If you don’t take action on clearing your back taxes, they will continue to add interest and may add further penalties. Avoiding a tax problem only makes it worse. If you owe less than $10,000 to the IRS you can actually call the IRS directly. As long as you have never had a tax problem before and all of your returns have been filed, the IRS will arrange a monthly installment plan for you that willneed to be paid in full within 36 months.
If you owe $10,000 or more in back taxes: You will want to partner with a Certified Tax Resolution Specialist or an attorney to increase your chances of qualifying for an IRS payment plan, helping you settle your back tax debt for the lowest possible amount, and removing bank levies, tax liens or wage garnishments.
If you are unable to pay the full amount of the back taxes you owe, you will need to negotiate a payment on a monthly basis. If an agreement is reached, the IRS will stop all collection actions against you. You will have to have all of your past and current tax returns filed, and you must fulfill your monthly obligations until the debt is met.
Unfiled Tax Returns
The IRS will not enter into any type of negotiations until all of your past tax returns have been filed. You have the right to file your returns any time. Regardless of how late the returns are. In many cases this is the first step in solving your tax problem.
Offer in Compromise
This program is for a taxpayer who is never going to be able to afford to pay the taxes owed. The IRS may settle for a lesser amount than owed, if they can’t pay the negotiated amount in full. Of course this is all based on the ability of the taxpayer to pay off the debt. You should never try to negotiate this yourself. Hire a trained professional (like an Enrolled Agent) to negotiate for you. They know what to say and how to say it, to get the job done right.
Bankruptcy Filing For Owed Taxes
If a negotiated settlement cannot be reached with the IRS, bankruptcy may be your last option. Only a highly qualified professional will be able to help you thru the process of this type of action. Never do this on your own. This is a very tricky area. Not everyone will be eligible.
Payroll Tax Problems
If you owe back taxes on your employment, it’s imperative that you act quickly. Improper handling of employment taxes affects you, your business, and your employees, so addressing any problems should be a high priority for any business owner. Fortunately, this is one of our specialties at SFS Tax Problem Solutions.
Tax Relief For Innocent or Injured Spouse
If you filed a joint return, the IRS will come after you even if your spouse (or your “ex”) caused the problem, and you were unaware of it. If you are truly innocent, and can prove it to the IRS, you may be granted Innocent Spouse or other relief from the obligation. To succeed in being granted relief requires careful preparation and extensive knowledge of specific areas of the tax code. Please be sure to hire a trained professional, like an Enrolled Agent, to help you.
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