Taxpayer and Employer's Guide to IRS Form 668-W

(Levy on Wages, Salary, and Other Income)

The IRS has the right to collect delinquent taxes through wage garnishments and asset seizures forcibly. The agency will send Form 668-W to your employer if the IRS decides to garnish your wages. Here is an overview of what to expect if your boss receives this form, as well as tips for employers who receive this form. 

IRS wage garnishments can consume a significant portion of your paycheck. To protect yourself financially, you should reach out to the IRS before garnishment. Contact a local tax pro for help today if your wages are already garnished. 

What Does Form 668-W Mean?

Form 668-W notifies your employer that you owe back taxes to the IRS, and it instructs your employer to withhold some of your wages and send them to the IRS. If your boss doesn't comply with this form, they can face serious penalties. 

What Happens If My Boss Receives Form 668-W?

If your boss receives Form 668-W, they will give you a Statement of Dependents and Filing Status to complete. On this statement, you note your filing status and the number of dependents you claim on your tax return. This information helps your employer determine how much to withhold from your paycheck. 

You only have three working days to respond. Otherwise, your employer will garnish your wages as a single person with no dependents. This can leave you nearly penniless.

What If You Receive Form 668-W for Your Employee?

When you receive Form 668-W, you are supposed to start garnishing your employee's wages and sending them to the IRS. You may receive Form 668–W(ICS) or 668-W(C)DO. Do not ignore either of these forms. 

If you fail to garnish your employee's wages correctly, you can become personally responsible for your employee's back taxes, penalties, and interest. You can also incur a penalty of 50% of the tax owed. 

For example, suppose your employee owes $10,000 in back taxes and you ignore the IRS's instructions to garnish their wages. In that case, you can become personally responsible for the $10,000 tax liability plus a $5,000 fee. 

After receiving the garnishment instructions, give your employee the enclosed paperwork and have them return it in three days or less. Then, use that information to determine how much to withhold from their paychecks. In most cases, you must start garnishing your employee's wages within ten days or by the next pay period. 

How Much of My Wages Can the IRS Garnish?

The IRS must leave you money for necessary living expenses, but the agency can take everything over that threshold.

As of 2022, if you are married and filing jointly with three dependents, you can keep $751.94 per week. If you're single with no dependents, your weekly allowance is $249.04. Refer to Publication 1494 to see how much of your wages are exempt from garnishment. 

These allowances are very low. The IRS thinks you can survive on this amount. Ideally, you should avoid a wage garnishment by making arrangements before the IRS sends Form 668-W. If your wages are already garnished, contact a tax professional to get the garnishment lifted. 

How Long Do Wage Garnishments Last?

Wage garnishments last until the tax liability, penalties, and interest are paid in full. However, you may be able to get a garnishment released if the following appy:

• The garnishment was served after the collection statute expiration date (CSED). 
• Releasing the garnishment would allow you to pay the taxes faster. 
• The garnishment is causing financial hardship.
• You set up monthly payments and the agreement allows the garnishment to be released. 

In all of these cases, you will need to reach out to the IRS. The IRS will not release a wage garnishment unless you pay in full, negotiate a payment arrangement, prove that you're experiencing financial hardship, or convince the agency that releasing the garnishment will improve the collection process. A tax professional can help you deal with the IRS. 

How Long Should I Garnish My Employees Wages?

If you're an employer, you need to garnish the wages as instructed by Form 668-W until the IRS releases the garnishment. The IRS will send you Form 668-D when the garnishment has been released. You should only stop a garnishment when you hear from the IRS. You should never stop a wage garnishment based on your employee's instructions. 

What Is a Continuous Levy?

You may hear a wage garnishment called a "continuous levy". That simply means that the levy (garnishment) continues indefinitely until it is released. In contrast, a "one-time levy" only happens once. 

Here's an example. Imagine that you owe $10,000. The IRS sends a levy notice to your bank. You have $5,000 in your account, and the IRS seizes all of it. This is a one-time levy. If the IRS wants to levy additional funds from your account, the agency must send a new levy request. 

In contrast, imagine you owe $10,000, and the IRS sends a levy notice to your employer. After completing the paperwork, your employer garnishes $500 from your paycheck. Then, your employer garnishes $500 from your next paycheck, the paycheck after that, and so on. This process happens continuously until the garnishment is completed. 

Why Are My Wages Being Garnished?

Typically, the IRS will only garnish your wages if you have ignored several requests to pay delinquent taxes. Before sending Form 668-W to your employer, the IRS will send you a Final Notice of Intent to Levy and Notice of Right to a Hearing. 

At that point, you have 30 days to pay your tax liability, set up a payment plan, or request a Collection Due Process (CDP) hearing. A CDP hearing allows you to dispute the tax due or make payment arrangements. 

Can I Be Fired for a Wage Garnishment?

Your employer cannot fire you if you just have a single wage garnishment. However, there are no federal laws that prevent your employer from firing you for multiple wage garnishments. 

Check the laws in your state to find out if an employer can terminate an employee for multiple wage garnishments. 

W4 and Wage Garnishments

Form W4 tells your employer how much to withhold from your paycheck for taxes. Typically, you can submit a new W4 at any time, but you cannot submit a new W4 after your employer receives Form 668-W. 

However, if the garnishment lasts for more than a year, you can submit a new Statement of Dependents and Filing Status once a year. This allows you to make changes to the garnishment amount if your filing status or the number of dependents has changed. 

Difference Between Forms 668-W and 668-A

The IRS uses Form 668-A to garnish funds from third parties such as banks and clients. For example, if you are a 1099 contractor, the IRS may send Form 668-A to one of your clients. Sometimes, people refer to Form 668-A as a 1099 levy.

If your client receives Form 668-A, they must send the IRS the funds they owe you. Typically, your client must make the payment on the same day they normally pay your invoices. 

This can be professionally embarrassing. Clients may see you as irresponsible and untrustworthy if they find out you are not paying your taxes. To protect your reputation, you should try to deal with unpaid taxes before the IRS starts sending out these types of forms. 

Independent Contractors and Wage Garnishments

As indicated above, the IRS can send Form 668-A to clients of independent contractors. Form 668-A is a one-time levy form. However, in some cases, the IRS may know that a certain client pays you on a regular basis, similar to an employer. For instance, this may happen if you work for a company in the gig economy or if you have regular long-term clients. 

Sometimes, in these situations, the IRS may send Form 668-W to your clients. Because Form 668-W is a continuous levy form, your client may need to send repeated payments to the IRS. However, this is a gray area of the tax code. 

According to the tax code, Form 668-A applies to wages, salary, and other income. Arguably, payments from clients may be considered as other income. On the other hand, Form 668-A typically only applies to payments that are fixed and determinable, and payments from clients may not meet these criteria. If you believe that the IRS has sent the wrong form, you should contact a tax professional. 

How Much Do I Owe on My Wage Garnishment?

Initially, when the IRS sends out Form 668-A or 668-W, the form will state your total amount due. Your employer or client can see how much you owe when they originally receive the notice, but they will not be able to check your balance after that point. Due to privacy concerns, the IRS will only reveal your current balance to you or your power of attorney. 

Get Help With Form 668-W

If you are an employer who needs help complying with Form 668-W, contact a local tax pro today. They can help you ensure that you're handling the garnishment correctly.

Don't let the IRS garnish your wages. Instead, get help with your delinquent taxes today. Using TaxCure's directory, you can search for local tax professionals who have experience with wage garnishments. You don't have to deal with the IRS on your own — contact a local tax pro for help today.

Form 15103 (Form 1040 Return Delinquency)

What to Expect If You Receive Form 15103 or IRS Ask You to Complete

If the IRS believes that you haven't filed your tax returns, the agency may send you Form 15103 (Form 1040 Return Delinquency). The IRS usually sends this form with Notice CP56, CP59, or CP516, but you may receive it with another notice. The right response depends on your situation. Take a look at your options. 

What to Do If You Receive Form 15103 or IRS Asks You to Complete

If you receive Form 15103, you can get back into compliance by filing your returns immediately. But you may want to consult with a tax professional to ensure you file correctly and to reduce your penalties as much as possible. 

Alternatively, you can use Form 15103 to explain why you don't need to file or to give the IRS other details about the situation. The exact instructions for Form 15103 vary based on your situation — keep reading to learn more. 

How to Fill Out Form 15103 Questionnaire If You Already Filed

You could ignore the Form 15103 questionnaire if you filed your return in the last eight weeks. The IRS sent notice before receiving your return. You may want to follow up to make sure the agency received your return. You can use the IRS app or its Where's My Refund tool to check your refund status. 

If you filed more than eight weeks ago, you should attach a copy of the return to Form 15103. Then, tick the box saying you filed the return and fill in the year. Also, include the name on the return, the filed forms, the year, and the tax return date. Make sure that the name on Form 15103 matches the name on your tax return. 

What If the Person Listed on Form 15103 Is Deceased

In the case of a deceased taxpayer, you should note their date of death. Then, tick the box if you have already filed Form 1041 (Income Tax Return for Estates and Trusts). If so, note the name shown on the return, the EIN used on the return and the tax return year. 

Note that you only have to file this return if the deceased person's estate earned more than $600 in income. For instance, if the deceased person's estate received rent from an investment property or gains on a bond, this form may be required. Generally, you file a deceased person's final return in the same way as when they were alive, but you note their date of death on the return. 

How to Fill Out Form 15103 If You Don't Need to File

There is a spot on Form 15103 where you can note that you do not need to file. On this part of the form, you should note the tax year, your filing status, and your income. Then, select if any of the following situations apply: you or your spouse are over age 65, you or your spouse are blind, you're not a US citizen or permanent resident, you worked in another country, or you were claimed as a dependent on someone else's return.

