About Mercy Tax Solutions
Non-Judgmental Tax Help When You Need It Most
After years of doing taxes for individuals, businesses, and non-profits across East Tennessee, we have a unique perspective. We’ve discovered that far too many are overwhelmed by the entire tax system and have little to no idea of how it works. As a result, they allow delay, mistakes, illness, fear, and a host of other complications to create what appears to them as insurmountable tax debt.
Mercy Tax Solutions does not offer false hope – but we do provide knowledgeable guidance and resources to help you make a fresh start.
Our logo reflects this driving force behind our specialized services:
“Fearless Advocacy – Fierce Relief”
The Shield: Protecting your rights and interests
The Lion: Advocating on your behalf
Who We Help
Mercy Tax Solutions exists to assist honest, hardworking individuals, business owners, and non-profit organizations that are deep in tax trouble and need our specialty assistance.
Have you been putting off reconciling your tax burdens to the point you now owe a substantial amount of money to the IRS?
Have you made mistakes with your contribution or withholding calculations that resulted in a significant tax debt?
Do you dread tackling your tax problems because you lack the knowledge of how to fix them or where to turn for help?
Meet Heather
Heather Coonley, EA, owner and founder of Mercy Tax Solutions, is your dedicated tax advocate. As an enrolled agent, a federally licensed tax practitioner specializing in taxation and unlimited rights to represent taxpayers before the Internal Revenue Service, she is dedicated to providing effective tax relief solutions to individuals and businesses. With six years of experience as a Tax Specialist with Knob Creek Professional Tax Services, Heather has developed a deep understanding of complex tax issues and a compassionate approach to client care.
Heather is an active member of the American Society of Tax Problem Solvers, a non-profit organization of professionals representing taxpayers before the IRS. She is committed to continuing to educate and hone her skills and knowledge. She is currently working toward receiving additional specialized certifications in the tax resolution field. She stays abreast of the latest tax laws and regulations to ensure clients receive the most effective and up-to-date resolutions.
Beyond her professional expertise, Heather is passionate about her faith, family, education, and community involvement. She has raised and homeschooled her four children, served as a missionary, led children’s ministry programs, and co-founded and directed a successful homeschooling cooperative. She also serves as the officer of elections in Bluff City for the Sullivan County election commission. These experiences have instilled in her a strong commitment to hard work, helping others, and positively impacting her East Tennessee community.
With Heather as your fearless advocate, she will aggressively represent your interests and work tirelessly to bring you the best possible outcome. Heather is devoted to bringing you fierce relief from the overwhelming burden of tax debt. Experience the peace of mind from knowing you have a trusted, compassionate professional fighting for you. Contact Heather today for a free consultation, and let her help you find the relief you deserve.
Frequently Asked Questions
Resolution
What is Tax Resolution?
How does Tax Resolution work?
The tax resolution process typically begins with a thorough assessment of your tax situation. Mercy tax solutions will review your financial records, tax returns, tax transcripts, and correspondence with the IRS or state tax agency to determine the best course of action for your case.
The tax resolution process can involve several different strategies, including:
Installment Agreement: An installment agreement is a payment plan that allows you to pay off your tax debt in monthly installments over a specified period. The IRS or state tax agency may agree to an installment agreement if they believe you cannot pay your tax debt in full immediately.
Offer in Compromise (OIC): An OIC is a settlement agreement between you and the IRS or state tax agency, allowing you to pay a reduced amount to settle your tax debt. To qualify for an OIC, you must demonstrate that you are unable to pay the full amount due to financial hardship, or that the tax liability is incorrect.
Penalty Abatement: If you have a reasonable cause for not paying your taxes on time or failing to file your tax return, you may qualify for penalty abatement. This can significantly reduce or eliminate the penalties associated with your tax debt.
Currently Not Collectible (CNC) status: If the IRS or state tax agency determines that collecting your tax debt would cause undue hardship, they may place your account in CNC status. This means they will temporarily halt collection efforts while you work to improve your financial situation.
Innocent Spouse Relief: If you find yourself saddled with tax debt due to your spouse’s or former spouse’s actions, you may be eligible for innocent spouse relief. This can relieve you of the responsibility for paying the tax debt, penalties, and interest associated with your spouse’s or former spouse’s actions.
What is an Enrolled Agent and how can you help with my tax debt issue?
