Resolving Back Tax Liabilities
Getting back on track.
Dealing with back tax liabilities can be a daunting task, but understanding and utilizing the various IRS programs available can pave your path to financial freedom. At Kick Tax Pro, we specialize in guiding you through these options, ensuring you find a resolution that suits your financial situation.
Navigating IRS Statutes of Limitations
The IRS typically has three years from the date of filing to audit a tax return and ten years to collect any owed taxes. However, if returns are not filed, these limitations do not begin. This situation can lead to prolonged uncertainty and potential legal issues. By getting current with your tax filings, you start these limitation periods, moving closer to resolving any tax liabilities and reducing the risk of extended IRS scrutiny.
1. Installment Agreements: Flexible Payment Plans
- Streamlined Installment Agreements: For tax debts under $50,000, these agreements allow you to pay over 72 months without extensive financial disclosures. This option is best for those who can manage regular payments over time to clear their debt.
- Balances Between $50,000 and $100,000: If your debt falls within this range, it requires more comprehensive financial disclosure. These agreements often involve negotiating with the IRS to determine a feasible payment plan, taking into account your current financial situation.
- Debts Over $100,000: Larger tax debts necessitate a detailed financial analysis. We work closely with you to develop a comprehensive proposal to the IRS, aiming to structure a payment plan that aligns with your ability to pay.
2. Offers in Compromise (OIC): Settling for Less
- An OIC lets you settle your tax debt for less than the full amount owed. This option is viable if full payment would cause significant financial hardship.
- Eligibility Criteria: We help you navigate through the complex process of proving financial hardship. This includes detailed documentation regarding your income, expenses, asset equity, and ability to pay.
- Negotiating with the IRS: Our team of experts will negotiate with the IRS on your behalf to reach a settlement that accurately reflects your financial capacity.
3. Currently Not Collectible (CNC) Status: A Breathing Space
- If you’re unable to pay your tax debt due to financial hardship, you might qualify for CNC status. This temporarily halts IRS collections, providing relief until your financial situation improves.
- Assessment and Documentation: We help in providing the IRS with the necessary documentation to prove your inability to pay, ensuring that your account is rightly classified as CNC.
4. Partial Payment Installment Agreements (PPIA): A Compromise Solution
- PPIAs are for taxpayers who can’t settle their tax debts in full. These agreements allow for lower, more manageable payments over a longer period.
- Tailored Payment Plans: Our approach involves a thorough analysis of your finances to propose a payment plan that is both affordable for you and acceptable to the IRS.
Proactive Approach: The Key to Resolution
Taking proactive steps towards resolving your back tax liabilities is essential. Ignoring these issues can lead to mounting penalties, interest, and enforcement actions such as liens or levies by the IRS. It’s crucial to establish a manageable plan to address these debts.
Your Partner in Resolution
We provide personalized assistance, from assessing your situation to handling negotiations with the IRS. We aim to secure the most advantageous resolution for your tax debts, reduce your stress, and restore your financial stability. Reach out to us today to begin your journey toward resolving your tax challenges.
