Cannot pay the IRS Back Taxes ?  You have options to settle your tax problem

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If you cannot pay your back Internal Revenue Service tax bill you have different options on how to settle and close your case.

Fresh Start Tax LLC   1-866-700-1040 – Board Certified Tax Attorneys, CPA’s and Former IRS Agents, Managers and Instructors. Let us resolve your tax problem right now.

Let former IRS Agents and IRS Insiders get you the tax results you need. Let us use our 60 years of direct IRS tax experience work in your favor.

Taxpayers who owe the IRS back taxes have different options to close and settle back tax problems.

What to Expect!

Everything depends on a current financial statement and your current financial documented state.

The first thing that the IRS will require is a financial statement and that will be in the form of a 433A or a 433F, collections financial statement.This is the main key element where cases start and close. The preparation of this form is central to all negotiations.

There is much more than meets the eye when giving a financial statement to the IRS. IRS carefully makes sure the financial statements make sense. What does that look like?

IRS will make sure the bank statements, cost of living, the 433F or 433A and last 1040 filed all tie together? If it does not, expect the IRS to dig deep.

IRS will review bank statements to make sure they tie in all reported income. If you have more bank deposits than reported income, expect IRS to dig deeper.

IRS will always ask for documentation that verifies the financial statement. They will ask for the last pay stub, the last 3 months bank statements, copies of all monthly bills and any and all expenses claimed as necessary.

IRS may check the Google search engine to learn more about you and your business and interests. This is usually done on every case that reaches a field office.

IRS will fully review with completed documentation the option that best fits there profile and standards on how they will proceed to close your tax case.

Different tax options if you cannot pay your back taxes:

The IRS has usually 3 different remedies or solutions to settle taxes. Depending on your current financial statement IRS will place your case in hardship, have you make a payment to IRS or have your send in a Offer in Compromise to settle your complete tax bill.

You must be current on all your tax filing before IRS will expect and Offer package.

a. Hardship Cases are often call current not collectable.

1. Cases usually go into a 3 year suspended status because of an inability to pay.

 Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.

b. Payment Agreements, Installment Arrangements, Payment Plans or Streamline payments

1. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required.

c. Offer in Compromise Tax Debt Settlement Program:  There are three types of Offers in Compromise

The IRS may accept an Offer in Compromise or a tax debt settlement based on three grounds:

1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.

2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:

(1) the examiner made a mistake interpreting the law,

(2) the examiner failed to consider the taxpayer’s evidence or

(3) the taxpayer has new evidence.

3. Effective Tax Administration/ Exceptional Circumstances ( Rare acceptance ) – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.

Get the tax relief you need on your back taxes.

Call Tax Attorney’s, CPA’s and Former IRS Agents.

We can also prepare all unfiled tax returns.

Cannot pay the IRS Back Taxes ?  You have options to settle your tax problem