FAQs

Absolutely! At Lexington Tax Group, we firmly believe that everyone should have access to professional tax help, regardless of their financial situation. We understand that budget constraints can be a real concern, so we’ve made it a priority to offer flexible pricing options designed to accommodate a variety of budgets.

Our mission is to ensure that financial limitations don’t prevent anyone from getting the tax assistance they need. Therefore, we are committed to working with you to find a payment plan that suits your specific needs and circumstances. Your financial well-being is our top priority, and we’re here to provide support every step of the way.

Additionally, consider that getting professional tax help can often end up saving you money in the long run by ensuring that you take advantage of all applicable deductions and credits, avoid costly mistakes, and stay on the right side of tax laws and regulations. We’re here to help you navigate the complex world of taxes and to make it as affordable and stress-free as possible.

At Lexington Tax Group, we understand that there are many options to consider when seeking tax-related services.

Here’s why you should choose us:

1. Extensive Savings: Our dedicated tax professionals have a deep understanding of tax laws and loopholes that many individuals and businesses may not be aware of. By leveraging this knowledge, we help our clients save considerable amounts of money, often exceeding the cost of our services. Over the years, we have helped hundreds of clients save thousands of dollars by strategically planning and filing their taxes.

2. Affordable Services: At Lexington Tax Group, we believe that expert tax help should be accessible to everyone, which is why we offer our top-notch services at affordable rates. We are committed to providing value for money and we have a range of packages to cater to varying budgets and requirements. Our pricing is transparent with no hidden charges.

3. Professional Expertise: Our team is composed of experienced and certified tax experts who can navigate the complexities of tax codes. They stay updated on the latest changes in the tax laws and use this knowledge to provide you with the best service possible.

4. Personalized Services: Every client has a unique financial situation, and our team is committed to understanding yours. We provide tailored solutions designed to meet your specific tax needs and financial goals.

5. Our Guarantee: We stand behind our work with a satisfaction guarantee. If you’re not completely satisfied with our services, we will work tirelessly to address your concerns. We’re committed to ensuring that you receive the best service possible.

Choosing Lexington Tax Group isn’t just about getting your taxes done; it’s about forming a partnership with a team that’s dedicated to maximizing your savings and financial success. We’re here to support you every step of the way.

The amount of money you could save depends on a variety of factors, including the nature and complexity of your tax issues, your financial circumstances, the strategies and resolutions we can apply to your case, among other things.

While Lexington Tax Group strives to maximize savings for every client, it’s important to understand that each client’s situation is unique. Therefore, potential savings can vary widely. We recommend that you schedule a consultation with one of our tax professionals who can evaluate your circumstances in detail and provide you with a more precise estimate of the potential savings.

Please note that while we work to provide the most beneficial outcomes for our clients, the results cannot be guaranteed due to the complexities and uncertainties involved in tax resolution cases.

The duration of the tax relief process can vary greatly depending on each individual’s situation. Several factors determine how long the process takes:

1. Complexity of the Case: Simple cases where minimal negotiation with the IRS is required might only take a few weeks to a few months. However, more complex cases, where extensive negotiation or the submission of detailed financial information is needed, could take several months to a year or more.
2. IRS Response Time: The speed at which the IRS processes cases can vary depending on their workload, the time of year, and other factors. Generally, expect a wait of several weeks to several months for a response to any submission or request for information.
3. Client Responsiveness: The speed at which clients can provide necessary information, sign documents, and respond to requests can also affect the length of the process. More responsive clients can often help speed up their case.
4. Appeals or Legal Action: If your case involves appealing IRS decisions or taking legal action, the process can be significantly longer. These actions involve court or administrative proceedings that can take many months, even years, to complete.

Generally, the process for tax relief can take anywhere from a few weeks to a couple of years, with 3 to 9 months being typical for many cases. At Lexington Tax Group, we strive to make the process as efficient and effective as possible for our clients. Our experienced team will guide you through the process step-by-step and keep you informed of progress. However, please remember that each case is unique and it’s important to take the necessary time to make sure your case is handled properly for the best possible outcome.

Here are some general steps you can take to pursue tax relief from the IRS. It’s important to remember that every situation is unique and consulting with a tax professional or tax attorney is always a good idea.

1. Understand Your Liability: The first step in getting tax relief from the IRS is to understand how much you owe and why. Request a copy of your tax transcript from the IRS. This will detail your tax history and any penalties or interest that may have accrued.
2. Review IRS Tax Relief Programs: The IRS offers various programs to help taxpayers with liability. Some of these include:
   • Installment Agreements: This is a plan to pay off your liability in smaller, more manageable amounts over time.
   • Offer in Compromise: This allows you to settle your tax liability for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
   • Currently Not Collectible: If you’re facing financial hardship where you cannot pay for basic living expenses, the IRS may temporarily delay collection until your financial condition improves.