Enrolled agents like tax attorneys and CPAs are tax professionals licensed to represent taxpayers in their dealings with the IRS. However, enrolled agents are specialists in dealing with IRS-related matters because they are required to pass a series of tough tests conducted by the IRS to establish their competence to represent taxpayers before the IRS to qualify for the license. Enrolled agents are licensed by the US government (and not individual states), so they can practice across the country. All enrolled agents are required to undergo a background check and many hours of continuing professional education (CPE) to keep themselves up-to-date.
Enrolled agents have something called unlimited practice rights (also sometimes called unlimited representation rights). This means that they can help anyone—individuals, businesses, and any other entity—with any aspect of their taxes.
Enrolled agents play a crucial role in helping taxpayers resolve tax debts and navigate complex tax laws. When it comes to tax debt resolution, enrolled agents can act as intermediaries between taxpayers and the IRS, using their expertise to negotiate payment plans, offer in compromise agreements, or other debt-relief options. They can assess a taxpayer’s financial situation, determine the most appropriate course of action, and guide them through the often complex process of settling tax debts.
Enrolled agents can also help taxpayers understand their rights and options when facing tax liens or levies and can work to have these removed or released when appropriate.
In terms of navigating tax laws, enrolled agents are invaluable resources. They stay up-to-date with the ever-changing tax code and can help taxpayers understand how new laws and regulations affect their specific situation.
How long does it take to resolve a case with the IRS?
It all depends on the case and the caseworker at the IRS. We will move as quickly as we can to resolve your case and satisfy all IRS deadlines. That being said, “speed” is a relative term – fast for the IRS is what most people consider slow. From the time we receive all of the appropriate documentation, a typical tax resolution case usually takes 3–4 months assuming the taxpayer is compliant and has filed all their tax returns. Some cases can take up to 9 months or more.
Am I going to have to talk to or deal with the IRS?
The add on the radio said I can have my tax debt reduced to pennies on the dollar. Can you promise me this too?
That may be possible after a thorough analysis … but every person’s situation is different. The bad news is that not everyone qualifies.
The good news is that every tax problem has a solution and there are several solutions available to protect your interests.
While an Offer in Compromise is an excellent option, it doesn’t fit every case.
Any strategy, or combination of strategies, if they don’t fit your case, can cause more harm than good, and cost you unnecessary expenses to boot.
Just as in medicine, the wrong prescription can make you even sicker.
When you are paying a professional, you should get expert guidance, even if it’s not what you want to hear.
Not all of the available options are right for everyone.
Real professionals don’t use a “one-size-fits-all” approach to force a single solution on every case.
Several advertisements from tax resolution service companies are making these false promises and “Selling you the dream…”
These tax resolution services companies use aggressive sales tactics that prey on your desperation to solve a serious tax problem.
I’m currently separated from my spouse, who owns his own business, and we are getting divorced. I have always filed jointly with my spouse, and now the IRS is sending me notices stating I owe $35,000. I have no idea how they are coming up with this amount, as my spouse said he was paying the IRS.
You may be able to avoid this liability entirely under the IRS’s Innocent Spouse Relief rules. Under federal law, if both spouse signs an income tax return than both spouses are 100% responsible for the taxes owed. However, the law permits special consideration where a spouse cannot be held responsible for mistakes that are attributable to the other spouse.
If you meet the following criteria, you may be able to apply for innocent spouse relief:
Your spouse didn’t report all their income, and you were not aware of it and had no reason to know about it when you signed the tax return; it would be unfair to hold you liable for the taxes owed due to your spouse’s error.
If you feel you were deceived by your spouse or tricked into signing a return you thought was correct, this will help your case too. There are many other ways you may be eligible for relief under the IRS’s innocent spouse rules, and we can help sort this out and determine the proper path for resolution.
I received a letter from the IRS stating that they are proposing to assess a Trust Fund Recovery Penalty against me. How can they penalize me for the business's failure to take care of payroll taxes?
Employers must collect employment, or FICA, taxes from employee wages, hold these withholdings in trust, and send them to the IRS when due. Employment taxes include Medicare, Social Security, and some income taxes. These taxes are then reported on an employee’s W-2 in the new year so they can report these withholdings.
If you worked for a company that did not file their payroll tax returns or pay their payroll taxes on time, the IRS may have designated you as a “responsible person.” Do NOT ignore this correspondence! The IRS aggressively goes after anyone they can when it comes to payroll taxes, even if you’re not the owner of the business. If you have a relationship with the business that is of a particular status, duty, and authority, the IRS can blame you for not paying payroll taxes. And in this case, you are guilty before proven innocent.
