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Tax Representation

Taibi Law Group provides legal tax representation for IRS and North Carolina tax issues.

Taibi Law Group represents business and individual clients in dealing with the IRS and the State of North Carolina Department of Revenue on tax issues. You may have various options open to deal with the tax problems and our office has the knowledge and experience to find the right solution for you. Our tax attorney representation will be efficient and cost effective while resolving your tax situation. We work with clients on matters such as:

IRS Appeals
Levy and Garnishment
Tax Litigation
Audit Defense
Tax Relief
Innocent Spouse Relief

IRS Audit Preparation, Assistance, and Defense

If you recently got a tax audit, our experienced lawyers can give you the tax help you need. The IRS acts independently and makes their own conclusions, typically not fully understanding or considering the reality of the taxpayer’s issues. The IRS’s primary mission is collecting your money and assets, regardless of the fact that you have bills to pay and may have a family to take care of. No taxpayer should face an audit conducted by the IRS without representation from a qualified, experienced tax professional.

If you do not agree with the outcome of the audit, you can submit a written formal protest within 30 days to negotiate with the IRS and possibly lower the amount of your tax debt. The procedure should not be done on your own since it is extremely complicated. You must obtain a tax professional to handle this matter for you.

Most audit appeals are successful to some extent. Submitting the formal protest and filing the appeal not only holds the IRS off your case for a few months, but it may also help minimize the liabilities you have with them. This may be a huge relief of worry and stress.

All appeals are handled by a different division within the IRS, which is known as the Appeals office. This means you most likely will not have to deal with the IRS agent who audited you initially; you will likely deal with the appeals officer only. This can be a benefit to the taxpayer since the appeals officer is not as familiar with your case as the agent who originally audited you.

As stated above, you will require professional assistance in appealing an audit. Since this is a complicated procedure, you should choose who you want to represent you wisely. We have seen instances where a taxpayer hires a CPA to handle their IRS audit issues. The result of this is not highly successful simply because a CPA does not know all the rules and regulations of the IRS and are not as experienced as tax attorneys regarding the inner workings of the IRS. You should hire somebody who deals only with resolving taxpayers IRS issues daily. Taibi Law Group is ready to help – please contact us today.

IRS Penalty Abatement or Reduction Solutions

Did you know a taxpayer can request an abatement or reduction of IRS penalties? Form 843, also known as a Claim for Refund and Request for Abatement is the correct form to complete and submit to the IRS. Form 843 requires that you indicate, among other things, the type of penalty that you’re asking to be abated by identifying the actual law for which it applies. Some examples of penalty laws which are often used include:

Internal Revenue Code section 6651(a)(1) Failure to File Tax Return
Internal Revenue Code section 6651(a)(2) Failure to Pay Tax when Due

Additionally, Form 843 also requires that you explain the reasons that you’re asking for the penalties to be abated. Those reasons include, but aren’t limited to the following examples:

Written or oral advice from the IRS
Advice from a tax adviser
Correction of an IRS error
Fire, casualty, natural disaster or other disturbance

Some penalties can also be abated if you have a reasonable cause for not complying and can show that you exercised ordinary business care and prudence. To get an abatement of penalties due to reasonable cause, you must have a reason that indicates you had no control over the situation. For instance, you were unable to file your tax return timely because you were seriously ill. We recommend that you don’t attempt to request penalty abatement yourself. The IRS’s penalty abatement review procedures are very strict. One mistake in the process can be cause for automatic denial of your request. Although you have a right to request abatement of penalties, it’s important to know that the IRS doesn’t easily agree to reduce or eliminate penalties against you. No one can guarantee that the IRS will approve your request to abate penalties. Approval or denial is solely in the hands of the IRS, and their decision can take months.

If the IRS denies your request to abate penalties, you should know that you have a right to request the IRS’s Appeals Division perform an administrative review of the decision. The process requires a separate request and meetings with an IRS Appeals employee. Taibi Law Group is experienced representing taxpayers, including working with the IRS’s Appeals Division if the IRS rejects your request for penalty abatement.

