The IRS Fresh Start is a tax relief program designed to help struggling taxpayers regain financial footing. A struggling taxpayer is someone experiencing financial difficulty while paying their IRS tax liabilities and basic living expenses. The
Fresh State Program provides several tax relief options to taxpayers who qualify, such as halting tax collection activities, providing penalty relief waivers, installing workable payment plans, and settling the tax balance for less than owed.

What Are the IRS Fresh Start Qualifications?

To qualify for the IRS Fresh Start Program, one must meet the following criteria:

• If filing single, your yearly income must be under $100,000.
• If filing married, your annual income must be under$200,000.
• If you are a sole proprietor, you must have experienced a drop in income of at least 25%.
• Your tax debt must be less than $50,000.
• You have not missed any payments with the IRS, and you have a clean history with the IRS.

What Does the IRS Fresh Start Program Consist of?

The IRS Fresh Start Program consists of these four types of tax relief initiatives:

• Currently Not Collectible Status
• Offer in Compromise – Doubt to Collectability
• Installment Agreements – Full and Partial Pay Plans
• Penalty Abatement – First-Time Abatement and Reasonable Cause

Each of these programs provides a unique form of IRS relief and has separate criteria for enrollment. Here is a breakdown of each program:

Program 1- Currently Not Collectible Status

Current Not Collectible Status falls under the Internal Revenue Code (Part 5. Chapter 16. Section 1), which indicates that eligibility may be met if the taxpayer cannot meet the required daily living expenses due to the collection of the liability. The IRS considers these situations in which one cannot make an entire tax payment without falling behind on one’s required living expenses, such as:

• Mortgage or rent.
• Utility bills
• Food
• And other required living costs

The tax liability is not disputed, and it’s just that; clearly, you cannot pay it along with covering your basic living needs; the IRS will deem your situation as “Currently Not Collectible,” or CNC status.

If a taxpayer is placed in a CNC status, the IRS agrees that the taxpayer cannot make any payment on their back owed debt. Being granted this status does not forgive the tax debt but delays collection while in financial hardship. The IRS will have to release any current levies in place and cannot enact them while under this status.

In addition, while in CNC status, IRS Collection Statute Expiration Date (CSED) is not tolled, which means the time the IRS must collect the assessed tax continues to run. However, penalties and interest will continue to accrue while in CNC. Being in CNC does not stop existing tax lien from remaining in place, nor does it prevent the IRS from initiating a tax lien.

However, if the taxpayer’s financial status does improve substantially, the IRS can remove the CNC status and request additional financial information.

How Does One Apply for Currently Not Collectible Status?

The IRS provides Collection Information Forms 433A, 433B, and 433F to establish your financial position for consideration. You will use the one that applies to your situation. In addition, you may be asked to provide support for data listed on the forms. It is suggested to seek professional tax help for this.

Program 2 – IRS Offer in Compromise

Another IRS Fresh Start option is an Offer-in-Compromise (OIC), a negotiated agreement between the IRS and the taxpayer intended to help taxpayers who do not have the resources to pay the tax debt. If you qualify, you may be able to settle your entire tax bill for significantly less than what you owe. You must establish that you genuinely can’t afford to pay back taxes or that doing so would cause extreme financial hardship. This can apply, for example, if you have become disabled.

You must be current on all legally required income tax returns and any estimated tax payments if you are self-employed and cannot file for bankruptcy.

The IRS would instead take an Offer-in-Compromise than send you to collections and potentially get less money. Taking an offer in compromise will not affect/impact your credit score. Accepting your Offer-in-Compromise could be a far better financial decision in the long run.

Is an Offer in Compromise Easy to Apply For?

Working out what offer to make and learning the process can be challenging. That’s like representing yourself in a court of law without a lawyer. Not ideal.

The overall taxpayer approval rate for OICs is slightly above 30%. The IRS accepted only 15,154 offers out of 49,285 in 2021. Some of the reasons for such a low overall approval rate include the following:

• applications are not correctly completed,
• the proper application of the rules of the program is not being utilized to the taxpayer’s advantage,
• taxpayers’ positions are not adequately advocated for,
• and the IRS finds that the taxpayer can pay the total liability.

Often individual taxpayers attempt the application without seeking professional tax help or relying on the IRS to help them. The IRS’s goal is to collect as much tax as possible, so there will be limitations with the help of the IRS.