Then, write out your reason for not filing. For instance, if your income was under the standard threshold, you would write something like, "I did not file because in the tax year 2020, my income was less than the standard deduction for my filing status." Or, if you didn't file because you are not a U.S. citizen or permanent resident, you would write out that reason. 

What If You Disagree With the Notice

If you disagree with the notices you received with Form 15103, you can contact the IRS directly. Call the phone number on your notice or hire a tax professional to contact the IRS for you. You can also use Form 15103 to explain why you disagree, as explained above. 

How to Submit Form 15103

Mail Form 15103 questionnaire to the address provided on the envelope you receive with your notice. Or fax the form to the number provided on the notice. 

How to File Delinquent Tax Returns

If you've received Form 15103 because you haven't filed your returns, you may want to get professional help filing your back taxes. Of course, you can also file them yourself. Here are some tips to help you:

• Gather all of your wage and income documents for unfiled years.
• If you're missing documents, reach out to the entity that issued them — for example, ask your bank if you can get a copy of your interest statements.
• Request a wage and income transcript from the IRS to see your W2 and 1099 information from various tax years. 
• Make sure you use the tax form from the delinquent year — income tax forms change from year to year. 
• Remember that you will owe penalties and interest on top of the tax due amount shown on the tax return. 
• But if you have a refund, the IRS will pay you interest — note that you only have three years after the original due date to claim a refund. 
• Once you file, apply for penalty abatement — the IRS is often willing to remove or reduce penalties, especially if this is your first offense and you had a reasonable cause for not filing. 

What If You Can't Afford to Pay Your Taxes?

People have all kinds of reasons for getting behind on their tax returns. Sometimes, life just gets in the way of paperwork. In other cases, you may be worried that you don't have enough money to pay. If you don't have enough money to pay, you should still file your return. 

Once your return has been filed, you can take care of your taxes using one of the following options:

• IRS installment plan — make monthly payments on your taxes over several years.
• IRS partial payment installment plan — make monthly payments until the tax expiration date.
• Offer in compromise — settle your tax liability for less than you owe if you cannot afford to pay it in full.
• Hardship status — get temporary relief from collection actions until your financial situation improves.

You can apply for these programs on your own or you can consult with a tax professional to identify the best option for your situation. 

Get Help With Form 15103

If you need help or have questions about Form 15103, contact a tax professional in your area. Tax attorneys, CPAs, and enrolled agents can help you file back taxes, respond to Form 15103 and negotiate with the IRS. To learn more, contact a local tax pro today.

How Much Does a Tax Attorney Cost?

Tax attorney costs vary, but you need to consider experience as well as price.

Tax attorneys can help with a wide range of tax problems, and they're the only tax pros who can represent you in Tax Court (other than Enrolled agents and CPAs with a USTCP designation with some restrictions). But if you've never worked with one, you're probably wondering how much tax attorneys charge. Tax attorney fees vary widely — from $500 to $10,000 or more. 

The cost depends on the complexity of your situation, the time required, and the tax attorney's fee structure. To get a quote, contact a tax attorney directly. Most tax attorneys start with a free consultation. Then they can explain their fee structure and give you an estimate of the cost.

This guide provides an overview of tax attorney rates and what to expect if you contact a tax attorney. Then, it covers alternatives to hiring tax attorneys if you want to save money. 

Types of Fees and Tax Lawyer Rates

When you ask, "How much does a tax lawyer cost?" you also need to find out how they assess their fees. Most tax attorneys charge flat fees or hourly rates. Here's an overview of these popular fee structures. 

Flat-fee pricing for tax attorneys

A tax attorney may charge a flat fee for each of the services they provide, or they may charge a flat fee that covers all of their services. For instance, one tax attorney may charge a fee for filing unfiled returns and another fee for submitting an offer-in-compromise application. Another attorney may charge a flat fee that includes both of those services and anything extra that you need. Flat fees vary based on the situation's complexity, and generally, a full financial analysis will happen before estimating the flat fee cost. 

Hourly tax attorney cost

In other cases, tax lawyers charge by the hour. Tax attorney hourly rates vary drastically. But on average, they tend to be $200 to $550 per hour. If you hire a tax attorney who charges by the hour, they can tell you how much their rates are. 

Whether a tax attorney charges a flat fee or by the hour, individual tax resolution cases cost $3,500 to $4,500 on average. For businesses, the average tends to be $5,000 or $7,000. However, depending on your situation, you may pay more or less than these averages. 

When You Should Hire a Tax Attorney

You should contact a tax attorney if you're overwhelmed with unfiled tax returns, unpaid taxes, or IRS collection actions. Tax attorneys can help you deal with liens and levies, negotiate with the IRS, and apply for tax relief programs. They have extensive expertise with tax laws and IRS programs. However, you can also hire other tax professionals such as Certified Public Accountants (CPA) and enrolled agents (EA) to help with these issues. 

You will likely need a tax attorney if the IRS investigates you for tax crimes. They can also offer you attorney-client privilege, which you don't get with other tax professionals. Check out this post to learn more about when to hire a tax attorney. 

Tax Attorney Cost Based on Service

How much does a tax attorney charge? Well, the IRS program you apply for will affect how much the tax attorney costs. Here is an overview of the average tax attorney fees for different types of IRS services. 

Keep in mind, however, that these prices are average. They may be higher or lower, depending on your situation. 

Installment Agreements

How Much do Tax Attorneys Charge for Installment Agreements?

On average, tax attorneys charge $2,500 to $3,500 to set up IRS installment agreements. The cost varies based on the complexity of your situation. For instance, if you owe more than $50,000, you may have to make a financial disclosure, and that can drive up the total tax attorney cost. Similarly, the number and complexity of your unfiled returns also affect the cost. 

What Is the Tax Attorney Cost for Partial Payment Installment Agreements?

Partial payment installment agreements cost $3,500 to $5,000 on average. They typically cost more than regular installment agreements because the application process is more detailed. With a partial payment installment agreement, you make monthly payments for a set period of time, and then, the IRS eliminates the rest of your debt. 

Offer in Compromise

How Much Are Offer-in-Compromise Attorney Fees?

The average tax lawyer rates for an offer in compromise range from $4,000 to $7,500. An offer in compromise lets you pay off your tax debt for less than you owe. This program is complicated and has low acceptance rates. For best results, you should hire a tax attorney who has experience with offers in compromise. 

Audits

How Much Does a Tax Lawyer Cost for an Audit?

Tax lawyers charge $2,000 to $3,500 for a straightforward audit, but for a more complex audit, the cost can be $5,000 or more. Generally, business audits cost more than individual audits, but it also depends on the complexity of your return. 

Earned Income Tax Credit (ETC)

How Much Do Tax Lawyers Charge to Help With ETC Audits?

The earned income tax credit (ETC) is one of the most commonly audited tax credits. The IRS audits ETCs at a significantly higher rate than it audits tax returns in general. 

If the IRS adjusts your return after reviewing your ETC claim, a tax attorney can help you contest the changes. Tax attorney rates for ETC help vary, but they're often less than the cost of a full audit. You can get a quote by contacting a tax attorney. 

Penalty Abatement

What Is the Tax Attorney Cost for Penalty Abatement?

Tax lawyer rates for penalty abatement can range from $250 to $1,000 or more. Some tax attorneys charge a base rate for penalty abatement plus a percentage of the fees they remove. If you hire a tax attorney for penalty abatement, make sure that their fees aren't higher than the penalties you need to be removed. 

These are just some of the services you can access from a tax attorney. When you contact a tax lawyer, they can go over the options for your situation and answer your questions about how much tax attorneys charge. Before selecting a tax lawyer, you may want to get a few quotes from a few different professionals. 

But keep in mind that fees should not be your only consideration. You also have to ensure the attorney has the experience you need. 

How to Find an Affordable Tax Attorney Near Me

After asking, "How much does a tax attorney cost?", most people's second question is, "How do I find an affordable attorney near me?" To find a local attorney with affordable rates, talk with friends or family. Or look for local listings in your area. 

Use TaxCure to search for a local attorney in your area for a more practical approach. We host a directory of tax professionals from all over the country. Using our site, you can search for tax attorneys and other tax professionals based on their experience with your particular tax issue. You can also narrow your search to ensure the tax attorney has experience with your state tax authority. Remember, you don't necessarily need a local tax attorney. You just need an affordable tax attorney with the right experience. You can meet virtually if the tax attorney isn't close to your home. 

What to Consider When Hiring a Tax Attorney

If you're hiring a tax attorney, you need to consider their experience and customer reviews. Also, compare their fees to the costs of other tax attorneys. To ensure you hire the best tax attorney for your situation, consider asking the following questions.

• Are you experienced with my tax issue?
• Where are you licensed to practice? Can you help clients in my state?
• Who will work on my case? What are their credentials? Are they tax professionals?
• Do we have client-attorney privilege?
• How much do you charge? Do you charge a tax attorney hourly rate or a flat fee?
• What is your billing process?
• How will we communicate? What should I expect from this process?
• What tax resolution program do you recommend for my situation?
• Do you have experience with that type of tax resolution?
• Do you have reviews from other clients?

While talking with different tax attorneys, keep in mind that there are no "special programs." A tax lawyer cannot connect you with a special IRS program that isn't available to other attorneys. They can only help you apply for existing programs. If a company claims that they are the only ones who can help you apply for a certain program, it's simply not true. 

