Tax season can be a stressful time, especially if you find yourself facing a hefty tax bill that you can’t pay in full. The good news is that the IRS offers solutions to help taxpayers manage their tax debt, including installment agreements and short-term extensions. In this article, we will explore these IRS payment plans and how they can provide financial relief to individuals and businesses struggling with their tax obligations.

Understanding the Challenge

Life is unpredictable, and there may be times when unexpected financial burdens prevent you from paying your taxes in full by the due date. Whether it’s a sudden medical expense, a job loss, or any other unforeseen circumstance, the IRS understands that not everyone can meet their tax obligations on time.

IRS Payment Plans Explained

1. **Installment Agreements:**

An IRS installment agreement is a structured payment plan that allows you to pay your tax debt over time. It’s an excellent option for those who can’t pay their full tax bill upfront. Here’s how it works:

– **Application:** To get started, you’ll need to apply for an installment agreement. This can typically be done online, by mail, or in some cases, over the phone.
– **Payment Amount:** The IRS will work with you to determine a monthly payment amount based on your financial situation. It’s crucial to be honest and accurate when providing your financial information.
– **Fees:** Keep in mind that there may be setup fees associated with installment agreements. However, these fees are generally lower for low-income taxpayers.

2. **Short-Term Extensions:**

If you need a bit more time to pay your tax bill but believe you can do so within 120 days, you can request a short-term extension. Here’s what you should know:

– **No Setup Fees:** Unlike installment agreements, there are no setup fees for short-term extensions.
– **Penalties and Interest:** You will still be subject to penalties and interest on the unpaid balance during the extension period. However, the penalties are typically lower than those associated with installment agreements.

Benefits of IRS Payment Plans

Now that you understand the basics of IRS payment plans, let’s explore why they can be a lifeline for individuals and businesses facing tax debt:

1. **Financial Relief:**

IRS payment plans provide immediate financial relief by allowing you to spread your tax payments over an extended period. This can prevent you from draining your savings or going into debt to cover your tax bill.

2. **Avoiding Collection Actions:**

By entering into an IRS payment plan, you can avoid more severe collection actions such as wage garnishment, bank levies, or asset seizures. This protects your financial stability and peace of mind.

3. **Customized Plans:**

The IRS works with you to create a payment plan that suits your financial situation. Your monthly payments are tailored to your ability to pay, ensuring that you can meet your other essential financial obligations.

4. **Improved Credit Score:**

While your tax debt remains unpaid, it can negatively impact your credit score. Setting up an IRS payment plan and making consistent payments can help you rebuild your credit over time.

5. **Reduced Penalties:**

Although you’ll still incur interest on the unpaid balance, the penalties associated with IRS payment plans are generally lower than those imposed for failing to pay taxes on time without an agreement.

How to Apply for IRS Payment Plans

Applying for an IRS payment plan is a straightforward process:

1. **Gather Necessary Information:**

Before applying, gather your financial information, including details about your income, expenses, and the amount you owe. This will help the IRS assess your ability to pay.

2. **Choose the Right Plan:**

Decide whether you want to apply for an installment agreement or a short-term extension based on your financial circumstances and how quickly you can pay your tax debt.

3. **Apply Online or by Mail:**

You can apply for an installment agreement or a short-term extension online through the IRS website. Alternatively, you can submit Form 9465, Installment Agreement Request, by mail.

4. **Await Approval:**

Once you’ve applied, the IRS will review your request and notify you of their decision. If approved, they will provide details on the terms of your payment plan.


Dealing with tax debt can be overwhelming, but the IRS payment plans discussed in this article can offer a lifeline during challenging financial times. These options provide a structured and manageable way to address your tax obligations without resorting to drastic measures. Whether you opt for an installment agreement or a short-term extension, taking proactive steps to address your tax debt can lead to financial stability and peace of mind. Remember, when in doubt, seek guidance from tax professionals or IRS representatives to ensure you make the best choice for your unique situation.

