irs Tax relief Solutions

How an IRS Installment Agreement Works

Similar to other payment plans offered by the IRS, any delinquent tax returns must be filed before applying for an installment agreement. When you’re ready to apply, Boulanger CPA and Consulting PC will file IRS Form 9465 on your behalf to request an installment agreement. The IRS charges a fee to set up the agreement and even if they grant it, you'll continue to be charged interest as you pay off your tax debt.

Installment Agreement Payment Plans

Certain plans only require a small monthly payment until the statue of limitations is reached and then the rest of the tax debt is cleared. Other kinds of plans may demand a full repayment and require a larger monthly payment but, even in these cases, the increments are designed to be reasonable so the goal of paying off the tax debt can be achieved. The designated amount of the monthly payment will be determined by weighing the overall tax bill against what the taxpayer has the ability to pay. These installments must be consistently paid on time to avoid defaulting on the agreement.

What Type of Installment Agreement is Right for You?

The IRS offers different types of installment agreements and some have specific requirements you must meet in order to successfully set up the payment plan. An installment agreement is often fairly easy to obtain when the amount of taxes you owe doesn't exceed $25,000 and you have a qualified tax professional like Boulanger CPA and Consulting PC helping you file the necessary documentation. Even if you owe a larger amount, our CPA or EA's will work with the IRS to find the best solution to settle your tax debt. Call us at 657-218-5700 now or request a consultation through our website.

Offer in Compromise

An offer in compromise (OIC) is a unique settlement option where the IRS agrees to accept less than a taxpayer actually owes. For taxpayers that feel the assessed amount of their tax bill was unfair or for those who may never be able to pay their entire tax bill due to a financial hardship, this could be an attainable settlement option. Obviously, the IRS does not easily accept this type of offer. But, if your case meets the requirements, a skilled CPA or EA like Boulanger CPA and Consulting PC can construct a sufficient offer. First, you'll need to find out if you qualify for an offer in compromise under current IRS guidelines.

Doubt as to Liability

To qualify for this provision, a taxpayer must deliver ample evidence that the assessed tax liability is incorrect and consequently, they should not be liable for the full amount.

Doubt as to Ability to Pay

If a taxpayer can show that they don't currently have the ability to pay their tax debt and the IRS probably never will recover the full amount, then they may qualify for a reduced bill under this category.

Effective Tax Administration

This relatively new option was created for taxpayers who are unable to work to pay off their tax debt because they're elderly or are in very poor health and can't work.

Lump Sum Cash Offer

This is the most common and least costly type of payment option. To establish the amount to be paid, the IRS calculates the taxpayer's future earning potential and determines a net available income by comparing gross income and allowable expenses.

Short Term Period Payment Offer

This payment option requires the taxpayer to pay the tax debt off through monthly payments over a 24 month period. Although they will have more time to pay off the tax debt, the total offer amount will be higher than the Lump Sum Cash Offer.

Deferred Payment Offer

This is the most costly type of offer and doesn’t always provide a significant benefit to the taxpayer. It allows the person to make monthly payments based on their calculated net available income over a longer period of time, but they will continue paying for as long as it takes to pay off the tax debt.

First-Time IRS Tax Penalty Abatement

First-time non-compliant taxpayers can request penalty abatement (FTA). This request applies to certain kinds of penalties in a single tax period but could end up saving taxpayers considerable money in penalty fees. Individuals can request a FTA for failure to file or failure to pay penalties and businesses can also request it for failing to file payroll taxes. Of course, the IRS does not forgive these penalties easily. In order to qualify, the taxpayer must file their late taxes or have filed a valid extension. They also must have a three-year clean penalty history. If the IRS concludes that the taxpayer has demonstrated payment compliance, they may accept the request and abate the penalties.

How Do I File for Penalty Abatement?

Before filing for penalty abatement you'll need to be sure you qualify and are able to communicate a convincing argument to the IRS. For assistance, turn to Boulanger CPA and Consulting PC. We understand what types of situations will qualify a taxpayer for penalty abatement and can help you file the necessary paperwork. To learn more or discuss your circumstances, contact us at 657-218-5700 or request a consultation through our website.

