IRS Collection Issue, Owe the IRS, Tax Resolution Specialists, Affordable Former Agents 1-866-700-1040
If you are having an IRS collection issue and you owe the IRS back tax, contact us today for a free initial tax consultation and speak directly to tax attorneys, certified public accountants, former IRS agents and managers.
With over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service we can go over all the tax options with you and let you know your best avenue of resolving your case with the Internal Revenue Service.
We are true IRS tax experts and tax resolution.
As former IRS agents we taught tax law in the local, district, and regional tax offices of the Internal Revenue Service.
In fact, we taught new IRS agents there job. Needless to say we are familiar with all the tax policies, all IRS collection issues,and methods of tax settlement and every avenue to painlessly resolve your IRS issue.
If you do not pay your tax bill on time
If you do not pay in full when you file your tax return, you will receive written notice of the amount you owe, a bill.
This bill or tax notice starts the collection process, which continues until your account is satisfied or until the IRS may no longer legally collect the tax.
The IRS first notice
The first notice you receive will be a letter that explains the balance due and demands payment in full.
It will include the amount of the tax, plus any penalties and interest added to your unpaid balance from the date the tax was due.
You may pay the amount due by sending the IRS a check or money order, payable to the United States Treasury, with a copy of the notice.
For detailed information on paying your taxes by credit or debit card, or other electronic payment, go to http://www.irs.gov/uac/Electronic-Payment-Options-Home-Page, or call IRS at 800-829-1040.
If you cannot pay the IRS in full
If you cannot pay in full, you should send in as much as you can with the notice.
The unpaid balance is subject to interest that will compound daily and to a monthly late payment penalty. It is in your best interest to pay your tax liability in full as soon as you can to minimize additional charge.
Monthly IRS installment agreements
The Internal Revenue Service has various installment agreements to pay your back taxes. Everything will determine on the amount of money that you owe the Internal Revenue Service.
Direct Debit Installment Agreements and Tax Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement.
For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
The IRS will also withdraw liens on existing Direct Debit Installment agreements upon taxpayer request.
Tax Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
In addition, this lowers user fees and saves the government money from mailing monthly payment notices.
Installment Agreements and Small Businesses
The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate.
Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business.
Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
IRS Settlements – Offers in Compromise
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
In order to be eligible for an OIC, the taxpayer must have filed all tax returns, made all required estimated tax payments for the current year, and made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP).
The RCP is how the IRS measures the taxpayer’s ability to pay. The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property.
In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
Before you file an offer in compromise you should use the pre-qualifier tool found on our website.
It can save you a lot of time and money and you should know that you are a qualified candidate before you file an offer in compromise.
The IRS may accept an OIC based on three grounds.
First, acceptance is permitted if there is doubt as to liability.
This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
Second, acceptance is permitted if there is doubt that the amount owed is fully collectible.
This means that doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
Third, acceptance is permitted based on effective tax administration.
An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
Facts about IRS Offers in Compromise when you owe the IRS
You should know that about 58,000 offers and compromises were filed last year.
The average settlement is some $.14 on a dollar.
The average wait time to get a IRS offer in compromise accepted is somewhere in the time period of 6 to 9 months.
Contact us today for a free initial tax consultation and hear the truth about IRS collection issues from true tax resolution specialists.
IRS Collection Issue, Owe the IRS, Tax Resolution Specialists, Affordable Former Agents