1. File Your Back Taxes: If you haven’t filed your taxes for a few years, it’s important to do so as soon as possible. The IRS charges failure-to-file penalties that can add up quickly.
2. Consult a Tax Professional: This step is crucial. Tax laws and IRS procedures can be complex and confusing. A tax professional can help guide you through the process, communicate with the IRS on your behalf, and help negotiate the best possible resolution.
3. Stay in Compliance: Once you’ve worked out a resolution plan with the IRS, it’s essential to stay in compliance with all future tax filings and payments to avoid new issues.

Please note, these are general steps and may not cover all specific situations. It’s always a good idea to consult with a tax professional before making decisions about IRS liability. At Lexington Tax Group, we can help you navigate the complexities of tax relief.

Tax relief refers to the reduction or elimination of taxes owed by individuals or businesses. This can take the form of tax deductions, tax credits, tax exemptions, or other incentives that reduce your tax liability.

Here’s how you might qualify for tax relief:

1. Income-based Relief: If your income is below a certain level, you may qualify for income-based tax relief. This often comes in the form of tax credits, such as the Earned Income Tax Credit (EITC) in the United States.
2. Forgiveness: If you’re unable to pay your tax liability, you may qualify for programs such as an Offer in Compromise (OIC) with the IRS. This allows you to settle your tax liability for less than the amount you owe.
3. Payment Plans: If you can’t pay your tax liability in full, you may qualify for a payment plan. The IRS offers several types of installment agreements, allowing you to pay your tax liability over time.
4. Penalty Abatement: If you’re facing penalties for late or missed payments, you may qualify for penalty abatement. This can reduce or eliminate the penalties associated with your tax liability.
5. Innocent Spouse Relief: If your spouse or former spouse incorrectly reported items or omitted items on your tax return, you may be relieved of the tax, interest, and penalties that are due.
6. Hardship Extensions: If you’re facing significant financial hardship, such as a serious illness or the loss of a job, you may qualify for a hardship extension. This can delay your tax payments without accruing additional penalties or interest.
7. Specific Deductions and Credits: Depending on your personal circumstances, such as having children, being a student, or owning a home, you may qualify for certain tax deductions or credits.

It’s important to remember that tax laws are complex and vary widely from country to country and even from state to state in the U.S. Therefore, it’s always a good idea to seek professional tax advice before making decisions about tax relief options.

At Lexington Tax Group, we have a team of tax professionals who can help you navigate these options and determine which types of tax relief you may qualify for. Contact us today for a free consultation.

Tax relief companies, like Lexington Tax Group, are firms specializing in helping individuals and businesses address and resolve their outstanding tax liabilities. They work with clients who owe back taxes, have unfiled tax returns, or are facing other complex tax issues. Here’s a general overview of how these companies work:

1. Initial Consultation: This is the first step where the tax relief company gets to understand your tax situation. You’ll discuss your financial circumstances, your outstanding tax obligations, and any notices or penalties you’ve received from the IRS or your state tax agency. This information allows the company to assess whether you qualify for any tax relief programs.
2. Investigation Phase: The tax relief company will conduct a more detailed investigation into your tax situation. This usually involves obtaining a copy of your tax transcripts from the IRS or state tax agency, which outlines your tax history, balances, penalties, and interest.
3. Protection: A significant benefit of working with a tax relief company is protection from aggressive collection tactics. Once engaged, the company can act as your representative, which means they can deal directly with the IRS or state tax agency on your behalf. This can help prevent wage garnishments, bank levies, and other collection actions.
4. Resolution Plan: After thoroughly reviewing your tax transcripts and financial situation, the tax relief company will come up with a strategy for resolving your tax problems. This could involve setting up a payment plan with the IRS, negotiating a settlement for less than you owe (known as an Offer in Compromise), having penalties removed (Penalty Abatement), or declaring you “Currently Not Collectible”, which temporarily halts collections.
5. Negotiation and Settlement: The tax relief company will submit the proposed resolution plan to the IRS or state tax agency and negotiate on your behalf. This can be a complex process requiring knowledge of tax laws and negotiation skills. Once the tax agency accepts the proposal, you’ll need to stick to the terms of the agreement, which might include making regular payments or staying current on future tax obligations.
6. Follow Up: The tax relief company will typically follow up to ensure you’re sticking to the terms of the agreement and to assist with any additional tax issues that might arise.

Remember, it’s important to choose a reputable tax relief company, as there are companies that make promises they can’t keep. Lexington Tax Group, for instance, employs tax attorneys, enrolled agents, and certified public accountants to ensure professional and reliable service. Always research a company’s background, check out client reviews, and make sure you understand any fees charged before engaging their services.

