If you are self-employed and own a business, you know there are good months and not-so-good months. It can be seasonality (lawn care), or the ebbs and flows of the stock market (financial advisor), or simply waiting for an account receivable to be paid. One thing is constant: Your income goes up, and goes down, and tomorrow can be different from today. At one point, you got behind on taxes, and are considering filing an offer in compromise with the IRS to put the past behind you. But before you jump in, it is important to understand how the variances in your income impacts the IRS ... Read More
Facing financial hardship in paying the IRS? There is a program for relief.
You may be concerned about what the IRS will do if you are unable to repay your taxes. After all, the IRS wants to get paid, and has powerful ways to do it, like levying your wages and bank accounts. But if the IRS took your paycheck you and your family would be in financial hardship. You don't want that, and believe it or not, neither does the IRS. There are programs to help The reality is that the big, bad IRS has a program that stops them from putting you in hardship so you cannot pay your bills. They can agree to let you pay your bills ahead of them, and if there is nothing ... Read More
How long will an IRS installment agreement last?
Getting an installment agreement approved by the IRS will not only put you in their good graces, but bring peace of mind. That's because once your agreement is approved, your IRS file will be closed by their collection division. While your agreement is in effect, the IRS will be prevented from levying your income, accounts, and property. An active IRS installment agreement means that there will be no looking over your shoulder for a surprise visit from an IRS agent, or unwanted IRS threatening mail. But how long will your freedom from IRS intrusion last? Not all IRS installment ... Read More
Will the IRS notify you when the collection statute date expires?
The IRS loves to send letters telling you how much you owe, that they want to levy your wages, and demanding that you immediately contact them. It can seem like the IRS letter onslaught will last forever and follow you for the rest of your life. If only you could go to your mailbox without the fear and anxiety of having another IRS letter drop on you. But it does come to an end. The IRS are limited by law on how long they can write to you and try to collect. Specifically, Internal Revenue Code 6502, "Collection After Assessment," limits the IRS to 10 years to collect a tax debt. ... Read More
Considering an offer in compromise? What to expect after you file
You are tired of owing money to the IRS. That is understandable. Now, you find yourself considering filing an offer in compromise to settle and get a fresh start. Before you jump in, it is important to know what happens inside the IRS to your offer after you send it in. After all, the IRS is a big, often impersonal bureaucracy, and you are asking them to cut you a much needed break. First, let's take a look at the IRS offer in compromise process - what happens after you file, when you will hear back, how long it takes the IRS to work your file, and role of the IRS Offer Examiner. ... Read More