It is tax filing season and you know you are going to have a balance due; you are fairly confident you will be able to pay at least part of it, then catch the rest up soon. You are not alone…Once you fall behind on past due taxes, it is almost impossible to remain current on your current year estimated tax deposits and catch up the past due tax in a timely enough manner. The snow ball affect begins as well as the penalties.
Tax help is available; a lot of individuals don’t realize the amount of help there is out there. We all have heard the ads on the television and the radio swearing you will only have to pay back 10% of what you owe or you can settle for pennies on the dollar. This may be true in some cases; however, the resolution or settlement is based on each taxpayer’s case and circumstances individually.
This being said, there are options for everyone, worst case scenario, it may be a full payment. In many cases the full payment can be made over a longer period of time and/or with a more reasonable monthly payment then what the IRS is requesting. Again each resolution is based on each individual taxpayer’s circumstances and a complete financial analysis needs to be made to determine all resolution options.
Once the balance has been assessed, you will receive a few computer generated letters requesting payment in full. Once payment has been refused or neglected, the IRS will file a tax lien. If payment is not made, the IRS will start to forward the appropriate notices to start collecting the past due taxes. Once this process has started, there is still help. For each collection attempt, there is an appeals process that can be pursued, which will keep you safe from collection action while you work to resolve the past due balances.
Keep in mind the Internal Revenue Service is a very large corporation acting as a collection agency, enforcing voluntary compliance. Their goal is to collect the delinquent tax, plus penalty, and interest as quickly as they possibly can. They will enforce collection action, file tax liens, and send those intimidating letters by the bundle. Regardless of you being assigned to the Collections Division, having an actual Revenue Officer, or have owed the IRS for the past five years and counting, you have RIGHTS, you have options, and there is help available to you. Talk to someone in the industry and do your research. Just like any industry, there are a lot of crooks out there trying to make a dollar rather than sell you what will really work.
Brittaney G. Conley, EA
Insight Tax Group, LLC.