Many taxpayers want to know their options if they cannot pay their tax bill. Based on the level of tax debt owed, the options may be different. In addition to the options, there are other considerations, like whether the IRS file a tax lien - or how hard will it be to get into an [...]
On November 2, 2020, the IRS announced an expanded relief package for taxpayers struggling to pay their tax bills: the new "Taxpayer Relief Initiative." (TRI) The TRI is the next step in providing more options and relief to taxpayers who are experiencing financial difficulties as a result of the COVID-19 pandemic. IRS announced the "Taxpayer [...]
When a taxpayer cannot pay their tax bill (now or in the future) with their assets and future monthly income, they may qualify for the IRS’ Offer in Compromise program. The offer in compromise for “doubt as to collectibility” allows taxpayers who are not projected to be able to pay the IRS before the [...]
About 18% of all IRS payment plans default each year. That amounts to about 1 million taxpayers a year who get into hot water because their IRS payment plan has been terminated for noncompliance. For those who default on an IRS payment plan or “installment agreement,” there are a few options to get back in [...]
Millions of taxpayers each year set up an IRS payment plan when they cannot pay when the file their return. Most taxpayers use one of the three simple payment plans offered by the IRS (IRS statistics show that over 90% use one of these payment plans). 3 simple IRS payment plans The simplest IRS payment [...]
Finding out you owe and are not able to pay your taxes is painful. But having to pay penalties and interest on top of the balance adds insult to injury. Each year, over 30 million taxpayers file a tax return with a balance owed. Most pay with the return. In fact, in 2019, only [...]
During the midst of the IRS COVID-19 shutdown, the IRS got kinder and gentler to high tax debtors. Although not an official IRS pronouncement as of 8/29/2020, the IRS now allows tax debtors who owe between $50,000 and $250,000 to pay on easier terms. The best feature of this new payment plan is that it [...]
The IRS offer in compromise (OIC) has always been a program with much controversy and confusion. Currently, there are over 19 million individual and business taxpayers who owe the IRS, but very few get an offer in compromise. There are actually 3 types of OICs: OIC for doubt as to liability: a tax settlement where [...]
At the end of 2019, over 4.2 million taxpayers were in a payment plan with the IRS to pay their back taxes. During the COVID-19 pandemic, the IRS did the right thing: they allowed taxpayers to suspend their payments on installment agreements from April 1 to July 15th under the IRS’ “People First Initiative.” (PFI) [...]
The tax deadline for 2019 tax returns has been pushed to 7/15- but does that mean tax questions and issues end? No. But taxpayers with questions may have to use IRS online tools or wait until the IRS phone lines reopen. IRS phone operations are halted This morning, IRS phone lines have been taken offline. [...]
