IRS Frequently Asked Questions About IRS Tax Debt Relief

  1. What can I do if the IRS has filed a lien against me?

    Tax Savings

    A lien is a public record on your property that says you owe the IRS money.

    It tells creditors that the IRS has a claim on all your property, including property you buy after the lien is filed.

    If a lien is attached to your property, you cannot sell that property without a clear title and tax debt relief.

  2. I haven’t filed tax returns in years. Is it too late to reach a settlement?

    Fresh Start Program

    Another frequently asked questions is about filing past tax returns.

    Filing your return is the first step in the IRS tax relief settlement process.

    Taxpayers must be in compliance in order to negotiate IRS tax debt forgiveness which means that all past due tax returns are filed and all estimated tax payments are made.

    Penalties and interest are assessed on returns that are not filed timely.

    Tax debt relief can begin after your past due tax returns are processed and then I will evaluate the possible solutions so you can make a fresh start!

  3. What’s the best way to avoid an IRS tax audit?

    IRS Audit Representation

    The easiest way to avoid an audit is to completely and accurately fill out your tax return.

    This includes double checking your math and making sure you used all the correct forms.

    Because the IRS flags items that look suspicious, you may want to consider attaching an explanation if you think a deduction or credit you are claiming looks too large.

  4. My spouse owes the IRS money from before we were married. Am I liable for those taxes?

    IRS Tax Relief Professional

    You do not have to be liable for tax debt not incurred by you.

    The IRS offers Innocent Spouse relief to protect you from the past taxes owed by another party and provides for tax debt relief.

    Have you always relied on your spouse to prepare your tax returns?

    Have you received a letter from the IRS about back taxes due that surprised you?

    Were you aware of a windfall of income but your spouse didn’t tell you the correct amount?

    If the answer to any of the above questions is yes, you may be able to get relief from the penalties and the taxes due by your spouse so that your credit is not ruined and you can get on with your financial life.

  5. How can I get IRS debt relief or get my IRS tax debt forgiven?

    Offer in Compromise

    This is one of the most frequently asked questions about IRS tax debt relief and demonstrating a financial hardship is the only way to get unpaid taxes forgiven.

    Getting an Offer in Compromise accepted is the closest one can get to have their debt forgiven or get IRS tax relief.

    Although it is not easily obtained by anyone, taxpayers who get an Offer in Compromise approved can settle their debts for a significantly lower amount than what is owed to the government originally.

    A taxpayer’s ability to pay, whether through a payment plan or through an Offer-in-Compromise, is a formula referred to as Reasonable Collection Potential, or “RCP”.

    There are a lot of rules to calculating RCP2, but at its core, it is a fairly simple and straight-forward formula that looks at the taxpayer’s net equity in assets and future income.

    An Offer-in-Compromise is an offer to settle the debt for a set amount of money, so the IRS here will want to make sure it is getting every dime of equity it would otherwise be able to collect through enforcement.

    Hence, the IRS will include in its calculation all the equity in all of the taxpayer’s assets, including their vehicles.

  6. How does TheCPATaxProblemSolver determine the best resolution for my unique tax situation?

    IRS Tax Settlement Services or Back Taxes Help

    As a tax professional, I use an interactive analytics software that uses the responses that you provide to a survey to recommend a fair and honest collection alternative to get tax relief.

    I use my professional judgement and experience in dealing with the IRS to decide the best course of action which is reviewed and scrutinized thoroughly.

    We will go over the recommendation together and discuss options, outcomes, and other measures to qualify you for additional tax debt relief and tax forgiveness.

  7. How fast can you fix my tax problem?

    Tax Debt Resolution

    I begin by addressing all the immediate threats to your assets because even though this problem wasn’t created overnight, we can start solving it today.

    First, we get the IRS to back down while we get you qualified for the best relief.

    I’m honest with my advice and upfront about your estimated timeline, and what to expect next.

    The fastest solutions are usually NOT the best.

    It’s easy to jump into an installment agreement but other options exist that you NEED to know about such as a Offer In Compromise.

    Once we establish your best course of action, an estimated timeline will be provided and updated as we progress.

  8. Can I negotiate with the IRS if I owe income tax or payroll taxes?

    Payroll Tax Relief

    Payroll taxes are eligible for tax debt forgiveness.

    The IRS uses formulas rather than negotiations to reach payment plan or Offer In Compromise figures.

    Negotiations with the IRS only tend to take place during audits, tax court, or Offer In Compromise appeals.

    Everything else is done by way of formula.

  9. What is the difference between an IRS tax levy and an IRS tax lien?

    IRS Tax Lien

    An IRS tax levy takes immediate actions against you. It requires the person receiving the levy to turn over all funds due you the IRS.

    This could be the money in your bank account, the paycheck from your employer, or your accounts receivable if you are in business.

    A tax lien is used as security for tax debt.

    An IRS tax lien says that the IRS has the right to seize the property before other creditors.

    According to tax law, if the IRS has a levy against your property, they can actually take your property to satisfy that debt

  10. What are my IRS tax relief options if I do not have ability to pay ?

    Tax Debt Forgiveness

    There are many options for resolving your tax debt with the IRS. Some of the most popular include:

    Offer in Compromise/Fresh Start Program 
    Lien Removal
    Levy Release
    Installment Agreement
    Penalty Abatement
    Currently Non Collectible Status

Fresh Start Program
Are you struggling to pay your IRS federal taxes and want tax relief?
If so, the IRS Fresh Start program for individual taxpayers and small businesses can help.

Book My Virtual Tax Assessment!

Keith
Keith
AICPA
Member of the AICPA