If you owe the IRS money, I m sure you have paid attention to the commercials that promise to settle your debt for pennies on the dollar using the Fresh Start program.
Sure this can happen, but first you need to file all the missing returns. You need to make sure the amount the IRS says you owe is correct. I have helped many clients resolve their tax debt simply by filing their missing Income Tax returns.
You might be thinking, how do I owe if I never filed? . If you don t file your tax returns the IRS will do it for you. You might think this is great but they don t give you any deductions, and they don t include the thousands of dollars of expenses you incurred running your business.
Don t just blindly agree with the amount the IRS says you owe. Make sure it matches the amount on your return. When you are sure the IRS records reflect the correct amount of tax due, then you determine how to resolve your tax debt.
The IRS will close a collection case using one of the following scenarios:
- Full Pay
- Currently Not Collectable
- Installment Agreement
- Offer In Compromise
If you have money, you pay the IRS what you owe and the case is closed. This is the most obvious solution. Unfortunately, not everyone has the money to pay.
If you have no money and no assets, there is nothing for the IRS to collect and the case is closed as Currently Not Collectable . This sounds great because the IRS is going to leave you alone for the time being. Unfortunately, penalties and interest continue to accrue. When you get back on your feet the IRS comes looking for their money. This is never a good option. The longer you wait to resolve your tax debt the more you end up owing and the harder it is to resolve your case.
If you can make monthly payments, the IRS will allow you to pay over a number of years. Many taxpayers think this is great. They have a loan with the government and they pay it back just like any other loan. The problem here is that the interest is amortized daily. This means your balance never goes down unless your payments are significant. Most people did not have the money to pay the tax so now it is even harder because the IRS almost double the debt by adding penalties and interest. Making monthly payments to the IRS is worse than trying to pay back a high interest credit card. This is not a very good option for resolving your tax debt.
If you meet certain criteria you may qualify for the Offer In Compromise program. This is the program advertised on television and radio as settling your tax debt for pennies on the dollar. This is the best possible option for people that have no way of paying the IRS the full amount of tax owed. We have helped many clients get back on track and settle for much less than they owe.
Get a clear understanding of this program before you send a large check to an expert in California. Many companies cash your check and never call you back. We meet with you to determine what option best fits your situation before we take your case. Meet with us for a free 30 minute consultation to find out more about these programs before you decide to send money across the country to a national firm.
Call 603-724-2288 Today.