IRS Tax Relief - USA

IRS Forgiveness – Get a Fresh Start – Flat Fee Tax Service

The IRS current effort to help struggling taxpayers, the Internal Revenue Service announced in 2011 a series of new steps to help taxpayers can get a fresh start with their overdue income tax liabilities. In fact, the IRS program is called “the Fresh Start Initiative.”

The goal of the IRS is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.

The IRS Fresh Start Initiative centers on the IRS making important changes to its lien filing practices that will lessen the negative impact on taxpayers. The changes include:

  • Significantly increasing the dollar threshold when federal income tax liens are generally issued, resulting in fewer tax liens.
  • Making it easier for taxpayers to obtain tax lien withdrawals after paying a tax debt.
  • Withdrawing federal income tax liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
  • Creating easier access to IRS Installment Agreements for more struggling small businesses.
  • Expanding a streamlined Offer in Compromise program to cover more taxpayers.

“These steps are in the best interest of both taxpayers and the tax system,” Shulman (former IRS Commissioner) said. “People will have a better chance to stay current on their taxes and keep their financial house in order. We all benefit if that happens.”

This is another in a series of steps to help struggling taxpayers. In 2008, the IRS announced federal income tax lien relief for people trying to refinance or sell a home. In 2009, the IRS added new flexibility for taxpayers facing payment or collection problems.

TAKE ADVANTAGE OF CURRENT IRS POLICY BEFORE IT CHANGES

FLAT FEE TAX SERVICE1-866-747-7435

http://www.flatfeetaxservice.us

https://www.flatfeetaxservice.net

Federal Income Tax Lien Thresholds

The IRS will significantly increase the dollar thresholds when federal income tax liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised. Currently, federal income tax liens are automatically filed at certain dollar levels for people with past-due balances.

The IRS plans to review the results and impact of the federal income tax lien threshold change in about a year.

A federal income tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually, the government is not the only creditor to whom the taxpayer owes money.

A federal income tax lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter. A lien can affect a taxpayer’s credit rating, so it is critical to arrange the payment of taxes as quickly as possible.

“Raising the lien threshold keeps pace with inflation and makes sense for the tax system,” Shulman said. “These changes mean tens of thousands of people won’t be burdened by liens, and this step will take place without significantly increasing the financial risk to the government.”

Federal Income Tax Lien Withdrawals

The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.

Federal Income tax liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.

In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the federal income tax lien.

Direct Debit Installment Agreements and Federal Income Tax Liens

The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA). For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:

  • Federal income tax lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
  • The IRS will withdraw a federal income tax lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
  • The IRS will also withdraw federal income tax liens on existing Direct Debit Installment agreements upon a taxpayer request.

Federal Income tax liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored. The probationary period is usually three (3) months.

In addition, this lowers user fees and saves the government money by mailing monthly payment notices. Taxpayers can use the Online Payment Agreement application on IRS.gov to set-up with Direct Debit Installment Agreements.

“We are trying to minimize the burden on taxpayers while collecting the proper amount of tax,” Shulman said. “We believe taking away taxpayer burden makes sense when a taxpayer has taken the proactive step of entering a direct debit agreement.”

IRS Installment Agreements and Small Businesses

The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.

Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.

The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.

Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.

“Small businesses are an important part of the nation’s economy, and the IRS should help them when we can,” Shulman said. “By expanding payment options, we can help small businesses pay their tax bill while freeing up cash flow to keep funding their operations.”

The IRS Settlement – Offer in Compromise

The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.

This streamlined Offer in Compromise (OIC) is being expanded to allow taxpayers with annual incomes up to $100,000 to participate.

The Offer in Compromise (OIC) is subject to acceptance based on a complicated financial formula. An offer in compromise is a settlement agreement between a financially struggling taxpayer and the IRS that settles the taxpayer’s income tax liabilities for less than the full amount owed. Generally, an offer will not be accepted if the IRS believes that the income tax liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.