The Rise of Pass-Through Entity Tax (PTET)

The pass-through entity tax (PTET) has emerged as a game-changing solution for owners of pass-through businesses, such as S corporations and multi-member LLCs. Previously an exception, PTET has now taken center stage in most states. This innovative approach allows businesses to circumvent the $10,000 annual limitation on state and local tax (SALT) deductions.

Demystifying PTET Mechanics

At its core, the PTET process is elegantly simple yet remarkably impactful. Pass-through entities (PTEs) now have the option to pay state income taxes on their business earnings, a responsibility typically borne by the individual owners. Subsequently, the PTE claims a federal business expense deduction for these state income tax payments. Importantly, states permit individual owners to claim a credit or deduction for these taxes, enabling them to sidestep the SALT limit.

This strategic maneuver results in a dual benefit for owners: they leverage the federal deduction against state income tax, all while avoiding the shackles of the $10,000 SALT limit on a portion or entirety of their pass-through income.

State-Level Progress

Presently, 36 out of the 41 states that impose income taxes have embraced some iteration of the PTET concept. Notably, this trend continues in 2023, with Hawaii, Indiana, Iowa, Kentucky, Montana, Nebraska, and West Virginia joining the ranks of PTET adopters.

Of this group, Indiana, Iowa, Kentucky, and West Virginia have implemented retroactive PTET policies dating back to 2022. Nebraska’s PTET has retrospective implications for 2018. Meanwhile, Hawaii and Montana have chosen not to apply retroactive measures to their PTET implementations.

Eligibility Criteria

Eligibility for PTET hinges on the type of business entity. Partnerships, S corporations, and multi-member LLCs taxed as such are generally eligible to opt for state PTET. Conversely, sole proprietorships, single-member LLCs taxed as sole proprietorships, C corporations, most trust structures, and LLCs taxed as C corporations are typically ineligible.

Election Deadlines and Opt-Outs

It is important to note that while no state, except Connecticut, mandates a PTE to pay a state PTET, the decision to do so rests with the entity. Election deadlines for PTET vary from state to state.

In most states, a PTET election applies universally to all owners within the PTE, with individual owners usually unable to opt-out. Exceptions to this rule exist in Arizona, California, New York, and Utah.

Connect with Us

If the intricacies of the pass-through entity tax (PTET) raise questions or concerns, please do not hesitate to reach out directly at 757-410-8030. We are here to ensure that you have the clarity and confidence needed to navigate this evolving tax landscape effectively.

Filing taxes can be a daunting task for many individuals, but it is a necessary part of managing your personal finances. In this article, we will cover everything you need to know about filing taxes for 2022.


Know Your Filing Status


Your filing status is an important consideration when filing taxes. There are five filing statuses: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child. Each status has different tax brackets and deduction limits. Choose the status that best reflects your situation.


Gather Your Documents

Before you start filing taxes, you will need to gather all the necessary documents. These include your W-2, 1099s, and any other income or tax statements. If you have any deductions, make sure you have the relevant receipts and documentation for every deduction.

Understand Tax Deductions and Credits

Tax deductions and credits can help reduce the amount of taxes you owe. Deductions are expenses that reduce your taxable income, while credits directly reduce the amount of taxes you owe. For the everyday American, some common deductions include mortgage interest, charitable donations, and student loan interest. Although, most taxpayers will take the “standard” deduction. Common tax credits include the earned income tax credit and child tax credit.


Choose the Right Tax Preparation Method

There are several ways to prepare and file your taxes. You can use tax preparation software, hire a tax professional, or file by paper. The method you should go with depends on your situation. For the most accurate and best result, we always recommend hiring a tax professional that can ensure everything is filed correctly. If you owe back taxes from other years, then we highly recommend hiring a tax resolution specialist to look into your case to ensure you the IRS does not garnish your wages or put a tax levy on your assets.


File on Time

The tax filing deadline for 2022 is April 18, 2023. Make sure you file your taxes on time to avoid penalties and interest. If you are unable to file by the deadline, you can request an extension. But, remember an extension only relates to the filing of the return. If you owe for 2022, and you file an extension, what you owe must be paid in with the extension to avoid failure to pay penalties.



