Owe 401K IRS Taxes
Secure Your Future: Resolve Your 401K IRS Taxes Today!
OWE 401K OR IRS TAXES - We Can Help!
Millions of individuals, faced with a troubled economy, have taken distributions from their 401k and IRA or liquidated their pension plans just to stay afloat, leading to owing the IRS back taxes on their withdrawal. Dreis Tax Services understands these challenges.
There will be a record number of such individuals because of the economy, loss of jobs, and business closures. Once a tax return is filed showing a balance due, within six weeks, the IRS will start sending out tax notices asking for payment in full.
Each individual will have to take the next step to deal with their situation. Dreis Tax Services is here to assist with these critical financial decisions.
THE ACTION THAT THE IRS WILL TAKE:
- First Phase with Dreis Tax Services: The IRS will send out a first notice or tax bill, followed by a second notice, then a Final Notice of Intent to Levy. This process will take about 90 days.
- Enforcement Action: 30 days after the letter of Final Notice of Intent to Levy, the IRS will start taking enforcement action. Dreis Tax Services can help guide you during this critical time.
- Federal Tax Levy: The IRS will send out a Federal Tax Levy to third parties such as your bank or a wage garnishment to your employer. Consult with Dreis Tax Services for assistance.
– Federal Tax Lien: The IRS will also file a Federal Tax Lien, which will show on your credit report. Dreis Tax Services can advise on how this may impact you.
- Continued Collection Action: The IRS will continue to take enforced collection action until you contact them, settle, and close your case. Dreis Tax Services is here to assist you in resolving these matters.
THIS IS WHAT YOU NEED TO DO AFTER THE IRS CONTACTS YOU
Here’s a guide to managing your tax situation:
- Prepare an Exit Strategy: Understand your options and have a plan in place.
- Contact the IRS: Be ready to contact the IRS with a completed Collection Information Statement, supported by all necessary documents. Dreis Tax Services can assist in preparing these materials.
- Stay Current with Taxes: Ensure that you are up to date with all your taxes and that all tax returns have been filed. Dreis Tax Services can guide you through this process.
- Settle Your Case: Be prepared to resolve your case through an Offer in Compromise, Installment Agreement, or by being placed in Hardship Status. Dreis Tax Services can help you determine the best course of action.
WE CAN HELP IF YOU OWE IRS TAXES ON A 401K OR IRA DISTRIBUTION
–CALL US TODAY AT 866.700.1040 TO SPEAK WITH A TAX PROFESSIONAL.
IRS has ways to make this easy if you know how the system can work for you
With Dreis Tax Services, understanding how the IRS will close your case in their Collection Computer System is crucial. Once the IRS secures a completed and documented Collection Information Statement (433A or 433F) from you, they will typically close your case in one of three ways:
- Offer In Compromise: The IRS may accept an Offer In Compromise to settle your back tax bill. This program is for individuals who need to settle their tax bill once and for all. It’s not a simple process, and only 11,000 Offers In Compromise were accepted last year. Around 90% of all accepted offers are settled by tax professionals, so expertise from Dreis Tax Services is highly recommended. There are four different types of offers, and knowing which one fits your case is essential.
- Installment Agreement: The IRS can and will accept a payment plan on the back taxes owed. They use a National Standards Test to determine which payment plan works for your financial state. You can find this test online at www.IRS.gov by searching for “National Standards.” Dreis Tax Services has professional tricks and skills to set up the lowest possible payment plan.
- Hardship Status: The IRS may place your case in a Hardship Status, meaning you currently lack the ability to pay the tax in full and prefer to have your case worked on later. Utilizing the National Standards Test and full documentation of the Collection Information Statement, Dreis Tax Services can help you navigate this Noncollectable Status. Be aware that penalties and interest will continue to accrue.
With Dreis Tax Services’ guidance, navigating these complex procedures can become a more manageable and successful process. Whether considering an Offer In Compromise, an Installment Agreement, or a Hardship Status, Dreis Tax Services can provide the skill and expertise needed for your unique situation.
Thank you for your interest. Please fill out the form to schedule a consultation about your particular tax problem.