Q: I owe the IRS back taxes but I don’t have the money to pay them. What should I do?
A: There are several situations where the IRS will work with you to provide you with tax relief. You may qualify for a monthly installment payment plan to pay off the full amount within five years. If you don’t qualify for this program, you can pursue an Offer in Compromise(OIC). With an OIC, the IRS agrees to settle your tax debt for less than what you owe, requiring a lump-sum payment or a short-term installment plan.
If you’re unable to pay anything at all, we may be able to help you get the IRS to declare your account “currently not collectible.” When successful, the IRS agrees suspends ALL collection activities on your back taxes for about a year. It is always best to have a qualified Certified Public Accountant, Attorney or Enrolled Agent negotiate your case with the IRS.
Q: What company’s products do you sell?
A: Our business focuses on planning, not selling products. We work with a variety of different companies to find the products and services that work best for each individual client.
Q: Can the IRS come after me personally if I owe payroll taxes or employment taxes?
A: Yes. Payroll and excise taxes are trust taxes, so the employer must collect these revenues and submit them to the IRS. The IRS can levy penalties against any person (CPAs, accountants, bookkeepers, etc.), that knowingly fails to collect and pay the IRS withholding tand excise taxes.
In these situation, you can try to negotiate an Installment Agreement or an IRS Offer in Compromise (OIC) program to settle delinquent payroll taxes. Yet the best way is to have a qualified Certified Public Accountant, Attorney or Enrolled Agent negotiate your case with the IRS.
Q: I think I may pay too much in taxes. Can you help me?
A: Yes, we can work with you to make sure your taxation is minimize
Q: I’m filing bankruptcy. What kind of IRS debt and back taxes are dischargeable?
A: Depending upon what type of bankruptcy that you are filing, will determine what is actually dischargeable. For both chapter 7 or 13 bankruptcy, certain types of debts, including interest and penalties on IRS back taxes, may be discharged. However personal income taxes are the only tax debts that may be discharged in bankruptcy. Tax debt from unpaid payroll taxes and federal excise taxes (“trust” taxes) that are collected by employers on behalf of the IRS, are never dischargeable. Also, know if you have not filed a tax return for a certain year(s), then you can not discharge those year’s income taxes.
Q: I don’t have the money to pay the IRS this year or for my back taxes. What should I do?
A: First of all, know that almost 20% of Americans have a tax problem and many don’t have the money to pay back taxes to the IRS. The absolute worst thing to do is bury your head in the sand and hope that it goes away. You should file your tax returns even if you can’t afford to pay them. Not filing them will cause you to receive monthly fines up to 25% of what you owe!
If possible pay your taxes with a credit card, since your card’s interest will be less than the IRS’s interest and fees.
Q: What are the some most common IRS audit red flags?
A: The IRS has grown more aggressive about auditing people in recent years. Yet know that it will only invest time auditing returns it believes will conclude with more tax money being collected.
The most common red flags include – failure to report income; claiming false business expenses; a poorly prepared return; bad math on the return, no return filed at all; excessive charitable donations without proper documentation; Home-Buyer Credit Claim without proper documentation and unreported foreign accounts. These are just a few of the most common audit red flags that the IRS looks for.