The dividing line in dealing with back taxes is the $10,000 mark. If you owe less than $10,000 in back taxes, you have a clean IRS record and all your tax returns are filed, you can call the IRS directly and it will guarantee to arrange a payment plan to be paid in 36 monthly installments.
If you owe $10,000 or more, you may 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.
Offer in Compromise a good program
If you can’t afford to pay your back taxes in full, the Offer in Compromise program provides taxpayers who owe the IRS more than they could ever afford to pay the opportunity to pay a small amount as a full and final payment. Taxpayers who attempt to file for an Offer in Compromise on their own often put themselves at risk of not qualifying for a settlement or they end up paying more than required.
Payment plans available
Although you might not be able to pay your back taxes in full but potentially over time, you can negotiate a reasonable monthly payment plan with the IRS. Once an IRS Payment Plan (also known as an Installment Agreement) is established, the IRS will not enforce collection action, including the levy of bank accounts or wages, as long as the taxpayer remains current with all filing and payment obligations. To qualify for an IRS payment plan or Offer in Compromise tax settlement to resolve your back taxes, you need to file all delinquent tax returns with the IRS. Regardless of what you have heard, you have the right to file your original tax return, no matter how late it’s filed. Until you have filed all legally required tax returns, the IRS will not entertain any type of tax settlement or payment plan to settle your back taxes.
Expired back taxes a plus for taxpayer
The statute of limitations on IRS collections serves as one of the most effective ways to eliminate back taxes, particularly if they have been assessed against you years ago. The IRS is prohibited, by law, from collecting on expired back taxes. Generally, the IRS has 10 years from the date of assessment (usually close to the filing date or audit assessment date) to collect back taxes. An expert attorney, CPA or Certified Tax Resolution Specialist can help resolve your back taxes and other IRS problems by performing a Collection Statute Expiration Date (CSED) analysis. We can determine on what day you will be free of this obligation. We accomplish this by obtaining and analyzing your IRS Tax Transcripts and Records of Account. If the expiration date is nearing, many times it is advantageous to the consumer to just “do nothing”. However, you need an expert to guide you through this process due to the many exceptions and obstacles that can get in the way.
Choose tax debt relief company wisely
You want a tax debt relief company that works fast and can release any levies or liens as quickly as possible when facing back taxes with the IRS. Garnishment of wages can be debilitating and Tax Resolution Services can negotiate with the IRS on your behalf and restore access to your assets. Penalties and interest quickly add up, and penalty and interest abatement is in your best interest. Tax Resolution Services can work toward abating the penalties and the interest accrued on those penalties to help reduce the amount that you owe in back taxes. Tax Resolution Services is one of the few tax debt relief companies created in the 1990s. This longevity helps lend credibility to the company because it has been around longer and had a lot more clients than younger services.Tax Resolution Services keeps tax attorneys, certified public accountants (CPAs) and enrolled agents (EAs) on staff, and these employees can help you with everything from filing back taxes to helping you file for bankruptcy in the worst case scenario. Tax Resolution Services can help you file your back taxes whether they are state or federal taxes. This tax debt relief company can help taxpayers and its agents are certified to represent you before the IRS in all 50 states.