Why should I use Centerbridge instead of one of those big tax resolution firms or my local CPA or Enrolled Agent (EA)?
An attorney will handle your case. You will get the highest level of confidentiality allowed by law. Most of those tax resolution firms cannot offer the protections that the attorney-client privilege and attorney work product doctrine can provide. Our staff is trained in personalized service, and we limit the number of cases we will take.
If I engage with Centerbridge, do I need to deal directly with the IRS anymore?
In most cases – no. We step into your shoes. However, whether it is audit defense or tax resolution, the IRS has stringent deadlines. If you are not getting information to your attorney or paralegal quickly, the IRS may issue an appearance summons or request an in-person meeting. The key to resolving tax issues is open communication with your attorney and keep to the IRS timelines.
What happens to my tax refunds if my Offer in Compromise is accepted?
After a couple of years, your tax refunds will resume as normal. However, the IRS will usually apply any tax refunds to the amount due the first two years after an Offer in Compromise is accepted. Therefore, it is important to plan your estimated tax payments and withholdings carefully to minimize your refunds and pay the amount due.
How long will my bank or credit union hold my levied money before sending it to the IRS?
The bank will wait 21 days to send your money to the IRS once you receive notice of levy. It is important to deal with a levy notice right away – before your money goes to the IRS and you can’t get it back.
Should I close my bank account if it is got a levy?
A bank levy is a one-time event – so you can continue to use the bank account. However, this is a sign that you have moved to a very active collection phase. Do NOT immediately open a new account – the IRS will find that account as well. Instead, call us to get help.
Will I go to jail for not filing or owing taxes?
A taxpayer rarely goes to jail – especially for an honest mistake or a difficult financial situation. The key is working with counsel and the IRS to resolve the tax situation in good faith because failure to file is potentially a felony. Deliberate misreporting, hiding assets, or other bad faith actions may change that answer. The best bet is to engage a lawyer – someone who can represent you and maintain confidentiality – to talk through your concerns.
When will my back taxes expire?
The IRS statute of limitations for taxes expiring is 10 years after they have been assessed. Having said that, the clock stops (“tolls”) for an OIC, bankruptcy, or other tax relief measure in the event you fail to fulfill the plan.