Submit Any Outstanding Tax Returns
When we initially meet a potential client, we always check to see whether they have any outstanding tax returns from prior years that they have yet to submit. This is the primary stumbling block to efficient tax settlement, thus it must be addressed right away. All income and payroll tax returns must be complete, up-to-date, and approved by the IRS before any federal tax problem may be resolved.
Additional costs and penalties apply to everyone who hasn’t submitted their taxes. Your best course of action is to submit any outstanding tax returns as soon as feasible.
Bargaining a Conciliatory Deal Having to do with the Internal Revenue Service
The Internal Revenue Service (IRS) launched its Fresh Start Initiative in 2011 intending to assist taxpayers with unresolved difficulties to return to full compliance with all applicable laws and regulations i.e. IRS tax problems help. The Offer in Compromise (OIC) program is a key part of the strategy since it gives taxpayers one of the most effective options for settling tax debt.
Your tax liability to the IRS or Maryland comptroller may be settled for less than the entire amount owing via an offer in compromise. Based on our research and interactions with clients, we’ve learned that taxpayers who cannot pay their entire tax due or who would incur financial hardship if they were to pay their bill in full may find an OIC to be a very useful choice.
Make Arrangements for Monthly Payments
In addition, you may work out a monthly payment arrangement with the IRS to pay off your tax debt over a longer period (often less than seven years) (IA). But many taxpayers who handle their own IA negotiations end up in payment plans with hefty fines and interest. For this reason, even though these taxpayers are making payments toward their accounts each month, their debts are accruing interest.
Those who pay their taxes every month may mistakenly feel they are in an installment arrangement. No protection exists against the possibility of having your bank accounts frozen or having your wages garnished if you haven’t formally requested a monthly payment plan and had it approved.
It is important to deal with a knowledgeable tax resolution specialist while pursuing an installment arrangement with the IRS. A professional representative, such as an attorney, should be able to draft an arrangement that minimizes negative consequences and sets you on the path to financial recovery.