I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. If you find yourself in a position of owing back taxes to the IRS, you may be eligible for IRS tax debt relief through one of several methods. As with any debt, the sooner you act to remedy the situation the better, so understanding the available options is key.
Generally speaking, the IRS will accept a payment plan for back taxes owed and may grant some type of penalty or interest abatement depending upon your financial situation. Though it may be burdensome to pay the debt back in this manner, it is a common form of IRS tax debt relief. Additionally, if you deep financial hardship, you may be able to negotiate an Offer in Compromise, which allows you to pay less than the full amount of the back taxes owed.
If you cannot pay the full amount of back taxes owed, yet do not meet the qualifications for an Offer in Compromise, then you may be eligible to join the IRS’ Currently Not Collectible program. This program allows you to pay no taxes for a period of time — typically one year — while the IRS evaluates your financial situation and determines what you can reasonably pay. During this time, any collection efforts against your assets or wages will be suspended.
If all of your income is from Social Security, then you may be able to request Fairness Non-Collectable status to have your back taxes discharged. It is important to note, however, that the IRS does place some restrictions on this program and the eligible amount is quite low, so it is important to make sure you understand all conditions before entering into this type of arrangement.
Finally, if your back taxes were filed before April 15th of the corresponding year, you may be able to use the IRS Fresh Start initiative, which will allow you to get a waiver on any penalties you may incurr as long as you pay at least 90 percent of the taxes owed by the due date.
Though owing back taxes to the IRS can be a stressful and overwhelming situation, there are often options available to help ease the burden. If you are owed back taxes, be sure to research all of the available IRS tax debt relief programs that may fit your situation and get the help you need.