The IRS Fresh Start Initiative, often referred to as the IRS forgiveness program, is designed to give taxpayers struggling with unpaid taxes a chance for a “fresh start.” This program covers a number of issues, including tax liens, installment agreements, and offers in compromise.

Who Qualifies for the IRS Forgiveness Program?

1. Individual Taxpayers and Businesses: The program is not just for individual taxpayers; businesses with outstanding tax liability can also apply.
2. Significant TaxLliability: As a general rule, the Fresh Start Initiative is for taxpayers who owe the IRS $10,000 or more. However, the IRS will consider individual circumstances.
3. Back Taxes: The Fresh Start Initiative is designed for taxpayers who have not been able to pay their taxes and have accrued a significant amount of back taxes.
4. Financial Hardship: To qualify for certain parts of the program, such as the Offer in Compromise, you must be able to prove that paying your tax liability would cause significant financial hardship.
5. Tax Compliance: To be eligible, you must be up-to-date with all filing requirements. If you have missing tax returns from previous years, they must be filed before you apply for the program.

Now, regarding the savings from hiring professional help like Lexington Tax Group:

1. Expertise: Tax laws are complex, and the IRS forgiveness program has specific rules and procedures. Hiring a professional tax service can help ensure that all paperwork is completed correctly, which can increase the likelihood of a successful application.
2. Negotiation: Professionals are experienced in negotiating with the IRS, and they can often help you reach a settlement that reduces the total amount you owe or sets up a manageable payment plan.
3. Time and Stress: Dealing with the IRS can be time-consuming and stressful. Hiring a professional can save you significant amounts of both.
4. Future Savings: A professional can provide advice and strategies to help you avoid future tax problems, potentially saving you money in the long run.
5. Prevent Costly Mistakes: An error in your application or misunderstanding the intricate tax laws could end up costing you more. A professional tax service can help prevent such costly mistakes.

Remember, every situation is unique. It’s best to discuss your specific circumstances with a tax professional to determine the best course of action for you.

Yes, the IRS does offer several options for taxpayers who are unable to pay their tax bill in full, including payment plans. These are also known as installment agreements. Here’s how it works: you make monthly payments over time until your tax liability is fully paid off. There are different types of payment plans, including short-term (120 days or less) and long-term (more than 120 days), and the specifics can vary based on the amount you owe and your ability to pay.

While it’s entirely possible for an individual to negotiate with the IRS directly, hiring a tax professional like those at Lexington Tax Group can often lead to significant savings in both time and money. Here’s why:

1. Expertise: Tax laws and IRS procedures can be complex and hard to navigate for individuals without the relevant experience. Tax professionals spend their careers studying these laws and staying up-to-date on changes, which can lead to more successful negotiations.
2. Reduced Stress: Dealing with tax issues can be incredibly stressful. Hiring a professional to manage the process can reduce the burden, letting you focus on other important areas of your life.
3. Potentially Lower Payments: Experienced tax professionals may be able to help you qualify for a lower monthly payment or even an offer in compromise, where the IRS agrees to settle your tax liability for less than the full amount you owe.
4. Prevent Additional Penalties: Mistakes in dealing with tax issues can lead to additional fines and penalties, which can further inflate your liability. A professional can help ensure that everything is done correctly, avoiding these costly mistakes.
5. Time Savings: The process of setting up an IRS payment plan can be time-consuming, requiring multiple contacts with the IRS, extensive paperwork, and possibly negotiations. A tax professional will handle these tasks on your behalf.

Remember, every tax situation is unique, and results can’t be guaranteed. But having experienced professionals like those at Lexington Tax Group on your side can help you navigate the complexities of tax law and IRS procedures, potentially leading to significant savings.

The length of time the IRS will give you to pay your tax liability can vary, but it generally ranges from 120 days to six years, depending on the payment plan you’re eligible for and choose to set up:

1. Short-term payment plan: Also known as an “Online Payment Agreement”, this plan is available if you believe you can pay your taxes in full within 120 days. It doesn’t involve a setup fee but interest and penalties will continue to accrue until the balance is paid in full.
2. Long-term payment plan (Installment Agreement): This is a monthly payment plan for paying off the IRS liability in more than 120 days. The setup fee for this varies, and penalties and interest will continue to accrue until the balance is paid.
3. Offer in Compromise (OIC): This is an agreement between you and the IRS that settles your tax liabilities for less than the full amount owed. It’s subject to acceptance based on a detailed review of your assets, income, expenses, and overall ability to pay.