The purpose of this letter is to inform you that the TFRP is being assessed against you. If you receive this letter, it means the IRS has deemed you a “responsible person” for the unpaid taxes and that you willfully failed to pay these payroll taxes. This means you were found to know about the unpaid payroll taxes and chose not to pay them and are an officer or employee of the business with the authority to direct payments to the IRS.
The responsibility determination is usually made after the IRS conducts the Form 4180 interview, wherein an agent asks questions to determine who knew about the failure to pay and who was responsible for sending tax payments.
Consultation
I owe a lot in back taxes. I’m continually getting threatening letters from the IRS. This has become a big problem that I have no idea how to solve. I am embarrassed and feel very alone.
For what it’s worth, take some comfort in knowing that you are not alone. There are millions of Americans in similar situations, dealing with debt hanging over their heads and concerned about how it will affect their future.
The good news is that you have many options. To fully understand and take advantage of your options, contact Mercy Tax Solutions. We understand what you are going through and will assist you without judgment and with absolute confidentiality. We will closely review your case to determine your resolution options. We will strive to help reduce the stress and restore your peace of mind.
Is there a charge for my initial consultation?
Do we need to meet in person for any of the steps?
Will my information be kept confidential?
We maintain a policy of the strictest confidence concerning our clients’ affairs. You can rest assured that no one will learn about your business or tax status – even relatives, associates, or friends who might have referred you to us. We also maintain a high level of security to protect your information from data breaches.
What is Mercy Tax Solutions' coverage area?
Mercy Tax Solutions is located in Eastern Tennessee and is proudly serving individuals and businesses in the Tri-cities area. However, We help taxpayers across the country in every state. Technology is constantly advancing and making communication quicker and easier.
It doesn’t matter where we are and it doesn’t matter where you are. We have you covered.
Investigation
I received a call from the IRS, and they said they would put me in jail if I didn’t pay immediately. Is this possible?
What do I do if I receive a tax lien notice in the mail?
If you receive a Notice of Federal Tax Lien in the mail, do not throw it away. This letter is the IRS’s way of letting you know that they mean business.
When the IRS files a federal tax lien against you, they lay claim to all of your assets. If, for instance, you want to sell or refinance your home, you won’t be able to do it until you pay your back taxes. If you continue to refuse to settle your tax debt, the IRS can seize any property you have—your home, your car, your business, etc. This process is known as levying.
In addition, the IRS will notify creditors of your tax lien. The lien will appear on your credit report and can lower your chances of getting a loan or mortgage. The lien—and tax debt—will follow you, even if you file bankruptcy.
What is the difference between a tax levy and a tax lien?
Tax Lien:
The IRS files a legal claim to your property as collateral for unpaid taxes.
It attaches to your property, like your house or car.
The property can then be sold to pay off the debt.
It doesn’t take your property right away. You can still sell or transfer it if you pay off the taxes owed.
Tax Levy:
This is when the IRS seizes your assets like money, wages, or property to pay off taxes you owe. They can take your bank accounts, retirement accounts, social security benefits, rental income, accounts receivables, etc. The money is actually taken by the IRS to pay the tax debt directly. You lose access to the levied asset immediately.
The main difference is a lien just holds your property as collateral, while a levy actually takes your assets and money to satisfy the tax debt. A lien comes before a levy if you don’t pay the owed taxes.
Audits
Does the IRS use email to inform a taxpayer or business of an audit?
Will the IRS come to my home or business?
Why does the IRS issue Audits? Are the number of Audits on the rise?
Compliance
What Do I Do If I Owe the IRS Taxes But Don’t Have the Money to Pay?
First, don’t panic! Second, don’t delay in filing your tax return! You should always file your return on time to minimize your tax penalties. Even if you can pay nothing, you should file on time to avoid a greater tax penalty.
Then, try to figure out how much of your tax debt you can actually afford to pay now. You should always pay as much as you can in order to minimize penalties because your penalties will be based on the amount you still owe to the IRS.
I owe back taxes and am not sure how to resolve this issue, and I’m panicking. What should I do?
If you owe back taxes to the IRS, some amount of panic is understandable. After all, the Internal Revenue Service has the power of the federal government in its corner, something no other debt collector can claim. They are considered the most brutal collection agency on the planet. It is easy to freeze up and just do nothing when you owe back taxes to the IRS. But hiding from or doing nothing about your tax debt will not make it go away. In fact, ignoring the taxes you owe will only make the situation worse. Interest and penalties can add up.
