Currently over 17 million individual taxpayers owe unpaid back taxes to the IRS. There are a number of options available if they owe and cannot pay- including extensions to pay and installment agreements. There are also two hardship solutions: the temporary currently not collectible (CNC) status and the more permanent tax settlement - called the offer in compromise [...]
Well, the “economic impact payment” #2 is now law – and just like stimulus #1 from April 2020, the questions are rolling in. How much will I get in a stimulus payment? When will I get my payment? Can I change my payment method? I changed bank accounts, what will happen? How can I [...]
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 [...]
Per IRS estimates, more than 7.5 million taxpayers do not file a required return each year. This estimate doesn’t include taxpayers who don’t receive information statements, such as small-business owners. Add to that the growing number of taxpayers who still must file returns to continue receiving advance payments of the premium tax credit to [...]
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 [...]
Over the past several years, the IRS has put tax fraud investigations on the back burner. Statistics show a drop in criminal investigations and prosecutions in the past several years: Recent developments at the IRS show that the days of ignoring tax fraud are over. In March, 2020, the IRS declared that prosecuting tax fraud [...]
