There are several options available for people who owe taxes to the IRS or State to settle their tax debts. However, time is not your friend. The longer you wait, the less options you have. Click here to learn more
Be weary of tax resolution firms promising “pennies on the dollar” results. There is an option for a settlement called an “Offer in Compromise”. We get them approved for clients regularly, but it’s hard to negotiate on your own. Read more here to see if you might qualify for this type of resolution.
The good news is, the IRS does occasionally remove penalties and interest for people who qualify. Although the process can be complex, it can lead to big savings for those who are approved! Watch our educational video about Penalty Abatements here!
The IRS uses mail as their main form of communication if you owe taxes. Sometimes it can seem like you receive a letter every day! This can be intimidating and confusing. The most important thing to remember is if there’s a deadline to respond, make sure you meet that deadline! If you don’t, collection action could be taken against you. If you’re not comfortable with your ability to respond appropriately, make sure to seek help from a professional. To learn more about receiving IRS letters and what to do, click here.
Unfortunately, the answer to this question is “yes”. They can and they often do! If you owe taxes, the IRS can levy your bank account, take your paycheck, your social security, and other types of income. To learn more about what the IRS can take, click here.
While claiming children is most common, you can also claim relatives who qualify! There are restrictions, however. A few of these include your relative making less than $4,150/year, you must be providing at least half of their financial income, and no one else can claim them as a dependent. To see the full list of restrictions, check out our blog on claiming dependents.
The short answer is, “yes”. Not filing your tax returns is criminal and can lead to jail time if the government decides to pursue that type of action. That’s why even if you can’t pay what you owe in taxes, we still suggest you file your returns timely each year. If your returns are legally and correctly filed and you just can’t pay, there are more options for resolutions that don’t include jail time. Not all resolutions are created equal, however, and it’s often hard to prove you qualify for relief. If you’re struggling to file your returns or to pay what you owe, let us know. We can help!
A Revenue Officer is an IRS civil enforcement employee specifically assigned to YOUR case to pursue collection action against you. If you have a Revenue Officer, you can expect a much more aggressive pursuit in collecting your back tax debt. If you have an Revenue Officer, consider hiring help to make sure your rights are protected against the IRS.