Pay Any Taxes Owed

If you owe taxes, make sure you pay them on time. The IRS offers several payment options, including online payment plans, direct debit, check or money order. Failure to pay taxes owed can result in penalties, interest charges, and worse case scenario, tax liens and gransihments.



Keep a Copy of Your Tax Return

Make sure to keep a copy of your tax return for your records. You may need it for future reference or to apply for loans or financial aid.



What to Do If You Owe Back Taxes

If you owe back taxes, the most important thing you can do is take action. Ignoring your tax debt will only make the situation worse, as the IRS will continue to assess penalties and interest on the amount owed. Contact a tax resolution specialist to look over your case, and let them guide you through the process to ensure you don’t jeopardize your financial future.


Our firm specializes in tax resolution. We have CPAs, EAs, and attorneys who can represent you before the IRS. We serve clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows the “ins and outs’ and knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.


In conclusion, filing taxes can be overwhelming, but it doesn’t have to be. By understanding your filing status, gathering necessary documents, taking advantage of deductions and credits, filing on time, paying any taxes owed, and keeping a copy of your tax return, you can ensure a successful tax filing experience in 2023.

Filing taxes can be a daunting process, but for some, it’s much more than that – tax audits. This stressful situation involves having the IRS put your tax return under a microscope to see if you reported all your income and to see if you overstated your deductions and expenses. The IRS’s main goal in an audit is to assess more taxes, penalties, and interest. It’s an intimidating experience that most Americans dread facing!

An IRS audit can cause even the most squeaky-clean of taxpayers to become fearful and anxious when faced with defending themselves to an auditor. It’s understandable why the majority feel powerless in this situation. You also have to understand and get comfortable with, in the eyes of an IRS auditor, you are guilty until proven innocent. Navigating the tax code on your own is not a good place to be.

Tax audits don’t have to be a source of fear as long as you’ve remained compliant with all the rules and regulations. The best way to ensure peace of mind is to work with an experienced Tax Resolution Specialist who represents clients in such matters and has a good track record. Contact our firm for a complimentary no-obligation consultation to assess your situation.

An IRS audit can be a very time-consuming and intrusive exercise that can include a visit from the auditor.  Audits can also be conducted remotely. This method, known as a desk audit, involves sending documents through fax or mail to evaluate accuracy and compliance with established law.

Filing taxes is a complex process and the IRS seeks to ensure accuracy by auditing income tax returns.  These examinations may be focused on certain deductions, particularly if taxpayers have claimed for more than what their reported incomes suggest – but this does not necessarily indicate any wrongdoing or misconduct. The IRS can also select your return to be audited for no reason at all.  These are referred to as “random” audits to ensure compliance with tax laws.

Taxes are a fundamental pillar of our society and the government strives to ensure that everyone is compliant. To this end, random audits from both Federal and State authorities may be conducted in order to verify taxpayers’ income as well as expenses incurred throughout the year; making sure all taxation payments due remain accurate.

Preparing for a tax audit should be an ongoing process. To avoid any problems, ensure that all deductions taken are backed up with proof and every receipt is kept on file along with the return – you never know what may arise in the future! It’s important to remember: only declare items that can easily be defended – your documents are a crucial piece to your defense. Ensure each tax record remains safely stored away for at least seven years as per IRS regulations.

Protect your finances and future by taking the time to review your tax returns before signing off, even if you have a professional do them. A thorough examination of the documents will not only help ensure accuracy in filing but also offers an invaluable opportunity for you to gain knowledge on taxes – safeguarding against potential penalties or interest charges related to inaccuracies down the line.

Tax audits can be intimidating, but with a little foresight and the right representation it doesn’t have to cause stress. Staying organized throughout the year is key for having peace of mind when tax season rolls around. Finding an experienced professional who understands your individual needs will help make dealing with the audit as painless as possible.

Take the worry out of representing yourself in front of the IRS, which is like going to court without a lawyer.  Let our expert team lift this from your shoulders and navigate the IRS on your behalf. Schedule a no-obligation consultation to explore your options and get on track toward permanently resolving any worries you have over having to meet with and defend yourself in an IRS or State income tax audit.

