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IRS tax debt

Did You Know?

If you owe back taxes and are in risk of a wage garnishment, bank levy, real estate lien or tax intercept of your refunds then call us first. The IRS carries the weight of the federal government and the longer you take to pay, the more you will owe.

Let us represent you with a comprehensive strategy to utilize one of the methods that are in your best interest. There’s no secret in paying off tax debts, it is simply finding the right firm to represent you properly. Don’t let anyone promise you that you can save thousands through an offer in compromise, that person is probably more interested in selling you something you don’t need instead of focusing on your unique financial situation and determining what the best course of action is for you.

  1. Installment Agreement:

A monthly payment plan for paying off the IRS. Depending on your circumstances, you may be able to qualify for a reduced monthly amount.

  1. Partial payment installment agreement:

A long term payment plan to pay off the IRS at a reduced dollar amount. You may qualify for a payment plan that allows you to pay off your unpaid back taxes in installments instead of all at once.

  1. Offer in Compromise:

A program where you can settle your tax debts for less than what you owe. Requires making a lump sum or short term payment plan to pay off the IRS at a reduced dollar amount. If you owe the IRS more than you can afford to pay, this could be the plan for you. Essentially, an Offer in Compromise gives you the opportunity to pay a small amount as a full and final payment. If you qualify for the Offer in Compromise program, you can save thousands of dollars in taxes, penalties and interest.

  1. Not currently collectible:

A program where the IRS voluntarily agrees not to collect on the tax debt for a year or so. Currently Not Collectible means that a taxpayer has no ability to pay his or her tax debts. The IRS can declare a taxpayer “currently not collectible,” after the IRS receives evidence that a taxpayer has no ability to pay. This is a useful tool because you can file for a collection appeal to stop an IRS levy, lien, seizure or the denial or termination of an installment agreement. The collection appeal gives you the opportunity to explain how you think the situation could be solved without the IRS levy or seizure.

  1. File bankruptcy:

Income tax debts may be eligible for discharge under Chapter 7 or Chapter 13 of the Bankruptcy Code. Filing for bankruptcy is one of the ways to get out of tax debt, but you should consider bankruptcy only if you meet the requirements for discharging your taxes. Chapter 7 provides for full discharge of allowable debts. Chapter 13 provides a payment plan to repay some debts, with the remainder of debts discharged

  1. Release IRS Wage Garnishments:

When you owe the federal government money, the IRS can levy your wages, salary, or federal payments until the levy is released, your tax debt has been fully paid off, or the time expires for legally collecting the tax. There’s room here to bargain for a release or modification to the garnishment if you don’t have enough money to survive with the levy.

  1. Stop the IRS from Levying Your Bank Account.

The IRS can issue a bank levy to take your cash in savings and checking accounts to collect back taxes. When the IRS levies a bank account, the bank is required to remove whatever amount is available in your account that day (up to the amount of the IRS levy ) and send it to the IRS in 21 days unless notified otherwise by the IRS. Part of the process of resolving your IRS debt is obtain a release of the levy from the IRS.

  1. Innocent Spouse Relief.

If you happen to inherit your spouse’s IRS tax problems, you have an escape route. If you can prove that your circumstances fit within the IRS guidelines for innocent spouse tax relief, you may not be subject to the taxes caused by your spouse or ex-spouse.

  1. Pay Attention to the Expiration of the Statue of Limitations.

The IRS has 10 years from the date of assessment (usually close to the filing date) to collect all taxes, penalties and interest from you. Often we can help resolve your back taxes and IRS problems by just strategizing with you to wait out the 10 year expiration date.

This is a useful tool because you can file for a collection appeal to stop an IRS levy, lien, seizure or the denial or termination of an installment agreement. The collection appeal gives you the opportunity to explain how you think the situation could be solved without the IRS levy or seizure.