FLAT FEE TAX SERVICE

BBB BUSINESS
BBB Accredited – A Plus Rating

Like Us on Facebook:

https://www.facebook.com/flatfeetaxservice

“America’s Best & Most Affordable IRS Income Tax Relief Team”

US ROSE FLAG
IRS Tax Relief in the US

Offer in Compromise – Affordable IRS Settlement | Flat Fee Tax Service

An Offer in Compromise is an tax settlement with the IRS that allows a financially struggling taxpayer to settle an income tax debt for less than the full amount owed. An Offer in Compromise may be a legitimate option if the taxpayer cannot pay the full income tax liability, or doing so creates a financial hardship. The IRS must consider a taxpayer’s unique set of facts and circumstances:

  • Ability to pay;
  • Income;
  • Expenses; and
  • Asset equity.

The IRS will generally approve an offer in compromise settlement when the amount offered represents the most that the IRS can expect to collect within a reasonable period of time. The IRS will try and discourage a taxpayer. Explore all other payment options before submitting an offer in compromise. The Offer in Compromise program is not for everyone. If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.

FLAT FEE TAX SERVICE1-866-747-7435

http://www.www.flatfeetaxservice.us

https://www.flatfeetaxservice.net

BETTER BUSINESS BUREAU ACCREDITED

BBB A PLUS RATING

CLICK FOR HERE FOR OUR BBB RECORD

BBB BUSINESS
BBB Accredited – A Plus Rating

LIKE US ON FACEBOOK:

https://www.facebook.com/thebestirshelp

Make sure you are eligible to settle with the IRS:

Before the IRS will consider a taxpayer’s settlement offer, the taxpayer must be current with all filing and payment requirements. You are not eligible if you are in an open bankruptcy proceeding. Call the IRS tax relief team at Flat Fee Tax Service, Inc. for your free and confidential consultation. A consultation call to our team will be the quickest way for a taxpayer to find out their qualifications for an IRS settlement.

SubmitTING an Offer in Compromise:

A taxpayer can submit an Offer in Compromise (IRS settlement) on their own. It is not recommended. Presently, at the time of this writing, the IRS is accepting 40% of the settlement offers that are submitted. Most of the 40% used a tax professional.

The clients who use Flat Fee Tax Service, Inc. have had a 95% success rate. 

If you are stubborn and want to do your own settlement, you will find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B.  A taxpayer’s completed offer package must include:

  • Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
  • Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
  • $186 application fee (non-refundable); and
  • Initial payment (non-refundable) for each Form 656.

Select payment option:

The taxpayer’s initial payment will vary based on the offer and the payment option chosen:

  • Lump Sum Cash: Submit an initial payment of 20 percent of the total offer amount with the application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
  • Periodic Payment: Submit an initial payment with the application. Continue to pay the remaining balance in monthly installments while the IRS considers the settlement offer. If accepted, continue to pay monthly until it is paid in full.

Should a financially distressed taxpayer meet the Low-Income Certification guidelines, the taxpayer does not have to send the application fee or the initial payment and the taxpayer will not need to make monthly installments during the evaluation of the offer. Check the application package for details.

You Need to Understand the Entire Process:

While an IRS settlement offer is being evaluated:

  • The taxpayer’s non-refundable payments and fees will be applied to the income tax liability (payments can be designated to a specific tax year and tax debt);
  • A Notice of Federal Tax Lien may be filed;
  • Other collection activities  (levies) are suspended;
  • The legal assessment and collection period is extended;
  • Make all required payments associated with the settlement offer;
  • The taxpayer is not required to make payments on an existing installment agreement; and
  • The settlement offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.

IMPORTANT NOTE:

If a taxpayer decides to do their own Offer in Compromise, the settlement offer had better be done correctly the VERY 1st TIME. The reason is this: the IRS suspends the Statute of Limitations during the Offer in Compromise submission process. That means if the settlement offer is rejected for any reason, the IRS has extended the time to enforce collection.