Ignoring your obligation to pay taxes can lead the federal government to conduct severe legal action against all of your existing assets, current and future income and assets you acquire in the future; this form of punishment is called a federal tax lien.


If you’ve received a certified letter indicating that the federal government has placed an unwelcome Federal ‘tax lien’ on your assets, this article can provide insights into what it means and how to remedy the issue.


What is a Federal Tax Lien?

When a taxpayer falls behind on their federal taxes, they are at risk of having an official public notification filed against them. This document is known as a Notice of Federal Tax Lien and can cause serious consequences for the individual’s ability to enjoy any financial security.


A federal tax lien is an official document filed with the county recorder’s office (usually where the taxpayer lives or conducts business) and the secretary of state’s office (if it’s a corporation or partnership) notifying the general public that a taxpayer has an unpaid federal tax debt.


Lien vs. Levy

For the unaware taxpayer, it is important to understand the difference between liens and levies. People will use them interchangeably, but they are very different. A lien grants the government legal rights over all of your


property. This does not mean they are going to sell your property but it does make it difficult for you when the government has an ownership stake in your assets. Especially if you are looking to sell them, like real estate.

Anything you sell, the IRS will receive its cut before you receive anything.


A levy, on the other hand, is the physical seizure of income and assets. The IRS is the only creditor on the planet that can garnish your income and remove money from your bank account without a court order.


This may affect your credit.

The consequences of an IRS filing a Notice of Federal Tax Lien are significant. This lien is public record, and eventually may show up on one’s credit report which can severely impact their ability to secure further credit in the future as well as lower their credit score.


The effects on your assets.

A federal tax lien restricts your ability to utilize and monetize any existing or future assets – from real-estate, stock investments, automobiles, etc. This means that the IRS is first in line for proceeds if you were to sell any of your assets, before you receive any cash.


The affects on your business.

Protecting your business from financial troubles is important, and a lien can be especially damaging. It attaches to all of your property — including accounts receivable –which could seriously impact the normal day to day operations of your business, leaving you further in debt than before.


Thinking about filing for bankruptcy?

Although filing for bankruptcy may offer relief from debt, it’s important to note that your tax obligations and Notice of Federal Tax Lien still remain in effect. To ensure financial freedom, take steps to address any existing unpaid taxes before planning a successful future.


When a levy is enforced, it can result in the government seizing funds from your bank account or drastically reducing up to 75% of your net pay.


Next Steps

Paying off your tax debt in full is the most effective way to erase a federal lien. Typically the IRS will release the lien within one month of payment. But if you are unable to pay such a large sum, as most people are, at once don’t lose hope – this is where a tax resolution specialist can help.


When it comes to the IRS, navigating legal channels on one’s own is a risky endeavor. The best course of action for those facing tax issues is to seek out expert, professional help by calling an experienced and qualified tax resolution provider like us. With our expertise right by your side, your chances of achieving a positive outcome improve significantly!


Reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem once and for all.

Tax season can be a time of great anticipation for millions of Americans with dreams of a nice, big, refund check coming soon. Yet this year, many Americans may find themselves surprised and coming up short on their refunds.


Many taxpayers have been shocked to find that this year, instead of a big tax refund check arriving in the mail, they are being saddled with an unexpected bill from Uncle Sam. The combination of recent tax law changes and updated employer withholding tables has left individuals scrambling to figure out how to pay for their new IRS obligations due at filing time.


If you’re worried about a looming tax bill, never fear: there are measures you can take to ensure that your taxes don’t unexpectedly balloon. From budgeting tips to what do when the worst happens, these strategies will have your wallet breathing easy throughout the year!


The Earlier the Better!

Ignoring an IRS debt could ultimately result in serious consequences. It is in your best interest to be aware of any outstanding amount as soon as possible, providing time for tax planning and sourcing the necessary funds.


Don’t let late payments rack up and cause costly penalties and interest. Be proactive about filing your taxes so you’ll have a good idea of what will be owed, if anything, that is needed to be paid on time.