A better answer is to find a tax resolution specialist that can help you with the process to see if you qualify and determine what you will have to pay. For a tax resolution specialist to represent you, they must be a licensed CPA, an Enrolled Agent, or Attorney. Each professional type provides unique professional skill sets. Will Harmon happens to be all three, which ensures you complete coverage of your tax issue.

Program 3 – IRS Installment Agreements

Another Fresh Start option is entering into one of the IRS’s various installment agreements. An IRS Installment agreement is a payment plan where you agree to pay the taxes you owe within a specified timeframe. This Fresh Start option allows you to pay off your taxes affordably. Depending upon your situation, you will choose from one of these four types of installment arrangements:

Each plan has specific criteria for approval, and speaking to a tax professional would be beneficial if you are unsure.

By requesting a payment plan, the IRS will generally be prohibited from levying, and the time it must collect will be suspended or prolonged while your installment agreement (IA) is pending. An IA request will remain pending until it can be reviewed and established, or it may be withdrawn or rejected.

Nonetheless, if your request for an IA is rejected, the collection period will remain suspended for 30 days. You have the right to appeal a rejection of your request, during which the running of the collection period will be suspended by the time the appeal is pending to the date the appealed decision becomes final.

Program 4 – IRS Penalty Abatement

The final IRS Fresh Start relief program consists of penalty abatement. Those who accumulated IRS penalties from late filing or payment may be eligible for penalty relief of up to $100, provided they meet some stringent requirements.

How Does One Apply For The IRS Fresh Start Program?

Since the IRS Fresh Start program is for financially burdened taxpayers, one must provide evidence to establish that they cannot afford to pay their tax debt by gathering specific supporting documentation to verify their dire financial situation.

For example, the IRS may request supporting documentation such as:

• Birth and death records of dependents or immediate family members.
• Student Loan Statements or other loan records
• Physician statements and medical records
• A personal statement, written under Oath, explaining your situation.

In addition, the IRS Fresh Start Program will only take applicants who are current with their tax filings and current tax payments. To get into the IRS Fresh Start program, complete any unfiled tax returns, ensure adequate tax withholding, and make correct estimated payments, if applicable.

For additional information, please see the following blogs:

• “What Are IRS Tax Resolution Services”
• “What to Know about IRS Regular Installment Agreements vs. IRS Partial Pay Installment Agreements”
• “IRS Offer in Compromise May Benefit You”

Get Trusted Professional Help with Applying for IRS Fresh Start Programs

​IRS collection activities could cause you financial hardship if you cannot pay the taxes owed. You may have the option to have collections halted if you are eligible to apply for IRS Fresh Start Programs or other IRS programs. To learn which IRS tax relief program would work best for your relief from unpaid IRS taxes, contact tax attorney CPA EA Will Harmon Today by calling 772-418-0949 or completing the online contact form.

Tax Attorney-CPA-IRS EA Will Harmon has extensive experience helping taxpayers who, unfortunately, cannot afford to pay their IRS tax debt to negotiate optimal tax relief plans with the IRS. He can help you get the best outcome possible for your situation. Call Today; sleep well tonight.

Of the various options for taxpayers dealing with IRS tax liability issues, the IRS Regular Installment Agreement (IA) and the IRS Partial Pay Installment Agreement (PPIA) are the most used. To get a better understanding, let’s go over each plan type and its respective benefits and qualifications.

What is an IRS Installment Agreement?

An IRS Installment Agreement (IA) is a monthly payment plan set up with the IRS to pay your outstanding tax balance. An IA is for use when you have sufficient income or assets to make payments to cover the total amount of the tax balance owed. There are several types of full payment plans, and depending upon your tax situation will determine which payment plan would work best for you. Full payment options include a short-term payment plan (paying in 180 days or less) or a long-term payment plan (installment agreement) (paying monthly) which in some cases could be as long as seven years (84 months). Most are generally setup up for six years (72 months). Let’s start with the long-term payment plan.

Long-term payment plans (Installment Agreement):

have specific tax balance stipulations. When you owe $50,000 or less in combined tax, penalties, and interest and have filed all required returns, you should be to get a full payment IA payment plan for six years (72 months) simply by requesting it. If you owe more than $50,000, the IRS will request that you complete either Form 433-A or B. With either of these forms, you will need to provide a complete financial listing of assets, liabilities, income, and expenses from which the IRS will ascertain what amount of monthly disposable income you have to use for payment.

