Thorough Tax specializes in assisting taxpayers with delinquent tax liabilities navigate through their debt resolution options. We provide clients our recommendation based on their specific circumstances and file the forms required by each respective tax debt relief/resolution alternative. Finally, as the taxpayer's legal representative, Thorough Tax acts as the point of contact until a decision is reached by the IRS and/or state taxing agency.
Below is a list of IRS Debt Resolution/Relief Programs available to qualified taxpayers and some basic information on each.
IRS Tax Debt Resolution/Relief Programs
Offer In Compromise
Partial Payment Installment Agreement
Currently Not Collectible Status
The IRS and state taxing agencies are relentless in pursuing collection on delinquent payments owed to them. In contrast to credit card companies & debt collection agencies the IRS & state taxing agencies have the ability to garnish wages, levy cash funds held in financial institutions and place liens on your property. Taxing agencies usually mail several notices before taking such drastic actions and give taxpayer's ample time to contact them to resolve their outstanding tax liabilities.
In many cases taxpayers can't afford to remit a one time payment to fully pay off their tax debts, hence they have no choice but to resort to applying for some type of Installment Agreement or requesting an Offer In Compromise.
Offer In Compromise (as defined by the IRS on their website https://www.irs.gov/taxtopics/tc204)
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer's tax liabilities for less than the full amount owed. Taxpayers who can fully pay the liabilities through an installment agreement or other means, generally won't qualify for an OIC in most cases. To qualify for an OIC, the taxpayer must have filed all tax returns, made all required estimated tax payments for the current year, and made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
To confirm eligibility and ensure use of the current application forms, use the Offer in Compromise Pre-Qualifier tool.
Installment Agreement & Payment Partial Installment Agreement
If you're not able to pay your balance in full immediately or within 120 days, you may qualify for a monthly installment agreement. An installment agreement allows you to make a series of monthly payments over time. If you can't fully pay under an installment agreement, you may propose a partial payment installment agreement. Additional forms and supporting documentation will have to be furnished to the IRS to substantiate claims of an inability to fully pay off balances under an installment agreement.
Contact us with any questions you may have regarding your personal and/or business tax situation