DO IT RIGHT THE FIRST TIME AND AVOID A LOT OF TROUBLE

FLAT FEE TAX SERVICE:

  1. Guided by our Christian Values which is why we do not have Client Complaints.
  2. Accredited by the Better Business Bureau. A Plus Rating. Check our BBB reviews for yourself.
  3. Experienced IRS Tax Attorneys will work directly with you throughout the process.
  4. Stop, remove and release an IRS wage levy in one day.
  5. 95% of our clients who submit an IRS settlement have received a successful Offer in Compromise.
  6. Very Affordable Fees. Fees can be stretched out over 10 to 12 months.
  7. Our clients receive positive results.

FLAT FEE TAX SERVICE – 1-866-747-7435

https://www.flatfeetaxservice.net

“America’s Best & Most Affordable IRS Tax Relief Team”

US ROSE FLAG
IRS Tax Relief in the US

How Much Money will the IRS Settle For | Flat Fee Tax Service

The average amount that the IRS settles for in an offer in compromise is currently $6,629.  Sounds good, does it not? If only an IRS settlement was that easy, every taxpayer would be submitting IRS settlements, right?

These are the facts. In 2014, the IRS received 68,000 offers in compromise from taxpayers. The IRS accepted 27,000 of those settlement offers. The IRS accepted 40% of the settlement offers submitted.

FLAT FEE TAX SERVICE CLIENTS HAVE A 95% SUCCESS RATE 

The total amount accepted in all Offers in Compromise in 2014 was $179 million which is an average income tax settlement of $6,629.

The above statistics do not mean that a financially struggling taxpayer will settle with the IRS for that amount, or that there is a 40% chance your IRS settlement offer will be accepted.

The IRS uses a very specific and complicated formula in determining the settlement value of an Offer in Compromise and whether or not to accept or reject it.  Your success depends on how a taxpayer fits into the IRS formula.

The Offer in Compromise program formula works like this:

  1. The IRS will figure out how much they think that a taxpayer can pay them every month in an installment agreement. They do this by asking for your pay stubs or, if you are self-employed, a recent profit and loss statement from your business.
  2. The IRS wants to know about your monthly living expenses.  Some of those expenses such as your housing and utilities, car payment(s) and food/clothing will subject to IRS limitations. The IRS calls these limitations Collection Financial Standards, often referred to as allowable living expenses. The IRS is trying to create more cash flow than the struggling taxpayer will actually have by limiting the expenses to amounts the IRS thinks are reasonable.

The taxpayer’s monthly income, minus the allowable living expenses, equals the taxpayer’s monthly cash flow.  The IRS is going to put a value on the cash flow for purposes of determining the Offer in Compromise settlement value.

If the taxpayer can pay the IRS the offered settlement within five months after acceptance, the IRS values your monthly cash flow by multiplying it by a factor of 12. $200 of monthly cash flow will equate to an offered settlement valuation of $2,400.

If the taxpayer is unable to pay the settlement in full within five months, the IRS will grant you 24 months payment terms. However, your monthly cash flow ($200/month in our example) would be multiplied by a factor of 24, increasing the settlement offer to $4,800. The IRS will give the taxpayer a discount for paying the IRS the offered settlement sooner rather than later.

After determining the value of the settlement offer, the IRS will then turn to a valuation of the taxpayer’s assets, and add that to the value of your cash flow.  How much is your “stuff” worth?  Your car, house, retirement plan?  Subtract any loans to arrive at equity, and in most cases, reduce that by 20% to get to your IRS valuation.

Add your cash flow (multiplied by a factor of 12 or 24) to your asset value, and you have your proposed IRS settlement amount.

The taxpayer’s success with an offer in compromise is based on a full understanding of the IRS investigative process into the income, living expenses and assets of the taxpayer. It is not a one size fits all situation. The amount of one taxpayer’s settlement has no bearing on the success of another taxpayer.  The IRS does not have a set percentage of settlement to the amount owed.  

