IRS Tax Debt Settlement Help
When clients contact us at Tax Resolution Services, they owe thousands of dollars in back taxes and penalties to the Internal Revenue Service (IRS) and have no idea how to settle their debt. Perhaps you can relate to the stress of dealing with constant collection letters, wage garnishments, tax levies, and other measures the IRS takes in an attempt to force you to pay what you owe. Like most people, you didn’t get into this situation voluntarily. Perhaps you went through a personal or professional crisis that made it impossible for you to pay your taxes on time. We understand your position, and we are here to help you.
There’s no reason to face the IRS alone, when you can capitalize on our agency’s insider experience to get the best settlement for your unique situation. Since most of our employees previously worked as IRS agents, hiring our agency gives you access to our firsthand knowledge. We know how the system works from the inside, and our Enrolled Agents are on your side to reach an agreement that will satisfy the government, but keeps your best interest in mind.
Evaluating Your Options for Tax Debt Settlement
When you speak with an Enrolled Agent at Tax Resolution Services, we clarify your tax issue and explore the options that make the most sense for your specific situation. Since many people on our staff previously worked as IRS agents, they have the benefit of understanding the government’s perspective, as well as your own. After determining which solution the IRS is likely to accept, your Enrolled Agent prepares the paperwork on your behalf and submits it to the government. He or she explains the qualifications and rules the government enforces in plain language, so you know exactly what to expect going forward.
Potential Solutions for Your IRS Tax Debt Problem
Depending on your specific situation, you may qualify to apply for one or more of the settlement options described below.
Offer in Compromise
Because the IRS loses money with an Offer in Compromise, it typically only approves it after exhausting all other collection efforts. You must submit an application listing your income, assets, expenses, and tax liability. You cannot be in bankruptcy proceedings and must not have any current delinquent taxes. When reviewing your application, the IRS considers whether paying your tax debt in full will create any undue hardship. If approved, you must submit an initial down payment and commit to paying the agreed-upon amount in the time allotted. If you fail to do so, the IRS will drop you from the program and institute even more aggressive collection efforts.
This plan allows you to make equal monthly payments to the IRS until you have paid the balance of your tax debt. The IRS considers you a compliant taxpayer when you make regular payments under this plan and halts all other collection efforts. Interest does continue to accrue until you repay the debt in full, so it’s best to pay it in as few payments as possible. The IRS adds a program fee to your total balance due unless you are able to pay the balance in full within four monthly installments or meet a certain low-income threshold.
<4>Filing or Amending Past Tax Returns
When you fail to file a return on time, the IRS may file one for you. Unfortunately, the substitute return typically gives you the minimum deductions and exemptions, if it gives you any at all. It’s in your own best interest to re-file a missing return to ensure that you’re not required to pay more than is necessary. It’s also possible that you or your tax preparer made an error on the initial filing, and you don’t owe as much as the IRS claims you do.
Request for Penalty Abatement
You can file for this type of tax relief if you feel that the IRS made an error, gave you bad advice, or you have other just cause for believing that you don’t owe a penalty. In order to qualify, you must meet certain criteria, including being penalty-free for three years, among other conditions. Although the IRS offers an online self-help tool for penalty appeal, your chances of success are greatly increased with an experienced Enrolled Agent on your side.
Let Us Help You
These are just some of the numerous possible solutions for settling your tax debt with the IRS. We welcome you to contact us for a personal evaluation of your situation. With former IRS agents on our staff, we have firsthand knowledge of how the system works and use that knowledge for your benefit to help you set up a plan of action. Contact our office today for a free consultation.