IRS Resolution Options
Do you have IRS tax problems and don’t know what to do? It can happen by accident. Maybe you didn’t withhold enough from your paycheck in the past year and ended up owing a lot to the IRS. It could be you came into some money, spent it, and didn’t realize that a big chunk of it was owed to the IRS in taxes.
The IRS takes their money seriously! They will seek every legal way to collect the money they are owed. They can seize your assets, freeze your bank account, garnish your paycheck, and even restrict your passport. They can file levies and liens on your property. We hope this hasn’t happened to you yet, but it will if you don’t act fast enough.
Today we’ll discuss the solutions to your tax problems that the IRS does not want you to know about.
There are several resolution options available to you. But first, note that not everyone’s eligible for these programs. Also, you must be compliant with your current taxes.
So how do you become compliant? First, you must start paying your current taxes first. You must be caught up with filing your recent income tax returns and paying your current taxes before most of these remedies are available to you.
Here are some of the options you might have if you owe money to the IRS. Whether these are applicable to you depends on your circumstances.
1. Offer in compromise
First, an offer in compromise is a great option where you can settle with the IRS or State tax authorities for substantially less than the tax amount owed. Your eligibility strictly depends on your financial circumstances.
You’ll need to prove that you don’t have the ability to pay back the taxes in full before the collection statute expiration date. If you owe a large balance, there still might be an option even if you have some assets and higher income. As a result, you’ll only have to pay a partial amount of back taxes you originally owe.
2. Payment plan
Second, another resolution option is through a payment plan also called an installment agreement. Essentially, you’re working out an affordable payment plan with the IRS. There are several forms of agreements, including regular, partial-pay, and streamlined. Which one you should use is highly dependent upon your current financial situation and the amount you owe.
Should you qualify for a partial-pay installment plan, you won’t be paying off the entire amount of back taxes you owe, and any balance left at the end of this payment plan will be forgiven.
3. “Currently Not Collectible” status
Third, Currently Not Collectible status allows you to defer your debt. You can stop the process of getting your bank accounts levied or other collection efforts if you are granted this status. This happens when you don’t have enough income to cover your current living expenses. Once your income rises, the IRS will re-evaluate your situation.
4. Payroll Tax Relief
Do you own a business and owe payroll taxes?. The IRS will take late payroll tax payments more seriously than any other tax problems. The IRS may even assert Trust Fund Recovery Penalty, which means you’ll now owe the payroll taxes on your personal side because you didn’t pay off the taxes by your business. You need to find a resolution method as soon as possible, before it’s too late.
5. Penalty Abatement
Penalties and interest often accrue to be greater tha n the amount of taxes you owe. Failure to file or pay will cause added penalties at a ridiculously high rate. We help to provide a reasonable cause, so that the IRS will abate or remove its penalties.
6. We can also help find relief in any assessed tax liens on your home or assets, garnishment on your paychecks, levies, and any other tax problems. We have been helping many clients who couldn’t get refinancing or sell the houses because of the tax lien.
It’s never a good idea to try to resolve your tax problem on your own. We often get clients who try things on their own, deal with the IRS, and things get very messy. It’s harder to deal with the IRS after things get more complicated. At Ace Plus Tax Resolution, we can professionally prepare all your financial documents, represent you, and negotiate with the IRS the right way, so the IRS won’t be able to reject.
Contact us so we can understand your specific tax situation and provide advice on the resolution options available to you. We have clients all over the country. Your tax issue is handled with utmost confidentiality and privacy.