You also risk having your paycheck garnished (the IRS doesn’t need a court order to do this) or your bank account levied. The IRS can also file a Notice of Federal Tax Lien, making it all but impossible to obtain financing for a car or home. So, instead of panicking about your tax debt and hoping the problem will go away, you need to take some proactive steps.
Now is not the time to panic and hide – now is the time to start taking action. Some of these steps you can do on your own if you’d like, while others will likely require the intervention of an experienced tax resolution expert.
I was self-employed and haven’t been able to pay my taxes for 3 years. Now, I’m a W-2 employee, but I’m getting letters from the IRS demanding payment and threatening to garnish my paycheck. What should I do?
The IRS doesn’t like being ignored, and they want you to know they won’t go away. They have a lot of power over your life. They have 10 years to collect from the date you filed your return. Not only can they freeze your bank accounts and take the money, but they can also garnish your wages and legally take as much as 75% of your net paycheck. All without a court order! The IRS can and will slap a lien on your house and other property as well. If you sell your house, the IRS gets their money first before you do.
Federal Tax Liens will damage your credit, making it harder to rent an apartment, get a car, obtain credit, and even get a job.
Interest and penalties continue to accrue on a daily basis. You need professional expert help to deal with the IRS! You can’t do this on your own. We offer immediate relief by protecting you from the long arm of the IRS. This is what we do on a daily basis. Don’t let the IRS take what you worked so hard to earn.
I haven’t filed a tax return for many years. How can the IRS know I owe all this tax?
The consequences for neglecting to file your tax return can be severe. The IRS enforces penalties for refusal to file the return, as well as refusal to pay the tax. The penalty applied to refusal to file is 5% per month of the tax to a maximum of 25%, in addition to any criminal penalties that may be applicable. For each year not filed, you could be subject to one year in prison.
Failure to complete your tax return results in a Substitute Filed Tax Return. When you choose not to file your return, the IRS will file for you using the information they have available. This typically includes any income reported to the IRS, not including personal deductions except the standard deduction.
Once a Substitute Filed Tax Return has been filed, it is then your responsibility to file a return with all corrections and proper deductions. It is important to always file your return as a Substitute Filed Tax Return can never be discharged in bankruptcy.
My business has gotten behind on filing quarterly payroll taxes and returns. Should I be worried?
To the IRS, a late payroll tax payment is considered stealing money from the government, and they have really put some teeth behind enforcement. Penalties can add up fast. There’s a failure to file penalty, a Trust Fund Recovery Penalty, interest on the taxes that are late, and the taxes themselves. It can be easy to get into a hole really fast with back payroll taxes due.
The Internal Revenue Service, state tax agencies, and local entities will send a letter if one of the following happens:
You miss a payment deadline for payroll taxes due.
You missed the deadline for filing payroll tax reports.
An amount paid is short or over what the IRS or another tax agency calculates as due.
The agency notices a discrepancy on your payroll tax returns and needs an explanation. You have been selected for an audit.
You fail to respond to previous correspondence.
If you don’t respond to the initial IRS letters, the IRS and other tax agencies can apply liens, levies, garnishments, and seizures in an attempt to collect payment. You don’t want it to escalate to this level.
Transcripts
Why does transcript monitoring help me.
Transcript monitoring allows us to keep a watch on your account from the IRS perspective. We can see that payments posted where they should, events that can cause delay of the statute of limitations, and monitor your account to make sure your rights are being protected. We can even see an audit months before you receive a letter. Transcript monitoring helps us identify any issues that may occur.
Can filing for Bankruptcy make your tax debt go away?
While the majority of taxes cannot be eliminated through bankruptcy, some can. Mercy Tax Solutions can examine your case to see if your tax debt can be eliminated. Your ability to eliminate tax debt in bankruptcy depends on many factors, including the tax type, age, whether you filed your taxes on time, and whether the taxing agency has a lien on your property. Though not simple, filing for bankruptcy and finding out if your debts qualify for discharge may eliminate some tax debt.
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Do you feel overwhelmed with tax debt in Johnson City, Kingsport, Bristol, or other surrounding communities across East Tennessee? Call Mercy Tax Solutions at 423-825-8104 and don’t delay, call and get help today.