The IRS has a collections arm called ACS or Automated Collections. Their primary responsibility is to collect money from you. Ignoring your tax debt will only make matters worse, so it is crucial to address your tax problem as soon as possible. It is important to deal with your tax issues before the IRS takes action against you. The IRS has the power to levy your bank accounts and garnish your wages. In order to tackle your tax problems you should first have a thorough understanding of your situation.

Although the IRS wants to collect your debt in full, Congress has authorized specific programs that allow a taxpayer to pay over time or to pay less than the full value. For either of these options, the taxpayer must meet the qualifications of one of the tax settlement programs set forth by the IRS. The taxpayer will first have to determine what plan best suits their situation, then must work with the IRS through the appropriate paperwork and follow up for a good resolution. While some attempt to do this on their own, it would definitely be in your best interest to have an experienced tax professional help you achieve the best possible outcome. Our tax professionals have complex tax law knowledge that they will leverage to fight for you. It is imperative to approach the IRS properly from the start, because often times once a taxpayer tries on their own and fails, it makes it much more difficult to correct the damage that has been done.

In order to arrange a settlement or agreement on your back taxes, you first need to make sure all back tax returns have been filed. If you did not file and the IRS has filed for you, it is highly recommended that you use a tax professional to file a return on your behalf to replace the ones that the IRS filed for you to decrease the amount of taxes owed (this is because the IRS does not give the taxpayer the benefit of the doubt on anything when they file for an idividual and it is highly likely that the taxpayer owes far less). Once you have filed your returns and know how much you owe, you can review the tax settlement options and see what settlement methods you qualify for.

Below are some potential resolutions to your tax problems.

Offer in Compromisen (OIC)

An Offer in Compromise is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amoutn owed. While this is a very good option, it is not always the best. A tax professional can help you decide what will help you the most in your situation.

Installment Agreement

An installment agreement is a payment plan that allows a taxpayer to repay the tax liabilities over time. A tax professional can help determine the lowest monthly payment possible.

Partial Payment Installment Agreement

A PPIA is a payment plan where the taxpayer pays less than the full value of the tax by paying over time until the time to collect has expired. It is important to speak with a tax professional to help enforce your rights with the IRS in setting up a payment plan.

Bank Account Levy and Wage Garnishment

If you owe the IRS back taxes they have a number of methods of trying to collect the tax. One of the most effective but financially damaging actions the IRS can take is to levy assets. Common examples are bank account levies and wage garnishments. Having the IRS levy your bank account or garnish your wages can make it impossible to pay for your basic living expenses. It is important to remedy your tax problem to avoid such occurrence. If you do have a garnishment or bank account levied, contact our office immediately to see if you qualify to have your garnishment released or levies lifted.

Currently Not Collectible

CNC is a status where the taxpayer is not required to make payments to the IRS. The IRS can only collect on an outstanding tax debt for a limited amount of time. If they have not collected the tax within the collection period allowed by statute (law), the tax is forgiven.

There are a lot of ways you can get help from the IRS but all the options require you to file correctly and appropriately in order to avoid negative consequences. No matter what you choose to do, it is important to speak with our tax legal team in order to ensure you choose the correct solution to your tax problem.