IRS Tax Debt Resolution Tips

Whenever an entity has not filed tax returns or owes tax debts. It is imperative that the following

documentation and information is up to date prior to attempting to negotiate options other than

full payment with the IRS.

The following list provides a glimpse of the necessary actions that will be required:

1) All tax returns must be filed to the date of request.

2) If you are self employed or taking draws from a business and not paying

Estimated tax payments. Then, you must calculate the amount of unpaid

tax payments due to date and send the money via Form 1040-ES.

3) If you are a wage earner, make sure you have sufficient tax withholdings to cover

your taxes for the current year. No EXEMPT, or 99 exemptions allowable.

In fact, if you have not paid tax via withholdings. The IRS will require you to pay and

get current.

4) Collection Information Statements Form 433A, for Wage Earners and Self Employed.

and or Form 433B Collection Information Statement for Corporations, Partnerships, LLCs, etc.

5) If your bookkeeping is not up to date, current Profit and Loss Statements will be required. Usually,

calculations for the last 6 months.

6) Proof of your expenses via copies of bank statements, invoices, receipts etc.

7) Verification of loan balances, asset fair market values, copies of life insurance policies,

pension plans, 401(k)s, etc.. Follow the Collection Information Statement guidelines.

The above is part of the full compliance requirement prior to seeking an installment agreement,

offer in compromise, abatement of penalties and most any other option other than full payment.

Cause of delinquency: Are the tax debts caused by an Audit, Substitute for Return for payroll taxes,

Missing payments that were not credited to account, Adjustments due to

unreported income? What is causing the tax problem? And, How to cure the

problem is essential to resolving tax problems.

x-compliance check: If you have an ownership interest or are an Officer, Member or Partner of a business. Then, your other entity must also be in full compliance with filing and paying. Otherwise,

the same rule applies to getting that entity into compliance. Many times, the IRS will assign the related

case to the same Collection Officer.

Cure: How do you resolve a tax problem? Well, there are many IRS Tax Resolution Options for Individuals and Businesses. It is a matter of knowing which is best for your situation. Read my Booklet titled, IRS Tax Resolution Options on this website under e-book.

#debt #resolution #tips #financialstatements #latetaxreturns #IRS #Tax #Debt #Tips #Business #employment #payroll