Have you have received your tax debt for the year and realize that you cannot pay the debt owed for the year? If you cannot afford to pay your debt then the first thing to remember is that you should not panic. When your debt is not collectible the IRS will continue to bill you for the full amount that you owe but you have options. Contact McCauley Law Offices, P.C. for proper tax law help if you cannot pay your taxes. You may not feel comfortable speaking to the IRS on your behalf. This is one of the many services that we can help you with related to tax law and tax debts. In some cases the IRS will waive a client’s penalties for not paying their taxes. We would be happy to discuss your special circumstances.
Some of the options that you have when you cannot afford to pay your tax debt are:
A Short-Term Extension to Pay
An extension to pay agreement is just what it says. You agree to pay the amount in full by a certain date in the future. Many times clients qualify for up to a 120-day extension on paying the full amount of their taxes owed. Remember that if you fail to pay the debt in full by the agreed upon date in the future then your debt amount will be subject to further penalties and interest. The IRS will also put your account into a collection status, may file a Federal Tax Lien and may being bank levies and wage garnishments.
Request an Installment Agreement
An installment agreement means that you will be paying your taxes owed, penalties and interest on the debt over an agreed upon time. This is the best scenario for those that cannot wait and make a lump sum payment. This makes your tax debt manageable and satisfies the IRS’s policies regarding your debt. We help taxpayers nationwide negotiate installment plans with the IRS. If you need to become tax compliant and avoid threats and IRS seizures, please contact our office as soon as possible. We are located in Chester County, PA, however we provide these services to all taxpayers in the U.S. and essentially are a tax attorney near you, no matter where you are located in the U.S. We can help you file the necessary tax returns that you will need to file in order to acquire an installment plan from the IRS.
Make an Offer in Compromise (OIC)
This is a type of agreement between you and the IRS that settles your tax liability for less than the amount that you owe. If you have a way to pay the full amount over time through an installment plan or extension, then you will not qualify for an offer in compromise. The IRS will decide as to your qualification for the offer in compromise and ensure that the amount you are offering to pay is not less than the reasonable collection potential (RCP).
You may be wondering; how does the IRS calculate my reasonable collection potential then? The RCP is determined by looking at your assets and real property, such as automobiles, bank accounts and other property that you own. The RCP also considers your future income minus reasonable and necessary expenses for basic living.
The IRS Fresh Start Initiative Program for Back Taxes Owed
The IRS Fresh Start Program is designed for individual taxpayers and small businesses that owe back taxes and cannot afford to pay their debts all at once. You must first qualify for the program, and then you have a set amount of months or years to pay back the debt once you are accepted into the program. You can learn more about the Fresh Start Initiative on our website.
Tax Attorneys Here for You
Whatever you decide to do, McCauley Law Office, P.C. is here to help. We want you to reach out before your tax debts have become a huge problem and you are receiving threats from the IRS. You have options available and we can work with you no matter how far in the IRS debt collection process you have gotten. Now is the time to settle your debts once and for all and have peace of mind. You can learn more about Tax Levies and Seizures by the IRS in the information that we provide.
At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.