Pay Attention to Your Paychecks

With the recent changes in tax law, your paychecks may have grown more generous – but don’t get too excited! They could mean less of a refund or an unexpected bill when you file. Make sure to stay informed and plan ahead so unpleasant surprises won’t come back to haunt you this filing season.


To prepare for tax season, it’s important to monitor your paychecks and ensure that the right amount is withheld. If you see a decrease in federal taxes being taken out of each paycheck, adjust this with your employer immediately – even though it may mean taking home less every month. Doing so can help protect you from federal and state tax debts and penalties later!


Run Your Numbers Before

With just your final paycheck from last year and a few additional details, you can gain insight into what kind of tax refund or balance due to expect come filing season. It pays to take the time for preparation now so there are no unpleasant surprises later! However, please note that you should never use your 2022 final paycheck to prepare your return. You’ll need the actual W-2 from your employer in order to file a complete and accurate return.


To be prepared for tax season, compile all necessary records of your income, credits and deductions to estimate what you owe. Leverage the power of a reliable tax preparation software or use an everyday calculator with those numbers in hand to better understand your financial situation.


Know You Have Back Taxes or Will Owe A Lot?

Ignoring a tax bill isn’t an option; the IRS will always come knocking. Settling it quickly can save you from further financial trouble, so don’t delay. Your taxes may burden your wallet now, but they’ll take hefty chunks out of your future if left unresolved!


Dealing with the IRS can be a daunting experience for many taxpayers. Even getting the IRS on the phone these days is nearly impossible. Without proper guidance, and expert help, attempting to negotiate your own tax problem is like going to court without a lawyer – not a wise move!


Struggling with tax burdens from the IRS or State? Our experienced team knows the IRS’s “ins and outs”, knows how to navigate the IRS maze and is here to assist you in finding a resolution that works best for your unique situation. Take advantage of our knowledge and expertise by booking an appointment with us today – take control of your taxes, and your life, before they become unmanageable!

Paying taxes is a fact of life, but when the amount is excessive, you may not have the funds to pay in full. Making a mistake on your taxes can be costly as well, and if you plug in the wrong numbers, the IRS will surely come calling.


Whether you owe money to the IRS due to an innocent oversight, a lack of funds, or something else, ignoring the problem will not make it go away.

Once you owe money to the IRS, the clock is ticking, and all the while penalties and compounded interest will be piling up. So what should you do if you owe back taxes? Here are some critical steps to take.


Assess the Situation

Until you know how deep the hole is, you will not be able to start digging your way out. Before you do anything else, you should assess the situation, going through your old tax returns, reviewing communications from the IRS, and adding up what you owe the tax agency.


Once you have assessed the situation, you will be in a better position to make concrete plans. If you owe a lot of money, you may not be able to pay it off all at once, but with the help of a tax relief professional, you may be able to come up with a suitable repayment plan or you may be able to settle for less than you owe.


Review Your Budget

Owing money to the IRS is no fun, but you will have to resolve this one way or another. Hopefully, you can work out a more favorable payment plan


with the IRS, one that might allow you to pay a reduced amount, but that will depend on your income, your allowable expenses, and your assets, if any.


It is important to review your monthly household budget carefully if you owe back taxes to the IRS. Every dollar you can pay back is one less dollar you will owe interest on, so think about where you can cut back and how you might be able to free up some cash.


Talk to a Tax-Relief Expert

The bad news is that you owe back taxes to the IRS. The good news is you may be able to settle the entire amount, including penalties and interest, for a fraction of what’s owed through the IRS’s offer in compromise program.


If you qualify for one of those programs, you may be able to settle your debt for less than you owe, but this is not something to tackle on your own. Work with a tax-relief expert, both to identify the proper programs and to make negotiating with the tax agency easier and more effective.


You can use the budget you reviewed earlier to identify sources of income and resources you have access to. Once that information is presented, the tax-relief expert can help you find a suitable tax compromise plan that just might save you a lot of money.


