IRS Back Tax law
Do you have IRS tax debt that you have not paid? Have you stopped opening your mail or taking phone calls hoping to avoid the Internal Revenue Service? Have you been procrastinating paying your IRS tax debt or have you attempted to resolve tax issues by yourself with out hiring the proper assistance? Maybe you have received help, but they were unskilled and did not solve your IRS debt problems?
Get Help with your Tax Debt
Many taxpayers feel alone and try to settle their tax problems by themselves. Unfortunately, this may lead to paying more in taxes, penalties and interest than necessary. Our professional network has the experience and knowledge to work with the IRS to negotiate the best solutions for your tax problems. We can work with you to help file returns, negotiate penalty payments, help get refunds, represent clients with appeals, negotiate tax settlement options, and analyze the penalty and interest computations.
If the IRS has started collection efforts including sending Intent to Levy or Notice of Levy letters, it is imperative that you act now to resolve IRS Tax debt. Procrastinating will cost more money in the long run and lead to additional embarrassment if the IRS begins to garnish your wages or freeze your assets.
Tax Relief Ideas From the IRS
The IRS recommends that individuals pay as much as they can possibly pay right away to lessen the penalties and interest they will be charged. The Internal Revenue Service recommends that you visit the nearest IRS Service Center and speak with an Internal Revenue Service employee. It is important to take your IRS tax bill with you so you can explain your situation.
Under certain circumstances, the IRS may grant an extension to pay the full amount within 60 to 120 days. This agreement is not considered an installment agreement but rather a short term agreement. Penalties and interest will be less if you agree to the short term agreement.
Other ideas the Internal Revenue Service suggests to pay your tax liability include: cash advances from credit cards, a loan from a bank, liquidating your assets or savings accounts, taking out a loan against the balance of your 401k plan or life insurance policy and taking out a home equity loan. Each of these ideas may be good, but it is important to discuss all of your options with a knowledgeable professional before any major financial decisions are made.
The IRS offers a variety of IRS tax settlement options if you are unable to pay the full balance of your IRS tax debt. A brief description of some of the IRS tax settlement processes are discussed below.
- 1. Installment Agreement- Paying your back taxes in a pre-approved monthly installment plan. The installment plan extends the time you can pay your taxes, but penalties and interest will continue to accrue.
- 2. Offer in Compromise- The Internal Revenue Service allows you to pay a lower negotiated IRS settlement amount to eliminate IRS debt and give you tax relief. The goal of the Internal Revenue Service is to help taxpayers begin to pay taxes again. Not everyone will qualify for an Offer in Compromise.
- 3. Currently Not Collectible- Under certain circumstances the IRS may determine your IRS tax debt is not collectible. Currently not Collectible does not eliminate the IRS tax debt or tax liability, but may allow you to avoid the Internal Revenue Service's aggressive collection efforts. Not everyone will qualify for the currently not collectible program, in fact, the IRS will only grant this reprieve if they believe paying your IRS tax debt will cause "severe economic hardship" for your family.
Each of these tax relief options may be a viable alternative to liquidating your property or taking out large loans to pay your tax debt. It is always least expensive to repay your debt in full as soon as possible. The IRS is an aggressive collector with a variety of collection techniques that are not available to other collection agencies collecting payments for personal debt. It is important to talk to someone about your tax relief options. Let us help you find an Enrolled Agent, CPA or Tax Attorney near you.
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