M&M Helps Larchmont NY Client Remove 68% of Penalties Associated with Payroll Tax Debt

IRS Penalty Abatement Larchmont, NYA New York client hired M&M in January 2014 to request the removal of penalties associated with a payroll tax debt. Due to financial difficulties suffered by the business, M&M was able to convince the IRS to remove $8,411.12 of a total $12,300.67 in penalties. But, it wasn’t easy.

After our initial request for penalty abatement was denied, M&M went to IRS Appeals to plead our client’s case. Finally after negotiating with IRS Appeals, in October 2014 the Service sent us the abatement acceptance letter we were looking for.

IRS Penalty Removal

$8,411 in IRS penalties removed – $1,341 M&M’s fee = $7,070 Savings for our Client.

Call 866-487-5624 to speak to an M&M Tax Expert about resolving your business payroll tax debt.

IRS’ “Currently Not Collectible” Status and Your Tax Debt

Currently Not Collectible (CNC) status is a little known, temporary resolution to IRS back tax debts that many of M&M Financial’s clients benefit from. Although CNC can be difficult to attain, it is a viable option for many struggling, delinquent taxpayers. If you are lucky enough to be granted this status by the IRS, you will not have to make payments toward your back taxes as long as you remain current and compliant with your ongoing tax responsibilities. The first step in reaching CNC status is being aware that it exists. Many tax professionals who “specialize” in tax resolution have never heard of it. Kind of like a chef who’s unfamiliar with tomatoes, I suppose.

In any event, an individual taxpayer may be placed into CNC status for several reasons, including hardship. The Internal Revenue Manual (IRM) 5.16.1.1 states that an individual account may be reported CNC if “collection of the liability would create a hardship for taxpayers by leaving them unable to meet necessary living expenses.” Recently a gentleman from New York needed back tax help and wisely chose M&M to resolve his liabilities. We went to work immediately gathering necessary information from our client and the IRS. M&M requested CNC status, citing hardship, and the IRS approved it this month. The IRS letter pictured shows our client owes 1040 income tax for six years, with a total IRS tax debt of approximately $120,000. He won’t have to make a payment toward his back tax debt for two years. Now that’s tax relief.

Gaining compliance and remaining current with tax responsibilities is imperative for both business and individual taxpayers seeking a resolution to their IRS tax debts, including CNC. Compliance also includes filing any and all missing tax returns. The IRS always wants to make sure no new liabilities will accrue before allowing a delinquent taxpayer into a resolution to satisfy back taxes.

It is much more difficult to secure CNC status for a delinquent business taxpayer. However, IRM 5.16.1.1 states that a corporate account may be reported CNC if the company “remains in business and is current but is unable to pay back taxes.” The M&M client resolution shown here was secured for a business client from Hilo, HI that has a 941 payroll tax liability totaling approximately $75,000. Although difficult to achieve, M&M’s has been very successful in reaching this resolution for its business clients that qualify.
There are other important points to remember about CNC status, such as the IRS’ standard procedure to file a tax lien on all accounts being reported CNC. Another major point to remember is that this IRS resolution is temporary, often lasting up to twenty-four months.

If you have more questions about Currently Not Collectible status and whether or not you may qualify, complete our contact form at http://mmfinancial.org/contact.html, or call us at 866-487-5624. We’ll outline your options and let you know how M&M’s Tax Resolution System can help you.

Owe Back Taxes? The State of New York May Suspend Your Driver’s License!

If you owe the State of New York more than $10,000 in back taxes, you may be in danger of losing your New York state driver’s license. A new initiative announced Monday by Governor Cuomo, will allow the state to suspend driver’s licenses of many delinquent taxpayers.

The first wave of notices will be sent to about 16,000 delinquent taxpayers, advising them of the potential suspension. From there, they will be allowed 60 days to make payment arrangements with the New York State Department of Taxation and Finance. Taxpayers who do not act quickly will be turned over to the Department of Motor Vehicles, which will allow them an additional 15 days to respond to a second notice. If the DMV is also shrugged off, the delinquent taxpayer’s driver’s license will be suspended until a formal installment agreement is in place, or the total tax liability is paid in full.

Keep in mind that if you drive with a license suspended for delinquent taxes, you’ll be subject to arrest and additional penalties.

Contact M&M Financial at 866-487-5624 if you owe the New York Department of Taxation and Finance back taxes. You’ll be glad you did!

