Chicago-based tax relief firm urges high-income earners to sort out tax debt or risk becoming the target of IRS enforcement initiatives.
(PRUnderground) August 3rd, 2020
The Tax Defenders has a word of caution for upper-income earners: resolve tax debt before the IRS comes knocking. After months of limited activity and weak collections due to COVID-19, the IRS is charging full speed ahead with two initiatives directed at the wealthy.
For 15 years, The Tax Defenders’ team of tax relief attorneys has been helping clients navigate IRS audits and resolve tax debt and IRS-imposed penalties with the most financially advantageous strategies. To date, they have helped over 15,000 taxpayers, saving them more than $19 million.
Joe Hanley, owner of The Tax Defenders, said that top-tier earners should be proactive in squaring up with the IRS rather than waiting for the agency to impose penalties. The penalties could come as part of two new initiatives announced on July 15 — the extended deadline for filing 2019 taxes (pushed back due to COVID-19).
The first initiative targets upper-income non-filers, including independent contractors who may find it easier to avoid paying the IRS because their taxes aren’t withheld from paychecks like employees’ taxes are. The IRS estimates that among high-income non-filers, nearly half owe more than $50,000 in taxes and 2,000 of these individuals owe more than $1 million.
In addition to paying back taxes, delinquent payers will be subject to a 5% penalty for each month that payments lag behind as well as a .5% late fee per month, up to a 25% maximum.
The second initiative is aimed at high-income taxpayers with at least one connection to “pass-through entities” — business structures that pass income through to the individual owners to avoid corporate taxes. These include structures like S corporations or private foundations. The IRS will be particularly focused on foundations that conduct illegal transactions, such as issuing loans to disqualified individuals.
Hanley said that audit letters will be issued from July through September but that non-filers should not wait for the IRS to contact them first.
“The time to start resolving tax issues is now — not when the IRS is breathing down your neck,” said Hanley.” Experienced tax resolution specialists can open up many options for working through tax debt, and the process doesn’t have to devastate people’s financial situation.”
Hanley is a decorated former Marine who served as an infantry officer in Desert Storm and returned home to attend law school and start several businesses. His own frustrations in trying to resolve tax debt early in his career motivated him to start The Tax Defenders.
“There’s a feeling of hopelessness associated with tax issues, but it doesn’t have to be that way,” said Hanley. “Our team of attorneys treat each client with the utmost respect and help them find a sustainable path forward, no matter what they’ve experienced in the past.”
To learn more about The Tax Defenders or their services for helping people legally reduce their tax burden, visit www.TheTaxDefenders.com or call (800) 610-5500.
About The Tax Defenders
The Tax Defenders have built a reputation for a consistent track record of success, having saved $19M for the 15,000 clients they have served. Although they are located in the Windy City, their licensed professionals have helped individuals throughout the country.
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