I am in IRS Not Collectible Status, will it resolve my tax debt?

No, IRS Not Collectible Status (NCS) does not resolve the liability – by itself.

Some explanation:

IRS Currently Not Collectible Status

Contact Our Experienced Mesa Arizona IRS Attorney To Help Resolve Your Tax DebtThere are several ways to deal with IRS debt.  The most common are the Offer in Compromise, Bankruptcy, Payment Plans of various types, and Placement in Non-Collectible Status.

IRS NCS is a “designation” the IRS will place in it’s system that stops enforced collection.  It is used because you are able to prove to the IRS that your expenses are as much as or exceed your “allowable” expenses, and there is no available asset equity.

If you are placed in NCS, the penalty (if not fully applied) and interest continue to grow.  If your income improves, the IRS will see the improved income and pull you out of the Status and demand a new disclosure of your income, budget and assets to see if your ability to pay toward the debt has improved.  The IRS typically reviews your financial situation after each year.

Why IRS Not Collectible Status doesn’t get rid of debt all by itself

NCS has nothing to do with the debt.  It ‘s only “ability” is to stop IRS collection activity until your situation improves.

However, many people use it in combination with other legal options to reduce or “resolve” the liability.

The two most common legal options used in combination with the Non Collectible Status are:

1.  IRS Statute of Limitations on collection

The IRS has 10 years to collect tax debt from the date it is created or “assessed”.  This 10 year period can be extended by the period of time you are doing something that prevents the IRS from collecting, like filing a bankruptcy or an Offer in Compromise.

If the Statute Period runs out the debt goes away unless the IRS has reduced the debt to a Judgement (which is unusual)

Many people have serious tax debt and have just a few years left before the Statute Period runs out.  They are also good candidates to be placed on NCS.  In these situations, it usually makes sense to use the it with any eye toward the Statute Period to eliminate the Tax Debt.

2.  Bankruptcy

If you are a candidate for NCS and can convince the IRS to place you there…and if the Statute of Limitations Period is a several years away..Bankruptcy may be an option.  Part of the difficulty in qualifying for a Bankruptcy is making sure that certain time periods have elapsed between assessment and the date the Bankruptcy is filed.

These Bankruptcy time periods are stopped or “tolled” as well when you do things that stop the IRS from collecting.

The NCS doesn’t stop any of these Bankruptcy time periods from running.  It can be used as a result to stop collection activity while the tax debt continues to “become dischargeable”.

Video: Attorney For Tax Michael Anderson
Explains IRS Not Collectable Status

Conclusion

Whether you should use NCS as opposed to Bankruptcy or an Offer in Compromise or whether you should use it in conjunction with the IRS Statute of Limitations on Collection or Bankruptcy are questions that will require a careful review of the facts and your goals in order to reach an answer.

Michael Anderson, Tax Lawyer In ArizonaWritten By:

Anderson Tax Law
2158 N. Gilbert Rd. Ste 101
Mesa, Arizona 85203

Phone: (480) 507-5985
Fax: (480) 507-5988
Email: [email protected]
Website: https://taxlawyeraz.com

Can my small Business negotiate a “Streamlined Agreement” with the IRS?

Our Arizona Tax Lawyer Can Help Negotiate A Streamlined Agreement With The IRSAn IRS “Streamlined Agreement” is really just a negotiated payment plan that allows a person or business to pay the debt back in full with interest over a certain period of time.

The reason this payment plan is considered a “Streamlined” plan is because if the business or person meets certain criteria, no financial statement has to be provided.

In other words the amount of the payment is just a function of the amount of total debt divided by time.

In 2012 individuals became entitled to a Streamlined Agreement and the ability to avoid using a financial statement to negotiate a payment plan, if the following is true:

1.  The debt is $50,000.00 or less

2.  The person hasn’t had another Installment Agreement within the last 5 years.

3.  The amount proposed will pay the debt within 72 months

Businesses are now able to do the same thing if:

1.  The debt is less than $25,000.00

2.  The debt can be paid in full in 24 months or less

3.  A direct debit payment is set up from a bank account

If you own a small business with tax debt that is $25,000.00 or less, this type of arrangement is typically easy to set up.  Sometimes however, it is wise to talk to someone about the business’ overall debt and income situation, in order to determine whether the negotiation of a payment plan using actual finances wouldn’t make more sense.

