Tax Collection on Your Debt
The IRS usually accepts payment arrangements for past due taxes. Tax controversy attorney Joe Ardnt can counsel you on options related to IRS tax collection.
To qualify, you must provide the IRS with proof that:
- You have filed all tax returns, even if you have not paid taxes due.
- You disclosed all assets you own.
- You cannot pay the amount owed.
- You cannot borrow the amount owed.
- You do not have a retirement account that can be tapped to pay.
If you comply, the negotiations with the IRS will either take place over the phone with the Automated Collection System (ACS), or in person with an IRS Revenue Officer.
The IRS will ask you to complete a personal financial statement and sometimes a business financial statement. The IRS has pre-determined caps on allowable monthly expenses. The IRS calculates the difference between your actual monthly income and these pre-determined caps on allowable monthly expenses. This difference will be what the IRS will require you to pay on a monthly basis.
These monthly payments will continue until your outstanding tax liabilities are paid in full. WARNING: the IRS continues to add penalties and interest while you are making monthly payments.
You may pay a large monthly payment to the IRS and your outstanding balance may in fact be increasing due to additional penalties and interest.
The IRS will not explain this to you! Be careful – you could pay for several years and still owe. Worse yet, your payments may be wasted if you actually qualified for a settlement.
Contact Us for help with tax collection on your IRS debt.