What You Can Do If You Fall Behind on Federal Taxes

Irs back taxes help

Do you have income tax problems? Having IRS problems almost never puts you in a fun position. When you do have Irs tax problems, the IRS can collect by garnishing wages, placing tax liens, and in extreme cases, seizing property. None of these are fun prospects. Fortunately, Congress and the IRS have worked out several mechanisms for resolving income tax problems.

The most traditional way to resolve income tax problems is through installment agreements, or IAs. IAs are basically when the taxpayer agrees to pay any outstanding liabilities over a set period of time, as determined by the IRS. Often, the IRS structures an IA based on the ability to pay, other outstanding liabilities, and the like. These can range from traditional IAs, where the taxpayer pays the full penalty over time, to a stair step IA, where installment size varies depending on expected financial circumstances.

Another popular way to resolve income tax problems is with an Offer in Compromise, or OIC. An OIC solves income tax problems by letting the taxpayer pay as much as she can over a period of time, usually between five and 24 months. In exchange, the IRS will either compromise on the remaining balance, or even write it off completely. While this may seem attractive, OICs tend to be time consuming, and are generally a greater hassle to implement than IAs.

Finally, one could use penalty abatement, or PA, to resolve income tax problems. PAs are when the IRS agrees to forgive at least part of your debt if two conditions occur. For one, you need to demonstrate a reasonable cause for falling behind. For another, you need to show due diligence for resolving the debt. This is also a time consuming process.

As one can guess, getting Irs back taxes help can be complicated, if only because the options are so complex. If you need help, there are many tax settlement companies that can resolve income tax problems. However you chose to solve income tax problems, you do not have to do it alone.

Leave a reply