Frequently Asked IRS Questions - IRS Tax Attorneys Answers Frequently Asked IRS Questions



Can you, the financially struggling taxpayer, settle with the IRS?

Yes, you can. Offer in Compromise is an IRS program where you can settle your tax debts for less than what you owe. Requires either making a lump sum or short-term payment plan to pay off the IRS at a reduced dollar amount. If you owe the IRS more than you can afford to pay, this could be the plan for you.

Can I offer the IRS a settlement?

An IRS settlement through the Offer in Compromise program allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship.

How much can you settle your tax debt for?

Each Offer in Compromise is different. The IRS Tax Attorneys at Flat Fee Tax Service, Inc. have settled many of our clients for $100 to $500. Now, that does not mean that you can settle with the IRS for those same amounts. Our team of IRS settlement experts will get you the lowest Offer in Compromise possible.

What is the Fresh Start Initiative program with the IRS?

An Offer in Compromise is a settlement agreement that allows taxpayers to settle their tax debt for less than the full amount. The Fresh Start Initiative was expanded by the IRS and streamlined the Offer in Compromise program. The IRS now has more flexibility when analyzing a taxpayer's ability to pay. This makes the Offer in Compromise program available to a larger group of taxpayers.

Can the IRS collect after 10 years?

There is an IRS statute of limitations on collecting taxes. The IRS is limited to 10 years to collect back taxes, after that, they are barred by law from continuing collection activities against you.

What is the Flat Fee Tax Service, Inc. record for successful IRS settlements?

95% of Flat Fee Tax Service, Inc.'s clients have been successful in receiving an IRS settlement.

What percentage of Offer in Compromise submissions is approved by the IRS?

Per 2016 IRS statistics, the IRS approved 42% of the Offer in Compromise submissions.

Can you, the struggling taxpayer, negotiate a tax debt with the IRS?

If you can't pay the taxes you owe the IRS, you have only two options: negotiate a payment plan or ask the IRS to allow you to pay a reduced amount through an Offer in Compromise.

What happens if you owe taxes and can't pay?

If you can't pay your tax bill by the time it is due, don't avoid the bill. You can file Form 9465, Installment Agreement Request, to set up installment payments with the IRS. The IRS must allow you to make payments on your overdue taxes if you prove you can't pay the amount you owe now.

How does an Offer in Compromise affect your credit?

An Offer in Compromise does not affect your credit. Credit services have no idea that you have filed an Offer in Compromise or are seeking tax relief. Once the offer is accepted and paid, any federal tax lien should be released.

What is the minimum amount I can pay the IRS?

If you owe less than $10,000 to the IRS, your installment plan will generally be automatically approved as a "guaranteed" installment agreement. Under this type of plan, as long as you pledge to pay off your balance within three years, there is no specific minimum payment required.

Can you go to jail for not filing a tax return?

Yes, you can. There is a statute of limitations for criminal penalties: After six years, you can't go to jail for not paying taxes. But if the IRS ever discovers that you didn't file your taxes, they can still force you to pay civil penalties.

Can IRS take your car if you own?

The IRS has the power to seize property, to issue IRS wage garnishments, and to issue bank levies. However, in most cases, if a taxpayer is cooperative with the IRS in attempting to resolve their tax debt problems such an extreme action by the IRS won't occur.

What happens if you don't pay taxes for several years?

If you have not paid taxes for several years and had a tax liability for those years, the IRS will want to receive as much of your unpaid tax debt as possible. You will also owe interest on the unpaid amount of taxes. You can only file tax returns for the last three years to receive a refund.

How to Get an IRS Wage Garnishment Released.
1. Assume the position. Before you get the IRS to play nice, you have to comply with their rules.
2. Pay your tax debt off. Easy if you have the money. Not so easy if you do not.
3. Make the IRS an Offer in Compromise "they can't refuse".
4. Make payments through an Installment Agreement.
5. Plead poverty and financial hardship. If successful, this will result in being declared Currently not Collectible.

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