Tax Debt Relief Tips – New York DTF

M&M Financial helps struggling taxpayers nationwide resolve IRS and State tax debts, including New York Department of Taxation and Finance liabilities. Call (866) 487-5624 to discuss your tax debt with an expert.

If you owe the New York Department of Taxation and Finance, the following information may be of use to you.

• New York DTF does have a formal Offer in Compromise program to resolve back tax debt.
• NY-DTF may expect up to 50% of the tax liability as a down payment before a formal Installment Agreement (IA) will be considered, although we’ve been able to lower the down payment to 25% in some cases. IAs require a financial statement form be completed and submitted with backup documentation.
Penalty abatement may be considered for income tax debts and business withholding debts, but don’t hold your breath. NY-DTF is not likely to remove penalties in most cases. And if you have a business sales tax liability, your chances of penalty abatement are even worse.

M&M Financial assists both businesses and individuals resolve their tax debts with both the IRS and State taxing authorities, including the New York DTF. Take a look at some of M&M’s New York client case examples near you.

Tel: (866) 487-5624
Email: info@mmfinancial.org
Web: mmfinancial.org

All That Glitters Is Not A Gold Medal – CPAs And Tax Debt Resolution

Painful Memory Alert: Do you remember Mariah Carey’s simultaneously wooden yet manic facsimile of a performance in “Glitter?” If you haven’t been to the dentist recently, stubbed your toe in a while, or slammed your hand in a car door lately, I implore you to see it. (I hate to suffer alone.) In fact, that unintentional comedy was once referred to by a Huffington Post blogger as “the second worst disaster on American soil of 2001.” Yikes! Or perhaps you recall megalomaniac-Olympic gold medalist Carl Lewis’ trauma-inducing rendition of “The Star Spangled Banner” at a 1993 Chicago Bulls game. After his voice cracked at “red glare,” Lewis stopped and said “uh oh, I’ll make up for it now”, then went on a series of screeching vocal runs that sounded like a burlap sack full of sick, angry cats fighting for air. What lesson can we learn from Carey and Lewis? Stick to what you know, especially when you have a tax liability and your livelihood is on the line.

When talking to prospective clients, we often hear “my accountant is working on it.” Most of the time, the tax debtor is talking about his or her local CPA. Remember, if your accountant is not a CPA, Enrolled Agent or attorney, he or she does not have the authority to represent you before the IRS. And often we receive a phone call from these very same tax debtors when the pumpkin pie hits the fan and their CPA doesn’t know why the IRS or State would take all of the money out of their bank account on payday. Unfortunately, it’s a common story. Most CPAs are skilled at what they do. But take them outside of their practice area, and it’s like David Hasselhoff performing Shakespeare in the Park: “Othello” is no place for a 60-year-old drunk guy squeezed into red bathing trunks.

Regarding IRS and State tax collections, your local CPA is like your family doctor. You go to your family doctor (CPA) regularly for check-ups and answers to common health questions (QuickBooks and tax returns). If your doctor diagnoses you with a serious illness (tax liability), chances are you’re going to a specialist (M&M) with training and experience in treating and caring for your specific illness to help you get healthy again. M&M is that specialist. We’ve dedicated ourselves to helping delinquent taxpayers nationwide to resolve their business and personal tax liabilities. We have perfected a unique tax resolution system that allows us to work within the strict guidelines set by the IRS and State taxing authorities, ensuring the best possible results for our clients.

CPAs have a lot of career path options after getting their license: private sector, public sector, audit prevention, tax analysis, management consulting, financial analysis, cash management, education, fraud prevention, personal financial planning, forensic accounting, tax return preparation, on and on. Tax debt resolution is the dirty work that few CPAs, and attorneys for that matter, want to be bothered with. And more importantly, most CPAs and attorneys don’t have the knowledge or experience needed to successfully guide a delinquent taxpayer through the collection process to a formal resolution and successful request for penalty abatement. By the way, M&M has successfully saved its clients more than $1,500,000 in penalties this year alone. See for yourself.

