IRS Representation

• AUDIT REPRESENTATION
• NEGOTIATIONS AND SETTLEMENT OF TAX LIABILITIES
• OFFER IN COMPROMISE
• PAYMENT PLANS, INSTALLMENT AGREEMENTS
• TAX LIENS
• BANK LEVIES
• WAGE GARNISHMENTS
• PREPARATION OF TAX RETURNS
• EMPLOYMENT AND PAYROLL TAXES
• CRIMINAL TAX REPRESENTATION
• BANKRUPTCY FOR TAX DEBTS

AUDIT REPRESENTATION

Taxing authorities like IRS have as their main goal a collection of as much of the taxes that are due and as quickly as possible. It is imperative, however, for the taxpayers to understand and even more importantly exercise their rights when dealing with the IRS or other taxing jurisdictions. Unless appropriate actions are taken, taxing authorities can garnish taxpayer’s wages, levy bank accounts, file tax liens and even seize taxpayers’ assets. More often then not, all these sometimes disastrous outcomes can be prevented if handled properly.

Even in the rare cases when the acceptable agreement can not be reached with the government, there are numerous laws that limit the powers and conduct of taxing authorities when trying to collect taxes. For example, no taxing authority is permitted to seize taxpayers income or assets if this will cause the taxpayer undue hardship. In addition, there are certain types of assets the taxing authorities are simply prohibited from taking in a first place. Moreover, taxpayers must be aware that the taxing authorities’ employees and agents are required by law to be professional in their conduct and be reasonable with their requests – something that unfortunately does not always happen.

When you retain Melnik Law Group, you retain an experienced team of tax attorneys and professionals with an expertise in dealing with the taxing authorities and, specifically, the IRS. If we represent you, no agent or employee of any taxing authority will be allowed to contact you. We will deal with the government’s agents and will search for ways to resolve any and all tax issues in the best possible way and prevent sometimes devastating actions taken by the government. We will work hard to prevent any and all inappropriate and unnecessary financial losses to our clients.

NEGOTIATIONS AND SETTLEMENT OF TAX LIABILITIES

The Melnik Law Group has extensive experience in negotiating with the I.R.S to minimize your tax liabilities through Offers in Compromise and Payment Plans/Installment Agreements.

OFFER IN COMPROMISE

If you are not able to pay a tax debt and an installment agreement is not an option for you, Melnik Law Group may assist you in taking advantage of an Offer in Compromise.

An offer in compromise is an agreement between a taxpayer and the IRS that can significantly reduce the taxpayer's tax debt. The IRS has the authority to settle, or "compromise," federal tax liabilities by accepting less than full payment under certain circumstances. A tax debt can be legally compromised for one of the following reasons:

• Doubt as to liability - Doubt exists that the assessed tax is correct.
• Doubt as to collectability - Doubt exists that the taxpayer could ever pay the full amount of tax owed.
• Effective Tax Administration - There is no doubt the tax is correct and could be collected but an exceptional circumstance exists that allows the IRS to consider a taxpayer's OIC. To be eligible for a compromise on this basis, the taxpayer must demonstrate that collection of the tax would create an economic hardship or would be unfair and inequitable.

PAYMENT PLANS, INSTALLMENT AGREEMENTS

Whether you call it an installment agreement, payment agreement, payment option or a payment plan, the idea is the same — we help you obtain a n agreement from the government to make tax payments over some prearranged period of time. For those who cannot resolve their tax debt otherwise, an installment agreement can be a reasonable option. Installment agreements allow for the payment of the tax debt in smaller, more manageable amounts.

TAX LIENS

A tax lien is a lien imposed on property by law to secure payment of taxes. Tax liens may be imposed for delinquent taxes owed on real property or personal property, or as a result of failure to pay income taxes or other taxes. Unlike personal debts, tax liens on real estate "run with the land"; that is, a property owner becomes responsible for payment even if the tax obligation was incurred by a prior owner. Depending on the law of the State or jurisdiction, the owner of the property may also be personally liable for payment of the taxes.