Short-term payment plan:

You owe less than $100,000 in combined tax, penalties, and interest. A short-term payment plan pays the total balance due in 180 days or less. This plan helps avoid incurring significant interest costs.

What’s the longest time I can request an IRS Installment Plan?

Important to note that when it comes to IA, the IRS generally requires you to pay the entire tax liability within seven years (84 months) or within the Collection Statute Expiration Date (CSED), whichever occurs first. CSED is ten years from the date the IRS assesses your tax amount. Ordinarily, it is only during the CSED period that the IRS can enforce collections on an unpaid tax. When negotiating an IA with the IRS or any other resolution, knowing the CSED for any outstanding tax balance is critical.

How Do I Determine How Much I Should Offer to Pay the IRS on a Monthly Installment Plan?

Ensuring that the monthly payment amount is within your budget is the ideal way to make an IA offer to the IRS versus doing so by coming up with an amount strictly based on getting IRS approval. The latter way could backfire if the plan defaults, making it challenging to negotiate another plan with the IRS favorably. The way to avoid making a mispayment calculation is to complete the applicable 433 forms thoroughly. The form’s function is to obtain an accurate financial determination of your monthly disposable income. It may be beneficial to speak with a tax professional regarding how to maximize the efficiency of this form whenever the IRS needs it for a resolution determination, such as installment plan types, Offers In Compromise, or Currently Not Collectible Status.

How long does it take for IRS to approve an Installment Agreement?

Ordinarily, it can take up to two months to obtain an Installment Agreement approval. It could take longer if your tax bill is more than $100,000.

What do you need to apply for a Payment Plan?

To do it online, you need to create an IRS account with ID.me, and for verification purposes, you will need photo identification.

You will need your bank routing and account numbers if you apply for a direct debit payment plan.

If you recently filed your tax return or your return was examined but have not received a balance notice from the IRS, you will need the balance due shown on your return.

Are there fees to apply for an Installment Agreement?

Yes, you must pay setup fees: The setup fee for an installment agreement with IRS varies depending on your chosen plan. The IRS charges $225.00 for a non-direct debit installment agreement unless set up online through www.irs.gov. The cost is $149.00 for non-direct installment agreements and $107.00 for direct debit agreements applied through phone, mail, or in-person, and $31.00 if applied online. For non-direct debit installment agreements, a reduced $43.00 fee ($0.00 for direct debit agreements) applies if you have income at or below specific government poverty guidelines. If you qualify, you may apply by submitting Form 13844 (Application for Reduced User Fee for Installment Agreements).

What Should I do if the IRS denies my Installment Agreement?

Sometimes the IRS does reject requests for Installment Agreements– if this happens to you, you have the right to appeal. To appeal, you must complete and submit Form 9423, Collection Appeals Request, within thirty days of the rejection notice.

Will the IRS keep my refund if I have an Installment Agreement?

Unfortunately, the IRS will automatically apply any refund or overpayment against your tax balance. This is stipulated within the Installment Agreement. Even though any refunds or overpayments will reduce your balance, you must continue making the agreed-upon monthly payments until fully paid.

What is a Partial Payment Installment Agreement?

When your current level of financial resources enables some payment towards the tax liability but not enough to cover the entire balance by the time the CSED expires, you may qualify for an IRS Partial Payment Installment Agreement (PPIA). When applying for this type of resolution, the IRS requires the completion of forms 433 A or B. From your financial data, the IRS determines your disposable income based on allowable local and national standards for expenses and what is available as equity in your assets. There are some exceptions in which you may qualify based on individual circumstances; therefore, seeking advice from a tax resolution expert may be helpful.

A PPIA is primarily a temporary payment plan that lasts between two and three years before the IRS requires you to provide updated financial information to determine whether to provide for a continuance. The IRS terminates the first agreement and then decides whether to reinstate the PPIA again based on your updated financial position. This process may occur again until the CSED is reached.

Couple of things to bear in mind. First, while in either IA or PPIA, the interest and penalties continue to accrue while a tax balance exists. Second, the IRS has a right to protect its interest by filing a Federal Tax Lien toward the balance owed.

Generally, the IRS will not file a tax lien for amounts under $10,000 unless there is an imminent danger of their inability to collect due to other circumstances like bankruptcy, for example.

