Pay Off Back Taxes This Year: Here’s Why

Pay Off Back Taxes This Year: Here’s Why

Why should you pay off back taxes today? We're glad you asked!

According to the IRS, more than 13.2 million Americans owe back taxes. The majority of these cases involve amounts that seem impossible to pay off.

That leaves those tax-owing Americans in a difficult position. They want to pay, but they can't, and the end result is feeling a lot of guilt about the situation.  There is no easy way to get out of paying your back taxes. Uncle Sam wants his money, and he'll get it somehow.

There are steps you can take to find a solution and make 2020 the year you finally deal with your taxes.

Note, we always recommend getting in touch with a specialized Tax Resolution Professional to negotiate with the IRS on your behalf. If you’d like to schedule a no-cost confidential tax relief consultation, contact us here. www.blackhawktaxsolutions.com

Why You Should Pay Off Back Taxes This Year:

#1 You'll End Up Owing Less

The longer you wait to pay your back taxes, the more you are going to end up owing. That's because the IRS can and will add penalties that run up to 50% of the tax bill. That can add up quickly. The longer you drag out the situation, the more you'll need to pay your tax resolution specialist to help you handle everything. The sooner you act, the sooner you can resolve the issue and the less you'll have to pay.

If you need help from a CPA, enrolled agent or a lawyer who is also a tax resolution professional, look for someone that will charge you a flat fee rather than an hourly rate. Some cases take longer to resolve, so it’s important to know up front what you’ll be paying in service fees to get your back tax issue resolved.

#2 Housing prices are at an all time high. Time to cash in?

If you own your home or have equity in it, selling it and downsizing may be the best way to settle your tax debt and get a clean slate. Now is a perfect time, too, with housing prices at a premium in many areas of the country. You can use that cash in the bank to settle your back taxes almost immediately. Additionally, if your home is worth more than you owe, you can then reinvest that money or save it for a rainy day. That gives you a clean financial slate to start rebuilding your life.

#3 Economic Uncertainty

Most experts agree we’re due for a recession soon. How soon? Well, no one knows. What we do know is that having a large back tax bill will only hinder your ability to weather a storm in the event of an economic downturn.

You might be able to take a low interest loan out now that the economy is still good and settle your tax bill. Taking care of your taxes while the economy is still good will give you peace of mind and breathing room in case things go south with the economy.

Don't let the burden of back taxes hang over your head any longer. Discover how to solve your tax problem by speaking with our tax relief professionals: www.blackhawktaxsolutions.com

Blackhawk Tax Solutions, LLC

(719) 694-5505

lauren@blackhawktaxsolutions.com


When to Hire a Tax Relief Professional.

When to Hire a Tax Relief Professional.

When it comes to tax debt issues, many people wonder when the correct time is to seek help from a tax relief professional. We know what you're thinking, there’s only one person that truly has your best interests at heart - and that person is looking back at you in the mirror. Handling your own finances and making your own decisions can give you peace of mind and help you avoid a costly mistake.

There is a lot to be said for the do-it-yourself approach to your money, yet the go it alone path does have its limitations, especially when it comes to the IRS and back taxes.

We see clients that have tried to handle their taxes on their own, sometimes raising red flags with the IRS, resulting in audits, or getting hit with a big tax bill they can’t pay. They might setup an installment agreement on their own, but often times, the DIY approach just makes the penalties and interest keep stacking up putting in an endless loop of back taxes. Many of our clients started out by trying to do this on their own or with their current tax preparer.

Dealing with the IRS takes a very specialized skill set that most tax preparers and even CPA’s don’t possess.  Make sure you have a tax resolution specialist on your side.

So, before you end up in that horror story, here are 3 times when hiring a tax pro, or a tax relief firm like ours, is the only way to go.

#1 You Received a Major Windfall

Even if you know how to handle your finances, receiving a major windfall can throw your plans for a loop. Whether you are the lucky holder of a winning lottery ticket or the recipient of a major inheritance, it pays to seek outside advice.

If you choose the DIY approach and make a mistake, you could end up paying more in taxes than you should, but a high tax bill is not the only danger. Handling your windfall the wrong way could throw off your asset allocation, impact financial aid for your college-bound children and create additional problems down the road.

#2 You Have Existing Tax Problems with the IRS

When you have issues with the IRS, you absolutely cannot afford to go it alone. Attempting to resolve tax issues on your own is unwise in the extreme, and a single slip-up could leave you on the hook for even more. I mean, ask yourself if you would go before a judge in court without a lawyer representing you?  Probably not.  It’s the same here.  Representing yourself before the IRS is generally not a good idea.  Don’t do it. You most likely will get “creamed”!