Whatever you do, it’s in your best interest to contact an experienced lawyer at Taibi Law Group to discuss your unique situation. Your circumstances may fall into a category not shown above. Regardless, we will still help you. Penalties can accrue and get larger each day. The sooner you call us, the faster we can help you by taking the necessary steps to get these penalties eliminated. You can be back on your feet in no time.

North Carolina Department of Revenue Tax Problems

Similar to the IRS, the North Carolina Department of Revenue (NC DOR) has specific policies in place for dealing with individuals who unpaid or un-filed taxes. The NC DOR offers several repayment options and alternatives for resolving an outstanding tax liability.

Installment Agreement

The NC Department of Revenue expects all taxpayers to pay any taxes owed by the April deadline, however, if you can’t pay your balance in full, the DOR may be willing to let you make payments through an Installment Agreement. To apply for a payment plan, you’ll need to complete Form RO-1033, Installment Agreement Request.

Generally, if you only owe a small amount or you need a short-term arrangement, the NC DOR doesn’t require any additional paperwork to approve your request. If you have a large tax liability or you need a longer repayment period, the Department of Revenue may require you to provide additional financial statements before you can qualify.

To qualify, you must:

Be current with all your tax return filings at the time you request the payment plan
Pay in full any additional returns that come due during the repayment period
Agree to an automatic bank draft from your checking or savings account
Assume that any future tax refunds or NC Education Lottery winnings will be applied to your tax debt
Agree to have a tax lien entered against your property for the duration of the repayment period

North Carolina Offer in Compromise

The North Carolina Offer in Compromise Program makes it possible for taxpayers to eliminate their tax debt by making a lump-sum payment for less than the full balance owed. To make an Offer in Compromise, you must complete Form OIC 100 and give the DOR a 20% down payment towards the settlement proposal. The DOR grants an Offer in Compromise when one of five conditions applies:

(1) There is a reasonable doubt as to the amount of the liability of the taxpayer under the law and the facts.

(2) The taxpayer is insolvent and the Secretary probably could not otherwise collect an amount equal to or in excess of the amount offered in compromise. A taxpayer is considered insolvent only in one of the following circumstances:

a. It is plain and indisputable that the taxpayer is clearly insolvent and will remain so in the reasonable future.

b. The taxpayer has been determined to be insolvent in a judicial proceeding.

(3) Collection of a greater amount than that offered in compromise is improbable, and the funds or a substantial portion of the funds offered in the settlement come from

sources from which the Secretary could not otherwise collect.

(4) A federal tax assessment arising out of the same facts has been compromised with the federal government on the same or a similar basis as that proposed to the State and

the Secretary could probably not collect an amount equal to or in excess of that offered in compromise.

(5) Collection of a greater amount than that offered in compromise would produce an unjust result under the circumstances.

To find out if an offer in compromise might be a good solution for you, get in touch with Taibi Law Group today. We are known for our thorough and comprehensive customer service. You can expect prompt responses and updates throughout every step of your case. Call us today at 919-916-1000 or complete the contact form on this website.

Innocent Spouse Relief

When married taxpayers file a joint tax return, both taxpayers are responsible for the tax and any interest or penalties due on the joint return, even if they later divorce. However, if you can show with reasonable cause that you were “innocent” and not aware of any understatement or erroneous information given in the joint tax return, the IRS may consider you “innocent’ and relieve you from paying the tax, interest and penalties.

To find out if you are a good candidate for innocent spouse tax relief, a tax relief lawyer will assess the facts and circumstances surrounding the filing of your joint return and devise a plan to find the best tax solution. It is crucial that your innocent spouse relief request is evaluated and assessed by an experienced tax attorney to avoid payment of the IRS tax debt, interest and penalties, if qualified. Please call our experienced tax lawyers at 919-916-1000.

Offer in Compromise (IRS & NCDOR)

An Offer in Compromise (OIC) allows you to settle your tax debt for less than the full amount owed. The OIC program was instituted by the IRS for taxpayers unable to pay off their IRS debt due to financial hardship or for those that claim the tax was wrongfully owed. In assessing an OIC, the IRS considers your unique set of facts and circumstances based on your ability to pay, income, expenses and asset equity.

