The tax-relief industry loves to make IRS problems sound impossible without them. They're not. I'm Darrin Mish. I've been representing taxpayers before the IRS for 32 years. Let me explain how this actually works.
It is not uncommon for taxpayers in these troubled economic times to fall into debt in their tax obligations. If you have fallen behind in paying your taxes, the IRS has various means to help you pay your tax debts. Click here to read or watch more IRS Help resources.
The most common way taxpayers use to clear their tax debt is installment payments where your total tax debt is divided into a few installments paid over a number of months. The number of months will be decided by the IRS but it will be less than 12 months. If you are not able to pay a number of installment payments, this option allows you to make smaller installment payments subject to approval by the IRS.
Another way to pay off your tax debt is to make an offer in compromise to the IRS. An offer in compromise is where you offer to pay less than your total tax debt to the IRS. Obviously, this option is not open to just anybody. You have to meet stringent requirements and abide by certain rules in order for the IRS to approve your offer in compromise.
Your offer in compromise stands a better chance of being approved if you can show the IRS that there is some mistake regarding the taxes assessed or some doubt regarding its collectability. Doubt regarding collectability means proving that the IRS is unlikely to collect the full amount from you, not because you do not want to pay but because of other reasons. Another factor that stands in your favor is if paying the full amount of taxes would cause you undue financial hardship.
Another way to pay your tax debt is to defer it by having it declared presently uncollectible. If you meet certain qualifications, the IRS may review your circumstances and temporarily halt collection efforts to allow you time to improve your finances. Then your financial situation will be reviewed again at a future date in order to continue with collection efforts.
One more way to pay up the taxes you owe is to obtain a waiver of penalties. If you are late in paying your taxes, you will be charged late payment interests and penalties. Penalty waiver may be allowed by the IRS if your circumstances warrant it. A penalty abatement may amount to a substantial reduction in the total amount you pay the IRS, allowing you to pay off the remainder of your taxes.
These are the different ways you can pay off your tax debts. If you are facing any problems with the IRS, you need an experienced tax attorney. Call us at (813) 229 7100 for a free consultation.