When you receive a notice from the IRS, time is of the essence, but you should not let the desire for fast action override the need for professional help and guidance. If you want to resolve your issues fairly without going broke, do yourself a favor and find the right tax relief professional to help you get back on track. Hiring an enrolled agent, CPA or an attorney that is trained in tax relief is the best way to preserve your rights, and you do not want to go it alone.

#3 You Have Assets You Need to Protect

When you owe taxes, the IRS only cares about one thing, and that is to get paid what they think you owe them.

They’ll levy your bank account, emptying everything you have in there. If you run a business, that means you won't be able to pay your employees, pay your office rent or keep your lights on, ultimately putting you out of business.

Another way they'll collect is to garnish your paycheck leaving you about 10% to 25% of your net pay to live on.  Good luck with that.

They can also put a lien on your assets, including real estate, personal property and financial assets. This puts in jeopardy everything you’ve worked so hard to attain.

Hiring the right tax relief professional can help you avoid such extreme measures taken by the IRS. They’ll communicate with the IRS on your behalf and can often remove a lien or levy. If you have assets you can’t afford to lose, then hiring a tax relief pro is the only way to go.

The Bottom Line

Even if you are confident in your DIY approach or feel your tax problem isn’t so serious, it never hurts to get a second opinion. If you are doing everything right, that tax relief specialist’s advice will give you peace of mind. If there are deficiencies in your actions, the advice you get could stop you from making a devastating, and possibly irreversible, mistake.

Are you experiencing tax trouble? Reach out to our tax resolution firm and we’ll schedule a free, no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem.

Blackhawk Tax Solutions, LLC

blackhawktaxsolutions.com

(719) 694-5505

lauren@blackhawktaxsolutions.com


What is Currently Not Collectible Status from The IRS?

Currently Not Collectible Status from The IRS.

Big companies are known for getting all sorts of breaks, but when average people fall behind, they rarely receive help. When you owe back taxes, but can’t afford to pay them, then you may qualify for a special tax status known as currently not collectible.

If you’re approved for currently not collectible status, then the IRS must not only cease its collection efforts but can no longer garnish your wages or seize your property.

Want to know if you qualify for currently not collectible status? Contact our firm here for a specific evaluation of your situation.

Blackhawk Tax Solutions, LLC

(719) 694-5505

blackhawktaxsolutions.com

What is Currently Not Collectible Status?

If the IRS agrees you can’t both pay your back taxes and cover your reasonable living expenses, it may place your account in Currently Not Collectible status. It’s based on your current financial situation.

You can request currently not collectible status by submitting the proper form and proof to the IRS of your income and expenses, as well as whether you can sell any assets you may have or get a loan.

As you’ll need to be able to document your inability to pay, be sure to gather copies of all your bills, your most recent paycheck stubs, and statements detailing other sources of income such as alimony, pensions or investments. If the IRS determines that your necessary expenses exceed your income, then it will notify you of your Currently Not Collectible status

WARNING: Don’t try to do this alone. We recommend reaching out to our tax resolution firm to guide you through your options. Talking to the IRS directly could be like shooting yourself in the foot. They’ll ask you very invasive questions that could land you in deeper trouble. Remember, the IRS is not your friend. Their job is to collect what they believe you owe them, so it’s best to have a professional in your corner.

Not a Permanent Solution

Keep in mind that currently not collectible status applies only to your back taxes. You will still have to file tax returns, and you will not be exempted from paying current and future taxes. You will also continue to accumulate penalties and interest on your unpaid taxes. After a year or two, the IRS may review your status, and if you’re able to begin paying your back taxes, then you must do so. If you’re still not able to pay, then your status will be renewed.

Statute of Limitations   

The IRS can attempt to collect outstanding taxes for only 10 years from the date the taxes were assessed against you, usually that’s the date you filed.  If at the end of this 10-year period the IRS hasn’t collected, then the taxes are no longer owed.

In difficult times, many families have trouble meeting their commitments. If you’re worried about the IRS garnishing your wages, levying your bank account or taking your home, then reaching out to our firm and getting a free, no-obligation, confidential consultation on your tax problem may give you some peace of mind. If you’re not approved for Currently Not Collectible status, our firm will explain the many other tax relief options with you. Contact us now.

Blackhawk Tax Solutions, LLC

(719) 694-5505

blackhawktaxsolutions.com


8 Reasons to Work with a Tax Resolution Professional To Resolve Your Back Taxes

8 Reasons to Work with a Tax Resolution Professional to Resolve Your Back Taxes

When you owe money to the IRS, it is hard to think about anything else.

While being in debt is never fun, no matter who the creditor is, the IRS enjoys almost unlimited power to collect the money they are due.

