Sometimes your tax withholding isn’t enough to make your tax bill, and you are left with a tax debt. Sometimes you thought you were getting a refund, and the IRS surprises you with a notice telling you that you owe them instead. Despite what you have heard about audits and collections, the IRS has many ways to let you pay and settle your tax debt if you are not able to pay in full. Our tax resolution attorneys can lay out all of your options.
Alternative tax collection actions are ways the IRS will accept tax payments without an immediate payment in full. These solutions can let you pay in installments, make an offer of a smaller lump sum, or explain why you simply cannot pay because of financial hardship. When you come to the Dayes Law Firm in Phoenix, we will review your alternative tax collection options and find one that works for you.
What Are Common Tax Collection Actions?
Everyone has heard dire stories about the IRS seizing all your assets to pay a tax debt or dragging you to court. In fact, the IRS would prefer that you pay what you can over time, and will work with you to make that happen. Alternative collection can be arranged with the IRS under certain conditions. Some common alternative collection actions include:
- Installment agreements. These let you pay off the debt over a three to six year period. A partial payment plan can let you pay for up to ten years, and then erase any remaining debt if you have no missed payments.
- An Offer in Compromise (OIC) lets you offer to settle for a smaller amount if you can show economic hardship, or if the IRS would not be able to collect in full.
- A Currently Not Collectible (CNC) status temporarily stops all collection and duty to pay if you are in extreme hardship and cannot meet your basic living expenses.
- Innocent Spouse Relief lets a spouse or ex-spouse request relief from their spouse’s tax debt.
In all cases, you must have documentation to support your claims. A Phoenix attorney can assist you in gathering the evidence you need to make your alternative collection request.
How Can We Help?
After you make the request, there may be additional requests for documentation, appeals by the IRS, or hearings to determine the status of your case. The attorneys at the Dayes Law Firm are familiar with the U.S. tax code, and can guide you through the process of completing the complex tax forms, and ensure you have filed out all your paperwork correctly.
Negotiating with the IRS can be intimidating to the average person. Our attorneys are experienced in talking to IRS agents, and we will handle communications regarding payment plans and settlements. If you are concerned about making mistakes, our team will double-check your paperwork before filing to catch any errors before it reaches the IRS auditors.
Get Legal Advice About Alternative Tax Collection Actions in Phoenix
Its tempting to let your tax troubles slide and hope everything just works itself out, but the longer you wait, the worse things can become. The attorneys at the Dayes Law Firm can help you resolve your tax payment issues quickly before you find yourself facing other collections notices from the IRS.
Call our Phoenix offices for legal information about alternative tax collection actions and ways you can reduce or delay your tax payments if you’re in financial trouble. Call our office for a free and confidential consultation.
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