Back taxes and IRS penalties can add up to an overwhelming amount if not resolved as soon as possible. If you do find yourself in a position where you’re unable to make payments to the IRS because your income is barely covering your living expenses, don’t hesitate to get tax help. Getting started on resolving your tax problems is always better than doing nothing about them.

Even people who have gone to jail and had their careers curtailed due to criminal charges for tax evasion are not at the end of the road for tax resolution.

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Question: A man has been convicted of tax evasion and tax fraud, gone to prison, served time and is now released facing over $1,000,000 in tax, penalties and interest from those years.  He is unable to regain employment in his field as his license was revoked, so is doing some menial jobs which are barely paying living costs.  What if any tax relief is available to him?

Answer: We have successfully negotiated many Offers in Compromise for this very same scenario.  One caveat though is that the IRS has the right to deny the Offer in Compromises based on “Public Policy” issues.  You have a 50/50 chance in obtaining relief via an Offer in Compromise.  A better route to go in your case may be what’s called (similar in reducing the debt, much like in an Offer in Compromise) a Partial Pay Installment Agreement (PPIA) whereby the taxpayer pays a menial monthly amount, based on their current and projected future earnings ability, over the remaining life of the CSED (Collection Statute Expiration Date)

In other words, if the IRS were to accept $50 a month for the next 120 months (10 years)  you will have paid about $6,000 to settle a $1,000,000. Not bad!!  Probably, even BETTER than an Offer in Compromise as you don’t have to deal with “public policy” issues in an PPIA. Another option, is having the IRS classify you, if you are eligible, for a “status 53”, Currently not Collectible Status.  Bottom line:  You have many options and should call us NOW, Toll Free @ 866-477-7762.

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Note: I’ve seen it time and time again: Life is much easier for clients once they solve their IRS problems and no longer have to worry about the taxman. I solve tax problems every day.  For a free, no-risk consultation, please call my office at 866-IRS-PROBLEMS (866-477-7762).

More Tax Help, IRS News and Tax Relief Tips:

1. Tax Help For Taxpayers Short on Cash: Filing a Tax Return Late is Better than Filing a False Tax Return
2. Tax Help For Offshore Account Holders as Swiss Government Seeks to Salvage UBS Agreement
3. IRS Tax Relief: Seven Common Income Tax Relief Myths That Can Get You into IRS Trouble
4. 6 Tips for Hiring a Good Income Tax Attorney or Certified Tax Resolution Specialist
5. Tax Help News: IRS Announces it Will Ease Rules on Tax Settlements, Offers in Compromise

Tags: Collection Statue Expiration Date, help with back taxes, IRS debt, IRS help, IRS problem solver, Offer in Compromise, Partial Pay Installment Agreement, Status-53, tax attorney, tax evasion

This entry was posted on Thursday, October 15th, 2009 at 1:15 pm and is filed under Ask the Expert, Back Taxes, IRS Installment Agreements, Offers in Compromise. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.