Unlike your mortgage lender or credit card company, the Internal Revenue Service has the power to attack your wages, raid your bank account and even take your freedom. No other creditor even comes close in terms of its power and influence, and taking on the agency on your own could be asking for trouble.

Has the IRS Contacted You?

If you have received a notice from the IRS, you need to act fast, and you need the right assistance in your corner. Taking on the IRS requires specific expertise, and that is why it is so important to work with a quality tax resolution company.

Why Hire A Tax Resolution Expert?

Here are eight reasons why working with a tax resolution service could save your good name - and your bank account.

  1. You gain specific expertise. The IRS is a specialized agency, and you need expert advice and guidance to get the most positive resolution.
  2. It will give you peace of mind. Just being contacted by the IRS can make your heart beat a bit faster, but working with a tax resolution expert can set your mind at ease once you hire a tax resolution. Generally, once you hire a tax resolution expert you won’t have to meet or speak with the IRS.
  1. The tax resolution process could save you a lot of money. Tax resolution agents are experts at settlements, and working with one could save you a ton of money.
  2. Timely action could save your home and property. If you wait too long, you could put your home, business, bank accounts and personal property at risk. Time is of the essence when it comes to resolving tax issues, and timely assistance could make a world of difference.
  3. You will feel less alone. Few things feel as lonely as fighting the IRS on your own. When you work with a tax resolution expert, not only do you not have to go it alone but they actually step into your shoes and to represent your best interests.
  4. You will have a chance to file missing returns. When faced with a big tax bill, it is easy to do nothing, but failing to file tax returns could have serious consequences down the line. If you have years of unfiled returns, a tax resolution expert can help you catch up.
  5. Expert help could make an audit less scary. Receiving that audit notice in the mail can be pretty frightening, but a tax resolution expert can guide you through the process. When you work with a tax resolution professional, you will have one less thing to worry about.
  6. You could save your credit score. Unresolved issues with the IRS will reflect badly on your credit report, lowering your credit score and making it harder to borrow money or qualify for a mortgage. Timely tax resolution could preserve your stellar credit score and help you avoid those serious consequences.

Owing money to the IRS can be pretty frightening. There is a reason those three letters strike so much fear into the hearts of ordinary citizens, even those who have done nothing wrong.

Get the IRS Off Your Back

If you are in trouble with the IRS, you cannot afford to ignore the issue, so act fast and get the help you need today. Working with a tax resolution expert carries a host of benefits, starting with the nine outlined above.

Reach out to our firm and we’ll schedule a no-obligation, confidential consultation to explain your options in full to permanently resolve your tax problem.

www.blackhawktaxsolutions.com

Contact Us!

(719) 694-5505

lauren@blackhawktaxsolutions.com

13570 Meadowgrass Drive, Suite 205

Colorado Springs, CO 80921


How the IRS Makes Your Life Miserable If You Owe Back Taxes

How the IRS Makes Your Life Miserable If You Owe Back Taxes

Have you received a Notice from the IRS only to leave it on your kitchen counter, desk, or worse, just hide it under a stack of bills?  Unfortunately, those letters from the IRS will just keep coming.  Your problem won’t go away on it’s own.

If you don’t take action now, the IRS WILL just keep piling on penalties and interest…and interest on top of the penalties...

The IRS doesn’t like being ignored so this is how they get your attention. They want to be sure you know they are not going away.  It’s like they haunt you with their ongoing letters.  If you don’t respond to them the penalties they tack on is like a club they keep hitting you over the head with.  Penalties are just the beginning of what they can do to your life.

But that’s just the beginning…

The IRS has a lot of power over your life.  They not only can freeze your bank accounts—that’s right—but they can seize all the money in your bank accounts too.

They can garnish your wages.  They can legally take as much as 90% of your net pay check. Can you live on 10% of your net pay?  The IRS thinks and expects you can!

Besides slapping Bank Levies and Wage Garnishments on you, they can put a lien on your house, making it nearly impossible to borrow against it to pay the IRS off.  And if you sell your house the IRS gets their money first from any equity there is.

Federal Tax Liens prevent you from borrowing any money—except for those high-charging money stores located in mini-malls.  An IRS lien makes it harder to rent an apartment, get a car, obtain any kind of credit; An IRS Lien can even jeopardize your job!

And believe it or not, the IRS has the authority to show up and knock on your door!  Make no mistake—the IRS is the most brutal collection agency on the planet.

If you owe between $10,000 and $250,000 plus, the IRS has many NEW flexible programs available to taxpayers such as Offer in Compromise, Partial Pay Installment Agreements, Payment Plans, Penalty Reduction, and Currently Not Collectible Status to name a few. Each carries with it its own unique process, procedures and qualifications.  Having an experienced Tax Pro in your corner ensures you are taking advantage of the best options available to you.

If you want an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.