Michael Anderson, Tax Lawyer In ArizonaWritten By:

Anderson Tax Law
2158 N. Gilbert Rd. Ste 101
Mesa, Arizona 85203

Phone: (480) 507-5985
Fax: (480) 507-5988
Email: [email protected]
Website: https://taxlawyeraz.com

Can the IRS Revenue Officer visit my Home?

taxes-man-being-shakenThe IRS Revenue Officer can visit your home or place of business and in fact, the IRS encourages the Revenue Officer to pay you a visit.  If you have serious tax debt or unfiled returns…you should expect it.

Background

There are two types of direct “collectors” that work for the IRS.

A. ACS Employees

Automated Collection Services Employees (ACS Employees) are the IRS’ first “Collectors”; they deal with Taxpayers by mail and phone.  There are several ACS Offices throughout the U.S., but there isn’t one in Arizona.  So when a notice is issued by ACS and you respond, you are dealing with someone out of State.

Despite the fact that ACS Employees are out of state, they have the ability and the will to garnish a paycheck or levy a bank account and they do so every day.  They also have the authority to issue Notices of Federal Tax Lien.

B. IRS Revenue Officers

Revenue Officers are local.  There are Revenue Officers in every state and major City.  They have some serious training from the IRS and are usually very experienced.

The IRS has access to a number of databases.   It is possible as a result that this well trained IRS Revenue Officer knocking on your door… knows more about your financial situation than you do.

Video: Can The IRS Revenue Officer Visit My Home?

Dealing with the Revenue Officer

The Revenue Officer’s goal is two-fold.  The first goal is to make sure you are in “compliance”.  Generally, IRS Compliance means that you have filed your tax returns.  The Revenue Officer’s second goal is to collect money to pay the tax debt.

If you are cooperative, the Officer will typically work with you to obtain disclosures about assets, earnings and budget.  In most cases, an attempt will be made to reach an agreement about how much can be paid each month to pay the debt off.  You might also qualify for a partial payment program, or non- collectible status.

If you file an IRS Offer in Compromise or a Bankruptcy case, the file will be removed from the Officer and will only be returned to the local office if debt remains after the Offer or Bankruptcy is completed.

Revenue Officers have the authority to seize most assets and levy wages and bank accounts.  If you don’t cooperate in disclosing your financial situation, they won’t hesitate to use that authority.

Michael Anderson, Tax Lawyer In ArizonaWritten By:

Anderson Tax Law
2158 N. Gilbert Rd. Ste 101
Mesa, Arizona 85203

Phone: (480) 507-5985
Fax: (480) 507-5988
Email: [email protected]
Website: https://taxlawyeraz.com

Unfiled tax returns going back a dozen years…do I really need to file all of them?

Do I Need To File Years Of Unfiled Tax Returns?If you have unfiled tax returns, I’m not going to Judge you.  I have helped hundreds of Arizona clients deal with unfiled return issues and have learned that at least in Arizona, the failure to file a return is usually the result of emotions and thoughts we all have at some point in our lives.

THE MOST COMMON GROUP OF REASONS FOR NON-FILING

1.  Fear

You may have been afraid to file a return that has debt associated with it.  Especially if finances are low and there are children or other priorities at the time.

2.  The snowball effect

The first return is filed late and “lo and behold” no one showed up at the door.  So when the next year’s return due date rolls up…you put that filing off as well.

3.  Lost Records

Now a few years have gone by…and the IRS sends a letter asking where the returns are.  A little panic sets in as records are searched and you find that many are missing.

OTHER PROBLEMS THE FAILURE TO FILE CAUSES

Now…I don’t like to lecture anyone about why they should have filed either and don’t do it in person with clients.  This is because everyone already knows that the disclosure of personal income and budget information is legally required and failure to do it can be considered a serious crime.  There are other reasons that you need to be aware of if you aren’t already about filing the return(s):

1.  Substitute Tax Returns

The IRS will usually do a return if the original isn’t filed.  It won’t take deductions and the debt will often be much higher than if the Tax Return was filed correctly.  The Substitute Tax Return assessment causes other problems as well.  It starts the IRS collection machine rolling which includes the filing of Liens and the issuance of Levies, but it may also cause the principal debt to be non-dischargeable in bankruptcy even if the correct return is done later.

2.  Marriage

If marriage is a goal and unfiled tax returns exist, the potential marriage Partner, may have some serious second thoughts as a result.

3.  Financial Issues

Filed returns are a pre-requisite to getting a home loan or filing for bankruptcy.  If the IRS has done a Substitute Return and debt exists as a result, the IRS will have likely filed a Tax Lien which will complicate your financial life as well.

