Haven’t paid your taxes in 5 years? 10 years? Have unfiled tax returns?

Have a tax debt of $30,000 or more?

Don’t panic! At MendozaCo, we are here to help.

     Failing to file or pay for your taxes can bear some serious consequences.  Not only is it the law to file your taxes, but the unfiled tax return debt will also continue accumulating penalties and interest.  On top of that, the IRS can legally levy your assets, stop business operations, garnish future tax refunds and your paychecks, and can even prevent you from obtaining your professional license or a passport.  Although it is relatively unlikely that you will be sent to jail, the penalties and interest alone are enough to get anyone nervous.  Even famous celebrities can’t escape the fright:

     We understand that filing or paying your taxes can be a daunting task.  Many Americans overlook their taxes for a multitude of reasons - maybe you were sick in the hospital, you were afraid to file because you didn’t have the money to pay, or you just never got around to it.  Regardless of your reasoning, you are not alone.  In fact, approximately seven million Americans fail to file federal income tax returns every year.  We see these kinds of things all the time; it is nothing to be ashamed about. Together, we can come to an effective solution.

Step 1:  You need to be in COMPLIANCE:

     If you haven’t filed, you should first file your current return and the prior six years' tax returns as soon as possible to begin to bring yourself into compliance with the IRS.  Remember: compliance is key!  This will be essential for subsequent actions to get you back on track to being tax debt-free.  The IRS considers a taxpayer to be in compliance if returns have been filed up to six years and the current tax year.

     For some filings, however, the IRS will file the tax return for you, a procedure called a Substitute Filed Return (“SFR”).  The IRS is not filing the tax returns to help you.  The SFR creates the assessment (Inflated IRS tax bill) and starts the collection process against you without you being aware.   The SFR is a legal procedure within the IRS IRM (Internal Revenue Manual).

    In the case that there are SFRs, we will need to replace them with your actual tax return in order to adjust the IRS inflated assessment (the tax bill).  Remember, we only need to file the prior six years to be in compliance, but if we can identify any SFRs beyond the sixth non-file years, we would need to also file those additional tax returns.  SFRs can significantly inflate your tax bill for the Installment Agreement (IA), so it is important to identify and replace the SFRs with your actual tax returns.  Make sure to file the required tax returns and stop the bleeding.  If we perpetuate the cycle of non-filing, the bleeding of additional penalties will continue to flow.

     Here is the tricky part - we need to be careful about how many unfiled tax returns to submit.  Sometimes submitting too few can result in a criminal act called tax evasion or audit exposure, while filing too many may end up paying more than you should!  But don’t worry, tax resolution is our specialty!

Now what?

     Now the clock starts ticking. Don’t worry, though, not in a bad way! It’s important to submit your returns and be in compliance with the IRS in order for the statute of limitations on the collection period to begin. The IRS has a statute of limitations for collections of 10 years.  Meaning, once you file your taxes, the collection period begins, and if your debt has not been collected within 10 years, the remaining balance of your debt will be removed and you will no longer be liable to pay it.  Of course, a ten-year-long waiting game sounds exhausting, which it is, but it will at least get the ball rolling!

     Now that we are in compliance with the IRS, we now need to look into your financial situation and your ability to pay.

Step 2:  What Are my Payment Options with Uncle Sam?

     Once we stop the bleeding, we finally start to strategize a game plan. This is where we come in and do what we do best.  There is no one-size-fits-all solution. We approach each individual tax problem with a unique and individual strategy, placing you in the best outcome possible.  In assessing your financials, we first prioritize you and your family’s needs.  Before you address your tax burden, we first need to make sure that you have food on your plate, a roof over your head, and you are able to pay all of your necessary living expenses such as;

• Food, Clothing and Other Items (Housekeeping supplies, Apparel & Services, Personal Care Products & Services, and other Miscellaneous,
• Out of Pocket Health Care, Health and Dental Insurance,
• Housing and Utility Expenses (Including Mortgage and Property Taxes),
• Local Standard Transportation Cost such as Car Ownership Costs, Operating Cost or Public Transportion.  

