In a perfect world, nobody owes taxes, nobody needs help with tax problem resolutions, but unfortunately you just received an IRS notification in the mail and all your worst fears have come true. Do not worry, the IRS can be more flexible than some give it credit for, plus there is help out there.
Tax Problem Resolution
In order to not owe taxes the best thing to do is to file your returns on time and properly and pay. But this is life and things do happen.
During the process of preparing your tax returns, you might discover that you actually owe taxes. Not only do you owe taxes, but you owe more than you can afford to pay. You reaction may be to not file and that is the worst decision possible.
What Happens if You Owe Taxes?
You receive an IRS notification. What to do what not to do. Piece of advice : do not ignore it, do something about it. If you ignore the first letter you will start a chain of events that could have catastrophic results.
The IRS has put in place a Fresh Start Initiative Program that applies to certain categories of delinquent taxpayers
- Penalty Relief : Depending on your financial situation, the IRS may agree to lift the penalties usually owed by delinquent taxpayers
- Installment plan : which is a scheduled repayment plan giving you more time to pay
- Offer in Compromise : The Requirements are very strict and specific so make sure you qualify qualify before filing. But if you do, you may be able to settle your debt for less than you actually owe.
What Else Can You Do?
- File for an extension : You may not be able to meet the deadline of April 15th for different reasons, missing documents for instance. It is usually accepted as long as the proper form is filed on time. By doing so, penalties (or, worse, wage garnishment) can be easily avoided.
- See if you qualify for Not Collectible Status. This is temporary but if you really either are in no position to pay all of your taxes right now, or you are behind in filing tax returns, and can show that rectifying the situation would become an economic hardship, you may qualify. The IRS may agree that paying your back taxes and living expenses represent a financial burden.
It can be upsetting and scary to receive the dreaded IRS notification in the mail but you can get through this. As you can see, there are many options in tax problem resolution. Time is of the essence, though. Do not wait and let the situation escalate to your disadvantage.
Do you owe more than $10,000 in back taxes? Protect yourself. Protect your business. Contact IRS Solver for a consultation.