Take Care of the Problem sooner rather than later

Time is of the essence when you owe money to the IRS. Once those back taxes are assessed, the clock is ticking, and every day that passes will mean higher penalties, and compounding interest.


If you want to put your tax debt behind you once and for all, you will want to act fast. The sooner you start working on your tax resolution plan, the sooner you can take your financial life back.


To help ease the stress from your situation, we offer a free, no-obligation consultation with one of our tax resolution experts. You don’t have to worry about confidentiality or cost because the consultation is free with zero gimmicks or commitments. Schedule an appointment with one of our tax resolution specialists today by clicking on this link: .

The tax-filing deadline will be here before you know it and pretty soon, you’ll be gathering up your receipts and plugging in numbers. I know you’re hoping for good news, and praying for a big refund in the process.

If all goes well you won’t owe anything and you might even be getting back a nice refund. But, what should you do if you owe money? If you know you owe money to the IRS, you might be tempted to not file a return, but that is the worst thing you can do!

If you fail to file on time, the IRS will come after you until you do. Worse yet, the tax agency can assess up to 25% just in late filing penalties. Plus, interest will start piling up right away. Instead of not filing, here are the steps you should take if you owe money to the IRS.

Seek Out Tax Deductions You Can Still Claim
If you find that you owe taxes, all might not be lost. As long as the April 15th tax-filing deadline has not yet passed, you can still add money to an IRA, lowering your taxable income in the process. As long as you meet the income guidelines for a deductible IRA, this step alone could lower the amount you owe or even entitle you to a refund.

Pay as Much as You Can As Soon as You Can
Speaking of paying up, it is important to pay as much as you can as soon as

you can. Even if you file for an extension, the clock will still be ticking on any required payments, and the penalties and interest can add up pretty quickly.

If you know you owe money to the IRS, paying it off should be your number one priority. That might mean squeezing your dollars extra hard or trimming your budget to the bone, but it beats paying penalties and high interest to the IRS.

Seek Professional Tax Help and Guidance
Owing money to the IRS is no joke, and dealing with the situation is not something you should try to tackle on your own. If you know you owe money to the IRS and cannot pay the bill in full, it is important to seek professional help and guidance.

A tax resolution expert can guide you through the process, helping you prepare, submit and negotiate a payment plan that works for you and the IRS doesn’t get to manage your monthly cash flow. You also may qualify for an offer in compromise, which settles your case for less than the amount owed, but it’s important to act as quickly as possible – you do not want your tax situation to get worse.

Hopefully, you will find a reason to smile when you file your taxes this year. Hopefully, you will find that you are due a refund, and you can begin making plans for the money that will soon arrive in your bank account.

If not, it is important to know what to do and which steps to take. If you owe money to the IRS, you need professional help and guidance, so call a tax relief expert right away to preserve your rights and your money.

Before you make a decision, let our firm see if we can help. We negotiate with the IRS day-in and day-out. We can potentially settle your tax debt for a lot less than you owe. Call us today to find out. Our tax resolution specialists navigate the IRS maze so you don’t have to.

The IRS is not one to mess around with when it comes time for repayment. They are the least forgiving creditor when it comes to collecting what they think is owed to them. The IRS will seize assets including bank accounts and property such as wages or real estate.


Contact a Tax Relief Firm

The IRS is known for tricking people into giving incriminating answers. You should not represent yourself as you may end up in more trouble. Find someone who knows how to help! Finding a reputable tax resolution specialist is your best option since the average tax preparer does not know how to deal with these situations.


The IRS is not your friend. They are the most brutal collection agency on the planet. They exist solely to assess and collect taxes and will do whatever it takes, when they think you have their money. They will also file a notive of federal tax lien. So, if you have a real estate transaction pending any proceeds from the sale of that property, over and above the mortgage amount, will be intercepted by the IRS to go towards your outstanding tax debt. A tax resolution professional will ensure to protect your assets and income from the long arm of the IRS.