However, experience is certainly a defining factor. A tax professional with a lot of experience in a certain area may be able to get you a better resolution than someone without experience. This is true even if they're dealing with the same IRS program. 

Alternatives to Hiring a Tax Attorney

A tax attorney is not your only option. Certified Public Accountants (CPAs) and enrolled agents (EAs) can also represent you in front of the IRS. There are also tax resolution firms, and many people take care of their own tax issues. Here is an overview of what to consider with each of these alternatives to a tax attorney.

CPAs and Enrolled Agents

CPAs and enrolled agents can handle the same issues as tax lawyers with the exception of tax crimes and Tax Court. In some cases, these tax pros are less expensive than the cost of a tax attorney. But it depends on the situation. You may want to talk to a few different professionals as you narrow down your choices. 

Tax Relief Companies

Tax relief companies often employ tax attorneys. Although they have the right credentials to represent you, the attorneys at these companies cannot offer you attorney-client privilege. Unfortunately, some of the larger national tax relief companies are also notorious for overcharging for subpar services. 

This industry has a lot of consumer complaints, and the Federal Trade Commission (FTC) advises consumers to avoid these companies. In most cases, you get better help and better prices if you work directly with a company where you know the professional that will be handling your case.

Do-It-Yourself Tax Resolution

You can take care of problems on your own, but a tax professional is an investment if you're dealing with a complex situation. They can help you avoid errors. They negotiate with the IRS. Their experience enables you to get a better resolution. 

If you're thinking about tackling your own tax problems, here are some signs you should take a DIY approach:

• You're comfortable dealing with your tax problems on your own.
• You understand the tax resolution options. 
• You owe less than $10,000. 
• You don’t question the amount owed and can afford to pay it over time.
• You don't have any unfiled returns.
• You're dealing with individual income tax rather than business taxes. 
• The IRS has not issued a lien or put a levy on your assets. 
• The IRS isn't garnishing your wages. 
• You're not facing tax crime charges.
• You don't need to go to Tax Court.

On TaxCure, we have published detailed pages on tax solutions and resolution options. If you want to handle your own tax issues, you can find the information you need and links to IRS forms on our website. Note, however, that the complexity of certain tax problems is outside the scope of what we can cover online. You should contact a tax pro if you're dealing with a complex tax concern. 

How to Get Quotes From Multiple Tax Attorneys

Using TaxCure, you can easily get quotes from multiple tax attorneys. On this site, you can search for tax professionals based on their experience with certain tax issues or tax agencies. You can also narrow down your search so that you only see tax attorneys in the results. 

Once you've searched on TaxCure, you can read different attorneys' profiles, see client reviews, and more. Then, you can contact as many tax attorneys as you like to get quotes. Our directory of tax professionals makes it easy for you to find a qualified, affordable tax attorney in your area. 

Free Consultations From Tax Attorneys

Most tax attorneys offer free or no-cost consultations, and you should take advantage of this offering. During your free consultation, you briefly explain the issue. Then, the tax attorney gives you an overview of the options and answers your questions about how much a tax lawyer costs. 

Free consultations can be a great way to get quotes from multiple tax attorneys. More importantly, these meetings give you a chance to learn more about the tax attorney's experience so that you can choose the right professional for your situation. Outcomes for audits, offer-in-compromise applications, partial payment plans, and other services can vary drastically depending on the tax pro's experience. 

Get Help From a Tax Attorney Today

To get help now, search for a tax attorney today. Then, call for a free consultation to learn more. You don't have to deal with the IRS on your own. You can get trustworthy, experienced, and affordable help by searching for a local tax lawyer on TaxCure today.

Guide to California Franchise Tax Board Leins

What to Expect if the CA Franchise Tax Board Issues a Lien Against You for Unpaid State Taxes

The California Franchise Tax Board (FTB) can issue a state tax lien against your personal property if you have unpaid state taxes. A lien secures the state's interest and allows the state to claim the funds if you sell the underlying assets. This guide explains what to expect if the CA FTB has issued a lien against you, and it outlines how to get a California tax lien released. 

How the CA FTB Issues Liens

The CA FTB can file liens in the county recorder's office or with the Secretary of State. Once issued, the lien becomes public record and attaches to all of your personal and real property. In California, state tax liens attach to homes, buildings, vacant lots, vehicles, business assets, and any of your other assets. 

CA tax liens last for ten years, and the CA FTB can extend them beyond that time frame. Liens also attach to property that you acquire in the future. For instance, if there is an active state tax lien against you and you inherit an RV, the lien will attach to the RV. 

The Effect of CA Tax Liens

Liens are public records. Once they're attached to your property, the state has the right to the proceeds if you sell the asset. To explain, imagine that the FTB issues a state tax lien in the amount of $15,000. It attaches to all of your assets, and you sell a vehicle you own for $10,000. The CA FTB has the right to that money. 

This is exactly the same as if you had a mortgage against a home or a car loan for a vehicle. The lender has a lien against those assets for the amount of the loan. If you sell the asset, you must repay the loan. A tax lien works about the same way. 

The CA FTB can charge a cost recovery fee for the cost of the lien. This fee gets added to your tax liability along with interest and penalties. A CA tax lien can affect your credit score. It can also make it difficult to do the following:

• Buy, sell, refinances, or transfer property
• Take out personal or business loans.
• Get jobs in industries where you need a high credit score or have to demonstrate financial responsibility.

Luckily, there are ways to get the lien released If the CA FTB files a lien against you for unpaid taxes. 

How to Get a California State Tax Lien Released

The CA FTB will immediately release a tax lien if you pay the tax liability in full or if the lien was recorded in error. If you pay your CA back taxes in full, the CA FTB must release the lien within 40 days. If you pay by check, the 40-day period doesn't start until the check clears your bank account.

Liens are considered to be in error if any of the following apply:

• The underlying liability is incorrect.
• The lien was recorded after you paid the tax bill.
• The lien was filed with the wrong name or an incorrect Social Security Number (SSN) or Employer Identification Number (EIN). Basic typographical mistakes don't constitute an error. 

If a lien was filed against you in error, you could request that the CA FTB send a notice to the credit reporting agencies. The notice will say that the lien was filed in error and request the credit reporting bureaus to remove it from your credit report.

Partial Lien Release

A partial lien release is when the state removes the lien from a specific piece of property. The CA FTB will only do a partial lien release if it doesn't affect the state's ability to collect the back taxes or if a lien secures the tax liability on another piece of property. 

For instance, if a piece of property doesn't have enough equity to cover the tax bill, the FTB may do a partial lien release and agree to accept less than the full amount due. This may happen if you qualify for an offer in compromise in California. 

To request a partial lien release, you need the following:

• Letter explaining why you need a partial lien release.
• Estimated closing statement prepared by the escrow company.
• Preliminary title report with a property description.
• Appraisal or other document showing fair market value.
• Documentation that proves pay off to lienholders.

If the CA FTB agrees to a partial lien release, the lien will continue to be attached to your other property and to any property that you acquire in the future. 

CA FTB Lien Subordination

Multiple liens may be attached to the same piece of property in many cases. To give you an example, imagine that you owe a mortgage on a home, and the CA FTB issues a state tax lien against you. Now, both your mortgage holder and the state have a lien on your home. 

When there are multiple liens on a property, they have different levels of priority depending on the situation. In the above example, the mortgage holder's lien takes precedence over the state tax lien. Generally, under California law, liens take precedence based on the statutory lien date. In other words, lien priority is based on the order in which the liens were filed. 

For instance, if the IRS files a tax lien against you, and then, a month later, the CA FTB files a lien against you, the IRS lien takes precedence. But if the state tax lien was filed first, it would take precedence. 

Subordination is when a lien holder agrees to let another lien holder take priority. The state may sometimes be willing to subordinate its claim to another lien holder. 

Notice of State Tax Lien in California

Before issuing a state tax lien against you, the CA FTB will send you Notice FTB 4932 (Intent to Record a Notice of State Tax Lien). This notice outlines the effect of a state tax lien. If you don't pay within 30 days after receiving this notice, the state will move forward and file the lien. 

How to Prevent a Tax Lien in California

Removing a tax lien can be difficult. If possible, you should try to avoid state tax liens. To prevent tax liens, you need to do the following:

• File state personal and business tax returns on time.
• Pay tax liabilities in full when due or set up payment plans.
• Make sure your employer withholds enough tax from your paycheck.
• If self-employed, ensure you make adequate quarterly payments so you don't have an outstanding tax liability when you file your annual tax return. 
• Don't ignore CA FTB notices.
• Keep your address updated with the CA FTB, so you don't miss any notices. 
• Make sure your tax documents such as W2w, 1099's, and K-1's have the right information on them. 

In many cases, if you set up an installment plan on your CA back taxes, the FTB may still issue a state tax lien against you. To avoid a lien, try to request the payment plan before the state files a tax lien. 

California Tax Lien Verus Tax Levy

A state tax lien is the state's claim to your assets. In contrast, a levy is when the state seizes your assets. For instance, if the state garnishes your wages, that is a tax levy. Similarly, if the FTB seizes your bank accounts, that is also a levy. Generally, the FTB must issue a lien before it can move forward with a levy.

Get Help With CA FTB Tax Liens

A tax lien can affect your credit and make it difficult to sell or transfer your assets. To get help with state tax liens, you need a local tax pro who is experienced in dealing with the FTB. A California tax professional can help you apply for a lien release. They can also talk with you about other resolution options for California back taxes.

To get help with a state tax lien, contact a CA tax pro today. TaxCure makes it easy to find a tax pro you can trust. Using our directory, you can search for tax pros who have experience with the CA FTB, and you can also filter your results based on their experience with specific types of tax problems.

