Q: How much do you charge for your tax services?
A: Most of our cases are handled on a flat fee basis. A flat fee is very convenient for the client because the client knows exactly how much his case is going to cost. Clients on a flat fee basis don't have to worry about how long their case will take to be resolved. Once a flat fee is agreed upon, we will do everything it takes to bring our client's case to successful resolution. This means that we could end up spending 10 hours or 500 hours on a given case, which produces big savings for our client. For a complete list of legal fees for our tax services, click here.
Q: Can you guarantee that you can settle my outstanding tax debt for “pennies on the dollar?”
A: I do not know for what amount I can settle your tax debt until I fully evaluate the specific facts of your case and your financial circumstances. On October 25, 2004, the IRS issued a consumer alert that advised taxpayers to beware of promoters’ claims that tax debts can be settled for pennies on the dollar through the Offer in Compromise Program. The purpose of a consultation is to get an idea of the nature of your tax problem and determine how I can help you. After I understand your case, I will be better able to tell you what I can do to help you.
Q: Can you get the IRS to release the garnishment on my wages?
A: Yes, but I will need to get certain financial information from you in order to explore other options for resolving your tax debt.
Q: Can I get a garnishment released before my next payday?
A: Yes, it is possible. We must act quickly to contact the IRS with financial information about you and a clear plan for resolving your tax debt without garnishment. With complete financial information, the IRS can, within 1-2 business days, fax a release of garnishment to your payroll department.
Q: The IRS levied my bank account and I am expecting a deposit in a few days. Can you help me get the levy released? Will the bank send the money to be deposited to the IRS?
A: The levy reaches only those funds in your account at the time of the levy. Thus, amounts deposited in your account after the levy will not be paid over to the IRS. We can also work to get the levy released by formulating a plan acceptable to the IRS to resolve your outstanding tax debt.
Q: Can you get the IRS to release the lien it has filed against me?
A: While in certain circumstances the IRS is required to release a lien filed against you, in most cases getting a lien released can be difficult. In some cases the IRS may agree to release its lien even though the lien is still enforceable and has not been paid in full. We can examine your particular facts and circumstances to determine whether it would be worthwhile to seek a release of lien in your situation.
Q: Does the IRS ever allow another debt to take priority over the IRS’s lien?
A: Yes. A lien subordination is the IRS’s agreement to permit another lien (e.g., mortgage or other security interest) to take priority over the IRS’s lien. The IRS simply agrees to allow another debt secured by the taxpayer’s property to be paid before the tax covered by the IRS’s lien when, otherwise, the IRS would have a legal right to collect the tax covered by its lien first. The typical situation for lien subordination is the purchase of a home when the IRS has already filed a lien against the taxpayer. A lender is not likely to provide the taxpayer a mortgage loan unless the lender’s security for the loan (e.g., mortgage or deed of trust) has priority over the tax lien. Generally, the IRS may agree to subordinate its lien if subordination is likely to increase the amount that the United States will be able to collect or if the collection of the tax liability will be easier.
Q: I am trying to purchase a home, but cannot get a loan because the IRS has filed a Notice of Federal Tax Lien against me. Can you help?
A: The IRS will often allow your mortgage lender to have a first lien on the property you want to purchase even though the IRS has previously filed a lien against you. To achieve this purpose, we will seek a Certificate of Subordination from the IRS. Most lenders will agree to lend you money to purchase your home with this Certificate of Subordination.
Q: When is the IRS required to issue a Lien Release?
A: The IRS is required to issue a release of the Notice of Federal Tax Lien within 30 days after the taxpayer satisfies the tax due (including all penalties and interest) or within 30 days after IRS accepts the taxpayer’s bond guaranteeing payment of the debt. Also, the IRS must release a lien within 30 days after the tax debt becomes unenforceable, depending on the statute of limitations on collection. All requests for release of lien should be in writing.
Q: What happens when the IRS files a lien against the wrong person?
A: When proof is shown that a Notice of Federal Tax Lien was filed against the wrong person, the IRS will issue a Certificate of Nonattachment of the Federal Tax Lien.
Q: I received a Statutory Notice of Deficiency from the IRS. Can you help me if I do not live in Washington State?
A: Yes. To respond to the Statutory Notice of Deficiency, our firm will:
1) File a Petition in the United States Tax Court in Seattle, Washington, where we will challenge the amount of tax the IRS says you owe.
2) File an Entry of Appearance with the Tax Court indicating that we are representing you in the case.
3) Designate Seattle, Washington as the place of trial. This is a document that lets the Tax Court and the IRS know that if your case goes to trial, the trial would be held in Seattle, Washington. We will try our utmost, however, to settle your case without a trial. If your case does go to trial, you will be required to travel to Seattle, Washington.
Q: Under what circumstances can IRS collection actions or Offers in Compromise be appealed?
A: IRS collection actions, such as the filing of a federal tax lien or a notice of levy, can be appealed within the IRS Office of Appeals in Collection Due Process Hearings. Offers in Compromise appeals are determined by the overall reasonableness of your offer and also by the manner in which the IRS calculated your tax. Oftentimes, IRS personnel working on appeals are more experienced and have greater authority to settle cases.
Q: What does your fee include, and will it change during the course of your representation?
A: Our representation includes gathering all documents necessary to complete the forms required to be filed with the IRS. It is very important for you to cooperate and participate fully in gathering this information and forwarding it to us as soon as possible. Once we have all of the required documents and forms, our representation includes initial negotiations with the IRS, a request for reconsideration of any initial adverse decision by the IRS, and, if you decide to further appeal an adverse decision, one administrative appeal before the IRS Office of Appeals. Our fee for these services will not change during the course of our representation.
Q: In addition to the IRS, I also owe state taxes to the Washington State Department of Revenue. Can you help me with my state tax debt?
A: Yes, we can help. Attorney Fabio Ambrosio is licensed to practice law in Washington and regularly represents taxpayers in disputes and controversies with the Washington State Department of Revenue.