The Mission Statement of the Tax Resolution Blog?

We created the Tax Problem Resolution Blog to aid the average person to become more discerning buyers of tax resolution and tax representation services. Please read the index of articles below to learn more about the tax resolution industry and to assist you in solving your specific tax problem.

Jay Freeborne, Enrolled Agent at Washington Tax Services, open for business since 1989

Thursday, June 30, 2016

Why Do you Get a Tax Lien? How Do You Get It Removed?

When do You Get a IRS Tax Lien? 

1. If you owe more than $10,000 but usually more than $60,000 there is a very good chance for you to have a tax lien filed against your credit report and/or real estate. Your odds of getting liened increase dramatically if you ignore the IRS and are not pro-active at resolving your case.

2. If you submit an Offer in Compromise to the IRS, the first thing they do is place a lien against you (if there isn't one already). The lien is later removed when your Offer is paid.

3. If your case was placed into Currently Not collectible - a hardship status - you also will have a tax lien filed against you - even though there is no requirement to pay.

How do you get your Tax Lien removed?  

Here are a few ways:

1. The tax liens expire -- If you can run out the clock, taxes generally will expire 10 years after they are assessed. There are a number of ways -- that the clock can extend past 10 years -- a. you file bankruptcy during the 10 years b. you file an Offer in Compromise (and it is rejected). c. the IRS has you sign a waiver extending the statute of limitations (not very common anymore).

2. An Offer in Compromise is reached and the debt is settled.  (Everything you might want to know about Offers or settlements can be found here Offer - Rule Changes - 2015.)

It's worth noting that a tax lien is usually filed --  a. when the Offer in Compromise process begins - and removed later b. you are placed into currently-not-collectible.

3. The tax debt is brought below $25,000.00. If you can pay your debt down under $25,000 - the IRS will remove the lien if you get in a payment plan on the rest.

4. The tax debt is paid in full.  Why of course :)

5. You get the debt below $50,000 and enter an installment agreement.  This streamline agreement is for people who have NOT had a tax lien filed against them YET...(If you already have a lien against you -- you won't have it removed).

Tax lien on your record?  Want an honest opinion on your options to getting it removed? Call us at 1-888-282-4697 or EMAIL us HERE and we'll contact you. The Staff of Washington Tax Services

Tuesday, June 21, 2016

Watax.com - a Review of Our Videos for Solving Tax Problems

For a couple of years, we have been posting videos at youtube.com to educate our customers how to solve tax problems.

Our 2012 video 2014 - Offer in Compromise Rule Changes is the most popular by virtue of how important that rule change still is. In summary, the IRS reduced the 48 month rule for disposable income to 12 months - for some people that translated into a 75% reduction of what they had to pay in their Offer in Compromise!

Our 2014 video -The Expiration of your Tax Debt's affect on your Offer - we think is an important update to our previous video. Where we state the most important question: is "When do your IRS back taxes expire?" and then followup with : "Can you pay what you owe the IRS before then, at your current rate of income?

Our 2016 video -  Offer in Compromise - Rule Changes in Action looked at three real client case-examples in how the New Offer program works. 


Washington Tax Service's mission statement is to have the most "informed" clients. We're not going to insult your intelligence or scare you into hiring us. We think these principles are why we have been a continuously operating business of 27 years. Please call us at 1-888-282-4697 to discuss your tax problem.  Or email us at HERE.

Friday, June 10, 2016

In Our Client's Words: IRS Settlements done by WATAX

Here is a list of IRS Offer in Compromises on back taxes performed by Washington Tax Services for our clients and their reviews of their experience with us:

In 2014, Michael H. of San Antonio, TX got a settlement with the IRS for $4500 on his $65,000 tax debt and wrote this Review of WATAX.

In 2015, Paul M. of Grand Prairie, TX got a settlement with the IRS for $5172 on his $86,000 tax debt and wrote this Review of WATAX.

In 2016, Lee B. of Iowa got a settlement with the IRS for $3800 on his $52,000 tax debt and wrote this Review of WATAX.

In 2014, Jeff H. of Phoenix, AZ got a settlement with the IRS for $10,000 on his $144,000 tax debt and wrote this Review of WATAX.

In 2014, B.J.D. of El Dorado Hills, CA got a settlement with the IRS for $100 on her $32,000 tax debt and wrote this Review of WATAX.

In 2015, Ade K. of Plano, TX got a settlement with the IRS for $5200 on his $60,000 tax debt and wrote this Review of WATAX.


Customers, we thank you for writing these reviews! Looking for tax problem help today? Call us at 1-888-282-4697 or EMAIL us a description of your tax issue HERE and we'll contact you. Washington Tax Services, 27 years of experience resolving tax problems, still A + rated at the BBB

Thursday, June 2, 2016

Most Popular Tax Problem Questions for 2016

When you assist as many people and businesses as Washington Tax does - you get the same questions over and over. Here's a quick blog post to summarize some of these questions:

SETTLEMENT OR HARDSHIP STATUS?

If you are a financial hardship tax problem case, you often need to decide between Offer in Compromise or Currently Not Collectible:  OIC vs. CNC?

NEED TAX LIEN REMOVED?

How do you get a tax lien removed? Tax lien removal

BANK WAS LEVIED BY IRS: WHAT TO DO?

You might need some damage control: Bank Levies 101

HAVEN'T FILED TAXES IN YEARS?  WHAT TO DO?

