How Can Tax Resolution Help Me?
- January 17, 2020
- Posted by: asal
- Category: Tax Resolution
If you have surmounting tax debt that you won’t be able to pay back, you’ll want to consider your tax resolution options. There are various methods of tax resolution specialists use to help you settle your tax debt. The professionals at Platinum Tax Defenders help their clients with tax resolution services on the state, local, and federal levels. Tax resolution specialists want taxpayers to resolve their tax debt. It’s actually in the best interest of the taxpayer and the IRS to settle any back-tax debt. To help you better understand your options for tax resolution, Platinum Tax Defenders put together this list of methods. The tax relief experts at Platinum Tax Defenders can help you know which tax resolution option is best for you.
Installment Agreement/IRS Payment Plan
One method of tax resolution is an Installment Agreement. With an Installment Agreement, the taxpayer agrees to pay the entire amount of their tax debt in monthly installments. Typically, taxpayers have up to six years to pay their tax debt with an installment plan. The benefit of the Installment Agreement is you can pay in small, manageable amounts. When you enroll in an Installment Agreement, your debt becomes less overwhelming. Once you pay the tax debt, the IRS releases any federal tax liens imposed on your account. Working with an expert tax relief professional at Platinum Tax Defenders is helpful when negotiating an Installment Agreement. When negotiating an Installment Agreement, you’ll want to make sure that you agree to a monthly payment you can afford. A tax relief specialist can be beneficial whenever you’re attempting to negotiate with the IRS.
Partial Pay Installment Agreement
A Partial Pay Installment Agreement is slightly similar to a regular Installment Agreement. However, a Partial Pay Installment Agreement allows taxpayers to pay lower monthly payments. These monthly payments are lower than in a regular Installment Agreement. The IRS approves taxpayers for a Partial Pay Installment Agreement depending on their individual tax situation. If their financial situation doesn’t change, they will continue to pay reduced monthly payments. Taxpayers can pay reduced monthly payments until the expiration of the statute of limitations, which is generally 10 years. Once the statute expires, the IRS can no longer collect on your tax debt. After the statute of limitations, the taxpayer will be free of their monthly tax payments. If you qualify for a Partial Pay Installment Agreement, you will be subject to a thorough financial review every two years. The IRS has the discretion to increase your payments if your income increases.
Currently not Collectible
You can have all IRS collection activity halted if you are under Currently not Collectible status. Currently not Collectible status is not for every taxpayer. This IRS tax resolution program is only for taxpayers whose expenses exceed their income. The IRS will look at the national standards when determining if you can afford your necessary living expenses. National standards for essential living expenses include food, housekeeping supplies, apparel and services, personal care products and services, and more.
Innocent Spouse Relief
You can file for Innocent Spouse Relief if you believe your spouse has erroneously filed their tax returns. However, getting approved for Innocent Spouse Relief can be tricky. Whenever you’re attempting to file for tax resolution, it’s best to seek out the help of an experienced tax resolution specialist. Innocent Spouse Relief usually involves the assistance of a tax attorney. However, this tax resolution option can be viable, depending on your specific tax circumstance.
Offer in Compromise
With an Offer in Compromise, the IRS allows you to pay a lesser amount to satisfy your entire tax debt. When you are seeking approval for an OIC, the IRS will thoroughly investigate your financial situation. If the IRS accepts you into the OIC program, they will continue to assess your financial situation.
File Your Tax Returns
Many times, merely filing your tax returns can solve your tax debt issue. If you don’t pay or file taxes, the IRS generally imposes penalties and interest. Unless you submit a penalty abatement, you will likely still have to pay any extra interest or penalties. If you are entitled to a refund, you may miss out on that because you owe back taxes. The only way to understand your back-tax situation is to gather your financial documents for that tax year. Also, you will want to make sure you file any outstanding tax returns. Platinum Tax Defenders also employs experienced certified public accountants who can help you file your tax returns accurately and efficiently.
Apply for Penalty Abatement
As we mentioned above, failing to file or pay taxes can result in added penalties and interest. However, the IRS allows penalty abatement requests for any penalties resulting from tax debt. Penalties and interest can add up very quickly on back-tax debt. For that reason, the IRS will sometimes reduce or remove those penalties to help you pay back your taxes. Filing for a penalty abatement can be a tricky process. It is best to work with a tax resolution services firm that knows what is required when filing for penalty abatement.
What Is The Statute Of Limitations for Past-Due Tax?
Typically, the IRS has 10 years to collect on past-due tax. This 10-year period begins once the IRS assesses the tax liability. Waiting for the statute of limitations to run out is rarely effective. The IRS will not merely sit around and wait for you to pay back your taxes. If you owe past-due taxes, the IRS can take several collection actions. The IRS can take out a lien and/or levy to satisfy your tax debt. However, there are times when waiting out the statute of limitations may work. If you have no assets, wages, or property that the IRS can go after, you may get through the entire length of the 10 years without harm.
How Do I Know What Tax Resolution Option is For Me?
This list does not include all the ways you can get tax resolution from the IRS. However, the above does cover critical areas of tax resolution. The appropriate tax resolution plan depends on you and your particular tax situation. Your tax resolution specialist will evaluate each option thoroughly before moving forward. At the end of the day, the tax specialist’s goal is to choose the tax relief program that’s best for you.
Need Tax Resolution? Call Platinum Tax Defenders
The tax resolution experts at Platinum Tax Defenders have been helping their clients out of tax debt for years. Platinum Tax Defenders has experience in helping both individuals and businesses with their tax resolution needs. Their goal is to get you out of trouble with the IRS and help you stay there. Platinum Tax Defenders is currently offering free consultations for new clients. For more information, visit www.platinumtaxdefenders.com or call 866-866-8053.