IRS DEBT? WORKING WITH A LENDER?
In order to fund, a lender needs to (1) secure its interest in the receivables/collateral and (2) ensure that its secured interest has priority over all others.
Unfortunately, the IRS has what some consider a “super-priority.” When a federal tax lien is filed, the IRS jumps ahead of the lender, exposing the lender to risk.
Worst case, the IRS can levy (take) your receivables. You don’t get paid. Your lender doesn’t get paid. Unfortunately, lenders stop funding before they are exposed to any risk.
We negotiate a payment plan your business can afford, no matter the size of the liability or extent of the issue, so the IRS cannot levy bank accounts or receivables.
We resolve the IRS liability in a manner that addresses your lender’s concerns (priority and levies), so there’s no threat to the funding relationship.
Your lender can continue to work with you – a valued client – secure in the knowledge that everyone’s interests are safe from the IRS, so you can grow your business.
Tax Guard is unique in that we resolve issues with the IRS (and/or state taxing authorities), specializing in businesses that work with banks, asset-based lenders, and factors.
A federal tax lien threatens your lender’s security and priority. We address your lender’s concerns throughout the resolution process, so you can focus your attention on running and growing your business.
You are our client, but we keep your lender updated throughout the process so (1) you don’t have to try to explain the IRS to your lender and (2) we can preserve funding.
Our Associates do great work for our clients. Here are just a few of our success stories.
Installment payment of $2,700;
potentially saves $1.16 Million
“We tried to resolve the issue on our own, but our revenue officer didn’t give us any options. He told us we had to make payments of $25,000 per month. We initially agreed to the payment because we didn’t think we had an alternative.”
– Client
Installment payment of $1,855; removed $25,000 in penalties
“The tax issues arose during the pandemic. We knew our funding was crucial to the business’s cash flow and survival. We’ve worked with Tax Guard for years because they keep us informed and solve our customers’ tax problems. They do what others can’t.”
– Lender
Saved $50 million; expertise allowed for exceptional solution
“We worked with two different attorneys prior to retaining Tax Guard, but they weren’t able to help us. [With] Tax Guard, we were able to settle with the IRS for an amount we can afford. Tax Guard saved our business and thousands of jobs.”
– Client
Explore these free resources to increase your knowledge of IRS processes, updates, liens, levies and how Tax Guard can help!
One in five businesses has an IRS tax liability, and most businesses will accrue a debt with the IRS at some point in their lifetimes. If you or your business have fallen behind with the IRS, there are several options to resolve the liability.
When your business owes taxes to the IRS, it’s easy to get trapped into a cycle of non-compliance, which is expensive on several levels. Often, businesses focus on paying off old periods of liability, leaving them unable to pay current taxes. This is the exact opposite of what a business should do. In this article, we will explain the best route to take when handling tax liabilities vs. current tax payments.
When the IRS files a Notice of Federal Tax Lien (NFTL), it causes problems for businesses (and individuals). Businesses using their accounts receivable as collateral for loans are especially hurt by NFTLs. Lenders do not like funding behind NFTLs — or any lien, for that matter. When the IRS’s NFTL takes priority over a lender’s […]
No! Generally, when your business owners (or their consultants, attorneys, and/or accountants who don’t deal with the IRS Collections Division on a regular basis) first speak with the IRS, their first question is, “What will it take to make this go away?” This allows the IRS to frame the issue, and they frequently respond with “25 percent down and the rest paid within two years” or something similar. Business owners frequently agree to those terms because they believe they have no alternative. A large down payment combined with a large monthly payment will create problems with cash flow, the agreement will terminate, and then the business will be in worse shape than before.
There is no basis for the idea that the IRS requires 25 percent down and the remainder paid within two years. In fact, it’s the exact opposite. The Internal Revenue Manual indicates, “Installment agreements must reflect taxpayers’ ability to pay on a monthly basis throughout the duration of agreements.” The amount of the monthly installment payment should not be based on the size of the liability or an arbitrary time frame. Rather, the monthly payment should reflect an amount the business can afford, which will substantially decrease the likelihood that the agreement will terminate.
Watch our video to learn why 95% of all installment agreements with the IRS fail and why Tax Guard’s success rate is so much higher (hint: we base the payment on what the business can afford).
Many lenders and consultants, even business owners themselves, put too much emphasis on the total amount owed to the IRS. They see a substantial liability and conclude there is no way the IRS will allow the business to continue operations. This assumption is incorrect. If your business can become and remain current and compliant, Tax Guard can negotiate an installment agreement with a payment the business can afford, regardless of whether the amount owed is $100,000 or $1 million or $10 million.
Watch our video to learn why 95% of all installment agreements with the IRS fail and why Tax Guard’s success rate is so much higher (hint: we base the payment on what the business can afford).
A federal tax lien provides notice of your and/or your business’s liability to third parties (including your lender), secures the government’s interest on your business’s assets (real and personal property), and establishes priority. A federal tax lien does not divest a taxpayer of his or her property or rights to transfer property (it does not do the “taking”). Instead, a levy does the divesting. Before a Revenue Officer can issue a levy, the IRS must first issue a Final Notice of Intent to Levy and provide the taxpayer with 30 days to appeal. If 30 days pass without a resolution or an appeal by the taxpayer, the Revenue Officer may proceed with enforced collection (levies on the taxpayer’s bank accounts and/or accounts receivable). Importantly, the IRS does not have to record a notice of federal tax lien before it can pursue enforced collection activity.
There are a lot of representatives out there (local attorneys, local accountants, and tax resolution companies), but even those that are good at representing their clients before the IRS (most are not) generally do not understand lenders’ priority concerns and/or do not regularly update the lender. At Tax Guard, we specialize in resolving issues with the IRS (and/or state taxing authorities) for businesses that work with banks, asset-based lenders, and factors. We have a unique understanding of lenders’ concerns and what is needed to preserve your funding relationship. Additionally, while you are our client (not the lender), we’ll answer your lender’s questions and keep them updated on the progress of our negotiations. We take on the burden of explaining the IRS to your lender. We protect you, we protect your lender, we preserve funding.
When federal tax issues arise, don’t wait for the IRS to file a federal tax lien or issue levies. Be proactive. Speak with a Tax Guard specialist today.
When lenders fund in second position behind a federal tax lien, they are exposed to the IRS in the form of levy and conversion. As such, lenders generally stop funding on or before the 45th day from the date the federal tax lien was filed if the underlying liability is not resolved in the proper manner.
Tax Guard’s resolution services are designed to prevent that outcome. We understand the sense of urgency and the additional steps needed to protect your lender, which allows us to preserve the funding relationship. When federal tax issues arise, don’t wait for the IRS to file a federal tax lien or issue levies. Be proactive. Speak with a Tax Guard specialist today.