SO DO I NEED TO FILE EVERY MISSING YEAR?

Having said all that, the real question again is… do you need to file each year if there are lots of unfiled years?

The short answer is usually no.  If the returns aren’t filed at all, either by the IRS or by you, the IRS is usually only looking for the last 6 years to be on file.  If the IRS has done years for you that are older than this, it may make sense to replace those returns with correct returns.

We tend to go through a specific process with each client in order to determine which years need to be done and that same process helps to deal with the debt.

PROCESS

1.  Analyze IRS History

We gently attempt to determine your filing record and obtain Income History documents from the IRS.  This is usually done by contact with the “Batline” or the Tax Practitioner Hotline which is supposed to be neutral.  This initial foray into your records tells us a lot:

a.  What years are missing

b.  What years the IRS appears to be interested in

c.  What years the IRS has done Substitute Returns on

d.  Statute of Limitations period(s)on collections

e.  Bankruptcy Discharge Dates

f.  A history of your dealings with the IRS

g. A record of all the income, mortgage interest etc.  that was reported

h. The status of IRS Collection activity

i.  The status of Lien Filings

When we know these things it is much easier to determine which years need to be done.  Sometimes, very few returns need to be done and that will depend on a number of factors.

2.  Analyze Personal Finances and Goals

Sometimes the decision as to which returns need to be done depends on your personal finances.  If you are a candidate for an Offer in Compromise and the IRS has done several substitute tax returns…it may not make sense to correct them.  A thorough review of your financial situation, past, present and future, will tell us whether an Offer in Compromise is feasible, or whether a bankruptcy makes more sense or whether a payment plan in conjunction with the IRS Statute Period on collection or a later Bankruptcy makes the most sense.  Which returns are done, often depends on what legal option makes the most sense as well.

3.  Creation of Returns

Once we know the above, we can make a final decision about the returns and get them created.  We can often do this even if you don’t have perfect records.

4. Dealing with the Debt

The work that took place to analyze the IRS history and your financial situation is now used to create documents and arguments that will help reduce or eliminate the debt. Again, the Offer in Compromise may be the best option but there are others that may make more sense in the end.

FIRST STEP

If you have multiple years of unfiled tax returns and don’t know what to do…do something.  I advise that you call me or another attorney who has alot of experience with these issues and get your IRS History and your financial situation reviewed.  Only when you do this, can you really know which returns need to be done and start the process of dealing with it.

Michael Anderson, Tax Lawyer In ArizonaWritten By:

Anderson Tax Law
2158 N. Gilbert Rd. Ste 101
Mesa, Arizona 85203

Phone: (480) 507-5985
Fax: (480) 507-5988
Email: [email protected]
Website: https://taxlawyeraz.com

I haven’t filed my tax return for 2012 yet, am I going to get an IRS penalty?

IRS Penalty For Unfiled Tax ReturnIf you haven’t filed a 2012 return yet and you didn’t ask for an extension to file, you need to file it as soon as possible.  The IRS gets to add interest and penalty to your debt for each month un-filed and for each month unpaid and it adds up fast.

The penalty for filing a late tax return is about 5% of the amount of unpaid tax you owe for each month or part of the month that the return is late.  The amount is capped at 25% of the amount owed.  For example,  if the debt is $15,000, the first penalty for the month is about $750.00.

There is also the failure to pay penalty that equals one-half of one percent of the amount of unpaid tax.  This penalty is capped as well at 25% of the tax due.

Many of my clients are shocked when they file several years of late tax returns and find that for many of the years, the debt is almost double the net tax.  Interest is accruing on the net tax and interest is accruing on the penalties which will total 50% of the net tax at some point.

Filing an extension to file doesn’t solve the requirement to pay the tax.  The extension only allows more time to file the return, not to pay it, and if you file it after the extension date, the late filing penalty kicks in anyway.  There is no extension to pay the tax.

Many people we meet haven’t filed for several years.  The first step we take is to determine which years to file and to get those years filed.  Once we know the amount including the penalty and interest, we are able to determine the best legal option and than we can negotiate with the IRS or take some other legal avenue.  Depending on the situation, we may be able to arrange a reasonable payment plan, get penalties eliminated, negotiate a formal settlement via the IRS Offer in Compromise or even use bankruptcy to deal with the debt at some point.

