Individual Tax: Income Tax

Income Tax: Contents

Income Tax Debt

It is not hard to imagine getting into income tax debt.  Your income tax filing is due every year on April 15th.  Some people forget to file or request an extension to file.  Other people file on-time, but have forgotten to make estimated payments throughout the year, and, when April arrives, they find that they do not have the money set aside to pay their taxes. 

The IRS is stepping up enforcement of the tax laws requiring people to file their tax returns each year.  There are many people around the country that have been unable to file their tax returns in a timely manner.  For whatever reason, whether the result of the pandemic or personal issues, not filing your tax returns can result in significant penalties and legal action.  In some cases, failure to comply with your tax return requirements can even result in criminal prosecution by the United States Attorney’s office.

Preparation of Unfiled Tax Returns

Our tax professionals research and investigate your tax history, prepare a plan to get you back in compliance, file all necessary unfiled returns, and negotiate an effective solution that you can afford to remedy all of your tax problems.

Penalty Reduction

Interest and penalties accrue in connection with most tax debt and can end up being an overwhelming burden on you that seems insurmountable.  Our team of tax professionals understands how to deal with the tax authorities and help prepare your paperwork to reduce, or even eliminate, the penalties and interest in connection with tax debt.  In certain situations, and with proper representation, the IRS may forgive certain penalties imposed for late filing, late payment, or other non-compliance.  Our team evaluates your situation to determine whether your situation qualifies for certain penalty abatement programs and negotiates on your behalf to qualify you for these programs.

Offers in Compromise and Payment Plans

Around 30% of our clients qualify for the IRS’s Offer in Compromise program.  If you qualify, this program can save you thousands of dollars in taxes, penalties, and interest.  An Offer in Compromise is a specialized legal agreement between you and the IRS to settle your tax liabilities for substantially less than the full amount you may owe.  The Offer in Compromise program has expanded over the years due to the “Fresh Start Program” initiated by the IRS.  The purpose of these programs is to find a balance between what you owe and what you can reasonably pay without putting you into severe financial hardship.  Our team of tax professionals will collect and evaluate your personal and financial information to calculate the amount of money the IRS can reasonably expect you to pay.  We would then be in direct contact with the IRS on your behalf to negotiate an agreement that appeases the IRS and works for you, within your personalized budget.

If you are in a position where you CAN pay your tax debt, but need some time to pay it off, our team of tax professionals can help you.  We help you by negotiating a monthly payment plan with the IRS, called an “Installment Agreement” that is reasonable, based on your income, allowable monthly expenses, and the time remaining under the statute of limitations related to your tax debt

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