If your tax balance is $50,000 or greater, the IRS will automatically issue a Federal Tax Lien to you.

On the positive side, the CSED continues to run. Based on your situation, you may eventually qualify for other resolution options, such as an Offer in Compromise. Important to note that if your financial situation changes to where you do not have disposable income to pay on the tax balance, you may qualify for what is known as Currently Not Collectible status.

For more information, please read the recent blog posts:

• “Will Using a Partial Payment Installment Agreement Help Lower Your Tax Debt?“
• “What Are My Options If I Owe Back Taxes?“
• “The Importance of Investigating IRS Records in Determining Best IRS Issue Resolution to Use“

What Are Streamlined Installment Agreements?

Streamlined Installment Agreements require you to pay the entire balance within six years or before the collection statute of limitations expires, whichever is sooner. You can avoid a tax lien if your balance is less than $50,000 or if you can pay the balance down to less than $50,000 before establishing the streamlined installment agreement.

If your unpaid balance is between $25,000 and $50,000, the IRS won’t file a tax lien if you allow the IRS to take installment agreement payments directly from your bank account or wages.

If your tax balance is $50,000 or greater, the IRS will automatically issue a Federal Tax Lien to you. If your balance is $50,000 or less and your CSED is greater than 84 months, you can still get the streamlined status (more on below) under an 84-month plan if you have an automatic direct debit or payroll deduction setup. If you do not choose either of these automatic payment options, the IRS may set up a federal tax lien against you.

Can the IRS Revoke my Installment Agreement?
The IRS can revoke any installment plan and give you a default status. A default status will put you back to the collection point you may have initially been in or could soon become into, such as tax liens, asset levies, and wage garnishments. You will most likely find yourself in IRS default status when:

• You miss payments.
• You do not file a tax return for the current year.
• You have unpaid taxes due.
• Your provided inaccurate information during the IA process to IRS, or as listed in PPIA, your financial position has changed, allowing the IRS to increase your payment amounts.

To get back in compliance, you must endure the rigorous process of renegotiating your PPIA or IA from a lesser position. In contrast, IRS will renegotiate from a more stringent position due to the default.

Get Help Applying for a Partial Payment Installment Agreement or Regular Installment Agreement with Trusted Representation at your Side!

PPIAs and IAs can be complicated to set up. Harmon Tax Resolution, LLC can assist you throughout the process. At Harmon Tax Resolution, LLC, an experienced multi-licensed tax attorney-CPA-IRS EA will ensure you get the complete representation you deserve. For a Free Consultation, Call Today @ 772-418-0949 or complete the Online Inquiry Form so that you can sleep well tonight.

Let Us Help Put your Tax Worries Behind You So You Can Move on to Life’s Better Things! Make the Call Today, and Steer Your Own Path Tomorrow!

A vital piece in how Harmon Tax Resolution provides clients with ideal solutions starts with a complete research of existing IRS account records and getting a good handle on your financial picture. This is done at the beginning of the engagement, usually within 7-10 days of the IRS granting access. All clients receive an initial investigation, which provides a basis for determining the best solution for your situation. It would be improper to suggest a resolution format without doing this first. How could anyone provide correct directions unless they know exactly where the starting point is?

What are we looking to find out by researching your IRS files?

• Where are you within the IRS Collection Process? Are you still in the Notice of Deficiency period? Have Collections escalated to Automated Collections Systems (ASC)? Is a Revenue Officer (RO) assigned to the account? Do you have compliance issues such as unfiled tax returns? This information is critical for developing the best resolution for your case.
• Which years are in issue, and what are the applicable Collection Statute Expiration Dates? From the tax assessment date, the IRS ordinarily has a ten-year statute of limitations to collect the tax. Knowing when the collection statute expires for a particular tax debt will play a key role in determining what potential resolution you may qualify for, such as an Offer in Compromise or a Partial Pay Installment Plan. It could be that the tax debt is now out of the collection statute period.
• To determine if any compliance issues could prevent an IRS resolution option. IRS requires that you filed your tax returns for the last six years to be compliant. We can prepare your unfiled returns with information the IRS has reported.
• Did the IRS prepare a Substitute for Returns (SFR)? If so, your tax debt could also include an IRS-prepared return in substitute for an unfiled return based on information the IRS has available. The problem with SFRs is that the IRS does not apply credits and deductions you may be eligible which could result in much higher tax debt, including penalties and interest based on this balance. We want to make sure this is uncovered so that we can correct it.