Why get back in to the "system?" Check this out: Getting Back into Tax System

OK. Those are a few of the biggest tax problem resolution questions we see. Call us at 1-888-282-4697 or EMAIL us your tax issue HERE and we'll contact you. Staff of Washington Tax Services

Monday, May 23, 2016

How Were Tax Problems Resolved? 2013 to 2016 Analysis of Cases

We at Washington Tax Services like to keep score of the outcome of our tax resolution cases - for the ultimate benefit of future customers like you - the reader.

Here's a 2 1/2 year breakdown of IRS "collection" cases that one representative on staff handled (this doesn't include research cases, tax prep cases, state cases and other different type of resolution cases):

Offer in Compromise 173 - Client settled their debt for much less than what they owed.
Currently Not Collectible 116 - Client was given up a "two year vacation" from paying the debt (or longer).
Payment Plan/Penalty Abatement 260 - Client was set up in livable agreement with a several month cushion. A request to waive penalties was made.
OIC (Appeal Only) 3 - Client's OIC was rejected. We appealed it and won.

Total: 552 Cases

Washington Tax Services has been operating continuously for almost 30 years. We have very little staff turnover and take pride in our day-to-day customer service. Call us at 1-888-282-4697 to discuss how we can solve your tax problem or EMAIL us HERE and we'll contact you. 
  

Friday, May 13, 2016

How Do Tax Relief Companies Find You?

The market for tax relief services has been around really since the income tax was created: A Short History of the Offer in Compromise Program. In the 80's, accountants and tax attorneys like Washington Tax Services started to target tax relief clients more specifically.

One of the ways we marketed ourselves was by

MAILING LETTERS TO PEOPLE WITH TAX LIENS. Washington Tax sent straightforward letters to tax lien folks from 1989 to 2011. We tried not to mislead and stopped the mailings five years ago. Tax lien letters still flourish - see here - BUT are often useless as the tax lien victim has already resolved their case as Currently Not collectible and doesn't needs help.

CALLING PEOPLE WITH TAX LIENS. A few decades back, a couple of companies in Colorado started the bold practice of contacting people with tax liens...by phone!? This is now an established practice by the now numerous tax relief companies in that state (and elsewhere). There are questions about it's legality (if you aren't a licensed tax professional) HERE. If you are a business who has a tax lien for 941 taxes, you will almost assuredly have heard from these folks. The big bone to pick besides the legality is when they overstate urgency for people to act. No need to scare people into hiring you!

ADVERTISING ON RADIO AND TV. Optima Tax Relief in Orange County, California seems to be the clear leader in the spending of the marketing dollar on TV and radio. They are everywhere. Alan Thicke is their celebrity spokesman. With high volume tax relief outfits - the question is always: does the customer service quality remain with higher volumes of customers? So far Optima seems to be handling their big volume, but keep a close eye.

For 27 years, Washington Tax Services has served folks who need help solving their tax problem. We charge reasonably and don't hard sell. Call us at 1-888-282-4697 or EMAIL us a description of your tax issue HERE and we'll contact you.  

Friday, May 6, 2016

Eight Reasons to Avoid Most Tax Relief Companies

If you watch TV or listen to radio, you can't miss tax relief companies - the advertisements are ubiquitous. But who are these companies - can you trust them? As veterans of the tax relief industry, we came up with eight reasons why you might want avoid some if not most of these companies:

1. Ridiculous fees $$ - If a tax resolution company is going to charge you $3000.00 or more for representation -- you deserve the red-carpet treatment. You should have direct access to your licensed tax professional and/or have the customer service rep who does your "up-front analysis" to be with you to the end. You can read more about what you deserve for a big dollar investment:  What $4000 of tax resolution should buy you.

2. Continuation fees - Many tax resolution companies have a tendency to whack you with new fees once you are on board with them. Maybe they feel - "well you're already on board, so you have to stay with us!?" More on this phenomenon here: Reopening fees: Problematic.

3. Bad advice  - Plainly and simply,  many tax resolution companies will advise you to do the wrong thing. Here's an example: "Professional" Botches Tax Case.

4. Dishonest advice, i.e. LYING. The oldest trick in the tax resolution sales-book is to tell someone that they will qualify for an Offer in Compromise to settle their tax debt when they clearly do NOT qualify. It's human nature: people just love to hear that they will settle their debts -- just like in the commercials! And shady salespeople love to scratch this itch for people.

5. Misstating urgency and scare tactics.  Sales people of tax resolution services and the telemarketers that harass people who have tax liens are notorious for telling you that the SKY IS FALLING if you don't hire them. "Your case has reached 'Elevated Status!!" barks one company to their prospective clients -- Cold Calling Tax Liens. Tax relief companies will often manipulate your emotions to make the sale. There is no reason to fake urgency. An honest tax professional should lay out all of the options for you without emotion or scare tactics.

6. Employee turnover.  Whether big or small, tax resolution companies are notorious for having high employee turnover. As many of the companies are reliant on "salespeople," employees who can't sell enough cases are fired. Hence, your case keeps getting handed off from representative to representative.  In these environments, the institutional memory of your case can go down the drain fairly easily. 

7. Dropping the ball.  Keeping your client out of aggressive collection actions like levies and garnishments requires constant vigilance and a very delicate personal touch. Large companies are famous for cases falling into the cracks and subsequently, people getting nailed with levies from the IRS.

8.  Going out of business.  Running an effective tax resolution business requires a unique blend of great customer service with excellent marketing. Take one of those two elements away and ...you're out of business! We have documented 72 companies that have gone out of business in the last couple of years -- Dead Tax Resolution Companies - R.I.P.

Washington Tax Services has been operating continuously for almost 30 years. We have very little staff turnover and take pride in our day-to-day customer service. Call us at 1-888-282-4697 to discuss how we can solve your tax problem or EMAIL us HERE and we'll contact you.