Chances are your business and/or personal CPA prepares your tax returns to meet his or her business operating costs. Their real money is made when you get audited, or in selling you auxiliary products, such as insurance. Maybe they’ve had a few tax debt collection cases throughout their career. However, most don’t know the ins and outs of IRS and State tax collections. The only way to master tax liability resolution is through training and experience. M&M has been resolving IRS and State tax debts for clients since 2005. Your CPA may have been preparing tax returns for years, but doesn’t know the basics about tax resolution. We know this for a fact. Not long ago, M&M hired a CPA in his 40’s to resolve client cases. He didn’t last thirty days at M&M because he had no idea how to do the job. That was a sobering lesson that we learned the hard way.

But that’s not the only reason we know most CPAs aren’t equipped to resolve your tax debt. Recently a CPA from New York hired M&M after racking up a $264,000 payroll tax debt and waking up each morning afraid his money would be taken from his bank account. We secured a $2,500 per month Installment Agreement to satisfy the total liability and helped him avoid bank levies and other IRS seizures along the way. He was very grateful, because in his own words “your area of expertise is outside of my areas of practice.”

Don’t be a Hasselhoff, complete our contact form HERE, or call us at 866-487-5624 to find out how M&M’s Tax Resolution System can help you.

Yippee-I-A! IRS Installment Agreements Often Play Hard To Get

Did you know that the IRS will automatically give you an Installment Agreement (IA) to satisfy your unpaid tax debt with few or no questions asked?  According to Internal Revenue Code 6159(c), the IRS must accept proposals to pay in installments if taxpayers:

  1. Owe income tax only of $10,000 or less (excluding penalties and interest);
  2. Have not failed to file and pay income tax returns for each of the 5 previous taxable years;
  3. Cannot pay the back tax liability immediately;
  4. Agree to pay the back tax liability in installments within 3 years;
  5. Agree to file and pay all tax returns timely during the term of the agreement; and
  6. Have not entered into an installment agreement during any of the previous 5 taxable years.

The list above eliminates thousands of delinquent taxpayers from automatic IRS acceptance of an Installment Agreement.  If you fall outside of these criteria, it’s time to talk to the tax debt experts at M&M about erasing your back tax debt for good.  Imagine not having to worry about your back tax debt anymore.  Imagine having this problem finally solved.  Imagine a return to peace of mind.  The first step is easy.  Contact M&M.

Whether you are an individual staring at a personal income tax debt or a business owner with a payroll tax debt, the first step is the most important.  If you don’t act now and take the steps to resolve your issue, it will only get worse.  Believe me; you don’t want the IRS to make the next move.  The quicker you act to resolve your tax liabilities, the better chance you have of securing a resolution that you can live with.  And with M&M at your side, your chances go up as your stress level will go down.

M&M will communicate with the IRS on your behalf.  We’ll help you complete the paperwork needed to secure a formal resolution with the Service.  And we’ll guide you through the process from beginning to end.  We’ve successfully secured hundreds of affordable Installment Agreements for clients nationwide since we opened our doors in 2005, and we can deliver the same for you.  And remember, M&M has successfully saved its clients more than $1,500,000 in penalties this year alone.  See for yourself.

If you own and/or operate a business that has unpaid payroll taxes, the IRS will be extra tough on you.  In fact, despite today’s economy, through March 2012 the number of business taxpayers receiving IAs has actually declined by approximately one percent.  And the number of “streamlined” business agreements has declined by four percent.  Business Installment Agreements continue to account for only four percent of all agreements issued through March 2012.

M&M’s Tax Resolution System (covered in our 10/05/2012 blog (“Be Like David and Improve Your Business”) is designed to resolve business and individual tax liabilities permanently, while decreasing the tax debt wherever possible.  M&M’s System recently secured a formal IRS Installment Agreement for a New York client.  The business has been granted approximately four and a half years to pay back its $119,000 tax debt.

We also just secured the abatement of 27% of the penalties associated with an Indiana client’s tax liability through IRS Appeals, after the original Revenue Officer denied the request completely.  Our client’s fee to us was $2,500.  We successfully removed penalties of $6,140.  That means M&M was able to resolve our clients tax liability and save them $3,640 more than they paid us.

M&M’s Tax Resolution System works for State tax liabilities also.  We recently helped a Pennsylvania client reach a formal Installment Agreement with the PA Department of Revenue.  Our client will be paying just $500 per month to satisfy a $29,607 tax debt.  Complete our contact form at http://mmfinancial.org/contact.html, or call us at 866-487-5624 to find out how M&M’s Tax Resolution System can help you.