For additional information, please see the related blogs:

• “Tax Resolution Firms Need to Investigate First“
• “The IRS May Prepare a Substitute for Return in Place of an Unfiled Tax Return“

Get Tax Representation you can Trust

You can trust Harmon Tax Resolution, LLC to thoroughly analyze your IRS records to ensure that you are afforded the best resolution possible for your case. An experienced tax attorney-CPA-IRS EA, Will Harmon, will handle your case from start to finish. He will do the heavy lifting so that you do not have to. Call 772-418-0949 today so that you can sleep well tonight!

Take the First Step So that You Can Take Control of Your Path!

When it comes to Tax Liens, it is better to employ preventative measures than to deal with curing them. Take our word on this.

When the Internal Revenue Service (“IRS”) issued a tax lien, they made a public declaration that you are delinquent on your taxes. Tax Liens are filed with the applicable county, typically where the property resides, and these are made public. A filed tax lien against your property gives the IRS creditor rights to this property. If this lien is not entirely paid off in time, it sets the stage for the IRS to initiate levy procedures, allowing the IRS to seize the property to pay the tax debt.

If you have an IRS tax debt, the IRS will initiate the Tax Lien process by sending you a Notice and Demand for Payment. It is essential to take heed of this notice because you are only provided ten days from the date of this notice to make your tax payments to head off any further actions from the IRS. If you do not respond, the IRS can now file a tax lien on any or all of your property, including your property rights. Liens can also be applied to the future acquired property. The purpose of the lien is to provide the IRS with a right in its interest toward the tax amounts outstanding. This helps ensure you stay in good standing with your tax obligations.

Little can be done to prevent the IRS from initiating a tax lien if you don’t timely pay your taxes in full. Because of the gravity of having a tax lien placed against you, it is recommended that you even consider borrowing, if need be, to pay off the tax debt. Once a lien is placed on the property, it remains until either the tax debt is paid in full or the statute of limitations on the tax debt runs out. The statute of limitations generally lasts ten years from the tax assessment date. Once a tax lien is filed is public knowledge and dramatically impedes your ability to access your equity in any lien assets and sell them.

Paying your taxes on time is the best way to avoid being subjected to a tax lien. If you are already in a tax lien situation, it would be ideal for retaining a tax resolution firm like Harmon Tax Resolution, LLC, to help you resolve your delinquent tax issue. A multi-licensed tax attorney-CPA-IRS EA will address your issue, allowing all angles of your situation to be correctly handled. He will identify the fastest and most suitable way to take care of your back taxes to prevent the IRS from pursuing additional aggressive actions.

For a free consultation, please call or schedule a meeting with our tax lien attorney near Port Saint Lucie, Fort Pierce, and Stuart. Start today and sleep better tonight.

Certain taxpayers are surprised that they owe additional income taxes yearly even though their employer withholds taxes from their weekly paycheck. Having an outstanding tax debt is not as uncommon as you think, and there are many reasons it could happen. About 24% of all Americans owe back taxes. If you’re among them, you know how nerve-racking it can be, whatever the amount.

Although sometimes it may seem that way, the Internal Revenue Service (“IRS”) is not out to maliciously target you. Since some of the tax code is confusing, it is easy to make mistakes; even the IRS makes them. It is essential to recognize this to remain calm when dealing with this situation.

Just getting a notice from the IRS can be unnerving. If you don’t agree with the IRS’s assessment of a tax owed or don’t understand the IRS’s position, the best approach is to write out your points and questions methodically. This purpose is to put your information and questions into a concise format to allow a conducive discussion with the IRS.

If you are responding in writing, include your name, social security or tax ID, and the notice’s reference number, which you can find in the upper right-hand corner of the first page of the notice.

Please remember that the goal is to resolve the issue quickly; how you engage the IRS personnel could assist or impair this. Your issue will be addressed by an individual and not a faceless careless entity. Being polite and cordial will make your issue more likely to be addressed and resolved.

If your situation entails owing an undisputed tax debt to the IRS and you cannot pay it, you have options. Ignoring the debt is never viable since the tax debt will not go away and will increase with additional penalties and interest. Eventually, your situation will be compounded by the IRS taking a more aggressive approach involving the issuance of liens followed by levies and or garnishments. You could even have your passport taken from you.

