Tax problems can be confusing and stressful, especially when you’re dealing with IRS notices, back taxes, wage garnishments, bank levies, tax liens or years of unfiled returns.
Below are answers to some of the most common questions we receive about IRS tax relief, tax resolution and tax preparation in Hawaii.
If you don’t see your question here, call Tax Help Hawaii at 310-966-0266.
Tax Help Hawaii helps individuals and businesses address federal IRS tax problems and provides professional tax preparation and related services.
Depending on your situation, we may be able to assist with IRS back taxes, wage garnishments and wage levies, bank levies, federal tax liens, Offer in Compromise, installment agreements, penalty relief, unfiled tax returns, payroll tax problems, Innocent Spouse Relief and other tax-resolution matters.
We also provide year-round tax preparation and bookkeeping services.
Tax Help Hawaii is based in Kula on Maui, Hawaii.
We assist taxpayers throughout Maui and the State of Hawaii. Because many federal IRS matters can be handled remotely, we can also assist qualifying taxpayers with federal tax-resolution matters throughout the United States.
Tax Help Hawaii was founded in 2009 by Andrew Kai Hatchie Jr., an IRS Enrolled Agent.
An Enrolled Agent is a federally credentialed tax professional who has unlimited rights to represent taxpayers before the IRS, subject to applicable IRS requirements.
An Enrolled Agent (EA) is a tax professional authorized by the U.S. Department of the Treasury to represent taxpayers before the IRS.
Enrolled Agents can represent taxpayers in matters involving IRS examinations, collections and appeals.
This can be particularly valuable when you’re dealing with a serious IRS tax problem rather than simply preparing an annual tax return.
The first step is determining exactly how much you owe, which tax years are involved and whether all required tax returns have been filed.
From there, potential options may include an IRS installment agreement, Offer in Compromise, penalty relief or other collection alternatives depending on your circumstances.
Don’t assume that you have to choose a resolution before your complete tax situation has been reviewed.
The IRS can levy wages to collect unpaid federal tax debt.
Depending on the circumstances, addressing the underlying tax problem and establishing an appropriate resolution may result in a wage levy being released.
However, every situation is different, and a wage levy cannot be guaranteed to be released simply because you hire a tax professional.
If your wages are currently being levied, contact Tax Help Hawaii promptly at 310-966-0266.
In some circumstances, yes.
An IRS bank levy generally involves a holding period before the bank sends levied funds to the IRS. During that period, there may be an opportunity to address the levy if circumstances support release.
Possible reasons for release can depend on issues such as procedural problems, financial hardship or establishing another appropriate resolution.
Because timing can be critical with a bank levy, don’t wait to seek help.
A federal tax lien is the government’s legal claim against your property when you owe a tax debt and applicable legal requirements have been met.
A tax lien and tax levy are different.
A lien is a legal claim against property, while a levy is an actual legal seizure of property or rights to property to satisfy a tax debt.
Depending on the circumstances, IRS lien issues may involve release, withdrawal, discharge or subordination.
Some taxpayers may qualify for an IRS Offer in Compromise (OIC), which allows an eligible taxpayer to settle a tax liability for less than the full amount owed.
However, not everyone qualifies.
The IRS generally evaluates factors such as your income, expenses, assets and ability to pay. Tax filing and payment compliance requirements can also affect eligibility.
Tax Help Hawaii can review your circumstances to determine whether an Offer in Compromise may be worth pursuing.
You may have options.
An IRS installment agreement can allow qualifying taxpayers to pay a tax balance over time rather than paying the entire amount immediately.
Other possibilities may include an Offer in Compromise, a Partial Payment Installment Agreement, penalty relief or Currently Not Collectible treatment, depending on your financial circumstances and eligibility.
The best option isn’t necessarily the one with the lowest immediate payment—it should fit your overall tax and financial situation.
Certain IRS penalties may qualify for penalty relief or penalty abatement.
Eligibility depends upon the penalty involved and your individual circumstances.
Possible relief can include reasonable-cause relief and other IRS penalty-relief provisions when applicable.
Removing or reducing penalties is not automatic, and interest may still apply even when certain penalties are removed.
Start by determining which returns actually need to be filed.
Tax Help Hawaii can assist with preparing past-due tax returns and, where appropriate, obtaining available IRS tax information that can help reconstruct missing income information.
It’s generally better to address unfiled returns rather than continue postponing them, particularly if the IRS has begun sending notices or taking collection action.
Generally, yes—you shouldn’t avoid filing a required tax return simply because you can’t pay the full balance.
Filing the return and paying the resulting balance are separate issues.
Once the return is filed and the amount owed is known, you can evaluate available payment or tax-resolution options.
Failing to file can create additional problems, including potential failure-to-file penalties.
Possibly.
The IRS provides several forms of potential spouse relief, including Innocent Spouse Relief, Separation of Liability Relief and Equitable Relief.
The appropriate relief depends on factors such as the type of tax liability, what you knew about the tax issue, your marital circumstances and other facts.
These cases are commonly requested using IRS Form 8857.
Divorce by itself does not necessarily eliminate federal joint tax liability.
Yes.
Tax Help Hawaii provides year-round tax preparation, not just during the traditional January-through-April filing season.
We can assist with current-year returns, prior-year returns, amended returns and tax preparation connected with IRS tax-resolution matters.
We also provide business tax-return preparation for qualifying businesses.
Yes.
Tax Help Hawaii provides bookkeeping services for businesses, including QuickBooks Online bookkeeping, reconciliations, transaction categorization, invoice tracking, bookkeeping cleanup, catch-up bookkeeping and financial reporting, depending on the client’s needs.
Keeping accurate books throughout the year can also make business tax preparation considerably easier.
Tax Help Hawaii’s founder, Andrew Kai Hatchie Jr., is an IRS Enrolled Agent.
Enrolled Agents generally have unlimited representation rights before the IRS, including representation in IRS collection, examination and appeals matters, subject to applicable IRS rules and the specifics of the engagement.
This means qualifying IRS matters can often be handled without the taxpayer personally managing every communication with the IRS.
Start by telling us what’s happening.
Whether you’ve received an IRS notice, owe back taxes, have unfiled returns, are facing a levy or lien, or simply aren’t sure what to do next, we’ll begin by reviewing the situation.
Have any IRS notices and relevant tax documents available if possible.
Talk to Tax Help Hawaii
Call 310-966-0266
Serving Maui and taxpayers throughout Hawaii, with qualifying federal IRS tax-resolution services available nationwide.
Tax-resolution options and eligibility depend on each taxpayer’s individual circumstances and applicable IRS rules. Past results do not guarantee future outcomes.