The most common option we see is when we are able to challenge the incorrect Substitute Return the IRS has created with a correct return and substantially reduce the debt.  Just this week we finalized some returns that will change the tax debt for a client from about $150,000.00 to about $50,000.00, a savings of $100,000.00

We are here to help with your tax problems whether you are late in filing, late in paying, the IRS is sending threatening letters or you are being audited.  We help our clients make and implement plans that result in freedom from IRS problems.

Michael Anderson, Tax Lawyer In ArizonaWritten By:

Anderson Tax Law
2158 N. Gilbert Rd. Ste 101
Mesa, Arizona 85203

Phone: (480) 507-5985
Fax: (480) 507-5988
Email: [email protected]
Website: https://taxlawyeraz.com

I should qualify for an Offer in Compromise, so why Bankruptcy?

IRS Offer in Compromise vs. Bankruptcy

Kiss for mum.This is a great question and there is really a one sentence answer to it… that goes like this.

If your debt problem is primarily the result of tax debt, and if you qualify for an offer in compromise in every way, and if you can find the money to pay the settlement amount, an Offer in Compromise is a no brainer.

Lets break that down a bit more.  One sentence is never enough for me.

First, let’s tackle the “primarily tax debt” issue.

There aren’t very many of us that have tax debt and tax debt alone.  Many people with tax problems have other debt that would benefit from a good run through the Arizona Bankruptcy machine.  It is often the case as well, that certain tax debt… especially income tax debt, can be made “dischargeable” in bankruptcy just like a credit card debt, and if it isn’t entirely dischargeable, it is often partially dischargeable with some planning.

As a result, whenever I review a case with some serious tax and other debt problems, I weigh the Offer in Compromise vs Bankruptcy.  Sometimes, we do an Offer in Compromise first and a bankruptcy later.  Sometimes, vice versa and sometimes, one and not the other. Rest assured, that wherever there is other consumer debt acting as a real burden to our client, bankruptcy is a topic of discussion, not just the Offer in Compromise.

Second, do you qualify for an Offer in Compromise in every way

Do you remember that old Clint Eastwood Movie, “Every Which Way But Loose”?  I suppose the phrase “in every way” made me think of that movie, or maybe it could have been the tremendous impact the Orangutan had on my life.

Seriously, that movie was really about nothing.  Clint Eastwood was a good fighter, wins an Orangutan in a card game? and gets jilted by a pretty woman who he chases around between fights and hi-jinx.

Why did I watch that?

Now…if you don’t qualify every which way for the Offer in Compromise, you will be thinking that it was really about nothing too.. and wondering why the CPA or EA let you do it in the first place.

That was a reach…wasn’t it?

Qualifying for an Offer in Compromise doesn’t just mean that you fill out some papers and show the IRS that you don’t have a lot of money left over at the end of the month.  There is much more to it…and it ‘s called proving to the IRS that your reasonable collection potential is less than the tax debt and that you are filing the offer in what I call “good faith”.

Determining what the Reasonable Collection Potential (RCP) is, can be confusing because there is a formula that determines it.

Even if you meet this RCP formula, the IRS can reject the offer for all sorts of reasons.  Based on your past history, it may decide that you have the ability to make more money that you are now, or it may just think you acted in bad faith in the past, and don’t deserve the settlement.

If the Offer doesn’t work out, you will have stopped the statute of limitations on collection from running, given the IRS a bunch of money you probably didn’t have, stopped certain time frames from running that are necessary to turn your income tax debt into a dischargeable debt in bankruptcy, wasted the fee you gave to someone to help you do it, and ended up right back where you started.

Which reminds me of a song…mmm..on to the last part of the question,

Finding the money

Doesn’t it always just come down to this.  You work hard and have a little of it and everyone else wants it.  Some people earn your dollar by providing a great product that you feel is worth the trade, some people just take the dollar, squander it on “do-gooder” projects that make the situation worse….

Don’t get me started.

Anyway…finding money, yes.

An Example:

“Jack” owed the government a tidy sum with interest and penalty.  He had taken a different job that paid less than he was accustomed to, and really had no way to pay it.

Perfect candidate for an Offer right?

But…the RCP made things a little rough for him.  The IRS was going to say that he had the equivalent of 1000.00 per month leftover after he paid basic living expenses.  He had few assets and so the Offer amount from a cash standpoint was going to be about 20,000.00.  He needed $4000.00 upfront and than the remainder in 5 installments when the offer was accepted.

He didn’t have the $4000.00 and he couldn’t save it easily because the budget the IRS was going to use to calculate that $1000.00 ability to pay per month amount, wasn’t his real budget.

To repeat…the “formula” budget used to calculate the Offer amount wasn’t his real budget.