Dealing with the IRS in the same manner as described earlier to devise a payment arrangement known as an installment plan is a viable option. The IRS has several types of installment plans, each of which is deviated based on assessed tax amounts owed. The information-gathering requirement for each type varies as well.

Suppose you’re in a financial predicament where you cannot pay basic living expenses and the IRS tax debt. In that case, you may qualify for other options, such as being placed into a Currently Not Collectible Status (“CNC”), where the IRS will halt collection activities. In contrast, your financial situation remains as such. Under this plan, the ten-year Collection Statute Expiration Date (“CSED”) continues to run, and once you reach the CSED for an assessed tax, the IRS can no longer collect the debt, and it gets removed from collections.

Other options may include qualifying for a form of an Offer In Compromise (“OIC”), where there is a settlement agreement to pay the debt for less than the original amount. OICs are considered by the IRS when tax liability or collectability of the debt is in doubt. In other words, if they’re not sure about how much you owe or if they believe you might not ever pay, the IRS could settle for a type of OIC.

In addition, you may qualify for a Partial Payment Installment Agreement (“PPIA”) which allows for a lesser payment. This is like OIC consideration, where one cannot pay the entire tax balance owed before the CSED. In some cases, this is a better option and an OIC.

Regardless of the plan, you must comply with your tax return filings. Otherwise, you will be ineligible. Generally, six years is how far back you have to comply with filing your tax returns. In some cases, the IRS could require beyond that.

Most installment plans where full tax debt payment is to occur can be set up with the IRS without too much headache. However, if you are dealing with an OIC, PPIA, or CNC, it is highly recommended that you seek the help of a qualified tax resolution firm like Harmon Tax Resolution, LLC. You will deal directly with a multi-licensed Tax Attorney-CPA-IRS EA who will ensure your case is adequately represented. In addition, any required tax compliance work can be addressed as well.

Do you owe back taxes? Are you doing anything to fix the problem? You can have a free consultation directly with a multi-licensed Tax Attorney-CPA-IRS EA. Not taking action doesn’t solve the problem make the call today and sleep well tonight.

The answer to this question is a resounding NO! Even if you owe back taxes when tax return filing is due, it is imperative to file the tax return anyway. Not filing a tax return will evoke far higher consequences than what occurs from being unable to pay the taxes current taxes owed because one becomes subject to a non-filing penalty of up to 25% of the tax due. This penalty is applied in monthly increments at 5% of the tax due to the penalty accruing up to 25%.

It doesn’t just end there. In fact, under Code Sec. 6020, the IRS has the right to prepare a Substitute For Return (“SFR”) filing in place of the taxpayer not filing a timely return. This means the IRS will file for the taxpayer instead. On the surface, that may not seem too bad since the IRS would save you the time it takes to prepare your return and, in many cases, the costs of hiring a tax professional. This is not ideal because it will likely result in a much higher tax bill and trigger other IRS collection actions.

Ramifications of an SFR

The problem with an SFR is that the IRS will not take a single allowable deduction or credit on your behalf, resulting in your getting the most extensive tax bill possible. For example, the IRS will not apply child tax credits, charitable donation deductions, or deductions for investment losses. In addition, if you have some reported 1099 income, you will not have any expense deductions from your business activities.

In addition, having the IRS file an SFR should be avoided since the SFR is treated as a valid return for determining how much a taxpayer owes, as well as associated penalties IRS charges for things like “failure to file a return,” “failure to pay estimated taxes,” and “failure to pay the tax shown on the return.”

Also, in some cases, the tax debt can be dischargeable in bankruptcy, whereas that is not the case for taxes owed from an SFR filing. And the statute of limitations for failing to file a return is not terminated.

Tax Relief Help for an SFR

It is in your best interest to file tax returns when they are due, regardless of whether you can pay the taxes owed in full. For those that cannot pay the balance owed at once, the IRS offers other ways to help settle a tax debt over time, such as installment agreements.

The IRS will notify you that they plan to file an SFR on your behalf. If this happens, you will want to take immediate action and have your return prepared. Seeking help from a tax professional would be beneficial for managing the process and getting it resolved.

