There are many ways to resolve your tax problems. Here is an overview:

Installment Agreement

An installment agreement is a payment plan with the IRS. They prefer this method because it ensures them that more penalties and interest will be paid. This may or may not be the best option for you. There are a number of factors that come into play when you consider an installment agreement.

Currently Non-Collectable

Currently Non-Collectable Status is for people who find themselves in a temporary financial bind. This puts your account on hold for 12 months, to give you time to come up with a plan. This is not a given: in order to get put in CNC status, you must prove you pay more than you make on the necessities like food, shelter, clothing, etc.

The IRS will not bother you during this time, but interest and penalties continue to grow.

Innocent Spouse

Innocent Spouse Relief can be a solution when your former spouse has a tax debt for which you are not responsible. If you file your taxes jointly, you are both liable for the taxes. In order to get relief, you must perform a complicated analysis to see exactly who owes what. Then you will only be liable for the tax burden your earnings created.

Penalty Abatement

The IRS has over 150 different types of penalties that can apply in a taxpayer’s case. Almost all can be reduced by two methods: reducing the amount of total taxes owed and showing “reasonable cause”. If you can prove to the IRS there was a good reason for your failure to file on time, pay taxes on time, etc., they will be willing to reduce some of the penalties.

Bankruptcy

Yes, taxes can be discharged in bankruptcy. It’s not a slam-dunk, though. There are three things we need to look at when considering this route:

1. The first of the timing factors is that the returns most have been due, including extensions, for at least three years.
2. The second factor is the returns, if filed late, must have been filed for at least two years.
3. And the last factor is that the tax liability must have been assessed for at least 240 days.

Collection Statute Expiration Date

Your IRS Problems are not a Lifetime Sentence. Even tax liabilities have an expiration date. When is that? The Collection Statute of Limitations is 10 years from the date of the assessment of the tax. That means that the IRS can only collect your taxes from you for 10 years from the date that you officially owe the taxes.

There are many factors that can extend this time frame. Some examples include the filing of an Offer in Compromise, a Request for a Collection Due Process Hearing, Innocent Spouse Relief, Bankruptcy and more.

Offer in Compromise

This program offers taxpayers the chance to eliminate their tax debt altogether. An offer amount is determined based upon the taxpayer’s inability to pay. The IRS rarely settles for pennies on the dollar, as many television ads say. They consider current financial situations, the ability to pay, and equity in assets among other things. If you qualify, you can save thousands of dollars in taxes as well as penalties and interest.. It allows a taxpayer who owes more than they can afford to pay to settle for less... sometimes much less.

The most important thing to do is get an accurate picture of your financial situation. From this we can best advise you on which option is best for you.

Don't sit and wait for your IRS problems to go away; take your first step right now. Just call: (801) 766-8424 to meet with us and we'll show you how you can reclaim your life.