View Article
How to Resolve IRS Back Taxes?
The fastest way to resolve your Internal Revenue Service (IRS) back taxes is by paying them in full, via our Full Pay Service. Paying them in full, includes paying the interest and penalties that have accrued on the IRS back taxes since they were originally assessed. The penalties and interest can quickly add thousands of dollars to your IRS back taxes, since they are constantly accruing. Using our Full Pay Service ensures that you can put a hold on IRS Collection Activity for up to 60 days and can get an accurate accounting of all back taxes owed, regardless of year or tax form (i.e. Form 1040, Form 940, Civil Penalty, etc.). Please visit our Full Pay Service page for more information about this service.
If you can afford to pay on your IRS back taxes, but not in one lump sum payment, then you might be interested in an Installment Agreement with the IRS. An Installment Agreement is a monthly payment plan to the IRS based upon how much you owe and how much you can afford to pay. To establish an Installment Agreement, it might require a disclosure of your and your spouse’s financial information. The IRS is only willing to enter into an Installment Agreement once a taxpayer has filed all of his or her necessary federal income tax returns. Please visit our Installment Agreement page for more information about this service.
If you cannot afford to pay on your IRS back taxes at all, then you might be interested in Currently Not Collectible status with the IRS. To establish Currently Not Collectible status, you will need to prove to the IRS that your monthly income is exceeded by your monthly necessary living expenses. Thus, Currently Not Collectible status will require a disclosure of your and your spouse’s financial information. The IRS is typically only willing to place a taxpayer into Currently Not Collectible status once the taxpayer has filed all of his or her necessary federal income tax returns. Please visit our Currently Not Collectible status page for more information about this service.
If you cannot afford to pay your back taxes at all, you may also qualify for an Offer in Compromise. An Offer in Compromise is a form of IRS back tax resolution. It requires the disclosure of extensive financial information in order to prove to the IRS that could not collect the full amount of back taxes the taxpayer currently owes. Specifically, the Offer in Compromise requires proving to the IRS that it could not collect your full back taxes over four (4) or five (5) years even if the IRS forced the sale of all assets that you currently own. The IRS is only willing to accept an Offer in Compromise once a taxpayer has filed all of his or her necessary federal income tax returns. Please visit our Offer in Compromise page for more information about this service.
You may not need to do anything to resolve your back taxes. This is because the IRS only has ten (10) years to collect back taxes from the date on which they were assessed. Thus, if you know that you have back taxes or unpaid taxes from 1997 or older, the IRS may not be able to collect those taxes anymore. However, there are events that can occur that will extend this timeframe, such as bankruptcy, among others. To best ensure that your back taxes have expired, you may want to hire a tax professional to review your tax account with the IRS on your behalf. Through our Tax Account Review service, our office can contact the IRS to find out if you still have back taxes, the amount of those back taxes, and date in which they expire (a/k/a Collection Statute Expiration Date (CSED)). Tax Account Review can also tell you whether or not the IRS filed a federal tax lien or issued a levy (on income or a bank account). Please visit our Tax Account Review page for more information about this service.
Finally, you could resolve your back taxes through filing for bankruptcy. There are a number of factors that must be considered before back taxes can be discharged in bankruptcy. First, you need to qualify for bankruptcy. Second, you need to properly file the bankruptcy. Third, you need to examine the age and type of back taxes. In general, recently assessed federal income back taxes cannot be discharged in bankruptcy. Additionally, business-related federal payroll back taxes generally cannot be discharged in bankruptcy. If you are considering filing bankruptcy you should speak with a bankruptcy attorney regarding whether your IRS back taxes can be discharged in a bankruptcy.
Related Links
Source: RoniDeutch.com