The good news is that you can still file a late tax return even after the IRS has imposed an SFR. It is still possible to file a return that will eventually replace the substitute for the return. It will allow you to claim the missing deductions and credits and change your filing status.

If the IRS decides to proceed with an SFR, they will send you a Notice of Deficiency CP3219N to the mailing address they have on file. You will have 90 days from the date of notice to file a past-due tax return. The IRS will begin their tax assessment if you don’t prepare a new return within this time frame. The assessment starts the collection process with the IRS, which could lead to liens, levies, and garnishments.

Harmon Tax Resolution, LLC – Get the IRS Tax Debt Relief You Deserve!

We have experience handling notices of deficiency and substitute for returns (SFRs). It is essential to ensure your replacement return is thoroughly and correctly done since the IRS reviews it far more carefully than general tax returns. At Harmon Tax Resolution, your return and related IRS tax issues will receive proper attention from a comprehensive 3-1 seasoned tax professional Tax Attorney – Seasoned CPA, and IRS Enrolled Agent ensuring adequate representation.

Contact Harmon Tax Resolution, LLC today at 772-418-0949, or visit www.harmonassociates.net for assistance dealing with an SFR and other IRS tax-related issues.

When you owe the IRS money, they can garnish your wages, levy your bank accounts, put a lien on your home, and seize other assets.

Here’s what you can do if you are unable to pay your taxes. Note, we always recommend contacting a tax resolution professional to help avoid the harsh penalties and interest accrued on your back taxes. It’s far easier to navigate towards tax resolution if you have a professional working on your behalf. Contact us if you’d like to schedule a no-cost confidential tax relief consultation. Free Consultation

First, make sure that you file your returns

Even if you have no hope of being able to pay your taxes, you must at least file your income tax returns. Whatever the penalties are for not paying your taxes, the penalties for not filing are much larger, and non-filers can be subject to a criminal investigation. . The IRS will remove penalties for not filing and not paying, but you have to have a good reason. We can request to have your penalties removed or reduced. This is through an abatement request. It’s also important to remember that when you file for an extension, it only gives you more time to file. Your payment date remains unchanged.

Revisit your W-4 withholdings

If your employer withholds money from your salary to pay your taxes, you shouldn’t have to worry about paying anything extra from that income source. If you do owe more, it’s a sign that your withholding exemptions are incorrectly reported on your W-4 form. To ensure that you don’t get into tax trouble repeatedly, you should make sure your W-4 form is correct and get advice from a tax professional about the kind of withholdings necessary for exemptions.

Make a partial payment

If you can’t afford to pay all you owe, you should pay whatever you can. While you will still be hit with interest and penalty charges, they will be smaller than if you paid nothing. These charges are proportional to what you owe the IRS.

Try to work with the IRS

If you can’t pay, resolution options are available to you if you qualify. They include a payment plan or an offer in compromise, to name a few. You must first step up and admit to your inability to pay.

An offer in compromise is an agreement between the IRS and the taxpayer that allows the taxpayer to settle their debt for less than the amount owed. Sometimes, for a fraction of the amount owed. There are strict eligibility requirements, and you should consult a tax resolution specialist first.

An installment agreement, aka payment plan, is an agreement between the IRS and the taxpayer that permits the taxpayer to pay back their debt over time, generally in 60-72 months. Depending on the amount owed and the ability to make monthly payments determines the type of installment agreement the IRS will allow, as there are several variations of these payment plans. An experienced tax resolution specialist will guide you through the maze and myriad of these different options.

If you need an expert tax resolution provider who knows how to navigate the IRS maze, reach out to our firm, and we’ll schedule a no-obligation confidential consultation to explain your options to resolve your tax problem permanently. Free Consultation

Some of these national tax resolution firms you hear advertising offer minimal service; look at their Google and Yelp Reviews. So, knowing who to trust and getting educated on your options to resolve your tax problem is essential.

As a local expert Tax Resolution Firm serving Port Saint Lucie and Fort Pierce, Florida, we encourage all readers facing a tax problem to contact us for a free consultation.

The truth is that though it’s often more complex than they claim to settle for less than you owe the IRS, it is possible, and you must first learn if you qualify for the program. This is called an “offer in compromise,” but settling is not necessarily bad. An “offer in compromise” is a negotiated settlement between the taxpayer and the IRS intended to help taxpayers who owe more than they can pay. You can often settle your entire tax bill for a fraction of what you owe if you qualify. You can only get one if you genuinely can’t afford to pay back taxes or if doing so would cause extreme hardship. This can apply, for example, if you have become disabled. You must be current on all legally required income tax returns and current on any estimated tax payments if you are self-employed and cannot file for bankruptcy.