Hiring a tax group like Lexington Tax Group can help in saving money in the long run:

1. Expert Guidance: Professionals at Lexington Tax Group understand the intricacies of IRS tax codes and can help navigate these complexities, reducing the chances of errors which could potentially trigger penalties or further liability.
2. Negotiation: Lexington Tax Group has expertise in negotiating payment plans or settlements like an Offer in Compromise, potentially reducing your overall tax liability.
3. Time savings: Dealing with tax matters can be time-consuming. Hiring a professional tax service can help you save this time, allowing you to focus on your work or business instead.
4. Avoiding legal consequences: In some severe cases, tax issues can result in legal consequences. By hiring professionals, you can ensure compliance with tax laws, thus avoiding such consequences.

Remember, it’s always important to address tax issues promptly and not ignore them, as they generally only get worse over time.

The IRS offers payment plans, often referred to as Installment Agreements, for individuals who cannot pay their tax bill in full at once. The minimum monthly installment amount is based on your unique financial situation, including your ability to pay.

Involving a professional tax group like Lexington Tax Group can often result in significant savings. They can help you:

1. Negotiation: Professionals are experienced in negotiating with the IRS and can work on your behalf to potentially lower your monthly payments or even the total liability.
2. Accuracy: Lexington Tax Group’s team of experts will ensure your financial information is accurately represented, minimizing errors and potential discrepancies that can affect your payment plan.
3. Understanding Complex Tax Laws: Tax laws are complicated. Professionals have a thorough understanding of these laws and can use this knowledge to your advantage, helping you to save money.
4. Preventing Future Issues: By helping you set up a manageable IRS payment plan, Lexington Tax Group can assist you in avoiding future tax issues, which can save you stress and money in the long term.

Remember, every tax situation is unique, so the specific savings and benefits may vary. It’s always a good idea to consult with a tax professional to fully understand your options and potential savings.

The IRS Fresh Start program is an initiative launched by the Internal Revenue Service (IRS) to help taxpayers struggling with significant tax liability. This program provides options such as tax liens withdrawal, extended installment agreements, and offers in compromise (OIC), designed to make it easier for individuals and small businesses to repay tax liability and avoid severe penalties.

Now, let’s talk about the savings aspect of hiring professional help, like Lexington Tax Group.

1. Time-Savings: Navigating through tax laws and IRS programs can be complex and time-consuming. Professionals from tax service providers like Lexington Tax Group are well-versed in these areas. They can efficiently handle your case, allowing you to focus on other essential aspects of your life or business.
2. Expertise: Tax laws are often subject to change and can be challenging to keep up with. Lexington Tax Group has the expertise to understand the intricacies of tax laws and the IRS Fresh Start program, which could potentially save you from making costly mistakes.
3. Negotiation Skills: The IRS Fresh Start Program, particularly the Offer in Compromise (OIC) option, requires negotiation with the IRS. Lexington Tax Group’s experienced professionals are skilled negotiators who can help ensure you’re in the best position possible to have your OIC accepted.
4. Reduced Stress: Dealing with tax liability can be stressful. By hiring Lexington Tax Group, you have the reassurance that experienced professionals are handling your case, reducing the stress associated with dealing with the IRS directly.
5. Potential Financial Savings: By maximizing your benefits from the IRS Fresh Start program, Lexington Tax Group could potentially save you money. For instance, if they negotiate a successful Offer in Compromise, you could end up paying less than the full amount you owe to the IRS.

In conclusion, while there is a cost associated with hiring a tax service provider like Lexington Tax Group, the benefits and potential savings can often outweigh the cost. It’s about more than just financial savings – it’s about the peace of mind that comes from knowing your tax issues are being handled by professionals.

If you owe money to the IRS and can’t pay, the IRS will take steps to recover the money you owe. This could include levying your bank account, garnishing your wages, or placing a lien on your property. Penalties and interest will continue to accrue on your unpaid taxes, which can significantly increase the amount you owe.

However, when you hire a tax professional like Lexington Tax Group, you can potentially save money in the long run.

1. Reduce or Eliminate Penalties: Tax professionals have an in-depth understanding of tax laws and can help you apply for penalty abatement, which can either reduce or eliminate the penalties you owe.
2. Negotiate Payment Plans: If you can’t pay your taxes in full, tax professionals can negotiate an installment agreement with the IRS. This can be a much more manageable way to pay off your tax liability.
3. Offer in Compromise: In certain cases, a tax professional might be able to negotiate an offer in compromise with the IRS. This is a settlement where the IRS agrees to accept less than the full amount you owe.
4. Prevent Costly Mistakes: Mistakes on your tax returns can be costly. A tax professional can help you avoid these mistakes, potentially saving you money.
5. Save Time: Dealing with the IRS can be time-consuming. By hiring a tax professional, you can save the time and stress of dealing with the IRS directly. This time saving indirectly translates into monetary saving if you consider your time’s worth.
6. Future Tax Planning: Tax professionals can also help with future tax planning to minimize your tax liability in future years, providing long-term savings.