The IRS’ RCP formula disallows lots of stuff.  Let’s just say that one of the things it would have disallowed as a budget item was something he couldn’t easily stop paying.

And….”Jack” had no rich Uncle.

He just couldn’t figure out how to come up with the money to pay the offer amount without causing other serious problems in his life.

So what did he do?  Instead of taking the chance he simply decided to file a bankruptcy case.

His income tax debt met the date criteria for discharge, and because the tax debt was the majority of all his tax debt, he didn’t have to take the means test to qualify to file the bankruptcy case.

Summary

If an Offer in Compromise may be in your future, make sure that it is going to work in every which way before you file it.

Michael Anderson, Tax Lawyer In ArizonaWritten By:

Anderson Tax Law
2158 N. Gilbert Rd. Ste 101
Mesa, Arizona 85203

Phone: (480) 507-5985
Fax: (480) 507-5988
Email: [email protected]
Website: https://taxlawyeraz.com

Can I Really Settle My IRS Tax Debt for Pennies on the Dollar?

IRS tax debt?   “Pennies on the dollar”.

We Can Help Settle Your IRS Debt itThere may not be a better slogan ever invented.  I mean who wouldn’t want to settle their debt for just a fraction of the amount owed.

The problem is that it may be overused.  The pitch-person on TV and Radio promises to use a soothing voice, insider knowledge and secret negotiating skills to save you from years of pain while you pay back the IRS.

If only it were always so simple.

In real life, it isn’t a simple thing to convince the IRS to settle for less than what it is owed.  It requires a tremendous amount of analysis, planning, knowledge and work and it doesn’t hurt to have a good set of facts on your side to begin with.

In order to settle the tax debt for less than what is owed you have to prove to the IRS that you don’t have the assets and/or income to pay the debt off before the IRS Statute of Limitations period on collection runs out.  If the IRS thinks that you have the money to pay the debt before that time period runs out, it won’t settle.  This is true whether I help you, you do it yourself, or you enlist the guy with the soothing voice.

The process the TV commercial is talking about is called in Offer in Compromise.  It is just an agreement between you and the IRS to settle the debt for less than what is owed.

The agreement is reached only after those income and assets are reviewed very closely to determine what the IRS calls your “reasonable collection potential”.  In order for it to review those income and asset numbers you have to supply a bunch of financial information that includes a financial statement, supporting documents and your signature given under oath that your disclosures are accurate.

As pre-conditions to the IRS’ consideration of the Offer in Compromise, you must:

1.  File all Tax Returns

2.  Make all required estimated tax payments for the current year

3.  Make all required federal tax deposits for the current quarter if you are a business owner with employees

If you have done the above and the IRS agrees that you can’t pay all the debt back before the Statute period runs out, you should be able to convince it to settle for less than what you currently owe.

Most Offers in Compromise fail however.

Historically, the success rate has been less than 25%.  Recent changes to the Offer Program have increased that acceptance rate somewhat.  In any event, it is a very good idea to have your situation at least reviewed/analyzed closely by someone  that has experience with the IRS Offer in Compromise Program.

Michael Anderson, Tax Lawyer In ArizonaWritten By:

Anderson Tax Law
2158 N. Gilbert Rd. Ste 101
Mesa, Arizona 85203

Phone: (480) 507-5985
Fax: (480) 507-5988
Email: [email protected]
Website: https://taxlawyeraz.com

Does an IRS installment plan extend the 10 year collection statute?

Does an IRS installment plan extend the 10 year collection statute? An IRS Installment Plan doesn’t extend the IRS Statute of Limitations period for the collection of debt.

The IRS has 10 years to collect a tax debt.  The 10 year period begins on the date the tax balance is “assessed”. The tax is usually assessed when the IRS processes the tax return.

If your 2004 tax return was received by the IRS and processed on April 16 of 2005, for example, then the statute period would expire on April 16th of 2015.  If you filed the return on April 16 of 2010, then the statute would expire on April 16 of 2020.

Certain actions extend this 10 year statute period.  Bankruptcy, Offer in Compromise and certain appeals will all extend the time-frame.

An Installment Agreement with the IRS doesn’t do it.  When the statute period ends the debt is gone and the Installment Agreement will end.

It is important as a result to understand two things before you file an Offer in Compromise, a Bankruptcy or an appeal.

1.   How much will the IRS installment agreement be per month.

2.   When will the IRS Statute of Limitations period end.

It often makes sense to simply negotiate the Installment Agreement and wait for the Statute to kill the debt.

