Tax resolution solutions is a general term applicable to issues people and businesses have with the IRS. There are numerous solutions when dealing with resolution. It is very important that the taxpayer understands that when dealing with the IRS, resolving the matter goes far beyond picking the correct solution. This is one reason why many professional people hire us to represent them before the IRS. They realize that hiring a CPA firm with the knowledge and experience to “get them through the system” is essential to resolving their IRS tax issues. Collection action must be stopped. The history going back many years must be examined. The status of the tax return and any money showed on the IRS records must be reviewed. Various questions need to be answered concerning how the liability occurred. Questions concerning applicability of interest and penalties need to be asked. Where payments were posted and if any were lost need to be examined too. In addition the following questions need to be considered.
Tax Resolution Solutions – Questions:
Has the statute of limitations expired on the assessment?
What about collections?
Are there any tax returns, payments and/or balances listed under an individual account instead of a joint account?
Is a statute about to expire?
Will stalling a binding agreement cause a statute to expire in the taxpayer’s favor?
Many other considerations are necessary in determining the best tax resolution solutions. The choices are easy, after the situation is properly analyzed.
Solutions For IRS Resolution
Once any missing returns are filed, and current tax payments are being made, the goal is to bind the IRS into an agreement. Some possible agreements have been listed below.
Full payment of the liability in up to a four month term from the current date.
Installment Agreement or Payment Plan – Small Dollar Payment Plan- You may easily be able to get up to 60 months to pay a liability if the principle plus any interest and penalties that are part of the original assessment is < $25,000. (Notice I said original assessment.) You can also buy this down below $25,000 by making an immediate payment.
Currently Not Collectible Status (CNC) – An agreement where, as a result of filling out the collection information forms, the IRS can’t satisfy the payment of the debt by the end of the statute of limitations on collections, they may put you in a CNC status. This means they have considered any equity in assets, and your ability to make reasonable monthly payments that will extinguish the debt in a reasonable collection time frame, and have concluded that you really don’t have the ability to pay.
Offer In Compromise (OIC) – An offer is a way to settle your tax debt liability for an amount less that you actually owe. This settlement is accepted on the basis of 3 different reasons. The first when there is doubt as to your liability. You believe the IRS liability is not valid and feel that the IRS will have difficulty proving it. The second is when there is doubt as to your ability to pay the taxes owed under your current circumstances. Most offers are filed under this section. The third is when taking your assets will create an undue hardship.
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