Keep in mind that while hiring a tax professional does require an upfront investment, the potential savings and peace of mind often outweigh the initial cost.

The IRS Fresh Start Program, also known as the IRS Fresh Start Initiative, is designed to make it easier for individual taxpayers and small businesses to pay back taxes and avoid tax liens.

To qualify for this program, you need to meet certain criteria. This includes owing the IRS $50,000 or less in taxes, penalties, and interest, and being able to pay off your liability within 72 months. However, each specific initiative under the Fresh Start Program (like Offer in Compromise, Installment Agreement, or Tax Lien withdrawal) has unique qualifications, so it’s best to consult with a tax professional to ensure you qualify.

Now, let’s talk about the potential savings from hiring professional help such as Lexington Tax Group.

1. Expertise in Tax Law: Tax laws are complex and constantly changing. Professionals like those at Lexington Tax Group stay up-to-date on these laws, ensuring that you are not only in compliance but also taking advantage of all applicable tax breaks and credits, potentially saving you significant money.
2. Efficient and Effective Negotiation: If you owe the IRS, a professional tax relief service can help negotiate a resolution, such as an Offer in Compromise or an Installment Agreement, that works best for your financial situation.
3. Penalty Abatement: If you have been charged penalties by the IRS, a tax professional may be able to have these penalties removed or reduced, leading to substantial savings.
4. Time Savings: Dealing with the IRS can be time-consuming, especially if you’re not familiar with the process. A tax professional can save you significant time and reduce stress, leaving you free to focus on your personal and professional life.
5. Preventing Further Liability: By helping you set up a feasible payment plan or negotiating a settlement, tax professionals can prevent you from falling further into liability. This can save you from potential future penalties and interest.
6. Long-Term Tax Planning: Beyond immediate tax relief, professional tax services can provide guidance and strategies for long-term tax planning. This can result in substantial savings over time, as you’re better prepared to manage your tax obligations in the future.

Remember, the specific savings will vary depending on your unique tax situation. Lexington Tax Group is equipped to help you navigate these challenges and potentially save you a significant amount in the long run.

IRS liability can seem daunting, but there are several ways it can be forgiven or reduced, often with the help of a professional tax resolution company such as Lexington Tax Group.

1. Offer in Compromise (OIC): This is an agreement between you and the IRS that allows you to settle your tax liability for less than the full amount you owe. It might be an option if you can’t pay your full tax liability, or doing so creates a financial hardship. However, it is complex to negotiate and not everyone qualifies, so hiring professional help can significantly increase your chances of acceptance.
   Savings potential: A tax professional knows how to navigate the Offer in Compromise system and can potentially save you thousands, even tens of thousands, by reaching an agreement to significantly reduce your liability.
2. Innocent Spouse Relief: If you were unknowingly subjected to a spouse’s (or ex-spouse’s) improper tax filing, you could be relieved of the tax, interest, and penalties via the Innocent Spouse Relief program. Tax experts can guide you through the process.
   Savings potential: A tax expert will help you demonstrate your eligibility for this program, which can potentially eliminate your entire tax liability related to your spouse’s erroneous filing.
3. Installment Agreement: This is an agreement with the IRS to pay the liabilities over time in monthly installment payments. If you cannot pay your tax liability in full, this can be a viable alternative. Again, a tax expert can negotiate the terms of the agreement, possibly reducing your monthly payments.
   Savings potential: By setting up a manageable payment plan, you can avoid additional penalties and interest charges that would increase your liability over time.
4. Currently Not Collectible (CNC): If your monthly income barely covers your necessary living expenses, the IRS may categorize your account as “Currently Not Collectible” and temporarily halt collection efforts. A tax professional can help you apply for this status.
   Savings potential: While this won’t reduce your liability, it can give you breathing room until your financial situation improves, thereby preventing increases due to penalties and interest.
5. Penalty Abatement: The IRS might reduce or remove penalties for late payment if you can show a reasonable cause for not paying your tax on time. A tax professional can assist in crafting a convincing case.
   Savings potential: Successfully pleading your case can result in the removal of penalties, which often represent a significant portion of the tax liability.

In all cases, professional tax help can save you not only money but also time and stress. The experts at Lexington Tax Group are skilled at negotiating these and other options, always striving to get the best possible outcome for our clients. However, everyone’s tax situation is unique, so outcomes can vary.

Yes, in some cases, the IRS can forgive tax liability after a 10-year window known as the “Collection Statute Expiration Date” (CSED). However, this is not always automatic and there are circumstances that can extend this timeframe.

