Frequently Asked Questions

What is the difference between a Lien and a Levy?

Lien: The first step taxing authorities take to secure the liability, and enable them to pursue your assets and income. Call us now to hear what we can do about the lien, and what it means to you, your credit score, or your business.

Levy: The act of seizing bank accounts, wages, receivables, and even funds flowing through merchant services accounts. Most of the time, levy action can be prevented by swift action on your part in getting good help, and our part by taking the proper steps to prevent it from happening or reversing it after it has already taken place.

What can I do if the IRS or state threaten me with a levy or garnishment?

If you can afford to pay the taxes, do so. If you cannot pay the taxes in the amounts and within the time frame demanded, you need to protect your assets from collection. Once this is done you need to negotiate a payment arrangement, an Offer in Compromise, an uncollectible status, or some other agreed upon arrangement, which MUST be in writing to be honored by the IRS or state taxing authorities.

Can you help release a bank levy or wage garnishment once it has happened?

Yes, Larson Financial can help release both IRS and state issued bank levies and wage garnishments. If you have been threatened with a garnishment do not wait for it to happed because it will happen. It’s easier to prevent a garnishment than to get one reversed and the money returned to you, but we can release and reverse a garnishment.

Can I go to jail for owing taxes?

It is very unusual for people to see jail time due to taxes. The IRS is more interested in money than punitive actions. The exception is in cases of fraud or willful evasion of taxes. So long as you are not signing egregiously fraudulent tax returns, you should not worry about going to jail for taxes.

Can Larson Tax Relief find out how much I owe?

Yes we can. Larson Tax will perform a discovery for every client to evaluate their situation, and use our findings as a starting point to determine the immediate course of action to protect you, and fix the issue. Even if you are not a client yet, and would like to know if you have a tax liability of substance, our firm will perform a discovery to determine if you are in need of our help or not. There is no charge for this service, provided you believe you could owe $8000 or more in back taxes.

Many times what the government is claiming you owe is dramatically inflated, and much higher than what is truly owed. Our firm will guide and assist all clients in arriving at a real number of what is truly owed per statutes.

How can I find out if I have deadlines?

We can do this for you. Three things are certain with the government: paperwork, procedures and deadlines. But it’s tough to know who to contact and how to ask the right questions without accelerating their collection efforts. Larson Tax Relief makes it simple by handling all of the paperwork, understanding the procedures and clarifying deadlines. Upon hiring our firm, we will immediately contact the IRS and/or state to determine where you stand in the collection process, and inform you of our findings.

Can I pay "pennies on the dollar?"

The IRS and some states have a program that allows you to settle your tax liability for less than is owed. The IRS calls this an Offer in Compromise. If you qualify you may be able to pay less than you own. The IRS, however, isn’t know for giving gifts and very few people qualify under the stringent standards in place. Also, be aware that many companies advertise that they can settle your taxes for "pennies on the dollar" when in fact there is zero chance of getting a reduction. Contact Larson Tax Relief to learn if this option can work for you.

Can I negotiate with the IRS/state myself?

Yes. There is nothing preventing you from doing so. In fact, we highly recommend doing so as soon as you know you are behind on taxes. But, if you have procrastinated and have had a tax lien filed or a threat of levy or garnishment, it may be too late. Professional advice will help you determine the best course of action for your situation. Keep in mind that taxes are not a good "do-it-yourself" project.

Should I file my taxes even if I cannot afford to pay?

Even if you do not have the money to pay your taxes at the time the tax filing is due, always file your taxes on time.

How strict is the IRS on deadlines?

Missing deadlines with the IRS or state taxing authorities almost always makes matters worse. You may be charged with additional fines, and also incite enforced collections such as bank levies and wage garnishments.