An example:

Mr. Smith owes the IRS $60,000.00 related to a failure to pay tax on an investment he cashed out in 2007.  He filed his return in April 2008 timely and just recently the IRS began to levy his paycheck.

Given his current income, budget and asset situation, he was able to arrange a payment to the IRS of $250.00 per month.  He doesn’t expect his income or budget to change in the near future and the Statute of Limitations date will run in April of 2018 or 10 years from the date the tax on the 2007 debt was assessed.

$250.00 dollars per month multiplied by the remaining time left in the statute period means that Mr. Smith will only pay about $15,000.00 of the $60,000.00 balance.

Michael Anderson, Tax Lawyer In ArizonaWritten By:

Anderson Tax Law
2158 N. Gilbert Rd. Ste 101
Mesa, Arizona 85203

Phone: (480) 507-5985
Fax: (480) 507-5988
Email: [email protected]
Website: https://taxlawyeraz.com

I filed an Offer in Compromise on my own and it was rejected because I left out an asset…what now?

How To Proceed After Your IRS Offer In Compromise Is RejectedWhen you file an Offer in Compromise with the IRS, and you are making the claim that you don’t have the income or assets to pay the debt under the “Doubt as to Collectability” rules, the IRS will do everything it can to prove you wrong.

It will scour your income, budget and asset documents in making a case that you can pay it more than you think you can.

If you have made the mistake of leaving out an asset in your Offer in Compromise disclosures, you have made the situation worse.  The IRS Officer reviewing the file will wonder what else you have left out at a minimum, and may place your file in the “dishonest pile” making it much more difficult for you to re-file the Offer successfully even if you meet the Offer criteria.

You may be able to re-file the Offer and win nonetheless… but you probably need help.  You could have other options as well, like a low pay installment plan with the IRS coupled with the use of the Statute of Limitations on Collection or even a Bankruptcy.

The next step should be to have an experienced Arizona Tax Attorney review the situation.

Video: IRS Offer In Compromise Explained
By Tax Lawyer Michael Anderson

Michael Anderson Explains The Process of An IRS Offer In Compromise

Michael Anderson, Tax Lawyer In ArizonaWritten By:

Anderson Tax Law
2158 N. Gilbert Rd. Ste 101
Mesa, Arizona 85203

Phone: (480) 507-5985
Fax: (480) 507-5988
Email: [email protected]
Website: https://taxlawyeraz.com

If the IRS is willing to set up a payment plan with me, why should I consult with an Arizona Tax Attorney?

suspiciousThe IRS’ purpose outside of playing favorites, is to collect money.  The IRS is really good at this and would be even better if there weren’t some doggone rules that restrain it.

Whenever you speak to an IRS Revenue Officer or someone from IRS Collections, I assure you that the focus is the collection of money…no matter how nice you think they are.

The Revenue Officer or the person you are speaking with at IRS Collections simply wants to get the debt paid back as soon as possible.

He or she will not explain to you all of your options and all the rules they must follow.

If your debt is large, especially if it over $50,000.00, you need to be aware of these rules and options as they could help you arrange a payment plan that is much smaller than the one you are discussing with the IRS Employee.

Some things you may want to think about before you move ahead:

1.  There are one year plans based on your actual budget to help you get back on your feet.

2.  There are 5 year plans based on your actual budget and not the IRS’ budget.

3.  There are ways to pay your debt below $50,000.00 and set up a 6 year streamlined agreement that ignores your income.

4.  There are ways to argue your facts or change your situation in a way that would cause the IRS to reduce the income calculation or increase the budget calculation it is using to determine your ability to pay.

5.  You may also be an Offer in Compromise or a Bankruptcy Candidate.

6.  Challenging Substitute Returns may reduce the debt and make the payment plan lower.

7.  Challenging the Penalties may reduce the debt and make the payment plan lower.

Of course if you just want to accept the payment plan the IRS has for you and you can afford it…by all means move ahead.

But…if you are interest in keeping the payment plan at a minimum or even reducing or eliminating the debt, it should be at least worth your time to consult with an experienced Tax Attorney about your IRS payment plan options before forging ahead.

 

Michael Anderson, Tax Lawyer In ArizonaWritten By:

Anderson Tax Law
2158 N. Gilbert Rd. Ste 101
Mesa, Arizona 85203

Phone: (480) 507-5985
Fax: (480) 507-5988
Email: [email protected]
Website: https://taxlawyeraz.com