IRS Form 656-L (Offer in Compromise Doubt as to Liability)

How to Reduce Tax Liabilities When You Dispute the Amount Owed

If there is legitimate legal doubt about the existence or amount of tax you owe, you may qualify to reduce your tax liability through an offer in compromise based on doubt as to liability. These are complicated concepts, and for best results, you should work with a tax lawyer, Certified Public Accountant (CPA), or enrolled agent (EA). 

To help you out, this guide explains the essentials. It provides examples of doubt as to liability, and it outlines how to apply for this type of offer in compromise. 

What Is an Offer in Compromise?

An offer in compromise is an agreement between a taxpayer and the Internal Revenue Service (IRS) to settle the taxpayer's taxes for less than the full ataxmount owed. Simply put, you "offer" how much you think you should pay, and if the IRS agrees, the agency "compromises" on the bill. 

There are two main types of offers in compromise: doubt as to collectibility and doubt as to liability. Doubt as to collectibility comes into play when you can't afford to pay your tax debt. The IRS doubts that it will be able to collect the full amount, so it lowers your bill. This guide covers doubt as to liability. 

In rare cases, the IRS also settles tax bills based on effective tax administration. This is a type of offer in compromise that can come into play when the other two options don't apply. There is more information on effective tax administration at the end of this page.

What Is Doubt as to Liability?

Doubt as to liability means there is a doubt that the liability exists. Depending on the situation, you may doubt the entire tax debt or just a portion. To reduce your tax debt, you need to convince the IRS that the doubt is legitimate. 

You cannot apply for doubt as to liability if there is already a final court decision about the tax owed. Similarly, you cannot apply for this program if the tax due is based on current law. 

Examples of Doubt as to Liability

Doubt as to liability usually applies when a tax examiner makes a mistake or ignores the information you provide. It can also apply when new evidence is available about the situation. Here are a couple of examples to help you understand when you can apply for doubt as to liability. 

Doubt as to Liability After an Audit 

Imagine the IRS audited your tax return. A house fire destroyed your tax records, you moved to a new home, and in the shuffle, you missed the notice about the audit. The IRS decided to disallow many of your expenses, and as a result, you incurred a tax debt. 

Because you didn't receive the mail, you weren't aware of the tax bill for quite a while, and it incurred penalties and interest. When you become aware of the tax bill, you requested an audit reconsideration. 

Unfortunately, the IRS issued an adverse decision about the consideration, and you didn't appeal. So, you decided to apply for an offer in compromise based on doubt as to collectibility. During this process, you convinced the IRS that the expenses were reasonable, and you explained why you no longer had the records. The IRS agrees that there is a doubt that the liability exists and reduces your tax bill.

Doubt as to Liability After Amending a Return

Here's another example. Say you filed a tax return that included the value of stock options from your employer, and you incurred the Alternative Minimum Tax (AMT). You paid most of your tax debt, but you couldn't afford to pay all of it. 

A few months later, you learned that your employer over-valued the stock options. You filed an amended tax return showing the new value of the stocks. Unfortunately, the IRS said that you need to pay the full amount of the original tax due before requesting a refund. 

You received an adverse decision on your amended return and didn't appeal. At this point, you can request an offer in compromise as to doubt as to liability. If the IRS agrees with your claim, it will reduce your tax debt. 

As you can see, in both of these examples, the taxpayer sought a different resolution before applying for the Offer in Compromise. In many doubt as to liability cases, you must first explore other alternatives before applying for this program. A tax pro can help you decide if this is the right option for your situation. 

Requirements for a Doubt as to Liability Offer in Compromise

The main requirement for a doubt as to liability offer in compromise is a legitimate doubt that the tax exists or a legitimate doubt of its amount. The doubt must be based on law. You cannot make this type of claim to make general disagreements about the fairness or constitutionality of income tax. 

You do not qualify for this type of offer in compromise if any of the following apply:

• There is already a final court decision about your tax debt. 
• You're involved in an open bankruptcy case. You can apply when your case is resolved.
• You owe restitution to the IRS. The IRS will not compromise restitution. 
• You've already had a doubt as to collectibility offer in compromise for the same tax year or the same tax debt. 
• You've made an election under Internal Revenue Code 965(i). This typically only applies to s-corps. A tax pro can give you more information. There are also special rules if you're deferring a tax liability under IRC 965(h)(1). 

How to Apply for Doubt as to Liability

To apply for an offer in compromise based on doubt as to liability, you need to file Form 656-L (Offer in Compromise (Doubt as to Liability)). Here is an overview of the instructions on how to fill out Form 656-L.

Section One Form 656-L

To get started, this form requires the basics such as your name, Social Security Number, address, and your spouse's information. Then, you note the tax period and the return filed. Form 656-L lists Forms 1040, 941, 940, and the Trust Fund Recovery Penalty, but if you owe other federal taxes, you can also note them. 

Section Two Form 656-L

If you're requesting a compromise on business taxes from Form 1120, 940, 941, etc, you must fill out section two of Form 656-L. This section is for taxpayers who doubt the liability of corporate income tax, employment tax, federal unemployment tax (FUTA), or other federal business taxes. 

Section Three Form 656-L

In section three of Form 656-L, you make your offer. The offer amount is the only thing you note in this section. When you're applying for doubt as to liability, the offer must be at least $1, and it should represent the amount you believe you owe for the tax. 

Section Four Form 656-L

Section Four of Form 656-L doesn't require any information from you. Instead, it lists the terms of the offer in compromise. When you sign at the end of the form, you agree to the following terms:

• You must voluntarily submit payments for the offer. 
• The IRS can keep any payments or tax refunds while the offer is being reviewed. 
• The IRS can keep proceeds from levies such as bank levies or wage garnishments related to this tax debt until an IRS official signs the offer and acknowledges it as pending.
• Once the offer is pending, the IRS cannot serve any levies. 
• If the offer review process reveals that the IRS collected too much, the IRS will return the over-collected amounts. 
• You remain liable for the tax, penalties, and interest while the offer is pending. 
• You have the right to appeal a rejection within 30 days. If you don't protest within 30 days, you waive your right to an appeals hearing.
• If the IRS has not processed your application within 24 months, your offer will be automatically accepted. 
• If you don't meet the terms of the offer, the IRS has the right to sue you or levy your assets for the original amount of the tax debt plus interest and penalties minus payments you've made. 
• You authorize the IRS to contact third parties as necessary when reviewing your offer. 

By submitting an offer in compromise application, you agree to extend the statute of limitations on tax assessment for the length of time while the offer is pending, plus an extra year if the IRS rejects or terminates your agreement. If you don't want to extend the statute, you can still apply, but the IRS doesn't have to consider your offer. In this case, the statute will still be extended for the length of time the offer was pending plus an extra month after rejection or termination. 

Section Five Form 656-L

Section five is the most important part of Form 656-L. In this section, you get to explain why you believe that you don't owe the tax. To be effective, you need to be thorough and have a good understanding of the tax code. A tax pro can help to ensure you complete this part correctly. If you need extra room, attach additional sheets. Note your Social Security Number or Employer Identification Number on each sheet for references. 

Section Six Form 656-L

In section six, you and your spouse sign your names. Corporate officers should sign in this section if you're applying for a business. You can also check a box to allow the IRS to contact you by phone about your offer. 

Section Seven Form 656-L

If someone filled out this form for you, you should note their information in this section. You can note anyone who helped you. This section isn't just for paid preparers. 

Section Eight Form 656-L

Paid preparers should fill out section eight. If you handle this form on your own, simply leave this section blank. If you want someone to represent you about this matter to the IRS, you should also attach Form 2848 (Power of Attorney and Declaration of Representative) or Form 8821 (Tax Information Authorization). 

Supporting Documents for Form 656-L

When you file Form 656-L, you must include documents supporting your claim. The documents will vary depending on your situation. A tax pro can help you ensure you include the right documents. 

Alternatives to Offer in Compromise Doubt as to Liability

Here is an overview of several different situations where your tax debt may be incorrect. Still, you shouldn't necessarily apply for an offer in compromise based on doubt as to liability. Instead, you should use the other resolution programs explained below. 

You can't afford to pay the tax due. 

If you agree with the amount of tax due but cannot afford to pay it, you can still apply for an offer in compromise. But rather than applying based on doubt as to liability, you need to apply based on doubt as to collectibility. Use Form 656-B (Offer in Compromise Doubt as to Collectibility). 

Your tax debt is incorrect due to mistakes you made on your tax return.

In this situation, you should amend your return. Depending on the return you filed, you should use Form 1040-X (Amended US Individual Income Tax Return), Form 1120-X (Amended US Corporation Income Tax Return), or Form 709 (US Gift Return). 

If the IRS rejects your amended return, you may be able to appeal or request an audit reconsideration. Alternatively, rather than appealing, you may apply for an offer in compromise based on doubt as to liability. 

Your tax bill is incorrect because the IRS filed your return. 

In some cases, when you don't file a tax return, the IRS may file a return on your behalf. The agency may file a substitute-for-return for your individual or business returns. These returns are often incorrect. 

In this case, you should file the return that was filed on your behalf. Depending on the situation, this may be Form 1040 (Individual Income Tax Return or a business return such as Form 941 (Employer's Quarterly Federal Tax Return). 

Your tax debt is incorrect due to an audit. 

If the IRS changes your return due to an audit, you may end up with a tax debt you don't agree with. To contest the tax, you should request an audit reconsideration. Requesting an audit reconsideration reopens the audit and allows you to present new information. 