For instance:

• The IRS may pause the 10-year clock if you file for bankruptcy, make an offer in compromise, or request a collection due process hearing. This is because the IRS is legally prohibited from collecting during these times, thus extending your CSED.
• If you leave the country for at least six months, the IRS could suspend the 10-year period until you return.
• If you agree to extend the statute of limitations or if it’s extended due to an installment agreement, the 10-year clock could run longer.

While tax liability forgiveness might seem like a simple process, it’s quite complex and fraught with potential pitfalls. That’s where professional help from a firm like Lexington Tax Group becomes critical.

Here are some benefits of hiring tax professionals:

1. Experience and Expertise: Tax laws are complicated. Having a professional by your side means that you have someone who understands these laws and can guide you accordingly.
2. Savings: Hiring a tax professional could potentially save you money in the long run. They know how to explore all avenues for resolving your tax issues, which may include penalty abatement, offers in compromise, or setting up a payment plan that’s in your best interest.
3. Time-Efficiency: Understanding and navigating the tax resolution process can be time-consuming. By hiring a tax professional, you save yourself valuable time that could be better spent on other important matters.
4. Peace of Mind: Dealing with tax issues can be stressful. A tax professional handles communication with the IRS, so you don’t have to.

Remember, every taxpayer’s situation is unique, and while tax forgiveness after 10 years is possible, it’s not a guarantee. If you’re dealing with tax liability, consider consulting with a professional from Lexington Tax Group to discuss your options and devise the best strategy for your specific situation.

We understand that your past experience might have been frustrating, and we’re sorry to hear that you didn’t get the help you expected. At Lexington Tax Group, we strive to differentiate ourselves by offering comprehensive, personalized, and effective tax solutions. Here’s how you could benefit from our services:

1. Expertise: Our team is comprised of tax professionals who are proficient in all areas of taxation. This knowledge depth allows us to handle complex tax situations and ensure that you’re fully compliant with all laws and regulations while minimizing your tax liability.
2. Cost Savings: Even though hiring tax professionals involves an upfront cost, it often leads to significant savings in the long term. By leveraging our understanding of tax laws, we can identify deductions and credits you may have overlooked. Furthermore, the potential cost of mistakes on tax forms, which could lead to audits or penalties, can far exceed the cost of hiring a professional.
3. Time Savings: Preparing your taxes can be time-consuming, especially if you have complex financial circumstances. By delegating this task to our professionals, you free up your valuable time, which can be better spent on other areas of your personal or business life.
4. Proactive Planning: Tax planning is a year-round endeavor, not just a once-a-year task. We help you plan strategically for the future, offering advice on how to structure transactions and make decisions that could positively impact your tax situation.
5. Peace of Mind: Knowing that a professional is handling your taxes with your best interests in mind can alleviate stress and give you confidence that your tax matters are being handled with care and precision.

Remember, not all tax services are equal. We pride ourselves on our commitment to our clients and our expertise in the tax field. We invite you to experience the Lexington Tax Group difference for yourself.

Yes, the IRS does forgive or write off millions in tax liability each year. This occurs through programs such as Offer in Compromise (OIC) or Currently Not Collectible (CNC) status, amongst others.

However, getting these write-offs is not as simple as it might seem. The process is intricate, involving strict qualifications and an extensive negotiation process with the IRS. Here’s where a professional tax resolution company like Lexington Tax Group can save you money.

By hiring tax professionals, you:

1. Increase your chances of a successful negotiation: A professional tax resolution company understands the complexities of tax laws and the IRS negotiation process. They can help you navigate through the IRS procedures, increasing your chances of successful negotiation and potentially saving you a significant amount of money.
2. Save time and reduce stress: Dealing with the IRS can be time-consuming and stressful. By hiring professional help, you can delegate these tasks, enabling you to focus on your personal and professional life while the professionals manage your tax issues.
3. Avoid mistakes that could cost you more: Tax laws are complicated. A mistake or misunderstanding could lead to penalties or even an increase in the liability owed. By hiring a professional tax service, you can minimize the risk of such costly mistakes.
4. Get an optimized payment plan: Tax professionals can help you negotiate an optimal payment plan with the IRS that fits your financial situation. This could result in lower monthly payments, preventing financial strain.
5. Access to expertise: Lexington Tax Group has professionals with years of experience dealing with the IRS and navigating their systems. This experience and expertise can help to ensure you get the best possible outcome in your case.

Remember, each case is unique and results can vary. It’s always advisable to discuss your specific situation with a professional.

The IRS has broad powers to garnish your wages if you owe back taxes. Under their guidelines, the amount they take is determined by how much you earn, your filing status, and the number of dependents you have.

The IRS typically leaves you with a certain amount that is deemed necessary for basic living expenses, based on the standard deduction and exemptions calculated by the IRS. In some cases, this can be up to 70% of your income.