The taxpayer’s settlement offer depends on convincing the IRS that your financial situation is dismal and that the IRS will never get paid after applying their internal guidelines.

ARE YOU READY FOR A FRESH START?

FREE & CONFIDENTIAL CONSULTATION

1-866-747-7435

https://www.flatfeetaxservice.net

http://www.flatfeetaxservice.us

https://www.facebook.com/thebestirshelp

FLAT FEE TAX SERVICE:

  1. Guided by our Christian Values is the reason we do not have client complaints.
  2. Accredited by the Better Business Bureau. A Plus Rating. Check our testimonials on the BBB website.
  3. Experienced IRS Income Tax Attorneys work directly with you.
  4. Stop, Remove, Release an IRS wage levy in one (1) day.
  5. 95% of our clients who have submitted an IRS Offer in Compromise has received a successful IRS settlement.
  6. Very Affordable Fees. 10 to 12 months to pay our fees.
  7. Our Clients Receive Positive Results.

“America’s Best & Most Affordable IRS Tax Relief Team”

US MAP
IRS Tax Relief in the US

IRS Levy | Social Security | Flat Fee Tax Service

The tax professionals at Flat Fee Tax Service have helped countless taxpayers who have had their Social Security and Social Security Disability (SSDI) benefits seized by the IRS. The IRS, through the Federal Payment Levy Program (FPLP), can seize as little as 15% of your benefit check.
A taxpayer may have retired and now draws on their Social Security or may be unable to work due to disability and now receives Social Security Disability (SSDI). The IRS may have previously placed a financially struggling taxpayer in currently not collectible status (CNC) because they did not have enough income to pay an overdue income tax debt. Now that a taxpayer is drawing money from Social Security, do not be surprised to receive a notice from the IRS that the Internal Revenue Service is going to be taking part of the taxpayer’s check each month.

A taxpayer may have thought they were in Currently not Collectible status only to find out that their check is 15% short of the full benefit. Can the IRS really seize social security? Yes, the IRS can and will take at the minimum 15% unless steps are taken to stop, remove and release the IRS levy.

