Leander, TX: What Options Exist If You Owe the IRS?

Services for Real Estate Pros with Tax Pro Advisor, LLC

I am an Enrolled Agent who represents taxpayers in Leander and central Texas who owe the IRS, have unfiled tax returns, are being threatened with collection enforcement, or similar issue.

There are many reasons people find themselves with a big tax bill. For example, being self-employed, failing to make estimated tax payments, taking a large distribution out of a qualified retirement plan, selling property or stocks with gains, failing to pay employment taxes, experienced a financial setback, the list is long.

Often the funds that resulted in a tax problem have been spent on other things and not enough, if anything, has been set aside for the IRS. Sometimes a financial hardship has occurred making it very difficult to get caught up on the debt. More recently, many have been adversely affected by the COVID19 pandemic.

To further exacerbate the issue, statutory interest and penalties continue to grow, resulting in a compounding effect.

If the problem is not addressed, the interest and penalties can grow quickly with the interest and penalities exceeding the original tax debt. The IRS is one of the most powerful collection agencies in the world. They have the ability to garnish wages, levy bank accounts, and file tax liens.

These types of problems can seem overwhelming, leaving people in a position of not knowing where to begin.

Action needs to be taken so what are some possible options that exist if you or someone you know (a client, friend, family member, etc.) find themselves owing the IRS and not having the funds to pay in full, are being threatened with a levy, or other enforcement action.

Fortunately, the IRS has some options available to help taxpayers resolve their tax debt. These options include applying for:

The IRS evaluates a taxpayer's ability to pay. Depending on the amount that is owed and the type of relief being sought, the IRS may request a completed financial collection statement.

Navigating any of the above options and determining the one that best suits a taxpayer can be challenging and confusing

If you or someone you know owes the IRS, has unfiled tax returns, or other unresolved IRS tax problems, please feel free to contact me at either (512) 592-7720 or by email at peter@thetaxproadvisor.com.

Peter N. Mitchell, EA

Tax Pro Advisor, LLC

605 Las Colinas Dr.

Leander, TX 78641

Ph. 512-592-7720




Comments (1)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello and welcometo the Rain where we all learn from each other and help each other!


Feb 12, 2021 09:27 AM