Note that you can't request reconsideration if you already paid the full tax debt. Instead, you should file an amended return. 

You disagree with penalties on your tax bill.

If you disagree with penalties, you may qualify for penalty abatement. The IRS is often willing to remove penalties, especially for first-time offenders who have reasonable cause. To request penalty abatement, file Form 843 (Claim for Refund and Request for Abatement). 

You disagree with changes the IRS made to your return based on unreported income. 

This scenario occurs when the IRS's info on file doesn't match the info on your return. For instance, if the income you report is lower than the income shown on the W2 your employer sent to the IRS, you have unreported income. Similarly, if the IRS receives a 1099 form in your name but doesn't see the income on your return, you also have unreported income. 

When this happens, the IRS will send you a CP2000 notice. The notice outlines the steps you should take if you disagree with the IRS's changes to your return. 

The tax is incorrect due to inconsistencies between Forms W2/W3 and Forms 941, 943, 944, 945, or 1040 Schedule H.

At the end of the year, employers send W2 and W3 forms to the Social Security Administration (SSA) to report how much their employees have earned through the year. Most employers also file Form 941 quarterly. Or they may file one of the following returns annually: Form 943 for farmworkers, Form 944 for very small employers, Form 945 for non-employees, or Schedule H for household employers. 

The IRS and SSA use Combined Annual Wage Reporting (CAWR) to ensure their information matches. If there is a discrepancy that indicates an underpayment of tax, the IRS will send you a notice and open a CAWR case. To address the issue, figure out which form had the mistake. Then, submit a corrected version of the form to the IRS or SSA.

The incorrect tax is due to the Affordable Care Act or marketplace tax.

The Affordable Care Act (ACA) allowed the government to assess a penalty on your tax return if you didn't have health insurance for the full tax year. The penalty was eliminated at the end of 2018. As part of the ACA, the government also issues tax credits to people who purchase insurance on the marketplace. If your income is too high, you may have to repay some of the credits. 

If you have a tax liability due to these types of issues and you disagree, you should not use the doubt-as-to-liability program. Instead, you should file an amended return. The amended return should clearly indicate that you do not owe the ACA or marketplace tax. 

The tax liability is incorrect because you were misclassified as an independent contractor or an employee.

Your employment status has a direct effect on your tax liability. If your employer misclassifies you as an independent contractor, you will incur self-employment tax. This covers Medicare and Social Security, and it's double the amount you pay as an employee. 

On the other hand, if your employer misclassifies you as an employee, you will not be able to deduct expenses from your income as you can when you're an independent contractor. Depending on the situation, both types of misclassifications can create an incorrect tax debt. 

If you're dealing with this issue, you should file Form SS-8 (Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding). The IRS will use the information on this form to determine your correct employment status. Then, your tax debt will be adjusted based on the determination. 

You believe the tax owed is due to your spouse or ex-spouse's actions.

If the tax is due exclusively to your spouse or ex-spouse's actions, you should apply for innocent spouse relief. For example, imagine your spouse was hiding income from you. They didn't report it on your tax return, and the IRS sent you a bill for the tax and penalties. Because you didn't know about the underreported income, you may qualify for this program. If you don't qualify for classic innocent spouse relief, you can apply for separation of liability relief or equitable relief.  

To apply, file Form 8857 (Request for Innocent Spouse Relief). If the IRS has kept your joint refund to cover a liability due just to your spouse (such as child support or back taxes), you may need to file Form 8379 (Injured Spouse Allocation). 

If you have exhausted all of these other options, you can apply for doubt as to liability. Doubt as to liability cases requires a very firm understanding of the tax code. If you want your claim to be successful, you should work with a tax pro who has experience with this program. 

What If You Agree With the Tax But Can't Pay?

As indicated above, the doubt-as-to-liability program applies when you doubt the liability of the tax. If you agree with the legitimacy of the tax, you should not use this program. Instead, you need to apply for an offer in compromise based on doubt as to collectibility. 

If you submit applications for both types of offers in compromise, the IRS will return the doubt as to collectibility application. The agency will not review that application. 

Effective Tax Administration

Effective tax administration (ETA) produces equity and fairness in the tax collection system. This option doesn't apply to people who doubt the legitimacy of the tax. Instead, it comes into play if you can technically afford to pay the tax or an offer, but doing so would cause economic hardship. ETA can also apply in cases where there is a compelling equity consideration for compromising the tax.

You need exceptional circumstances to qualify for this option. Most people who settle taxes this way are very advanced in age or have serious illnesses. For example, imagine someone who could sell assets to pay their taxes. However, their child has a chronic illness, and they may need to sell the assets to cover their child's expenses. 

Get Help With Doubt as to Liability

Facing a tax debt that you don't think is legitimate? Not sure what to do? You may qualify to reduce your tax debt based on doubt as to liability. To learn more, contact a tax professional today.

Using TaxCure's search feature, you can search for a local tax pro experienced with offer in compromise filings. They can talk with you about your situation and help you find the best resolution option for your situation.

Oklahoma Back Taxes: Resolution Options and Collection Activities

The Oklahoma Tax Commission (OTC) administers personal and business taxes in Oklahoma. You can file individual, corporate, franchise, and partnership income tax returns with the OTC as well as Oklahoma sales and withholding tax returns. 

But what if you can't afford to pay your Oklahoma tax liability? The state offers several options for taxpayers who cannot pay their tax bills in full, but you need to act promptly. The OTC outsources tax collection to private collection agencies, and once your account has been assigned to an agency, you can no longer make arrangements with the OTC. 

To help you out, this guide explains the resolution options for back taxes in Oklahoma. Then, it looks at what can happen if you don't pay your back taxes. 

Oklahoma Back Tax Resolution Options

If you cannot afford to pay your taxes, the OTC recommends filing your return and paying what you can. Then, the OTC will send you a billing notice outlining the tax, penalties, and interest due. At that point, you need to contact the OTC directly or work with a tax professional to make arrangements for your tax liability. 

The options vary based on your situation. Here is an overview of the essentials as well as links to pages with more information on OK payment plans and offers in compromise. 

Payment Plans for Oklahoma Back Taxes

The OTC is willing to let taxpayers pay off their back taxes in monthly installments. To set up a payment plan, you must owe more than $100, and you must meet the eligibility criteria. 

Most importantly, you must contact the OTC to set up the payment plan before your account is placed with a third-party collection agency. To learn more, check out our overview of an Oklahoma tax commission payment plan.

Oklahoma Offer in Compromise

If you meet strict qualifications, you may be able to settle your OK taxes for less than you owe through the state's offer-in-compromise program. To apply, you must complete a lengthy application process and convince the OTC that your offer is the most the agency is likely to be able to collect. Find everything you need to know on the OK state offer-in-compromise page. 

Innocent Spouse Relief

Oklahoma offers innocent spouse relief to taxpayers who are divorced, separated, widowed, or deserted. To qualify, you must prove that your spouse understated the tax on your state return without your knowledge and that it would be unfair to hold you responsible. 

Note that innocent spouse relief relieves you of state income tax related to your spouse's income. You still must pay the tax due to your own income. When assessing your application, the OTC considers your involvement in your family's financial affairs, your business or educational background, and whether or not you benefited from the unpaid tax. 

The application asks questions about all of these issues. It also has a space where you can include information about domestic violence and abuse. 

To apply for this program, submit Form L-21 (Request for Innocent Spouse Relief in Oklahoma). You also need to include copies of your divorce petition, divorce decree, or late spouse's death certificate as well as your federal income tax returns for the years you're requesting relief. If you have received innocent spouse relief from the IRS, you should include your determination letter with your application. 

Hardship Status

The OTC does not advertise a hardship program for state income taxes. If you cannot afford to pay your state income tax, you may want to consult with a tax professional about the best options for your situation. 

However, at the time of writing, the OTC has a hardship plan in place for sales tax. If you had a hardship or a good reason for not filing a sales tax return, you can get an abatement on penalties and interest until April 10, 2023. This program was designed to help businesses as they get into compliance with the state's new sales tax rules implemented in 2018 after the South Dakota Vs. Wayfair ruling. 

Penalty Abatement

You can request a waiver of your penalties once you have paid the tax in full. The OTC will consider why you paid the tax late as well as your previous history of compliance. Typically, you cannot request penalty abatement if you still have an outstanding balance. 

Appeals Process for Oklahoma Taxes

If you disagree with an order, ruling, or finding of the OTC, you have the right to appeal. You can request an appeal trial de novo in the district court of Oklahoma County or in the county where you live. You must appeal within 30 days of receiving a notice from the OTC. If you disagree with the results of the appeal trial, you can appeal directly to the Oklahoma Supreme Court. 

Appealing assessed taxes can be a complicated process. You have the legal right to represent yourself, but to protect yourself and your assets, you may want to work with a tax attorney or another tax professional such as a certified public account (CPA) or enrolled agent (EA). 

Enforcement Actions for Oklahoma Back Taxes

If you ignore your Oklahoma back taxes, the OTC Collection Division can pursue involuntary collection actions against you. The state has many different collection options at its disposal. Take a look at the enforcement options that you may face if you owe back taxes in Oklahoma. 

Oklahoma Warrants for Unpaid Taxes

Oklahoma can issue tax warrants for unpaid taxes. Also called tax liens, the warrants declare that the state has the right to a taxpayer's personal or real assets. Oklahoma state tax warrants supersede any other liens placed against the assets after the warrant. 

Once a warrant has been attached to your property, you will not be able to sell or take loans out against the property. To get the lien removed, you must pay the tax, interest, and penalties in full. If you pay with a debit card, electronic funds transfer, or automatic withdrawal, there will be a 30-day hold for lien removal. The state will immediately release the lien if you pay by credit card, cash, money orders, or certified check. 

