When we represent our Houston, TX clients before the Internal Revenue Service one of the primary concerns of the IRS is that the taxpayer is currently in Tax Compliance. We briefly mentioned Tax Compliance in a previous blog post, but we wanted to expound on this topic because it is a critical element of tax resolution.
So what is Tax Compliance, and why is it so important to your IRS case?
Tax Compliance means that the taxpayer:
- Has filed all tax returns for the last 6 years and
- Is making tax payments for the current year either through sufficient withholding from their paychecks OR submitting quarterly estimated tax payments if they're self employed.
The reason compliance is so critical to your existing IRS tax case is that if you owe money to the IRS in Houston, TX or Lufkin, TX the IRS will not accept any offers on your back taxes until you are in full compliance with the tax law and not accruing new tax debt.
Despite what you may have heard about the IRS in our experience they are fully willing to work with taxpayers on their tax debt - either through payment plans (installment agreements) or offers in compromise. But they will not work with you if you are continuing to run up new tax debts and/or not filing your tax returns.
Additionally if you fail to maintain compliance once you have reached a deal with the IRS that deal can and will be voided, and you'll be forced to start over at square one.
Do yourself a favor. Get into tax compliance. AND STAY THERE!