Your tax debt should not be taken taken lightly. The Internal Revenue Service collection activities are in effect. The IRS has several means available to enforce tax filing compliance and payments of tax due and penalty. Even though the pandemic continues, tax debts enforcement activities resumed on July 16, 2020.
If you did not request an extension to file your tax return, the penalty for late filing and interest on any tax due continue to accumulate. The IRS could be lenient in certain cases. It should be noted that the extension to file does not stop interest from accumulating on tax due. The IRS, in fact, encourages taxpayers to borrow money to pay a tax due because their interest could be higher.
You must answer to correspondence from the IRS when an action is required. Do not dismiss any letter.
There are many ways to resolve a tax debt. However, a taxpayer needs to be in compliance for the past 6 years to obtain an abatement, an installment agreement, and an offer in compromise.
1. Some taxpayers could be qualified for an abatement in whole or for a part of the tax liability or penalty.
2. Taxpayers who owe $50,000 or less may not have to file Form 9465 to request an installment agreement.
3. There are cases where taxpayers could apply for an offer in compromise.
An Offer in Compromise is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less than the full amount owed. It is not suitable to every taxpayer.
A taxpayer unique facts and circumstances are taken into account to qualify for an offer in compromise. The Internal Revenue Service will look at the ability to pay, income, expenses, and asset equity.
NEVER ignore an Internal Revenue Service tax debt, regardless of your financial situation. You should seek the guidance of a tax professional who is qualified to represent you before the Internal Revenue Service.
You might not be able to obtain a passport or not be able to travel when you owe the IRS over $50,000 because under current law, enacted in 2015, this is information could be reported to the Department of State.
Do you know that you could reduce your tax liability by proper tax planning strategy as individual or business owner?
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Extension Filers: Tax Return Due October 15, 2020
Estimated Tax Payment Dates
Third Quarter- Due September 15, 2020
Fourth Quarter- Due January 15, 2021
OPPORTUNITY FOR ACCOUNTANTS AND TAX PREPARERS!
Your clients and potential clients would be relieved when you let them know that a team of professionals are qualified and ready to represent them before the Internal Revenue Service in matters like: tax audit, wage garnishment, tax lien, Offer in Compromise, seizure of their property, and other tax problems.
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|FREE REVIEW OF PAST 3 YEARS TAX RETURN AND DISCOUNTED FEE FOR TAX REPRESENTATION SERVICE!