IRS Tax Bills:
- If you can’t pay your taxes, it’s important to avoid enforced collection by entering an agreement with the IRS.
- The IRS offers several options, including extensions to pay and installment plans.
- Those in financial hardship should consider special IRS programs that offer deferred payment and settlement.
- Elite Tax Services can help resolve the issue if you owe taxes and can’t pay.
What You Should Know When You Can’t Pay Your Taxes
- Confirm that you’re in compliance with filing and payments.
• Before you can enter a payment agreement with the IRS, you must first file all your required tax returns. We can help with that. You’re must also withhold enough taxes from your current wages and/or make enough estimated tax payments so that you won’t file and owe in the future.
• If you’re unsure if you’ve filed all your required returns, call the IRS to research your account. If you have back tax returns, file them to get into compliance.
• You may need to prepare a projected tax return for the current year to see if you’ve withheld enough and/or paid enough estimated taxes. If not, you may need to change your Form W-4 with your employer or make estimated tax payments. - Ensure you owe the amount of back taxes the IRS says you owe.
• Review your tax returns for the years you owe and the prior three years, to ensure your tax balance is correct. If you don’t think the amount is right, you may want to amend your returns.
• You may also consider any penalties you owe, to see if you can reduce or eliminate them. - Evaluate your options – and choose the best one.
• Consider all your facts, including these:
• How much you can afford to pay with your current assets, or in monthly payments.
• The impact of any potential tax lien.
• The impact of any additional penalties and interest.
• Based on your facts, choose the best payment arrangement for you. IRS options include:
• An extension of time to pay.
• A monthly payment plan, with various terms and conditions.
• Temporary relief based on your financial hardship situation (called ‘currently not collectible status’).
• An offer in compromise; the IRS option for qualifying taxpayers in specific financial circumstances to pay less than the full amount they owe to settle the tax debt.
• Gather the personal and financial information necessary to request your option from the IRS.
4. Obtain an agreement with the IRS.
• Contact the correct IRS department before your deadlines, to request the payment arrangement you’ve chosen. Provide the IRS with the information they need to complete the agreement.
• Remember — it may take some time for the IRS to set up your agreement, or consider your option, especially if you:
• Are requesting currently not collectible status,
• Owe more than $50,000,
• Are requesting an installment agreement that will not pay the entire balance within six years,
• Are requesting an offer in compromise,
• You may have to appeal an IRS decision if the IRS denies you an option that you are entitled to, based on your facts.
How to Get Expert Help
Elite Tax Services can help you investigate which option is best for you, and we can negotiate it with the IRS.
When you come in to discuss a plan with us, bring these items to your appointment:
1. A copy of your IRS notices, especially the most recent notices, on the tax years and balances owed.
2. If you think you’re in a financial hardship situation and can’t pay the full amount in six years, you’ll need to bring financial information, such as your bank statements, pay stubs, receipts for housing and medical expenses, and other household expenses.
3. If you have a levy in place, bring your employer’s and/or financial institution’s contact information (name, address, phone and fax number).
4. A copy of your tax returns for the years that you owe.
We’re Here to Help You
Elite Tax Services — We care, and are BIG enough to meet all your needs, yet small enough to know your name.