The IRS would instead take an offer in compromise than send you to collections and potentially get less money. Taking an offer in compromise will NOT affect your credit score. Accepting your offer in compromise is a far better financial decision in the long run. However, working out what offer to make on your own and learning the whole process can be challenging. That’s like representing yourself in a court of law without a lawyer. Not ideal. A better answer is to find a tax resolution specialist that can help you with the process to see if you qualify and determine what you will have to pay. A tax resolution specialist will also be a licensed CPA, Enrolled Agent, or Attorney, which I happen to be all three.

One of the great things about working with a qualified local tax resolution firm is getting protection from the overbearing IRS, letting you sleep better at night knowing you’re on your way towards permanent tax resolution. They can head off any impending paycheck garnishments or levies on your bank account. Settling with the IRS is a good thing and is often the best answer to dealing with your back tax bill and moving on with your life.

If you want an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm. We’ll schedule a no-obligation confidential consultation to permanently explain your options to resolve your tax problem. Free Consultation

It is easy to freeze up and just do nothing when you owe back taxes to the IRS, but hiding from or doing nothing about your tax debt will not make it go away. Ignoring the taxes you owe will only make the situation worse since interest and penalties can add up. You also risk having your paycheck garnished (the IRS does not need a court order to do this) or your bank account levied. The IRS can also file a Notice of Federal Tax Lien, making it impossible to obtain financing for a car or home.

So instead of panicking about your tax debt and hoping the problem will disappear, you need to take some proactive steps. Now is not the time to panic and hide – now is the time to start taking action.

Some of these steps you can do on your own if you’d like, while others will likely require the intervention of an experienced tax resolution expert. Here are some proactive steps you can take to get a handle on your tax debt. If you need help resolving your IRS tax problem, contact us here Contact Us – Free Consultation. We help people with IRS problems every day.

Confirm the Amount Owed

When you owe back taxes, one of the first things you should do is make sure you owe the money. The IRS has made many mistakes, and the agency is far from foolproof. Contact the IRS or have us do an IRS transcript analysis to determine the amount the IRS claims you owe.

Seek Out Deductions You May Have Missed

At the very least, you may not owe as much as you think, and every dollar you can remove from the bill is one more dollar in your favor. Now is the time to scour your past and current tax returns, looking for deductions and tax credits you might have missed.

Unless you are a seasoned tax expert, you will probably need some professional assistance to make this happen. If you are already working with a CPA or tax expert, you can ask them to look at your past tax returns, but only a tax resolution expert, who helps people like you for a living, can protect your income and assets as you go through the process.

If you missed a few deductions and tax credits along the way, your tax professional could file amended returns on your behalf, lowering the amount of tax debt you owe – and possibly eliminating it altogether. However, you usually can’t go back more than three years to amend returns.

Look for Special Programs You May Qualify For

The bad news is the IRS wants its money and has the power to collect it.

The tax agency also offers programs tax filers can use to make the repayment process more manageable. In some cases, the IRS may even be willing to settle for less, possibly much less, than the total amount of back taxes you owe.

These programs are not available to everyone, and if you have the resources needed to pay your back taxes, the IRS is unlikely to give you much of a break. But if your resources are limited, the tax agency may decide that a small amount of tax repayment is better than none.

The first step in the process is finding the programs for which you might qualify, and that will probably require the help of an experienced tax resolution expert. Most CPAs do not have this experience. Negotiating with the IRS is not an easy thing to do, and you may need help to drive the best bargain and reduce your back taxes. In the end, it may be well worth paying a tax relief expert to negotiate on your behalf, especially if you end up with a much lower tax bill.

It is easy to panic when you owe back taxes, but you should not let fear get in your way. The longer you ignore the problem, the worse it is likely to get, and the sooner you act, the better off you and your finances will be. There is a solution to every IRS problem.

Let us help you find a solution to your tax problem. Call Harmon Tax Resolution, LLC today at 772-418-0949 or complete our online form to request a free consultation with a knowledgeable multi-licensed tax attorney-CPA-Enrolled Agent.

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