Liens expire after 10 years. But as long as the state acts before the lien expires, it can issue a new lien. The second and all other subsequent liens also last for 10 years. 

Oklahoma Tax Levy

Once the state has issued a tax warrant, the sheriff in the county where the lien has been issued has the right to sell your personal or real property. The sheriff does not have to evaluate or appraise the assets prior to selling them, and the sheriff has the right to collect unpaid taxes, penalties, interest, advertising costs, and collection fees through the sale. 

The state also has the right to garnish wages and seize bank accounts for unpaid taxes. In Oklahoma, wage garnishment is called a "continuing garnishment" because it continues until the tax liability has been paid in full. A bank account garnishment is called a "one-time garnishment".

Tax Penalties Charged

The OTC assesses a one-time penalty of 5% of the tax due for unpaid taxes. The penalty applies if you are even a day late, but it can also apply if you don't pay your quarterly taxes on time. 

There is a 10% one-time penalty for paying business taxes late. The state also charges interest at a rate of 1.25% per month on both personal and business taxes. If you owe over $1,000 and underpay your estimated taxes, the interest rate is 20% per year. That is 1.667% per month. 

Other Enforcements for Unpaid Oklahoma Taxes

The state publishes a list of the top 100 tax delinquencies over $25,000. This list is on the OTC's website, and Oklahoma-based newspapers often reprint the list. To be on the list, your total amount due must be over $25,000 and more than 90 days delinquent. 

However, you do not necessarily get a spot on the list if your unpaid taxes are over $25,000. Instead, you need to be in the top 100, and at the time of writing, every person or business on the list owed over $450,000. Appearing on this list can hurt your personal and business reputation significantly. 

In the past, the state dismissed employees who owed state back taxes. Luckily, this law was overturned (almost unanimously) in 2020. Now, state employees can keep their jobs, but the state has the right to garnish their paychecks for unpaid taxes. 

Statute of Limitations on Oklahoma Tax Liabilities

Under Section 53 of Article 5 of the Oklahoma State Constitution, the state legislature does not have the right to extinguish any debts to the state. There is an exception for property taxes, but the state cannot extinguish other tax liabilities. In other words, Oklahoma has no statute of limitations on tax liabilities. The state has the right to collect them indefinitely. 

In 2005, the state legislature proposed amending the constitution to place a 10-year statute of limitations on state tax liabilities. But, unfortunately for people with Oklahoma back taxes, this amendment did not pass. 

Third-Party Collections for Oklahoma Back Taxes

As of 2022, the OTC outsources income tax collection to Harris & Harris LTD (H&H) and Linebarger, Goggan, Blair & Sampson, LLC (LGBS). These are private collection agencies, and they have different options available to help you negotiate arrangements for your tax liability. Once your tax liability has been placed with a collection agency, you cannot set up a payment plan with the state. 

If a collection agency contacts you and you want to ensure that they are legitimate, you can contact the OTC Collections Division directly at 405.521.2212. They can let you know how much you owe and whether or not your account has been referred for third-party collections. 

Get Help With Oklahoma Back Taxes

If you owe back taxes in Oklahoma, you should get help from a tax professional. Don't call the big-name tax resolution firms that charge excessive fees and make promises they can't keep. Instead, reach out to a local tax pro. 

Using the search feature on TaxCure, you can look for Oklahoma tax professionals based in your area who have experience with your specific tax concern. To learn more, contact an OK tax pro for help today. 

How To Qualify and Setup an Oklahoma State Tax Payment Plan

Qualifying taxpayers can pay off their Oklahoma personal or business taxes in monthly installments. 

If you cannot afford to pay your individual or business tax in full, you may want to apply for a payment plan. An Oklahoma installment agreement allows you to make monthly payments on your tax liability until it is paid in full. To set up a payment plan, you must meet the eligibility criteria and stay current on your filing and payment requirements while the plan is in effect. 

Want to set up monthly payments on your OK taxes? Here is an overview of the process. 

How to Apply for an OK Tax Commission Payment Plan

You can apply for an Oklahoma tax payment plan online through the Oklahoma Taxpayer Access Point (OKTAP). The online application asks a few basic questions about your situation and then guides you through the process of setting up a payment plan. 

You need a collection letter to use the application — you won't be able to move forward with the process unless you have the letter ID and your Social Security Number. If you don't meet the criteria to request a payment plan online, you can contact the OTC directly at (405) 521 2212, or find a tax pro to help you.

Eligibility Requirements for OK Tax Payment Plans

To qualify for a payment plan, you must be able to pay at least $25 per month. You also must pay off the tax liability in two to 12 months. To calculate your minimum monthly payment, divide your state tax liability by 12. For instance, if you owe $2,400, you need to pay at least $200 per month.

The OTC may be willing to offer longer terms and smaller monthly payments. But if you need smaller payments or longer than a year to pay, you need to contact the agency directly or work with a tax professional. The agency also requires you to meet the following criteria:

Set Up the Plan Before Collection Agency Assignment

The OTC uses private third-party collection agencies to collect unpaid state taxes. You cannot work with the state to set up a payment plan if your account has already been assigned to a collection agency. Once your account has been assigned to a collection agency, you must work with that agency to make arrangements on your tax liability. 

As soon as one of your tax balances is assigned to a collection agency, you lose the ability to set up payment plans with the state. For instance, imagine that you owed state taxes for 2019, and the OTC sent that year to a collection agency. If you go online to request a payment plan for 2020 taxes, you will not be able to. 

Even though the tax liability for that particular year has not been assigned to a collection agency yet, you lost the chance for a payment plan when the other account was sent to the collection agency. Because of this, it's critical to contact the state before they outsource the collection on your account. 

You Must Owe More Than $100

The OTC does not advertise an upper threshold for payment plans. In most cases, as long as you can pay off the tax liability in 12 months or less, you can make payment arrangements on tax liabilities of nearly any amount. However, you must owe more than $100. 

If you owe less than $100, you are not eligible to set up a payment plan. But you still owe the tax so you should try to send the state as much as you can.

Don't Have a History of Default on Oklahoma Payment Plans

If you have defaulted on an Oklahoma payment plan in the past, you may still be eligible to set up a payment plan, but you must make a 50% down payment. For example, if you owe $10,000, you can make a down payment of $5,000 and then make payments on the rest. 

You are not eligible for a payment plan if you have defaulted twice in the last five years. Once you default three times over any time period, you are no longer eligible for a payment plan on state taxes. 

Be Up-to-Date on State Tax Filing Requirements

For the best results, you should be up to date on your state tax filing requirements. The OTC is willing to accept payment plans from some people who are not up-to-date on their state tax filing requirements. However, the rules vary based on your situation and the number of returns you have missed. 

When you apply for an OK payment plan online, the application tool will request additional information about your filing gaps and missing returns. Then, it will let you know if you are eligible for a payment plan or if you have to do anything special like make a down payment. 

Rules for Oklahoma Payment Plans

If the OTC accepts your request for a payment plan, you need to make the payments as directed to keep your plan active. Missing payments can put your plan into default, and again, once you start defaulting on OK payment plans, you reduce your ability to set up payment plans in the future. 

You also need to stay compliant with your new filing and payment requirements. If you assume new tax liabilities while on a payment plan, your plan may go into default. To ensure you don't get behind on your income tax requirements, you may need to increase your withholding or send in larger quarterly payments. 

What to Expect from an Oklahoma Tax Payment Plan

While you're making payments, interest will continue to accrue on your balance. You may want to make slightly larger payments to compensate for the interest. If you apply for another program, you should continue to make payments while the OTC assesses your application. 

For instance, if you apply for an OK offer in compromise while you're already on a payment plan, you should continue making payments as agreed upon. Then, if your offer is accepted, you can quit making payments at that time. If the state rejects your offer, your payment plan will still be active. If you had stopped making payments, you would be in default. 

Get Help with Oklahoma Payment Plans

If you want help setting up a payment plan or talking about other resolution options for Oklahoma back taxes, reach out to an OK tax pro today. On TaxCure, we made it easy to search for high-quality tax pros in your local area with the experience you need. To find a tax pro experienced with the OTC, search for an OK tax pro today. 

Oklahoma State Offer in Compromise: Understand How You Can Settle

The Oklahoma Tax Commission is willing to settle some back taxes for less than owed. To apply, you must submit a lengthy application and meet strict financial criteria. To give you a sense of whether or not an offer in compromise is the right option for your Oklahoma back taxes, this guide explains the rules and procedures of this program. 

How to Apply for an Offer in Compromise in Oklahoma

To apply for an offer in compromise on Oklahoma back taxes, you must submit the following forms. You can download these forms and instructions from the Oklahoma Digital Prairie, the state's electronic library system. 

• Form OTC-600 (Application for Settlement of Tax Liability)
• Form OTC-600-A (Statement of Financial Condition for Individuals) 
• Form OTC-600-B (Statement of Financial Condition for Businesses)
• Form OTC-600-C (Worksheet to Calculate Collection Potential)
• Form OTC-600-D (Document Checklist)
• Form-OTC-600-E (Authorization to Release Financial Data)
• Form BT-129 (Power of Attorney)

You also must include the supporting documents listed on the document checklist as well as any other documents requested by the OTC. All of these forms and documents work together to convince the OTC to accept your offer. You can file them on your own, but to be on the safe side, you may want to work with a tax professional.

What Taxes Can You Settle in Oklahoma?

