The story is the same: your financial resources are TIGHT. Therefore, you do DECIDE not to file your your tax return; OR you file the return but can't pay the balance due. You tell yourself NOT to worry about it as you WILL get that better job next year!! Fast forward three years later and you are sitting with all those IRS notices on your dining room table. The IRS threats have begun, perhaps to the point of an actual levy or wage garnishment. You are at a place you did not want to be at: the IRS is creating a nightmare on your financial life and you just do not know what to do.
The good news is that I know what to do!! I have helped many clients through the exact IRS issues. There is a glimmer of light at the end of the long tunnel.
The IRS is all too happy to work with me, (with YOUR permission of course) to assist me in solving your IRS tax issues.
The following are some solutions available to you.
Tax Compliance
Step one in solving your tax issue is to get into "Tax Compliance." "Tax Compliance" means that you have filed all tax returns due for the last 6 years and have made your current tax payments. Once you are in tax compliance, I can now assist you with fixing the back-tax issue.
Collection Options
There are three main collection options to resolve a back-tax debt: Installment Agreement, Noncollectable Status and Offer in Compromise.
Installment Agreement
An installment agreement is a promise to pay the taxes back over a period of time. There are three variations of the installment agreement, regular, streamlined and partial pay. The type of agreement that works best for you will depend upon your personal circumstances and is something I can help you work out when you are ready.
Uncollectable Status
An uncollectable status is when the IRS determines that you are unable to make current tax payments. At the time you are deemed noncollectable, the IRS may still file a Notice of Federal Tax Lien to secure its position in the YOUR assets but will not take enforcement action to seize or levy your assets or income streams.
Offer in Compromise
An Offer in Compromise is an agreement in which the IRS agrees to accept less than the total amount you owe to them; and YOU agree to pay the amount negotiated as well as maintain your tax compliance for 5 years following the acceptance of the Offer in Compromise.
The basis for an Offer in Compromise is a formula called "Reasonable Collection Potential" or "RCP." RCP is basically the net equity in assets plus your excess future income for 12 to 24 months, depending on how the Offer in Compromise is structured.
There should be MAJOR planning done to assist YOU, the taxpayer,to maximize a positive outcome for the Offer in Compromise's acceptance by the IRS.
Comments(0)