Need Help With IRS Tax Problems? 4 Solutions That Can Help You!

Respond to Notices in a Timely Fashion

Don’t ignore notices you receive in the mail!  If a taxpayer receives a notice from the IRS, make sure to to respond before the deadline. Keep a copy and proof of mailing, preferably a certified mail receipt to verify mailing and IRS receipt. Taxpayers should explain themselves thoroughly, and attach documents where they will be helpful.

Get in Compliance:  File Outstanding Returns  and Amend Incorrect Returns

In order to potentially reduce your liability with the IRS or have penalties removed, you need to have the necessary returns filed.  Even if you don’t have the money to pay the balance due, being in compliance (filing outstanding returns) allows you to negotiate with the IRS and potentially get penalties removed from your account.  If your return was filed incorrectly or with missing information, filing an amended return can help you resolve your issues.

Installment Plan

A payment agreement is an agreement with the IRS to pay the taxes you owe within an extended timeframe and avoid IRS collection proceedings.  Your specific tax situation will determine which payment options are available to you. Payment options include paying in full, requesting a short-term agreement (paying in 120 days or less) or a long-term agreement (paying in more than a 120 days).  

Offer In Compromise

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. The IRS considers your unique set of facts and circumstances including your ability to pay, income and expenses, and asset equity.