     This will allow us to see your ability to pay. Your ability to pay is the remaining disposable income after we take into account all of your necessary living expenses. Then, we will look into the following options:

• Installment Agreements
• Partial Pay Installment Agreement
• Offer in Compromise

Step 3: Installment Agreements:

     An installment agreement is an IRS program that allows you to pay back your tax debt in monthly payments.  We determine the monthly payment amount using your ability to pay.  After taking into account your financial needs, the remaining amount is the disposable income and this amount is what is available to be used to pay back your tax debt.  Even if your ability to pay is one-hundred dollars on a one-hundred thousand dollar tax debt, that can be your monthly IRS installment agreement.  In order for an installment agreement to be accepted, though, you will need to be in compliance.  This is why compliance is key - the IRS will not work with us unless you have followed the correct requirements.

You must evaluate other conditions as well. For instance:

• If you’re considered self-employed, you must be up-to-date on all your quarterly estimated tax payments for the year.
• Do you have equity in your assets? If you cannot access the equity, the IRS can't garnish it.

   We need to evaluate your ability to pay, assets and safeguard what the IRS can garnish.

     Don’t tackle your tax debt alone.  Consult your local tax experts and save yourself the money, time, and energy needed to fight the IRS alone.  Settle your tax debt and close this chapter.  At MendozaCo we understand how stressful and possibly embarrassing this process can be. 

   Remember, this is what we do best!  We are here for you and are determined to help.

We Are What You’re Looking For!

Mendoza & Company, Inc. services individuals, nonprofits, international companies, and small businesses with monthly and annual accounting needs. We specialize in various sectors: accounting, tax preparation, tax compliance, and representing taxpayers with matters involving the IRS and state tax authorities. We can help your company with other services such as weekly and bi-weekly payroll, and payroll reporting services on an online portal with a convenient and cost-effective online support system that provide superior results.

Our goal is to assist our clients in the process of running a business and providing a network of professionals to assist both the individual and businesses.  We satisfy our clients by offering exceptional service with a full staff of experienced professionals. To promote effective communication, we provide ongoing online interactive support during all phases of our work and make it easy for our clients to do business with us.

Schedule an appointment today to learn what we can do for you!

   Owing the IRS is the worst thing that can happen to an individual taxpayer or company. The IRS can take everything you own to satisfy a debt, and they scare and intimidate many individuals. If the tax notices are coming and accumulating, you may have a critical tax problem.  Don’t let this happen to you. Get help and protect your rights and property.

What is Tax Resolution?

Many taxpayers find it difficult to deal with the IRS alone and look for help. Fortunately, we specialize in tax resolution to help mitigiate or resolve matters with the IRS or state tax authorities. 

Our tax resolution services help clients resolve critical tax debts such as payroll garnishments, individual income tax, business income tax, employer payroll taxes, liens, and bank levies with the IRS and state tax authorities by providing affordable payment solutions with the government on behalf of our clients. Having tax debt can be a complicated ordeal, and each tax solution is different. Although resolving tax debt can be accomplished alone, hiring a tax professional, such as an EA, can make the process much more manageable. 

What We Do:

How It's Done:

Tax Resolution Services Include:

Form 1040, Form 1120 and 1120s, Form 1065 and Gift Taxes.

Tax preparation is not an easy task. With the new 2018 tax changes, you have a higher chance of making a mistake and paying more in taxes than the fee for professional tax preparation. Mendoza & Company tax professionals are Maryland licensed and approved by the IRS to represent you. 

With over 20 years of experience preparing individuals, businesses, trusts, and retirement tax returns, we are the firm that will best handle your tax returns.

Preparing your income tax return can be a task that leaves you with more questions than answers. According to a national survey by the US Government’s General Accounting Office, “77 percent of taxpayers said they were very or generally confident that their preparer completed a tax return that allowed them to pay no more in taxes than was legally required". In addition, the survey showed that "87 percent of taxpayers would use a paid preparer in the future." -GAO

Whether we like it or not, today’s tax laws have become so complicated that filing even a relatively simple return can be confusing. It is just too easy to overlook deductions and credits you are entitled to. 

Here's What We Offer:

Not Organized? No Problem! If you own a small business and haven’t kept up your bookkeeping, don’t worry. We can help you. We’ll prepare your bookkeeping for the full year; prepare a full Schedule C, Corporate and Partnership taxes, as well as your personal income tax return. Call us or schedule your appointment online for details.