Why A Formal Tax Resolution Is So Important To Your Protection!

mmfinancial.orgThe IRS Collection machine is intimidating. It’s set up that way to encourage voluntary compliance with stiff penalties, high interest rates and intimidating collection tactics. Of course, voluntary compliance is the easiest way to avoid the IRS Collection cross hairs. But for some, extraordinary circumstances cause a lapse in tax compliance and a mounting back tax liability. If you’re tackling a back tax liability, especially a payroll taxes, you need to know how to protect yourself and your business. One rule to live by while dealing with the IRS Collection group or your State Taxing Authorities collection group is that nothing is real until it’s in writing.

Steve Precht, an M&M Enrolled Agent, consults with business owners from across the country everyday about their past due employment taxes. Recently Steve and I were discussing some of the confusion our prospective clients have about IRS Collection procedures. One big issue was the difference between a Voluntary Monthly Payment Arrangement and a Formal IRS Installment Agreement (IA). There is a big difference that many struggling taxpayers don’t seem to pick up on. Continue reading

M&M Financial Helps Southern California Client Secure PPIA with the Potential to Save Over $900,000

San Juan Capo, CA_5.30.2014M&M recently helped a Southern California Construction business resolve a $2,100,000 tax debt by securing a $10,000 per month Partial Payment Installment Agreement (PPIA). The PPIA will provide our client with the opportunity to save more than $900,000. Here’s how it happened.

A PPIA is a formal monthly payment plan that will not full pay the tax liability before the IRS’ time to collect the debt runs out (ten years). It is reviewed every two years by the IRS to see if your financial situation has changed. If it hasn’t, the Agreement will be reinstated for another two years. If your PPIA outlasts the IRS Collection Statute, you will end up paying less than your total back tax liability.

Our new client, a construction company that grew too quickly for its own good, came to us in bad shape. They weren’t eligible to request a resolution to their tax debt from the IRS due to noncompliance. They were continuing to accrue new payroll tax debts. And, they had no idea if and when the IRS was going to drop the collection hammer on their bank accounts and A/R. Continue reading