A taxpayer should not ignore a tax debt whether it is owed to a state Department of Revenue or to the IRS. The Internal Revenue Service collection activities are in effect. Even during the pandemic, some taxpayers are finding out how some states are rigorously enforcing past due payments.

Dan has been trying to resolve a tax due with a state Department of Revenue and the IRS. After ignoring a notice of levy from the state that gave him 30 days to make payment arrangement, they withdrew the amount due from his bank account 2 days after the 30 days deadline.

The IRS has several means available to enforce tax filing compliance and payments of tax and penalty due. You must answer to correspondence from the IRS when an action is required. Do not not ignore 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, an offer in compromise from the IRS.

Some taxpayers could be qualified for an abatement in whole or for a part of the tax liability or penalty.Taxpayers who owe $50,000 or less may not have to file Form 9465 to request an installment agreement.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: ability to pay, income, expenses, and asset equity.

NEVER ignore a tax debt, regardless of your financial situation. Seek the guidance of a tax professional who is qualified to represent you before the state Department of Revenue or the Internal Revenue Service.

You might not be able to obtain a passport or 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?

We offer FREE initial consultation!!!

Extension Filers!

Tax Returns for Partnerships and S Corporations: Due September 15, 2020

Tax Returns for Individuals: Due October 15, 2020 Estimated Tax Payment Dates

Third Quarter – Due September 15, 2020

Fourth Quarter – Due January 15, 2021


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, levy, Offer in Compromise, seizure of their property, and other tax problems.

Pierre Tax Group offers partnership agreement to provide tax representation services to clients.

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