IRS WAGE GARNISHMENT

What is Currently not Collectible?
Currently not Collectible status (CNC) simply means that the IRS won’t try to collect taxes at the current time. Should a taxpayer be placed in Currently not Collectible status (CNC), a Federal Tax Lien will be filed. If your credit is important to you, this will be an issue. The income tax debt owed will continue to accrue penalties and interest. The IRS can rescind the taxpayer’s Currently not Collectible anytime that they choose without warning. To be placed in Currently not Collectible status, a taxpayer will have to show the IRS there is not enough income to pay the IRS and meet the taxpayer’s basic necessities. Most often, Currently not Collectible (CNC) will necessitate filling out a Form 433-F (Financial Asset Form). This IRS form requires a taxpayer to list all of their income, assets, and expenses. Use the IRS National Standards for personal/ food expenses and medical expenses without having to prove your actual expenses. A taxpayer will be limited to claiming the national standards on all expenses unless it is proven that a taxpayer has a special circumstance that makes their expenses higher. A taxpayer can find the National Standards on the IRS.gov website.
How does Currently not Collectible status effect how much income tax is owed?
The interest and penalties on your account continue to increase.
Can the IRS change a taxpayer’s status?
Yes, the IRS can change the taxpayer’s status at any time. The IRS will take a look at your status every twelve (12) to twenty-four (24) months or so. The IRS will also look at any change in income.
Can the IRS really take my social security or Social Security Disability (SSDI)?
The IRS can and will take a taxpayer’s social security retirement benefit or social security disability benefits once the IRS computer discovers that a taxpayer is receiving a government check. As a general rule, the IRS will limit what they take to 15% per the Federal Payment Levy Program (FPLP). The IRS should not take Supplemental Security Income (SSI) benefits. These benefits are considered public benefits and are usually assumed to be only enough to provide for basic necessities. Please note, the IRS can take more than 15% should a Revenue Officer issue a Manuel Levy.
Although the IRS is supposed to prevent certain very low-income social security retirement and social security disability recipients from being placed in the federal payment levy program, we all know that is a rule that is often broken. This screening program is not full proof so taxpayers still may have to submit a 433-F to be put into currently not collectible status.
What if a taxpayer does not believe they owe the IRS the past due income taxes?
If a taxpayer has never received a notice of levy before, a request for a Collection Due Process hearing (CDP) is an option. A Collection Due Process (CDP) hearing will allow a financially struggling taxpayer to present evidence that the IRS should not levy on Social Security benefits. A taxpayer could also challenge the income tax debt if the taxpayer has not had a chance to challenge it before. A taxpayer might not have been able to challenge the income tax debt if the IRS did not issue the right notice or mailed the notice to the wrong place.
If a taxpayer received the notice but decided not to respond, the taxpayer cannot challenge the income tax debt in a CDP hearing. A taxpayer might be able to ask for an audit reconsideration. In an audit reconsideration, the taxpayer will tell the IRS why their decision was wrong and provide them with any evidence that will help the IRS change their mind.
If the taxpayer is Currently not Collectible should they do an Offer in Compromise?
Now we are talking about an actual permanent solution to the financially struggling taxpayer’s income tax problem. If the IRS has already declared the taxpayer to be unable to pay the overdue income tax debt, why not take the extra step and retire the income tax debt altogether through an IRS settlement? If a taxpayer has no assets and is relying on Social Security benefits to live on, it would behoove the taxpayer to get rid of the tax debt. Many of the same IRS rules that govern being Currently not Collectible work for the Offer in Compromise program.
During the Offer in Compromise process, the IRS must leave the taxpayer alone. That means no levies. No enforcement actions. If you have no assets and only have your Social Security, your IRS settlement should be very, very small. At the end of the Offer in Compromise process, the taxpayer will have no IRS income tax liens.
YOU WILL RECEIVE THE FRESH START THAT YOU NEED
When we receive a call from a taxpayer who is or was declared to be Currently not Collectible, we explain the settlement program this way: If you were running a marathon, would you stop running when you were 200 yards from the finish line? Of course not. Finish the race. Settle with the IRS for less.
Where can a taxpayer get IRS help if they need it?
You can receive expert IRS tax representation at Flat Fee Tax Service We are “America’s Best & Most Affordable IRS Tax Relief Team.”
FLAT FEE TAX SERVICE:
1. Guided by our Christian Values is one reason why we do not have client complaints.
2. Accredited by the Better Business Bureau. A Plus Rating. Read our BBB testimonials for yourself.
3. Experienced IRS Tax Attorneys work directly with the troubled taxpayer.
6. Low, Affordable Fees for everyone. 10 to 12 months payment plans.
7. Our Clients Receive Positive Results.
Maintaining household income is a basic need.
1-866-747-7435

US MAP
BBB Accredited – A Plus Rating

IRS Wage Garnishment | Los Angeles California | Flat Fee Tax Service

LOS ANGELES – HAVE AN INCOME TAX DEBT?

CALIFORNIA – HAVE AN IRS TAX LEVY PROBLEM?

If a taxpayer does not take action to remedy back tax problems, the IRS issue a levy order and an employer will be legally obligated to garnish and seize a taxpayer’s paycheck until such time that either the income tax debt is paid off or the struggling taxpayer resolves the tax debt problem in some other way.

Unlike an IRS bank levy, an IRS wage garnishment is continuous. In other words, an IRS income tax wage levy (garnishment) will not be stopped, released and removed by the IRS until such time that the tax debt is satisfied or resolved in some way.

Also, please note that states, like California, will also issue a wage garnishment to collect tax debt. In fact, the State of California Franchise Tax Board has a very proactive and aggressive program to collect any back taxes that the State of California is owed.