The OTC will consider settling tax liabilities if you are insolvent due to factors beyond your control or if paying the tax would cause you to declare bankruptcy. The OTC will also consider settlements in cases where the tax liability is due to another person's actions and it would be unfair to hold you responsible. 

Finally, in the case of trust fund taxes, the OTC will only settle these taxes if you believe you didn't need to collect them and never collected them from customers. Sales tax, for example, falls into this category. If a business owner never collected sales tax from their customers and truly believed that they weren't supposed to, they may qualify for an offer in compromise. If you collected sales tax from your customers, you cannot qualify for an OIC settlement. 

Eligibility Criteria for OK Offers in Compromise

Appointed or elected state officials cannot apply for an offer in compromise. Anyone else can apply as long as their tax liability falls into one of the above categories and they meet the following criteria:

• The tax liability is final. 
• All appeals or other administrative remedies have been exhausted.
• You are not in an open bankruptcy case.
• You are not under criminal investigation or persecution by the state. 

You also must stay compliant with state tax filing and payment obligations while the state reviews your application and until you have paid the settlement.

Supporting Documents to Include with OK OIC Application

If you're applying for an OIC due to potential bankruptcy or insolvency, you need to include supporting documents about your income and expenses. Even if you are the only person liable for the tax, you need to include income documents for everyone who lives in your home. The IRS uses that information to determine your share of the household expenses. 

Business owners and self-employed taxpayers generally need to include both an individual and a business financial condition statement. Businesses often have to include individual financial condition statements from their corporate officers and partners. 

If you have recently applied for an OIC through the IRS, you can use those financial statements instead of the state forms, but you still need to use the OTC's worksheet to compute your offer. Note that getting accepted for an IRS OIC does not mean that the OTC will approve your application. Oklahoma and the IRS use different criteria for these programs. 

You do not need to include all of these financial documents if you're applying for a settlement based on someone else's actions or uncollected trust fund taxes. In these cases, however, you need to include a written explanation of the situation. You must make a compelling argument about why the tax liability should be reduced through an OIC.

How Much to Offer with an OK Offer in Compromise

When people apply for offers in compromise, this is one of their biggest questions — how much should I offer? Taxpayers often want to get out of the situation for the lowest amount possible. The state, on the other hand, won't accept an offer unless it represents the most the state is going to be able to collect.

To strike the right balance here, you need to understand how the OTC calculates your collection potential. For both businesses and individuals, the OTC looks at your monthly disposable income and your net worth. Your monthly disposable income is the amount left after paying bills, and your net worth is the difference between the value of your non-exempt assets and your liabilities. 

For instance, if you owe $60,000 in credit card debt and have $65,000 in non-exempt assets, your net worth is $5,000. Then, if you have $100 left over after paying your bills, that's your disposable income. 

The OTC believes that you should include four years' worth of disposable income in your offer if you can pay it off within 90 days. If you need longer, you have to take five years of disposable income into account. To continue with the above example, if you can pay off your settlement in 90 days or less, you multiply your disposable income ($100) by 48. Then, you add the result to your net worth. In this case, your collection potential is $9800. In most cases, the OTC won't accept an offer lower than that amount. 

However, if you wanted longer to pay off the settlement, you need to multiply your disposable income by 60. Based on a disposable income of $100 per month, that increases that portion of your offer to $6,000. Then, when you add that amount to your net worth, you have a collection potential of $11,000.

What to Expect After You Apply for an OIC in Oklahoma

When you submit your application, the OTC will stop collection actions on your account. However, if the OTC believes that you're only applying for an OIC to delay collections, the agency can pursue collection activity. Interest and penalties will continue to accrue on your account while the OTC processes your OIC application. If you're in an installment plan, you should continue to make payments as usual until you get a response. 

The Account Maintenance Division will review your application, and the Division may request additional information or verify the financial documents you have submitted. If the Division believes that a larger settlement is necessary, it will give you the chance to amend your application. Finally, the Division will recommend if the OTC should accept or reject the settlement. 

When reviewing your offer, the OTC will also take extenuating circumstances into account. In particular, the agency will look at your history of tax compliance, whether or not you benefited from the unpaid taxes, and your involvement in the economic activity that lead to the tax debt. 

If the savings on the settlement exceed $10,000, the Oklahoma County District Court must approve the settlement. 

What Happens If the OTC Accepts Your Offer in Compromise?

The OTC will notify you by mail if it accepts your offer. At that point, you must pay the offer by the date printed on your notice. When you apply for the OIC, you select a timeline that varies from a lump sum payment to monthly payments over a two-year time period. Your due date will be based on the offer you made. 

Once you pay the full offer, the OTC will remove any state tax warrants that have been issued against you. If applicable, you must provide a copy of the Oklahoma County District Court's approval of the agreement. 

What Happens If the OTC Rejects Your Offer in Compromise?

The OTC will also notify you by mail if your offer has been rejected. Collection actions will restart on your account, and the balance will be due in full immediately. You can apply to set up a payment plan if desired. 

If you send a down payment with your application, the OTC will apply the payment to your balance. Accepting the payment does not require the OTC to accept your offer. 

Get Help Applying for an Oklahoma Offer in Compromise

Applying for an offer in compromise in Oklahoma can be a delicate and tricky process. State OIC programs vary drastically from federal OIC programs, and to protect yourself, you need to work with a tax professional who has in-depth experience with Oklahoma tax resolution practices. 

At TaxCure, we know that it can be challenging to find local tax professionals so we set up a directory to help you. Using the TaxCure search feature, you can look for OK tax professionals with the experience you need. To get help with Oklahoma back taxes, find an OK tax pro today. 

Guide to Florida Sales Taxes & Penalties

To sell goods or services in Florida, you must collect sales tax. You will face penalties and interest if you don't file or pay your Florida sales tax correctly and on time. Sales tax evasion can lead to criminal charges. 

To help you out, here is an overview of Florida's sales tax rules and penalties. 

How Much Is Florida Sales Tax?

Florida sales tax is 6% for most sales of goods, services, hotel rooms, and short-term rentals. The state also applies a 4% sales tax to amusement machine rentals, a 5.5% sales tax on leases and licenses of commercial property, and a 6.95% sales tax on electricity. 

Many counties also add a discretionary surtax rate, but with some sales, only $5,000 of the sale is subject to the county sales surtax. The state allows counties to assess sales surtaxes from 0.5% to 2.5%. 

For example, if you have a retail store or a restaurant in Miami-Dade County, you must assess the state sales tax of 6% plus the county's discretionary surtax of 1%. This makes the total sales tax 7%. If you sell a $100 item in this county, you must collect $7 in sales tax from the customer and remit that to the Florida Department of Revenue with your sales tax return. 

Who Needs to Collect Florida Sales Tax?

Essentially, anyone who sells products or services in Florida needs to collect Florida sales tax. If you sell any of the following types of items or services, you need to collect sales tax:

• Retail items
• Food and beverages from restaurants and caterers.
• Rent or lease payments for vehicles or other goods. 
• Repairs and alterations.
• Services such as burglar protection, nonresidential cleaning, and nonresidential pest control. 
• Admissions to amusement parks, sport games, etc. 
• Rent for commercial spaces.
• Rents for short-term (transient rental accommodations) such as hotels, campground sites, and RV parks 
• Memberships to recreation or fitness facilities. 
• Vending or amusement machines. 

When Are Florida Sales Taxes Due?

Sales tax returns and payments are due on the 1st of the month following the reporting period, but they are not late until after the 20th. The final due date is the next business day if the 20th falls on a weekend or holiday. For example, your sales tax return for March sales is due April 1st, but it is not late until after April 20th or the following business day. 

For your return to be on time, you must e-file, postmark, or deliver it in person by the 20th. Payments are considered on time if they are postmarked or delivered by the due date, but if you pay online, you must make the payment by 5 PM ET on the business day before the 20th. For instance, if the 20th falls on a Monday, you must make your e-payment by the previous Friday.

What Are the Penalties for Not Collecting Florida Sales Tax?

You can lose your business license if you don't collect Florida sales tax. The Florida Department of Revenue can issue a warrant for the delinquent sales tax, interest, penalties, and the cost of collection. The county sheriff can execute the warrant to seize your real or personal property. The state also has the right to garnish your bank accounts, wages, and payments from third parties such as clients. 

What Are the Penalties for Not Paying Florida Sales Tax?

Failure to pay Florida sales tax can lead to severe penalties. Under Florida state law, failure to file a sales tax return for six consecutive months is a felony. 

If you willfully attempt to evade Florida sales tax by submitting a false or fraudulent return, the state can impose an additional penalty of 100% of the tax due. For instance, if you owe $3,000, the penalty will be $3,000. 

You can also face the following criminal penalties for not paying Florida sales tax:

• For the first or second offense of not paying sales tax of less than $300 — second-degree misdemeanor and up to 60 days in prison. 
• For the third and subsequent offenses of not paying sales tax of less than $300 — third-degree felony and up to five years in prison. 
• Failure to pay sales tax of more than $300 and up to $20,000 — third-degree felony and up to five years in prison.
• Failure to pay sales tax of $20,000 or more but less than $100,000 — second-degree felony and up to 15 years in prison. 
• Failure to pay sales tax of $100,000 or more — first-degree felony and up to 30 years in prison. 

Unpaid sales taxes can add up quickly. If a business with $500,000 in annual revenue fails to pay state sales tax for the year, it will owe $30,000 for the year. Unpaid taxes at that level can lead to significant fines, penalties, and over a decade in prison. 

