IRS back taxes is a very serious topic, we created a short list to capture ways you may be able to avoid wage garnishment and how tax relief experts help with negotiation and settlement. We are a nationwide tax relief company, our tax relief experts can help with IRS and state tax debt resolution, tax preparation & compliance, tax negotiation & settlement, collections & more.

1. S
10 Things You Should
Know if the IRS
Contacts You
What you NEED to know to protect yourself.

2. 1. You can file your original tax
return
S No matter how late it is, you have the right to file your original
tax returns
S If you do not file, you risk:
S The IRS filing for you at a significantly higher rate
S Civil Fraud penalties and restitution
S Criminal Investigation and Imprisonment!
S You must file all legally required tax returns in order for the IRS
to consider any type of settlement.

3. 2. If you ignore the IRS, they will
take away your paycheck
S If you ignore the IRS they can garnish your wages and drain your
bank accounts.
S IRS levies on wages or federal payments such as Social Security
will not stop until
1. Your tax debt has been fully paid off
2. The time expires for legally collecting the tax
3. The IRS determines the levy is creating immediate economic
hardship and releases it
S If you cannot afford to pay what you owe arrangements must be
made to settle your debt

4. 3. The IRS can withdraw from your
bank account
S If you owe back taxes, the IRS will issue a bank levy
allowing them to take money out of your bank or
investment accounts.
S The bank is required to remove however much is in your
account the day they receive the levy notice and send it to
the IRS.
S Releasing bank levies is a key part of resolving tax debt
issues.

5. 4. It is possible to negotiate a
payment plan
S An installment agreement allows you to pay your tax debt in
smaller portions over time, rather than all at once.
S Depending on your situation you may qualify for a PPIA
(partial-payment installment agreement).
S A PPIA requires you to make monthly payments to the IRS
which do not pay off your debt in full. Once all payments
are made your remaining tax debt is forgiven.

6. 5. Some people qualify for an Offer in Compromise
(OIC) where they pay less than they owe.
S An OIC is an agreement where the IRS agrees to settle tax debt
for less than the amount owed.
S In most cases, the IRS will not accept an OIC unless the “offer”
made by the taxpayer is equal to or greater than the reasonable
collection potential – how much the IRS measures your ability to
pay based on your income, assets, and basic living expenses.

7. There are three situations in which the IRS issues an Offer in
Compromise:
1. Doubt as to Collectability – it is doubtful the taxpayer could
ever pay the full amount of his/her tax debt within the statutory
time period for collection
2. Doubt as to Liability – a legitimate doubt exists that the assessed
tax liability is correct.
3. Effective Tax Administration – the tax is correct and there is
potential to collect the full amount owed but exceptional
circumstances prompt the IRS to consider an OIC.
5. Some people qualify for an Offer in Compromise
(OIC) where they pay less than they owe.

8. 6. Delinquent payroll taxes (941)
can be criminal!
S The IRS assigns very high priority to collecting employment
taxes
S Delinquent payroll taxes can trigger huge IRS penalties and
debt, and may also be considered a federal crime!
S It is extremely important to resolve your payroll tax debt
problems quickly to protect the future of your company and
livelihood!

9. 7. If you have “reasonable cause” any IRS
interest and penalties can be removed.
S Abatement of IRS penalties results in a partial or complete
cancellation of all penalties and associated interest
S If you can prove with “reasonable cause” that for circumstances
beyond your control, you could not pay your taxes despite trying to,
the IRS will often remove all associated penalties.
S Such circumstances include: death of a close family member,
unavoidable absence (rehab, prison), destruction of taxpayer records
due to fire, flood, etc.
S Working with a tax professional is your best chance to receive an
abatement based on your circumstances.

10. 8. When you owe taxes, the IRS issues
“secret” liens which can destroy your credit.
S A tax lien arises when you owe taxes, receive notice from the IRS
demanding payment and to do not pay the debt within 10 days.
This is called the “secret” or statutory lien.
S The lien is a statement to creditors alleging that you owe a tax
debt and that the IRS is first in line to seize your assets or income
to claim this debt.
S A tax lien will devastate your ability to find any kind of credit.
S A lien will show up on your credit report and attaches itself to all
property you own or acquire while the lien is in effect.

11. 9. The IRS has a fixed window after which
they cannot audit you or collect taxes.
S The IRS has 3 years to audit you from the date you file a
return.
S The IRS has 10 years from date of assessment (usually the
file date) to collect all taxes, penalties, and interest from the
taxpayer.
S In some circumstances a tax professional will advise you to
wait out the 10 years to resolve your tax problem.

12. 10. The IRS can look into your past tax
returns and determine you owe more than you
reported.
S An audit is an examination of the tax return you filed with the
IRS. The IRS has 3 years from assessment date to examine your
return.
S If the IRS determines you underreported your income 25% or
more they can go back 6 years.
S If the IRS determines fraud/evasion is involved they can go back
as far as they want.
S Going to an audit on your own is like going to trial without a
lawyer: it can cost you tens or hundreds of thousands of dollars.

13. If the IRS has contacted you:
S Call the professionals at Optima Tax Relief: 1-855-359-0627
S Why?
S Tax professionals with over 25 years of experience
S 15 day money back satisfaction guarantee
S “A” rating with the Better Business Bureau
S Real people who care about helping YOU
S Professional representation may be able to help remove levies,
liens, wage garnishments and settle your debt for less than you
owe