However, hiring a tax professional, such as those at the Lexington Tax Group, can help mitigate these circumstances and potentially save you a significant amount of money. Here’s how:

1. Negotiation: Tax professionals understand the ins and outs of tax law and the IRS’s workings. They can negotiate on your behalf to reduce the amount of your wage garnishment, or even eliminate it entirely in some cases.
2. Payment Plans: A tax professional can help set up an installment agreement with the IRS, spreading out your payments over time. This can make the liability more manageable and reduce or eliminate the need for wage garnishment.
3. Offer in Compromise: In some situations, a tax professional may be able to negotiate an offer in compromise with the IRS. This is an agreement that allows you to settle your tax liability for less than the full amount you owe.
4. Penalty Abatement: If you have been charged penalties on top of the tax you owe, a tax professional might be able to have these penalties reduced or removed.
5. Compliance: Hiring a tax professional ensures your tax filings will be correct and on time moving forward, preventing future issues with the IRS.
6. Peace of Mind: Dealing with the IRS can be stressful. Hiring a professional to handle these matters can alleviate a lot of this stress, allowing you to focus on other aspects of your life.

Remember, the cost of hiring a tax professional can often be offset by the savings and benefits they bring through their services. It’s an investment that could potentially save you from paying more than you need to the IRS.

Absolutely, at Lexington Tax Group, we don’t just assist with federal tax issues, we can also help you manage your state tax liability. Each state has its own unique tax laws and we understand how complex this can make things. Our experts are well-versed in different state tax regulations, and they can help you navigate through your state tax liability issues, providing solutions tailored to your situation.

In terms of savings, hiring a tax professional like us can offer significant financial benefits. Here’s how:

1. Error Reduction: Tax laws are complex and the risk of making errors while filing your own taxes is high. These mistakes can lead to penalties and fines, or even trigger an audit. Our professionals ensure accuracy, minimizing such risks.
2. Time Savings: Understanding tax laws and filling out forms can take a considerable amount of time. We take this burden off your shoulders, freeing up your time for other personal or business-related tasks.
3. Maximized Deductions: Our tax professionals know what to look for when it comes to tax deductions and credits. This expertise ensures you get the most out of your tax return.
4. Negotiation of Penalties: If you’re facing penalties from the IRS or state tax authorities, we can negotiate on your behalf, possibly reducing or eliminating these penalties.
5. Long-term Strategy: A tax professional doesn’t just help during tax season, but can assist in formulating a year-round tax strategy to minimize your future tax liabilities.

Remember, the goal is not just to save you money but also to provide peace of mind knowing that your tax issues are being handled by experts. So, whether it’s a federal or state tax issue, you can count on Lexington Tax Group for reliable and effective solutions.

At Lexington Tax Group, we are committed to assisting our clients in the complex landscape of tax liabilities, including issues concerning tax liens. If you’re facing a tax lien, it may be possible to have it removed or reduced, depending on your individual circumstances.

There are several ways to deal with a tax lien:

1. Pay in full: The simplest way to get rid of a tax lien is to pay the tax liability in full. After payment, the IRS will typically remove the lien within 30 days.
2. Offer in compromise: This is an agreement between you and the IRS where you agree to pay less than the full amount you owe. Acceptance of this offer can result in the removal of the lien.
3. Discharge of property: If you’re trying to sell or refinance your home, you might qualify for a discharge which removes the lien from the property.
4. Subordination: This does not remove the lien, but it allows other creditors to move ahead of the IRS, which might make it easier to get a loan or mortgage.
5. Withdrawal: This removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property. However, you are still liable for the amount due.

The potential savings from hiring us comes from our extensive expertise and understanding of tax law. Our team of tax professionals can navigate the system, negotiate on your behalf, and potentially reduce your tax liability. Additionally, we can help to avoid costly mistakes and save you time, providing peace of mind knowing your tax issues are being handled by professionals.

Remember, each case is unique, and results depend on your specific situation and the applicable tax laws. It’s always recommended to seek professional advice when dealing with tax liens. For a more detailed analysis of your situation, please reach out to us for a consultation.

Absolutely! Here’s how hiring professional tax assistance like Lexington Tax Group can help stop wage garnishment and provide savings:

Wage garnishment due to unpaid taxes can be a stressful situation. This typically happens when you have unpaid tax liability and the IRS takes a portion of your income directly from your employer. However, hiring a professional tax group like Lexington Tax Group can assist you in several ways.

Firstly, Lexington Tax Group has a team of experienced tax professionals who are familiar with IRS procedures and tax laws. They can evaluate your financial situation and develop a strategic plan to address your tax issues, which may include negotiating an installment agreement or an offer in compromise with the IRS. These options, if accepted, can result in smaller monthly payments or a reduced total liability, thus saving you money in the long run.