When you retain Melnik Law Group, you retain an experienced team of tax attorneys and professionals with an expertise in dealing with the taxing authorities and, specifically, the IRS. If we represent you, no agent or employee of any taxing authority will be allowed to contact you. We will deal with the government’s agents and will search for ways to resolve any and all tax issues in the best possible way and prevent sometimes devastating actions taken by the government. We will work hard to prevent any and all inappropriate and unnecessary financial losses to our clients.

BANK LEVIES

A levy is a legal seizure of your property undertaken by the IRS or other taxing authority to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.

If you do not pay your taxes (or make arrangements to settle your debt), the IRS or other taxing authority may seize and sell any type of real or personal property that you own or have an interest in. For instance,

• IRS could seize and sell property that you hold (such as your car, boat, or house), or
• IRS could levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions).

When you retain Melnik Law Group, you retain an experienced team of tax attorneys and professionals with an expertise in dealing with the taxing authorities and, specifically, the IRS. If we represent you, no agent or employee of any taxing authority will be allowed to contact you. We will deal with the government’s agents and will search for ways to resolve any and all tax issues in the best possible way and prevent sometimes devastating actions taken by the government. We will work hard to prevent any and all inappropriate and unnecessary financial losses to our clients.

WAGE GARNISHMENTS

Wage garnishment occurs when an employer withholds the earnings of an individual for the payment of a debt as the result of a court order or other equitable procedure. Garnishments can be taken for any type of debt including tax debt.

When you retain Melnik Law Group, you retain an experienced team of tax attorneys and professionals with an expertise in dealing with the taxing authorities and, specifically, the IRS. If we represent you, no agent or employee of any taxing authority will be allowed to contact you. We will deal with the government’s agents and will search for ways to resolve any and all tax issues in the best possible way and prevent sometimes devastating actions taken by the government. We will work hard to prevent any and all inappropriate and unnecessary financial losses to our clients.

PREPARATION OF TAX RETURNS

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EMPLOYMENT AND PAYROLL TAXES

Business owners must withhold federal and FICA contributions (Social Security and Medicare) from employee wages. The withheld funds are paid to a depository bank that collects the funds on behalf of the Treasury Department. The deposit is monthly or quarterly. IRS forms 940 and 941 must be filed.

Payroll taxes are the nuclear bomb of taxes. When a business has financial difficulties, the IRS is the one creditor that is the least demanding—at least initially. As a consequence, the other creditors tend to get paid first, like suppliers, landlords, and banks, all to the detriment of the IRS. But if the business fails, payroll taxes are one of the few business debts that are not dischargeable in bankruptcy. It’s the one expense that should be paid first.

Further, personal liability attaches to every person in the business “responsible” for the nonpayment. It is not uncommon for the IRS to determine that half-a-dozen individuals are responsible for the nonpayment. This personal liability is known as the 100% Payroll Penalty. It’s called the 100% Payroll Penalty because each responsible person is liable for 100% of the tax regardless of the person's level of responsibility for the nonpayment.  And, like the tax, the penalty is not dischargeable in bankruptcy.

All individuals, even low level employees, can be liable for the 100% Payroll Penalty if they:

• Made financial decisions for the business;

• Had authority to sign checks;

• Had the power to direct payment of bills; or

• Had the duty of reporting taxes.

Pity the taxpayer liable for the 100% Payroll Penalty. The IRS considers this to be the most serious of all tax liabilities. The IRS is notoriously difficult when dealing with payroll taxes and penalties. Professional advice is strongly advised, particularly if the IRS has wrongly determined that an individual was a person responsible for the failure to pay payroll taxes—a determination that happens with surprising regularity.

When you retain Melnik Law Group, you retain an experienced team of tax attorneys and professionals with an expertise in dealing with the taxing authorities and, specifically, the IRS. If we represent you, no agent or employee of any taxing authority will be allowed to contact you. We will deal with the government’s agents and will search for ways to resolve any and all tax issues in the best possible way and prevent sometimes devastating actions taken by the government. We will work hard to prevent any and all inappropriate and unnecessary financial losses to our clients.

CRIMINAL TAX REPRESENTATION

This section is currently undergoing revisions. Please check in again soon.

BANKRUPTCY FOR TAX DEBTS

This section is currently undergoing revisions. Please check in again soon.