, CleanSlate Tax Resolution can get a lien or levy released in 48 hours.

Wage Garnishment

When the IRS or State of Michigan has failed repeatedly to collect taxes and they attach wages it is termed as wage garnishment. Garnishment rules vary, but the IRS will take a portion of your paycheck each pay period and apply the amount garnished to your outstanding tax debt.
Having your wages garnished is a crippling experience. CleanSlate Tax Resolution’s team will immediately contact the IRS to attempt to release your wages from garnishment, and then structure a solution to resolve the underlying tax liability—whether that is an OIC, Statute Expiration, Currently Not Collectable or an Installment Agreement.