- A Fresh Start
- Currently Not Collectible
- Offer In Compromise
- IRS Installment Agreements
- Penalty Abatement
Beginning in 2011, the Fresh Start Initiative is a compilation of new steps to help taxpayers get a fresh start with their tax liabilities. The goal is to help individuals and small businesses meet their tax obligations without adding unnecessary burdens to taxpayers.
Your life has taken a turn for the worse, the company you work for has made your full-time job into a part-time job and your hours are unpredictable. You have the money to pay for the essentials of daily living, like groceries, utilities, rent, etc. Worst, you still must pay your taxes. There may be a way to stop IRS from chasing after that debt.
There are times where you agree you owe the IRS, but you can't pay due to your current financial situation. If the IRS agrees you can't pay both your taxes and your reasonable living expenses, it may place your account in "Currently Not Collectible" (CNC) status.
While your account is in CNC status, the IRS generally won't try to collect from you. For example, it won't levy your assets and income. However, the IRS will still assess interest and penalties to your account and may keep your refunds and apply them to your debt. You'll also continue to receive an annual bill from the IRS because that is required by law.
Before the IRS will place your account in CNC status, it may ask you to provide financial information including your income and expenses, and whether you can sell any assets or get a loan.
During the time the IRS may collect the balance you owe, it may review your income annually to see if your financial situation improved. Generally, the IRS can attempt to collect your taxes up to ten years from the date they were assessed, though the ten-year period is suspended in certain circumstances. The time the suspension is in effect will extend the time before the IRS has to collect the tax.
Call us for a free consultation and we'll discuss how we may be able to help you.
PENNIES ON THE DOLLAR SETTLEMENTS
You're aware that you owe back taxes, but you've been putting it off. You've been very stressed out about it, but now you have a letter from the IRS that requires your attention. It's important that you respond promptly.
An Offer in Compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so will create a financial hardship.
The IRS generally approves an offer in compromise when the amount offered represents the most the IRS can expect to collect within a reasonable period of time.
Set up a free consultation to determine if you may qualify for an Offer In Compromise.
The IRS enhanced criteria for both streamlined and expanded installment agreements improves customer service, reduces taxpayer burden, and increases agency efficiency. With the enhanced criteria, more taxpayers now qualify to have their installment agreement request processed.
A payment plan is an agreement with the IRS to pay the taxes you owe within an extended timeframe. You should request a payment plan if you believe you will be able to pay your taxes in full within the extended timeframe. If you qualify for a short-term payment plan you may not be liable for a user fee. Not paying your taxes when they are due may cause the filing of a Notice of Federal Tax Lien and/or an IRS levy action.
Contact us to set up a free consultation to discuss your situation.
You procrastinated too long and failed to file your taxes by the deadline. You didn't put aside enough to pay the tax, and now you will probably have a failure to pay penalty.
Common penalties include:
- Failure to file - when you don't file your tax return by the return due date, April 15th, or extended due date if an extension to file is requested and approved.
- Failure to pay - when you don't pay the taxes reported on your return in full by the due date, April 15th. An extension to file doesn't extend the time to pay.
- Failure to pay proper estimated tax - when you don't pay enough taxes due for the year with our quarterly estimated tax payment, or through withholding, when required.
- Dishonored check - when your bank doesn't honor your check or other form of payment.
Contact us for a free consultation to see if you may qualify for a Penalty Abatement.