Don’t let your back taxes add up!  Tax Resolution Services is a team of tax attorneys and tax specialists that can help you!  We even offer tax advice and answer questions - for free! - on our tax blog!  Got a tax question?  Call our office at 10866-IRS-PROBLEMS or visit www.taxresolution.com

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Question: I owe a lot of money in back taxes to the IRS. I’d prefer not to go into details, but let’s just say it’s a mix of employment changes and some bad tax advice. There’s no way I can pay what I owe. What can I do?

Answer:  First of all, your situation isn’t altogether uncommon. Many taxpayers have been, and are, in your exact situation. So take some solace in knowing you are not alone.

Now, what do you do next? The good news is that you have options, no matter the reasons why you got into this tax debt.

Your first step should be to consult a qualified tax professional. He or she will deeply analyze your previous tax filings and records to make sure you have not obligated yourself to pay the IRS even a penny more than you owe. Once your qualified tax professional has come to an exact amount you owe, it will be time to meet with the IRS. Here you likely have two main options:

The first is the Offer in Compromise. This program allows taxpayers who owe a substantial amount, but for whatever reason are unable to pay this debt, to negotiate with the IRS on a settlement— often resulting in a payoff amount of less than owed. After years of chasing deadbeat taxpayers with mixed results, the IRS realized that a kinder, gentler approach can often be more effective in tax collection. The result of this is the Offer in Compromise program. You must meet certain criteria to qualify, but if you do, it’s an excellent option.

The second option is the Installment Agreement. This allows you to pay your debt down over time by making manageable monthly payments to the IRS. Think of this like taking out a car loan — payments large enough to pay down your debt but not so large as to change your lifestyle significantly.

I solve tax problems every day. That’s because I’m an IRS Problem Solver. For a free, no-risk tax consultation, please call my office at 818 774-1813 or 866-IRS-PROBLEMS. 

More Tax Help, IRS News and Tax Relief Tips:

1. Offer in Compromise Program or an IRS Payment Plan? Get Your Tax Debt Questions Answered Here!
2. What the IRS May Not Tell You About Payment Plans
3. Ask The Tax Resolution Expert - Is the IRS Offer in Compromise Program or IRS Payment Plan for me?
4. Certified Tax Resolution Specialist Michael Rozbruch Has a Special Message for You!
5. Tax Help: How to Resolve Your Back Taxes & Prevent Tax Problems If You’re Short on Cash This Season

Tags: ask the tax expert, Free Tax Consultation, IRS installment agreement, IRS Payment Plans, IRS problem solver, irs problems, tax advice, tax attorneys, tax debt, tax expert, tax relief, tax resolution, tax solution, tax specialists

This entry was posted on Tuesday, July 28th, 2009 at 8:00 am and is filed under IRS Installment Agreements, IRS Question Corner, IRS Times and Inquirer, Offers in Compromise, Tax Relief News, Tax news and tips, tax help. 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.