STOP AN IRS WAGE GARNISHMENT IN ONE DAY – 1-866-747-7435

An IRS wage levy (also called garnishment) is the inevitable result of underlying back income tax problems. The purpose and goal of Flat Fee Tax Service, Inc. are to solve a struggling taxpayer’s income tax problem, once and for all. Our team of IRS tax professionals will stop the IRS wage garnishment in one (1) day.

The big picture solution will involve the resolution of the entire income tax problem. After the IRS levy is released, stopped and removed, our client will have a tax debt that still needs to be remedied.

Many taxpayers with an income tax problem, will have unfiled missing tax returns. Our team will make sure to get the taxpayer’s back tax returns are prepared and filed right away so that the taxpayer becomes compliant (rights are restored) with the income tax laws.  Our IRS Tax Attorneys will protect our client’s interests. Our clients will have reached a reasonable payment plan, be placed into Currently not Collectible status with IRS or, better yet, will reduce the income tax debt through an Offer in Compromise (IRS settlement).

If a taxpayer receives an enforcement letter from the IRS or the taxpayer’s employer informs he/she regarding a wage garnishment, it is important that Flat Fee Tax Service, Inc. be contacted immediately. You have a very short time frame (when is the next payday?) to take action to stop, release and remove aggressive IRS collection seizure. The experienced IRS tax professionals at Flat Fee Tax Service will take charge and have the IRS wage garnishment (tax levy) stopped, released and removed in 1 day.

STOP IRS LEVY – IRS WAGE GARNISHMENT IN 1 DAY

1-866-747-7435

http://www.flatfeetaxservice.us

https://www.flatfeetaxservice.net

https://www.facebook.com/thebestirshelp

US MAP
IRS Tax Relief in the US

Currently not Collectible | IRS Hardship | Flat Fee Tax Service

IRS Hardship – Currently Not Collectible

IRS Hardship is for financially struggling taxpayers who are unable to pay their back income tax debt.  The real term used by the IRS is Currently Not Collectible (CNC) Status.

IRS Hardship – What Does it Mean for You?

What are the options for a taxpayer who owes the IRS for back Income taxes but is unable to pay? What are your options if the taxpayer is unable to pay the past due to income tax because you have just enough money to support yourself and your family?  Once a taxpayer is declared by the IRS to be Currently not Collectible (IRS Hardship), the IRS will not take/seize your property. The IRS will not take your paycheck (IRS wage garnishment) or wipe out your bank account (IRS Bank Levy) while the taxpayer is in IRS Hardship (Currently not Collectible).  IRS Hardship will not remove the back income taxes that owed by a taxpayer. The financially struggling taxpayer will still owe back income taxes.  Every year the IRS will mail out a reminder letter regarding the income taxes owed.

FREE & CONFIDENTIAL CONSULTATION1-866-747-7435

http://www.flatfeetaxservice.us

IRS Penalties and Interest

IRS Hardship does not stop IRS penalties and interest to accrue.  The IRS will continue to charge penalties and interest and the IRS will file a Federal Tax Lien.

IRS Hardship Status – How Long Will it Last?

IRS Hardship (Currently not Collectible) status could last up to 10 years.  Generally, the IRS has 10 years to collect overdue income taxes.  After 10 years, the IRS is supposed to remove the back taxes.  For example, if a taxpayer filed their 2009 tax return on time, back taxes for 2009 will be owed.  The IRS can collect the back taxes until 2020.  If the 2009 taxes are in IRS Hardship status, the IRS will leave the taxpayer alone. A taxpayer may be able to stay in IRS Hardship status for the next 10 years.  After 2020, the IRS will remove 2009 taxes.

The IRS will review a taxpayer’s income situation approximately once every two years.  If the taxpayer’s income has increased, the IRS may take the taxpayer out of IRS Hardship (Currently not Collectible) status.  The IRS believes the delinquent taxpayer is better able to support themselves and pay the back income tax debt.