Innocent Spouse Relief

According to IRS guidelines, when a married couple files their taxes jointly, both parties are liable for the taxes owed no matter how much taxable income each person earned individually. If your spouse or former spouse made mistakes on your joint return or misrepresented a portion of the income, the IRS doesn't care who made the errors, they will go after whoever they can find first. Even if you're divorced, they will do all they can to recover back taxes, penalties, and interest. If your spouse or former spouse has put you in this unfair and potentially expensive situation, you may qualify for innocent spouse relief.

If you qualify for innocent spouse relief, you won’t be responsible for back taxes and fees owed on a joint tax return that intentionally neglected to report your full joint income. If you think you may qualify, review the information below then call Boulanger CPA and Consulting PC at 657-218-5700 or request a consultation through our website. We help individuals throughout the country get the innocent spouse tax relief they deserve.

Classic Innocent Spouse Relief

With classic innocent spouse relief, you won’t be responsible for paying back taxes, penalties, and interest if your spouse or former spouse failed to report income on your joint tax return.

Relief by Separation of Liability

This type of tax relief allows you to divide the understatement of tax plus interest and penalties between you and the other party.

Equitable Relief

If you don’t qualify for the other types of innocent spouse relief, you may still be able to get relief for an underpayment or understatement of tax through Equitable Relief.

How Currently Not Collectible Status Works

In order to obtain Currently Not Collectible Status, the IRS must be convinced that you're experiencing financial hardship. They will review your household income against your monthly living expenses like rent, utilities, medical bills, and other essential expenses. If they find you don't have any money left to pay off your tax debt after your monthly bills are paid, they will mark your account as uncollectible. They'll periodically go back and review your situation and if your circumstances have changed, they will revoke this status and start collection procedures.

Do You Qualify for Currently Not Collectible Status from the IRS?

There are many types of financial issues a taxpayer could experience that may qualify them for Currently Not Collectible Status including:

• Unemployment
• Living on a fixed income
• Suffering from an illness that makes you unable to work
  

Boulanger CPA and Consulting PC can review the evidence and determine whether or not you qualify for this status. We'll use IRS guidelines to accurately calculate your gross monthly income, allowable monthly expenses and assets and compare these figures with your back-tax liability. If we establish that you are a good candidate for this status, we'll help you compile the necessary financial documentation and tax forms needed to pursue this avenue of tax relief.

Put an End to Your Tax Problems

When you consult with our tax accountants at Boulanger CPA and Consulting PC our goal is to find a long-term solution to your tax problems. Call us at 657-218-5700 today to learn more about how we can find a suitable tax relief option for you or request your consultation online.

Tax Relief Solutions

If you're experiencing tax problems, Boulanger CPA and Consulting PC can find a permanent solution that will stop the intimidating letters and phone calls from the IRS. Our tax professionals have a wealth of experience and insight on IRS tax relief alternatives and we'll put that knowledge to work for you. We'll identify the right strategy to resolve your IRS problems and will execute a plan of action to reduce and pay off your tax debt so you can make a fresh start. Call us now at 657-218-5700 or request a consultation through our website to get the tax help you need from a tax accountant you can trust.

Offer in Compromise

For taxpayers that feel the amount of their tax bill was unfair or for those who cannot afford to pay because of an economic hardship, an offer in compromise could be the remedy for your tax problems.

Installment Agreement

If you owe back taxes, penalties, and interest but don’t have the money to pay all at once, we may be able to arrange for an installment agreement that will allow you to pay off your tax debt over time.

Penalty Abatement

The IRS will sometimes abate or remove penalties for taxpayers who have failed to pay their taxes due to an illness, a death in the family, or ignorance of the tax laws. Find out if you qualify.

Currently Not Collectible Status

This temporary provision is designed to protect taxpayers that are unable to work due to an illness or unemployment from becoming victims of drastic IRS collection methods like liens or levies.

Innocent Spouse Relief

The IRS holds both parties responsible for misrepresenting income on a joint return. If your former spouse was the one responsible, you may qualify for innocent spouse tax relief.