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Tax Amnesty
Many taxpayers that owe the Internal Revenue Service (IRS) back taxes and don’t have the ability to pay them often confuse “tax amnesty” with “tax resolution” or “tax relief.” Tax amnesty refers to criminal tax matters while tax resolution refers to non-criminal alternatives. In most cases, taxpayers that owe the IRS back taxes do not owe the taxes because of criminal conduct. The IRS’ tax amnesty program called the “Voluntary Disclosure Policy” allows the IRS to forbear criminal prosecution of a taxpayer where a taxpayer voluntarily submits before the IRS has begun a criminal investigation. Additionally, it is expected that the taxpayer disclose their errors and then pay whatever taxes, penalties and interest that is owed. This program is designed to encourage taxpayers to voluntarily come forward without the fear of criminal prosecution.
Taxpayers who incurred a federal tax liability through non-criminal conduct are better situated to resolve their tax debt through other avenues. In such cases, a taxpayer could contact the Automated Collection Division of the IRS to make arrangements to full pay the tax debt. If the taxpayer does not have the means to full pay the tax debt relief could be sought through an Installment Agreement, an Offer in Compromise or having their account placed on a Currently Not Collectible status.
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Source: RoniDeutch.com
