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10 Ways to Deal with Tax Debt

How to deal with back taxes

 

Dealing with the IRS can be stressful and intimidating. They have the power to seize your assets, garnish your wages, and put a lien on your property in order to retrieve the money that is owed to them. Many taxpayers turn to professional tax services to represent them and maximize their chances of winning a tax settlement. The IRS will find you, so do communicate with them and they should be more than willing to work with you. Here are several ways to help you resolve your tax debt issues.

 

1. Installment Agreement

Taxpayers that are unable to pay their tax debts immediately can make monthly payments. You can reduce or eliminate your penalties and interest as long as you pay your debt in full. To be eligible to apply online, individual taxpayers must owe $50,000 or less in combined individual income tax, penalties and interest, and have filed all required returns. A business taxpayer must owe $25,000 or less in payroll taxes and have filed all required returns. If you don’t qualify for an online payment agreement, you can still apply by completing the necessary forms and mailing them in.

 

Make sure you read and understand your agreement to avoid default. Future tax refunds will be applied to your tax debt until it is paid in full. Always pay your minimum monthly payment when it is due. Tax returns must be filed in a timely manner and taxes must be paid in full and on time.

 

2. Offer in Compromise

A qualified tax resolution specialist can help you determine if this program is suitable for your situation. This program reduces your tax debt to the IRS by allowing you to pay in one lump sum or a short term payment plan. This plan is great for taxpayers that owe more than they can afford. The IRS will allow you to pay a smaller negotiated amount as a final payment.

 

3. Currently Not Collectible

A taxpayer must show proof that there is no future possibility for payment. If the IRS declares you “Currently Not Collectible,” you can file a collection appeal and stop an IRS lien, levy, seizure or the denial or termination of an installment agreement.

 

4. File For Bankruptcy

Under Chapter 7 or Chapter 13 of the Bankruptcy Code, income tax debts may be eligible for discharge. Chapter 7 provides all allowable debts to be discharged and Chapter 13 allows for a payment plan for some of the debts while discharging the remainder of debts. Only file for bankruptcy if you meet the requirements and you have weighed the pros and cons. A bankruptcy can remain on your credit for up to 10 years.

 

5. Release Wage Garnishments

The IRS can garnish your wages, salary, or federal payments until your tax debt is paid off. If you can’t afford to pay your necessary living expenses, you can try and negotiate for a release or modification of your wage garnishment.

 

6. Release from Levying Your Bank Account

A bank levy issued by the IRS can take cash from your savings and checking accounts to collect on unpaid tax debts. If you can get a release from the bank levy it could help you in using one of the other IRS programs by freeing up money. This will allow you to apply for an installment plan or pay a smaller sum rather than the entire debt.

 

7. Innocent Spouse Tax Relief

You can inherit your spouse’s tax debt, but if you can show proof that you fall within the IRS guidelines for innocent spouse tax relief, you may be able to release yourself from your spouse’s tax debts.

 

8. Statute of Limitations

The IRS has 10 years to collect any taxes, penalties, and interest from the date of assessment. Having this in mind, gives you the opportunity to file a collection appeal to stop a levy, lien, seizure or the denial or termination of an installment agreement.

 

9. Filing Late Tax Returns and Amended Returns

Legally, you can still apply for any tax deduction you are entitled to in order to reduce your tax debt even if you are filing late, or discover the deduction late. This can require the assistance of a tax professional such as a CPA, Enrolled Agent, or tax attorney.

 

10. Hire A Professional

We, at Landmark Tax Group, have seasoned tax relief experts that can help you strategize and come up with the best possible solutions in resolving your tax debt. We assess which programs you may qualify for and negotiate on your behalf while giving you peace of mind.

Beware of tax scam companies that promise to save you “pennies on the dollar.” These companies can cause you to incur extra penalties and fees leaving you deeper in debt.

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Contact us now at 1 (949) 260-4770 for a FREE, no-obligation consultation with our CPAs, Enrolled Agents, and former IRS Agents.  

