Tax Solutions:

I have been giving tax advice as the IRS-Hitman for quite some time.  And I have been directly helping those with tax debt for even longer.  But sometimes a tax situation has become so serious that you need professional muscle to help you with the IRS.  That’s where Tax Defense Network can help give you real solutions to your IRS debt. 

Offer in Compromise

An Offer in Compromise is the absolute best possible resolution for your tax debt; and it is also the most difficult to get.  An Offer in Compromise is an agreement between yourself and the IRS that resolves your tax debt for a lower amount, sometimes referred to as “pennies on the dollar.”  An IRS debt can be settled in an Offer in Compromise for any of the following reasons: 

• If there is some doubt as to whether or not the IRS can collect this debt. This is called “doubt as to collectible.”
•  If there is some doubt as to whether you owe this tax debt. This is called “doubt as to liability.”
• If you have sufficient assets to pay in full but, due to an unusual situation payment would cause you to suffer financially or cause your family a financial hardship. 

You do have to submit to intense scrutiny by the IRS.  In addition only 2% of all Offers in Compromise are successful. 

Installment Agreement

The next solution is the Installment Agreement. An Installment Agreement is exactly what it sounds like.  It is a monthly payment plan that you enter into with the IRS until the balance is paid off in full. The way that the IRS determines what your monthly payments will be is not to your advantage. The IRS wants to make the payment as high as possible even if it means forcing you to live at the barest minimum. 

Once you begin making your monthly payments, it is important that you never miss a payment. If this ever happens you are considered to be in default.  Once that happens the agreement may be revoked and all monies you paid into it may or may not be credited towards your account.  In addition the IRS will begin aggressive collection actions. 

The Installment Agreement is the most common solution chosen by taxpayers.

Penalty Abatement

It’s no secret that penalties and interest can make an IRS debt balloon into an unmanageable amount of money in a very short time.  However you can get the IRS to waive the tax penalties if the tax debt happened because of a catastrophic event in your life that was beyond your control.  Some of the circumstances that can qualify you for penalty abatement are: death of a family member, serious health problems, bad financial advice, natural disaster, theft or embezzlement, divorce, unemployment for an extended period of time, living on a fixed income, drug or alcohol abuse.  

Currently non Collectible

In certain circumstances where you are unable to work, have little or no income, are seriously ill, or have no assets of value, the IRS may classify you as “Currently non Collectible”.  You can only qualify for Currently non Collectible if your financial situation is grave, as in eating at McDonalds is a luxury for you.  This status means that the IRS will temporarily stop any collection action. The IRS will continue to monitor your situation to see if any changes occur.  If your financial situation improves than the IRS will reinstate the debt and begin taking collection action again.