Making it through an IRS audit is stressful and anxiety ridden, but for many, it is not the end of the road in dealing with the IRS. Many IRS audits result in balances due. Here are my responses to great questions from a reader about dealing with IRS collections after the audit. I just finished [...]
Installment agreements
When the IRS gets you with a levy, bad things can happen – your wages are frozen and you are looking at living without a paycheck. The money you need to pay bills is suddenly swiped out of your bank account. This presents an urgent dilemma requiring immediate relief. So, what are the two quickest [...]
Some things can be simple to negotiate with the IRS. If you are looking for a great way to repay an income tax liability to the IRS, consider a streamlined installment agreement. Streamlined installment agreements are available to anyone who owes under $25,000 and can afford to repay their balance in five years. If you [...]
I received a great question from a reader about whether Veteran’s disability benefits should be included in the value of an IRS installment agreement or offer in compromise. Although the question is directed to Veterans’ disability benefits, my answer also applies to those with unemployment and workers’ compensation benefits. Here is the question: I owe the IRS [...]
When negotiating a resolution to a tax problem, expect the IRS to ask for verification of your living expenses. After verification, the IRS will likely match the amount you spend to their tables of allowances. The IRS wants to know how much you can repay them – and the government relies on their standard expense [...]
You promised the IRS a monthly payment that your budget could no longer bear. Or you tried so hard to repay your back taxes that you fall behind on this year’s return. Your intentions are good, but this has caused your IRS installment agreement to default. Where do you turn next? First, it is important to know that the IRS must send you a notice [...]