Next Steps


The next step you will want to do is gather all of your financial documents and call our firm. We will help put together your case to the IRS and represent you to let them know that a levy will cause hardship for you and your family. We will need documented evidence that the levy will cause financial hardship for you, and if you can prove this, the IRS will release the levy. However, this is just putting a temporary band-aid on the situation, you will still owe the balance to the IRS. Once we get the IRS levy released, it just means the IRS will not garnish your income and will work with you to figure out a game plan to resolve the debt.


Make Payment Arrangements

We can negotiate a payment plan for your back taxes with the IRS. If you are entered into an installment plan, the IRS will release the levy notice.


Get an Offer In Compromise

More often than not, you can get your debt “settled” for less than what you actually owe. Oftentimes, for a lot less. This is what we call an offer in compromise. An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability via payments, or doing so creates a financial hardship. The IRS will look into your ability to pay, your income, your expenses, and your assets to determine if you qualify for an offer in compromise.


The IRS generally approves an offer in compromise when the amount offered showcases the most they can expect to collect within a reasonable period of time. If you do move forward with an offer in compromise, make


sure you hire a tax resolution specialist to help you prepare, submit and negotiate an offer, and be sure to check their qualifications before working with them. In these situations, you want the best of the best to represent you before speaking to the IRS.


The IRS is no place for the faint-hearted. It’s hard enough filing your taxes on time every year, but if you ever find yourself in need of tax resolution services that can help permanently resolve problems with the IRS – reach out to our firm today! We will look into your situation and give you the best options for your specific case. Contact one of our tax resolution specialist today.

When you owe back taxes and can’t afford to make any payments, then it may be time for a special tax status known as currently not collectible. This means that your debt is still considered valid even though there’s no chance of recovery right now. When you’re approved for currently not collectible status, the IRS can no longer garnish your wages or seize any property.

Now, don’t forget about these debts because the IRS is still looking for payment.


What is Currently Not Collectible Status?

The IRS will place your account in currently not collectible status if you can’t pay both back taxes and reasonable living expenses. You may request this by submitting the proper form with documentation that proves how much income you have left over that is available to make a payment, along with any assets that have been sold recently to cover mounting debts – like homes!


To qualify for the currently not collectible status, you will need to put together a case that you will present to the IRS. Gather copies of your bills, proof of your income (pay stubs, bank statements, alimony, etc), and your investments. It is important to document your inability to pay so that if the IRS determines you cannot afford your necessary expenses, it can grant you status.


When dealing with the IRS, it is best to have a professional in your corner. The IRS can be very intimidating and might ask invasive questions that could land you deeper into trouble than before if you do not know how to answer properly. Remember – they are not friends of yours; their job entails collecting what they believe you owe them so make sure any interaction stays as simple and effective as possible. That is why it is crucial to reach out for help from one of our tax resolution specialists.


Temporary Solution

If your status is approved, it does not mean you do not have to file your current and future taxes. This status only applies to your back taxes that the IRS is looking to collect. The currently not collectible status is simply a bandaid to help you get back on your feet. That way you can put yourself in a better position to make a payment in the future. The IRS may review your status every year or two if it looks like there is potential for repayment. You will only be able to keep the status active if you still can not make a payment on your back taxes.


Statute of Limitations

The IRS is an institution that prides itself on being collections-oriented. They will try to collect outstanding taxes for only 10 years from the date they were assessed against you. Once the 10 years is up, the IRS can no longer collect the back taxes. This also applies if you have the currently not collectible status. If you do not have the status, are in an installment agreement, or have an offer in compromise pending, the IRS can garnish wages and add more penalties to your case making things worse for you as well as your wallet.


In today’s tough economic climate, many families are struggling to make ends meet. If you’re worried about the IRS garnishing your wages or levying bank accounts, or filing liens against your property for non-payment of taxes you owe – then reaching out may give you some peace of mind.


Our firm will help explain all options available in order to relieve any anxiety associated with these situations because we know how intimidating this can be if nothing has been done before. There is a solution to every IRS problem. Connect with one of our tax resolution specialists to see if you qualify for the currently not collectible status or any of the other IRS settlement options you may be eligible for and the best next steps for your situation.