Unable to Pay IRS Taxes
If you are unable to pay your IRS taxes as a general rule you have three available tax options.
I know them all, I was a former IRS agent in teaching instructor.You may speak with us for a no cost consultation.
You should know that IRS will require that all your tax returns are filed and up-to-date and that you have enough withholding being taken out of your pay check so that you will not continue to incur more tax debt.
So before you do anything with the IRS, make sure you are in tax compliance with back filings and current withholding’s.
How the IRS will Deal with your Paying Back Taxes (unable to Pay IRS Taxes )
IRS deals with all tax debtors in the same way.
No matter where you live or who you are, there is one standard for every taxpayer.
IRS will require a current financial statement which will be on IRS form 433F.
That form will have to be submitted to the Internal Revenue Service with all documentation including pay stubs, bank statements, and proof of all income and expenses for the last six months.
IRS will then take that financial statement and compare that to the national and regional statistics in the area that you live for all allowable living expenses. IRS will then come to a determination based on your financial statements up against those of the national and regional standards.
After IRS carefully conducts that review you will fall in one of three categories based completely on that financial statement. Your case will either be put into;
- a non-collectible file which it will remain for anywhere from 1 to 3 years,
- IRS will insist on a monthly payment or installment plan, or
- you can be eligible for an offer in compromise or tax settlement
Question: I am unable to pay my delinquent taxes. Will the IRS accept an Offer in Compromise?
Answer:
You may qualify for an Offer in Compromise if you are unable to pay your taxes in full or if you are facing economic hardship or other special circumstances.
Note: Offer in Compromise Application Fee – Your offer must include the $150 application fee. If you are requesting a low-income exception of the fee, you must complete section 4 of the Form 656 (PDF), Offer in Compromise.
Offers received without the $150 fee or a completed section 4 of the Form 656 will not be accepted for processing. Please see Step 6 on Page 4 of the Form 656-B (PDF), Offer in Compromise Booklet, for more information on the application fee, and section 4 of the Form 656 to determine if you qualify for the low-income exception.
Please also see Steps 2 and 3 on Page 4 of the Form 656-B to determine whether your application must include either a completed Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, or Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.
If you are not granted an Offer-in-Compromise and you are still unable to pay your delinquent taxes in full, you still may be eligible for an installment agreement.
File Form 433-D (PDF), Installment Agreement, and pay a $105 user fee, which we have the authority to deduct from your first payment(s) ($52 for direct debit).
If you default on your installment agreement, you must pay a $45 reinstatement fee if we reinstate the agreement.
You can call us today for more details.
We will give you a free tax assessment if you are unable to pay IRS taxes. We will review your financial statement and tell you that the exact way the Internal Revenue Service will deal with you. If you have back returns you need to file, we can prepare those before calling the Internal Revenue Service.
We are friendly, affordable and one of the most experienced tax firms in dealing with IRS resolution matters.