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Very good experience and glad I made the decision to use this company. Michael was professional and courteous in all of my dealings with him. My tax dilemma was quickly resolved and Michael even waived much of his normal fee. Where else have you heard of a business doing that? Without question, I would recommend Landmark Tax Group for anyone seeking a fair resolution for a tax problem.

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I received great advice in how to deal with the FTB, i don’t review often, but when someone is honest and legitimate, they do deserve a review.  My questions were answered, and if i didn’t quite understand, Micheal was more than willing to give me follow-up answers to better help me.  I highly recommend Landmark Tax Group, just for the mere fact that they treat you as a human being, Not a cash cow.

I had some returns from previous years to complete after receiving a hefty bill from the California Franchise Tax Board.  Michael was prompt in answering my questions and very helpful and reassuring.  We had several back and forth communications and this was all done for free since they do not prepare tax returns.  He gave me some contacts and advice and now I’m on my way to getting my situation resolved.  I’m very thankful for his advice and guidance.

While Michael’s scope of practice meant that we ultimately could not work directly to resolve the issue I was having, he was very prompt, professional, generous and kind in taking time out of his schedule to consult with me, refer me to his network of colleagues- not just once, but a second time even months after. Some professionals are just after services and compensations but Michael strikes me as someone who genuinely cares about your situation and wants to see to it that it gets resolved. These other reviews speak to that as well. You never want to be in a situation where you need to be looking up tax help, but God forbid you ever are, Michael is the person you want in your corner!

Michael and Landmark Tax Group were simply awesome. I like so many others had a year’s old tax issue arise with California FTB. I no longer live there which compounded the stress of the situation. The state had seized monies and filed a lien. After a call to an online tax relief place and some sketchy phone calls I was so happy to find Michael and immediately felt in good hands… at a time of considerable panic.
Fast forward to today and with his help I am totally debt free. He saved me $23,000
I highly recommend Michael and Landmark Tax Group

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After calling the other highly advertised tax assistant agency’s and being disappointed with how they responded to my tax matter, I feel fortunate to have found out about the Landmark Tax Group. Michael was very understanding of my situation, and I felt very comfortable dealing with him. He was very knowledgeable and professional in handling our tax issue in a timely manner. I would highly recommend The Landmark Tax Group to anyone who needs assistance in dealing with the IRS.

Wow, just wow. I called Michael today to ask about some major tax issues I had with a defunct corporation I’d started years ago. Michael talked to me for about half an hour, walking me through options and generally helping me understand my options.

Because of him, I’m going to rest nicely tonight for the first time in weeks. It was great to hear that he used to work in IRS collections for 8 years too… which made me feel a lot more secure in his answer.

In all, I’m completely stunned by the level of service he gave to a random stranger who called in and wasn’t going to turn into any revenue for him. I have to imagine that his level of service for actual customers is unreal.

Fast, dependable, reliable, full transparency.  Michael Raanan of Landmark Tax Group allayed my fears spending the rest of my senior years paying my tax debt.  As a result of his extensive knowledge of the tax code, the right questions to ask, and his dedication to my case, I had information, resolution and a plan of action within 24 hours, start to finish.  Amazing!  I highly recommend Landmark Tax Group!

We were very pleased with the expert assistance we received from Michael Raanan at Landmark Tax Group.  In a matter of months we had a resolution to our IRS tax issue.  He was very knowledgeable, professional, explained things in easy to understand terminology & was very easy to discuss our tax issues with.  We called around to other tax groups & just felt the most comfortable speaking & working with Michael.  We are happy to recommend him & his firm.

Great place for tax [relief] advice. Even if they don’t see a need for you to use and pay for their service, they’ll still give you excellent advice and direction at no cost. They are worth a call.

Michael Raanan represents the highest level of professionalism, integrity, decency, and true concern for his clients. His advice every step of the way was right on target.  The end result was a savings of $13,000 on my taxes.

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Oh, did I mention how reasonable his fees are? Exceptional considering the amount of attention he provides.

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