I represent taxpayers in the greater St. Louis area and the state of Missouri. If your tax bill is out of sight and you see no way to pay the IRS is probably breathing down your back. At this point in time, you must consider your options for how to reduce or elimate your tax bill.
If your thinking bankrupcy is the solution you have to be aware of it's limitations. Tax debts are hard to discharge in bankrupcy as many of them stay with you even after the bankrupcy has been discharged by the bankrupcy court.
The IRS provides you four avenues of relief to help you get rid of tax debt. Depending on your circumstances it's possible some of these IRS methods could rid you of your tax nightmare.
The best bill collector in the country is the IRS. It has tools and programs at there disposal that no other collection agency can even get close to. However the IRS has to stay within the guidelines of the law unlike fly by night private debt collectors. Now the IRS is mandated by law to use private debt collectors.Your tax bill has to be in "inactive tax receivable" status for the IRS to place your account to a private collection agency.
Many think the IRS is interested in making your life miserable but it's primary motivation is collecting debt. If you follow the rules and formulas the IRS allows you to use there is light at the end of the tunnel.
Here are the four alternatives to bankrupcy.
Offer in Compromise: If you can't pay in full or if you could it would create a tremendous hardship you may be able to qualify to reduce your bill through an offer in compromise. The IRS has a formula that considers your income and assets. One of the payment options gives you up to 24 months to complete the settlement.
Installment agreement: Installment agreements or payment plans can give you up to 84 months to pay your tax debt. Your balance has to fall between 50k to 100 k for the 84 month option. One catch though. The IRS will file a federal tax lien.
Abatement of Penalties: You can elimate the penalites the IRS tacked on you besides the taxes you owe. Reasons for abatement include economic hardship, loss of propertyor a recent death in your family.
Innocent spouse relief: Normally both spouses are equally responnsible for payment of taxes if you file jointly, but innocent spouse relief will remove much or all othe the liablility and dump it on your misbehaving spouse or X.
If you or someone else you know are having IRS or State tax issues please feel free to call me @636-397-2759 (c) 636-866-4554 or email me @ email@example.com.
Arch Tax Resolution
Steve Shapiro, EA
620 S. Benton Street
St. Charles, MO 63301
(P) 636-397-2759 (F) 636-397-6312