Secondly, hiring professionals can help you avoid additional penalties and interest that can accrue over time if your tax situation isn’t addressed promptly. This can lead to substantial savings, as the IRS can charge high interest rates and late penalties.

Thirdly, dealing with the IRS and understanding tax laws can be time-consuming and complex. By hiring Lexington Tax Group, you are saving valuable time and reducing the risk of making costly mistakes in your filings or negotiations with the IRS.

Finally, in some cases, wage garnishment can be stopped or released. Lexington Tax Group can potentially negotiate with the IRS on your behalf to release your wage garnishment, based on hardship or incorrect tax assessment. This could provide immediate relief and savings.

It’s important to remember, however, that every tax situation is unique, and while hiring professional tax assistance can provide numerous benefits, it doesn’t guarantee any specific outcome. You should consult with Lexington Tax Group or a similar professional service for advice tailored to your specific situation.

Yes, the IRS does allow for penalty forgiveness under their First Time Penalty Abatement policy, also known as FTA, or under reasonable cause if you’ve had a good past compliance history. This can apply to penalties such as failing to file, failing to pay, or failing to deposit taxes. To apply for penalty abatement, you will need to contact the IRS directly. However, it can be a complex process with no guarantee of success, and you might find yourself needing to navigate bureaucratic hurdles and specific tax jargon.

This is where Lexington Tax Group can provide value. Our team of experienced tax professionals understands the complexities of the IRS system and can help guide you through the process. We’re skilled at presenting your case in the best possible light to increase the chances of penalty abatement.

By hiring professional help, you not only improve your chances of success but also save valuable time and avoid unnecessary stress. This is because the experts are already familiar with the process, saving you from needing to understand and navigate the complex system yourself.

Moreover, potential savings could be significant if the IRS agrees to forgive or reduce the penalties. Let’s say, for example, that you owe $10,000 in penalties. If we’re successful in getting 50% of that forgiven, you’ve just saved $5,000. Even if you consider the cost of our services, the net savings would still be substantial. Furthermore, our assistance can help you avoid making errors that could result in additional fines or penalties, further increasing your overall savings.

Yes, the IRS can indeed make you pay taxes after a car repossession. This is because the IRS often treats forgiven or canceled liability as income. For instance, if your auto loan was $20,000 and your car was repossessed when you still owed $15,000, the difference of $5,000 could be considered by the IRS as income on which you would be required to pay taxes.

However, the tax implications can vary depending on your specific financial situation and tax bracket. Furthermore, there are exceptions and exclusions provided by the IRS under which a taxpayer may not owe taxes on canceled liability. Navigating these rules and regulations can be complex.

This is where hiring a professional tax service like Lexington Tax Group comes in. By investing in professional help, you could save substantial amounts of money in the long run.

Tax professionals can guide you through the tax laws and help you understand the potential consequences of specific financial actions.

They can help you assess whether any exceptions or exclusions apply to you, potentially saving you from paying unnecessary taxes. Plus, they can help you negotiate with the IRS and potentially reduce your tax liabilities, preventing costly mistakes, saving you time, and reducing the stress associated with dealing with tax issues. The benefits of a tax professional often outweigh the costs, leading to overall savings and peace of mind.

The simple answer it yes although the IRS does not require you to pay taxes on the actual credit card liability itself. However, if a credit card company or any lender forgives or cancels your liability, the IRS often treats the forgiven amount as income and thus you may need to pay taxes on that amount.

For example, if you owed $10,000 and the credit card company forgave the liability, the IRS sees that $10,000 as income. You would then receive a Form 1099-C (Cancellation of liability) from your lender, which you should include when you file your tax return.

However, there are exceptions to this rule, like if you’re insolvent (your total liability are more than your total assets) at the time the liability is cancelled, you may not have to include the cancelled liability in your income. Also, liability cancelled in a Title 11 bankruptcy case is not included in your income.

It is important to consult with a tax professional to understand your individual situation.

Here is where the Lexington Tax Group can help and provide potential savings:

1. Expert Guidance: Tax laws are complex, and the penalties for mistakes can be costly. The experts at Lexington Tax Group can help you navigate these laws to avoid paying unnecessary taxes.
2. Liability Forgiveness Negotiation: Our experts can negotiate with your lenders to minimize the amount of liability forgiven, hence reducing your taxable income.
3. Insolvency and Bankruptcy Analysis: If you’re insolvent or considering bankruptcy, our experts can help you analyze and document this correctly so that you can avoid paying tax on cancelled liability.
4. Accurate Form Filing: Lexington Tax Group will ensure you’re filing the correct tax forms, including Form 1099-C or Form 982, if applicable, to avoid errors that could result in penalties.

The cost of professional help can be quickly outweighed by the benefits of correctly handling your financial situation and potentially saving you from unnecessary tax expenses.