If A Taxpayer Has New IRS Back Income Taxes

What if a taxpayer expects to owe new taxes for this year?  The back income taxes that are owed are in IRS Hardship status.  Will the new taxes be automatically included in the IRS Hardship status?  The answer is no.  Every tax year is treated separately.  For example, you could owe back taxes for 2005 – 2008, and new taxes for 2010.  2005 – 2008 are in IRS Hardship status but 2010 is not.  The IRS can pursue the taxpayer for the new 2010 taxes but not 2005 – 2008 back taxes.

If you are in this situation, the tax professionals at Flat Fee Tax Service recommend that you pursue an IRS settlement (Offer in Compromise).  This should not affect your IRS Hardship status. If the IRS has declared that you are unable to pay them for the income taxes that you owe, then it’s a very important step toward having your entire income tax debt settled.

If the struggling taxpayer is unable to pay off the new taxes, the taxpayer can request to put the new tax debt in IRS Hardship status. The taxpayer can continue to be Currently not Collectible but it would be so much better to have all of the income tax debt wiped out through the Offer in Compromise program.

IRS Hardship Tax Forms

The IRS will request financial information to show that the taxpayer is an IRS Hardship.

IRS Form 433-A or IRS Form 433-F – Used for individuals or self-employed requesting IRS Hardship Status.

IRS Form 433-B – Used for C Corporations, S Corporations, and Partnerships requesting IRS Hardship Status.

Difference Between IRS Hardship and IRS Settlement

An IRS settlement submitted through the Offer in Compromise program is a more complete solution compared to IRS Hardship. An IRS Settlement is an agreement between the IRS and the delinquent taxpayer to pay less than what is owed.  The IRS Settlement process usually takes approximately 10 months but can take as little as 6 months and as much as 24 months.  After the IRS settlement agreement is finalized, the delinquent taxpayer will be done. The taxpayer will no longer owe back income taxes.

There is a huge difference between being in IRS Hardship and proceeding with an Offer in Compromise settlement. During the Offer in Compromise process, the IRS must leave taxpayer alone. The IRS may or may not leave the taxpayer alone while in IRS Hardship status.  Also, while in IRS Hardship, the delinquent taxpayer could be dealing with their past due to income taxes for the next 10 years.  Most people are uncomfortable with this.  A taxpayer should be uncomfortable with this. A taxpayer may not like the thought of owing back taxes even though the IRS is not coming after the money.

To Know More About the IRS Settlement Process Read This: IRS Settlement

IRS Hardship may be a better option if a taxpayer is not qualified for an IRS Settlement. But, know this, if the IRS has already declared that a taxpayer is unable to pay the overdue income taxes, it is only a “hop, skip and jump” to wiping out the income tax debt altogether.

The IRS income tax relief team at Flat Fee Tax Service will have a taxpayer placed into IRS Hardship / Currently not Collectible status if the taxpayer is unable to pay the back income tax debt and is not qualified for an Offer in Compromise settlement. The financially struggling taxpayer will still owe the back taxes but the IRS will not pursue the taxpayer. Our clients are able to take a deep breath and go about their normal everyday life. A taxpayer may stay in IRS Hardship status for the next 10 years. After 10 years, the IRS will remove the back taxes.

FLAT FEE TAX SERVICE:

  1. No Client Complaints.
  2. Accredited by the Better Business Bureau A Plus Rating. Check out our BBB Reviews.
  3. Experienced IRS Income Tax Attorneys work directly with you.
  4. IRS Wage Garnishment – Tax Levies Stopped, released and removed in one (1) day.
  5. 95% of our clients who have submitted an IRS Offer in Compromise have received a successful IRS settlement.
  6. Very Affordable Fees. Our fees can be stretched out over 10 to 12 months.
  7. Our Clients Get Positive Results.

“America’s Best & Most Affordable IRS Tax Relief Team”

US MAP
IRS Tax Relief in the US