Today you went to the mailbox and received a certified letter from the IRS. It is perhaps the scariest moment of your life - you have no idea what to do. The last thing you should do is wait. The IRS has powerful tools at their disposal to compel payment - tools like levies and liens. It is incredibly important for you to get representation as quickly as possible. This way the IRS knows you are serious about solving the problem.
What options do you have? There are several possibilities.
Setting up a payment plan: Very few taxpayers can pay their complete liability in one swoop. Most taxpayers opt for a payment plan. In this situation I will work with you to find an affordable way to minimize the burden.
Partial Payment Plans: This is similar to a payment plan but the taxpayer does not pay off the entire debt. Instead, he essentially settles the debt for a fraction of the amount owed.
An offer in compromise: this is an agreement between the taxpayer and the IRS to settle the tax debt for less then the full amount. There are three types of offers in compromise. The first is where the IRS doesn't think they can collect the entire tax debt. The second occurs when there is a doubt as to the liability. The third occurs when there is an "exceptional circumstance" (which rarely happens).
Discharge in bankruptcy: first - this is usually used only as a last resort because it doesn't apply to all taxes owed. The taxes owed must comply with five criteria:
1. The due date for filing a tax return is at least three years ago.
2. The tax return was filed at least two years ago.
3. The tax assessment is at least 240 days old.
4. The tax return was not fraudulent.
5. The taxpayer is not guilty of tax evasion.
The taxpayer has two options - filing under Chapter 7 or Chapter 13. The type of bankruptcy will depend on the taxpayers circumstances.
Finally, the taxpayer can have the IRS label the dent as "uncollectible". Essentially, the taxpayer demonstrates that there is simply no way for him to currently pay the amount owed.
To see which option applies to you, please call the Law Office of Hale Stewart today.
However, suppose you waited and the IRS has now filed a levy or lien. You still have options but they are more limited. However, it is imperative for you to get professional help as fast as possible. Please call the Law Office of Hale Stewart to deal with this situation as quickly as possible.
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