To qualify for OIC consideration, you must show the IRS that one of the following conditions exist:

Doubt as to Collectibility: This situation exists when there is some doubt as to whether the IRS can collect the tax debt from you, now or in the foreseeable future. This is the most common way to settle your taxes.
Doubt as to Liability: This situation occurs when there is some doubt as to whether you actually owe the tax debt. The IRS may have assessed a tax in error due to mistake or lack of evidence. If this is the case, the IRS will terminate the tax debt upon proof.
Exceptional Circumstances: This situation occurs when payment of your tax debt in full would cause an “economic hardship” or would be “unfair” or “inequitable.” This is the least common type of tax resolution.

If you qualify, Taibi Law Group will help you resolve your taxes by determining which program is right for you by evaluating all financial documentation and determining the least amount that the IRS will accept from you. It is crucial that your OIC is submitted properly by an experienced Durham tax attorney or the result could mean a rejection of your offer or even worse, you may be required to pay more than necessary. If you qualify, this is the best deal you can receive from the IRS.

Payroll Tax Resolution

Payroll taxes are comprised of taxes an employer is required to pay and can be based on taxes withheld from an employee’s pay or taxes based on amounts paid to an employee. In addition, regardless of whether you have employees, a business can always expect to owe some sort of payroll tax on income received from the business. If you have payroll tax problems, the IRS is very aggressive in collecting the tax debt and quickly assigns a revenue officer. The IRS can seek collection not only from your business, but also from owners and officers, and can garnish your business accounts and file tax liens against your assets.

To avoid collection action and a possible payroll tax penalty for payroll tax debt, a tax relief lawyer will assess your financial situation and devise a plan to find the best tax solution for you by either settling your debt through the IRS Offer in Compromise Program or by negotiating an affordable payment plan. It is crucial that you consult with an experienced tax attorney to avoid being personally liable for payroll tax debt.

Tax Levy Removal

In order to satisfy an IRS tax debt, the IRS may seize or collect back taxes from a taxpayer’s bank account leaving them unable to pay their bills. If all notices are ignored by the taxpayer, the IRS will start Enforced Collection. Before the IRS may levy your bank account, it must first send your bank a “Notice of Levy” informing them that you owe back taxes. The employer is required to freeze all money in your accounts and will hold these funds for 21 days. If payment is not made within this time and no tax resolution offered, the bank must remit the funds to the IRS.

To avoid a bank levy by the IRS, our tax team will assess your financial situation and devise a plan to find the best tax solution for you by either settling your tax debt through the IRS Offer in Compromise Program or by negotiating an affordable payment plan. It is crucial that your bank levy is properly released by an experienced tax attorney to avoid seizure of your bank account. Please call us at 919-916-1000 to speak with an experienced attorney.

Wage Garnishment Prevention

In order to satisfy an IRS tax debt, the IRS has a wage garnishment right to take a portion of your wages or any other income until your outstanding tax balance is paid in full. This wage garnishment may leave you with very little to pay your bills and can amount to almost half of your gross monthly income. Before the IRS may garnish your wages, it must first send you a “Notice and Demand for Payment.” If this demand is not met, the IRS must send you a “Final Notice of Intent to Levy and Notice of Your Right to a Hearing” (levy notice) which allows you to make payment in full within 30 days from the date of the Final Notice to pay or to find another tax solution. If payment is not made within this time and no resolution offered, the IRS will give no further notice and will file a wage garnishment with your employer where seizure of your wages and other assets will commence.

The IRS is tough when they decide to garnish your wages. Generally, your income is garnished as well as government benefits such as your social security. The garnishment will not go away unless: the tax debt is paid in full, a financial hardship is found, a payment plan or offer in compromise is being considered by the IRS or you declare bankruptcy.

To avoid garnishment of your wages by the IRS, a Durham, North Carolina tax relief lawyer will assess your financial situation and devise a plan to find the best tax resolution for you by either settling your IRS tax debt through the IRS Offer in Compromise Program or by negotiating an affordable payment plan. It is crucial that your wage garnishment is properly removed by an experienced tax attorney to avoid a tax levy on your wages. Please contact Taibi Law Group by either by completing our online form or by calling us at 919-916-1000.