The IRS website states that you can make monthly payments through an installment agreement if you’re not financially able to pay your tax debt immediately. However, you will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full. Before you apply:
File all required tax returns;
Consider other sources (loan or credit card) to pay your tax debt in full to save money;
Determine the largest monthly payment you can make ($25 minimum); and
Know that your future refunds will be applied to your tax debt until it is paid in full.
Offer In Compromise:
The IRS website states that 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. We consider your unique set of facts and circumstances:
Ability to pay
At Bismark Tax we make sure clients qualify before putting them into an Offer In Compromise. Regardless, there are not promises or guarantees as this is a difficult program, but the attorneys at Bismark Tax are here to make help clients navigate the trecherous waters of the IRS or State taxing agencies.
Tax Penalty Abatement:
IRS penalties and interest turn a small delinquent tax debt into an unmanageable amount within a very short period of time. Penalties begin to accrue for failure to file taxes, failure to pay taxes, civil penalties for filing frivolous claims, and so on… The tax attorneys at Bismark Tax are experts at penalty abatement – getting the IRS to either completely or partially remove your penalty, to reduce the amount you owe and help you get your tax debt resolved quickly.
Wage Garnishment/Bank Levies:
If you owe the IRS and have ignored repeated letters and warnings, the IRS will likely use one of their most aggressive tax collection methods – wage levy, also known as wage garnishment. It is a legal way for the IRS to collect without you paying them directly. Your employer will be contacted and by law, must take a portion of your pay and send it to the IRS. How much? The IRS can garnish a substantial amount of your wages based on their guidelines, until your balance is paid, which may leave little leftover. Wage garnishment is not to be taken lightly. But we can help.
Innocent Spouse Relief:
The IRS website states that by requesting innocent spouse relief, you can be relieved of responsibility for paying tax, interest, and penalties if your spouse (or former spouse) improperly reported items or omitted items on your tax return. Generally, the tax, interest, and penalties that qualify for relief can only be collected from your spouse (or former spouse). However, you are jointly and individually responsible for any tax, interest, and penalties that do not qualify for relief. The IRS can collect these amounts from either you or your spouse (or former spouse).
Back Taxes Unpaid Taxes:
Taxpayers should always file all tax returns that are due, regardless of whether or not full payment can be made with the return. It is illegal NOT to file your taxes, if you do in fact have a filing requirement. Please feel free to contact us with any questions. Depending on an individual’s circumstances, a taxpayer filing late may qualify for a payment plan. All payment plans require continued compliance with all filing and payment responsibilities after the plan is approved.
State Tax Resolution:
The attorneys at Bismark Tax can also help you resolve your state tax issues. Bismark Tax represents clients in all 50 states and also in Puerto Rico.
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