Back taxes may be resolved in a number of ways. And one method may be IRS tax negotiations through the Offer In Compromise Program (OIC). Setting up a monthly payment plan with the IRS is the easiest. But it is not necessarily the best for your circumstances. Some installment plans require substantial information. And taxpayers may wish to go it alone when working with the IRS. However, taxpayers often find themselves making multiple 2 hour calls to the Internal Revenue Service. Or they find themselves with the same series of events with the state.
So setting up a payment plan is not always easy. But taxpayers don’t realize that sometimes, there are other options to a payment plan. While this may be the only recourse for some clients, many times there are other options.
Collections Due Process
The IRS and most states often file tax liens when outstanding taxes have not yet been paid in full. Taxpayers who owe the IRS can protect themselves and their credit by taking steps to prevent a federal tax lien from being filed. After tax liens have been filed, it may be possible to get the lien withdrawn or released. Penalties and interest are added to any federal or state tax debt that is unpaid or paid after the due date. These penalties and interest continue to mount until the tax debt is paid, settled or until the tax debt reaches the statutes of limitations.
Taxpayers may also be setup under uncollectible status. 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 is convinced that a taxpayer has no ability to pay.
IRS Tax Negotiations
Business & Financial Solutions is an ethical firm, offering reasonable solutions and services. Unfortunately, not all clients will get from us what they want to hear. Some tax cases will meet the criteria for Offer In Compromise, or Currently Not Collectible, but some will not. We prequalify potential clients to determine if they will qualify for one of these programs, if negotiations with the state or IRS would be practical, or if another option may be more feasible.
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