One instant solution to the Internal Revenue Service (IRS) when you have IRS Back Taxes is to pay the taxes in full. Included in this balance is the interest or penalties that the IRS has assessed. All the interest and penalties can add up to thousands of dollars, which puts a huge burden on taxpayers and usually makes it tough to pay back. However, the IRS does offer tax settlement programs.
If you believe you have the ability to pay for your tax, but not the full amount up front, then you might consider an Installment Agreement (IA) with the IRS.This is a monthly payment plan based on the amount of your debt you owe and your current financial status. However, for IRS to agree with the installment agreement, the tax payer will have to file all the necessary federal tax returns for previous years.
Currently Not Collectible
If you have no money or job, then you may be interested in Currently Not Collectible stats with the IRS. In order for IRS to grant this, you will have to prove to the IRS that your monthly income is less than your necessary living expenses each month. The IRS will only grant you this status after you after have filed all your necessary federal income tax returns.
Offer in Compromise
If your debt to income ratio is high, and the taxpayer can prove this to the IRS, then you may qualify for an Offer in Compromise (OIC). Not all taxpayers will qualify for this program. A proper financial analysis, done by a qualified tax relief firm, can determine if a taxpayer qualifies for an OIC. The IRS will approve this agreement after the taxpayer has filed all their federal income tax returns.
The IRS only has ten years to collect your debt from the day it was assessed. Tax years are typically assessed up to 2 years after the tax year. Any tax professional can search and see if you are close to having your old tax debt expire.
File for Bankruptcy
Filing for bankruptcy maybe your last resort. If you are unsure of the process and requirements, then you should ask a bankruptcy attorney.
If you are faced with IRS Back Taxes, then Instant Tax Solutions can help you. Instant Tax Solutions is a reliable tax relief company licensed in all 50 states. For years, they have taken pride in providing high quality service for many taxpayers. You can read some reviews about Instant Tax Solutions by clicking the following link: http://ivouch.com/instanttaxsolutions. This firm has been an accredited business with the BBB (Better Business Bureau)since 2009 and enjoys an A+ rating. Instant Tax Solutions is a team of Enrolled Agents, CPAs, former IRS Officers and Tax Attorney who will help you step by step in resolving your tax debt.
Back taxes are the most common reason why people avoid the IRS. Ignoring the notices and phone calls is never a solution. Once collection actions have begun, the Back Taxes owed will compound. The IRS is very powerful and can be very intimidating. Instant Tax Solutions can help show you how to handle your back taxes! Please call Instant Tax Solutions to resolve your IRS Back Taxes and receive a FREE consultation!