Penalties for Late Sales Tax Returns

If you file or pay late, you incur a penalty of 10% of the tax owed. This penalty applies monthly, and it can get up to 50% of the balance. For instance, if you owe $2,000 and don't pay for six months, you will incur a $1,000 penalty. 

The state assesses a minimum penalty of $50. For example, if your sales tax due is $3,000, the late penalty is $300. If your sales tax payment is $500 or less, the penalty is $50. 

You still must file if you don't owe sales tax for the month. If you don't, you will incur the $50 late penalty. The Florida Department of Revenue also assesses a late penalty if your return is incomplete. 

Can I Avoid Paying the Florida Sales Tax Penalties?

The best way to avoid sales tax penalties is to file a complete and accurate Florida sales tax return on time. However, you can apply for penalty relief. It is always better to contact the Department of Revenue before the agency contacts you. 

If you apply for penalty relief on your sales tax before the Department of Revenue contacts you, the Department of Revenue can waive some of your penalties. Still, there is a mandatory penalty of the lessor of $1,000 or 10% of the total tax due. Once the department contacts you, the mandatory penalty increases to the lessor of $5,000 or 20% of the tax due. 

How to File and Pay Florida Sales Tax

You can file your Florida sales tax return through the mail using Form DR-15 (Sales and Use Tax Return). Or file online with the Florida Department of Revenue. Filing online tends to be faster and easier. 

Where Do I Register My Business for the Florida Sales Tax?

You must register your business with the Florida Department of Revenue. You can register through the mail using Form DR-1 (Account Management and Registration). To register online, visit the state's online Florida Business Tax Application. 

Florida Sales Tax on Online Sales

If you sell goods online to Florida residents, you must register and pay sales tax if your Florida sales exceed $100,000 in the previous calendar year. This rule only applies to out-of-state dealers. You must pay Florida sales tax if you have a physical presence in Florida or are a Florida resident, even if your business is exclusively online. 

Get Help With Florida Sales Tax

If you have gotten behind on your Florida sales tax returns or payments, you have options. A Florida tax professional can help you file delinquent sales tax returns, negotiate payment arrangements, and deal with the Department of Revenue. To get help, reach out to a local Florida tax pro today that has experience with sales tax issues. They can answer your questions and help you find the best path forward.

Taxpayer's Guide to Notice CP11 (Math Error on Return – Balance Due)

What This Notice Means and How to Respond If You Receive It

The IRS sends CP11 notice to alert you about miscalculations on your tax return. This notice also explains changes the IRS made to your return, and it details how much you owe due to the changes. Usually, the IRS only sends this notice if the changes made to your return changed your balance by at least $5. 

This guide explains why you received this notice and how to respond to it. 

Why Did You Receive Notice CP11?

You received IRS Notice CP11 because the IRS believes there was a miscalculation on your tax return. In other words, there was a math error on your tax return. Generally, this tends to happen with paper returns. 

If you use tax filing software, the software does the calculations, and math errors are virtually impossible. You may enter the wrong number with tax filing software, but the calculations will always be correct. If you received this notice after submitting a paper return, you might want to switch to e-filing in future years.

What Changes Did the IRS Make to My Tax Return?

The changes the IRS made will be detailed on your CP11 notice. Again, in most cases, this notice relates to calculation changes. Typically, the IRS uses other notices if the agency changes the information you report on your return. 

Often, the changes are explained on page four of IRS Notice CP11. There should be a section that says "Your tax calculations."This section will see a description of the element changed and where it appears on your tax return. 

For example, if the IRS made changes to your adjusted gross income, this section will say "adjusted gross income, line 11." Then, it will show your original entry followed by the IRS's new entry. Note that line numbers are subject to change yearly as the IRS updates tax forms. These are just examples based on the 2021 version of the individual income tax return.

The IRS may also make adjustments to your payments and credits. These also typically appear on page four of the notice. For instance, in this section, you may see "federal income tax withheld, line 25" or "estimated tax payments, line 26". These descriptors should be followed by the numbers the IRS used when it updated your return. 

If you want more clarification about the changes, you can contact the IRS directly. Or you can contact a tax professional and ask them for help. 

Notice CP11 and the Recovery Rebate Credit

In recent years, the IRS has commonly used this notice to alert people about the Recovery Rebate Credit mistakes. Available in tax years 2020 and 2021, this credit allowed people to claim stimulus payments on their tax returns if they didn't receive them before they filed. 

To calculate this credit, you needed to note information about the stimulus payments you received. If you put in the wrong information, the IRS will correct your numbers and send you this notice. 

Notice CP11 and the Advance Child Tax Credit

IRS Notice CP11 is also used to alert people about mistakes related to the advance child tax credit. In 2021, the government sent out advance child tax credits to millions of taxpayers. To determine their final child tax credit on their 2021 tax return, they needed to note how much they had received during the year. 

Many people weren't sure how much they received, and others received letters from the IRS with incorrect numbers. If you accidentally entered the wrong numbers in this section, the IRS may also send you Notice CP11. 

What to Do If You Agree With Notice CP11

If you agree with the changes on the CP11 notice, you should correct the copy of your tax return that you kept for your records. But, you shouldn't send the corrected return to the IRS. The IRS has already made the changes to your account, and it doesn't need an amended return from you. 

Then, you should make arrangements to pay the additional tax liability. If you can afford to pay it in full, you can just mail a check to the IRS or pay online on the IRS's payments page. However, you weren't expecting this new bill, and if you cannot afford to pay it, you may want to explore the following options: 

• Set up a payment plan. 
• See if you qualify for a partial payment installment agreement. 
• Request innocent spouse relief — this only applies if the tax issues were due to your spouse or ex-spouse's actions and the tax liability is related to their income. 
• Apply for an offer in compromise.
• Ask for currently not collectible status. 

A tax professional can help you set up a payment plan or help you determine if you might qualify for one of the IRS's tax relief programs. For instance, if you qualify for innocent spouse relief, you may be able to get a separation of the tax liability so you're only responsible for your portion of the tax bill. 

What to Do If You Disagree With Notice CP11

If you disagree with Notice CP11, you should contact the IRS as soon as possible. You must respond within 60 days if you want the IRS to consider reversing the changes.

The agency recommends calling the phone number on the notice. Then, you can talk with an IRS representative about the notice. You may need to mail or fax in additional documentation. 

For best results, you may want to have a tax professional deal with the IRS on your behalf. They talk with IRS representatives every day, and they have an in-depth understanding of the best negotiation methods. 

Alternatively, you can respond to Notice CP11 through the mail. Include a copy of the notice. Then, explain why you disagree with Notice CP11 and provide financial documents to support your case. If you respond through the mail, you should expect to wait at least 30 to 60 days before you get a response. 

What Happens If You Contact the IRS Because You Disagree With Notice CP11?

If the IRS agrees with your argument, the agency can reverse most of the changes it made. But, again, you must contact the IRS within 60 days from the date on the notice. You don't necessarily have to provide additional documentation, but you should provide it if you have information to support your claim. 

The IRS may start an audit on your return if you don't provide information to support the details you included on your tax return. If that happens, an auditor will contact you in about six weeks to explain the process.

What If You Miss the Deadline to Respond to Notice CP11?

The IRS is strict about deadlines. The IRS will not reverse the changes if you miss the 60-day deadline to respond to Notice CP11. You also lose the right to appeal the information on the notice. 

If you wait longer than 60 days to take action, you need to pay the tax. Once you pay, you can dispute the changes and file a claim for a refund. You have until the later of three years from the date you filed the original tax return or two years from the date of your last payment to appeal and request a refund. 

Do Taxes on Notice CP11 Incur Penalties?

If you receive Notice CP11, the taxes assessed with the notice were due on the date your return was due. Even though you weren't aware of these taxes when you filed your return, they are still considered late. As a result, they face late payment penalties. 

However, you can apply for penalty abatement. The IRS is often willing to remove penalties — especially if this was your first offense or if you had a reasonable cause for making the mistake. But you need to request abatement. Generally, the IRS doesn't spontaneously remove penalties from your account.

Is There Interest on Notice CP11 Taxes?

Interest will also accrue on your new tax liability. However, the interest won't start until the due date noted on the return. If you pay the tax liability before that date, you usually won't incur any interest. In most cases, you cannot get the interest removed unless the IRS made a mistake.

How Do You Adjust Estimated Tax Payments After Receiving Notice CP11?

In a lot of cases, the IRS sends Notice CP11 to people when there was an issue with their estimated tax payments. If you want to ensure that you're making the correct estimated tax payments, you should check out Form 1040-ES (Estimated Tax for Individuals). 

This form guides you through calculations that help to ensure you remit the correct amount of estimated tax on your self-employment income during the year. 

Differences Between Notice CP11 and Notice CP12

Both of these notices mean that the IRS made changes to your return. However, while Notice CP11 alerts you that you owe additional tax or that your refund has been reduced, CP12 has the opposite effect. The IRS sends this notice if the changes on your return lowered your tax liability or increased your refund. 

How to Get Help With Notice CP11

Receiving a notice from the IRS can be scary and confusing — especially if the notice says that you owe additional tax. A tax professional can answer your questions and help you make a plan to respond to this notice. 

If you agree with the notice, they can help you make arrangements on your tax liability and show you how to stay in compliance with the IRS moving forward. They can also help you request penalty abatement. But keep in mind that the IRS makes mistakes — if you disagree with the notice, a tax professional can help you respond to the IRS and appeal as needed. 

At TaxCure, we have created a directory of tax professionals from around the country. We are committed to helping you find a licensed tax professional from your local area who is experienced with your particular issue. To get help with Notice CP11, use TaxCure to find a local tax professional today.