Tax Compliance – The Key to Resolving Tax Debt

Education & Training with Tax Crisis Rescue LA CPA 27402

If you are looking for a resolution to your tax debt with IRS, the first step is compliance.  This is because eligibility for IRS Fresh Start programs require current compliance.  This does NOT mean that you must pay off all your tax debts.  Compliance simply means that 1) you have filed all your required tax returns; and 2) you are current in paying THIS years’ tax payments.

Filing Past Returns

Filing at least the last 6 years of tax returns, no matter how many years are unfiled, will gain your compliance with IRS.  If you have missing records, we can help you re-acquire the information from IRS going back as far as 10 years.  Also, if you are unsure which years you filed tax returns and which ones are missing, we can get you that information as well.

Paying Current Year’s Taxes

If your employer pays you with a paycheck and withholds taxes, you are probably already compliant with the current year payments.  All that needs to be done is to verify that the withhold is adequate for your filing status. 

For self-employed individuals, you need to have paid all the quarterly tax estimates for the year.  The simple way to figure this is to take last years tax liability and divide it by four.  This amount needs to be paid on April 15, June 15, and September 15 of the current year and January 15 of next year.

For businesses with payroll, the current quarter’s payroll tax deposits must be paid up.  The farther along into the quarter, the harder it is to make up if the business has not been depositing employment taxes.

Current compliance ensures IRS that the taxpayer does not incur additional debt at tax time.  If current compliance is maintained, resolution options like currently non-collectible, offer in compromise, installment agreements and penalty abatements are available to taxpayers who have fallen behind.

If you are unable to pay your taxes, there is no need for concern.  If you need help with your tax debt from a qualified tax resolution specialist contact us here in New Orleans, Louisiana or visit or call 800-433-0986.


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Comments (1)

Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Good to know that there are tas resolution solutions !

Jan 04, 2019 06:18 AM
Dirk Danos CPA CTRS

If you want solutions to tax problems, click the link below for a free copy of my book "Get The Taxman Off Your Back."  It is available on Amazon, but want my Active Rain friends to have a copy for free! 

"Get The Taxman Off Your Back"

Jan 18, 2019 06:27 PM