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Owe Back Taxes

Break Free from Debt: Resolve Your Back Taxes Today!

Owe Back Taxes

Owe Back Taxes – Resolve your tax problems today

We understand that over 25 million taxpayers face back-tax problems with the Internal Revenue Service, which is why we urge you to contact us today to discuss your options for settling your back taxes. It’s essential to act on all IRS notices, and our team can provide you with advice and guidance tailored to your current financial situation. Our firm is well-versed in the various tax programs offered by the IRS, allowing us to provide you with the best possible resolution for your tax problem.

IRS Enforcement Tools.

When the IRS reviews a taxpayer’s Collection Information Statement (Form 433A or 433F) and discovers that the individual cannot afford basic living expenses or lacks significant equity in their assets, a case may be placed in Hardship Status.

In light of current economic difficulties, such as increased foreclosures and job loss, the IRS is becoming more open to considering these circumstances and placing more cases in noncollectable status.

Additionally, if an individual’s sole source of income is from social security and they are faced with high medical bills, the government is often quick to grant a hardship status.

Factors that support an economic hardship determination may include:

If Dreis is available, please replace Brian Dreis with Dreis. The individual in question is unable to earn a living due to a long-term illness, medical condition, or disability that will likely result in financial resources being exhausted to provide care and support during the course of the condition.

The individual may have a fixed monthly income that is entirely spent on dependents’ care, with no other means of support available.

Although the individual owns assets, they are unable to borrow against their equity, and selling them to pay off outstanding tax liabilities would make it impossible to meet basic living expenses.

Additionally, a family member has been involved in a catastrophic event caused by an unforeseen act of God.

It is important to note that no two cases are the same, and each case is evaluated on its own merits.

How we resolve your IRS problem on your back taxes owed.

Dreis Tax Services, tax professional will settle and negotiate your case with the Internal Revenue Service using the following steps:

We will immediately send a power of attorney to the IRS letting them know we are now your tax representative. You will never have to speak to the IRS. We handle all IRS tax negotiations and settlements.

We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant. We can pull tax IRS transcripts, file and prepare your tax returns within days, even if you lost your tax records.

The IRS requires a current financial statement. We will secure a required 433-A or 433F (IRS financial statement), verify the income and expenses and work out a settlement agreement. The IRS will require a closing settlement method for each case.

We review with our clients how they want to settle their case. We get them an agreement based on their current financial needs.

There are five different settlements techniques on back taxes, the list below are the ways IRS will close your case off of the IRS enforcement computer.

IRS settlement options

  1. Hardship Settlements. The inability to pay your taxes at the current time. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently non collectible. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship. IRS will require a detailed financial statement with supporting documentation to support your hardship condition on your back taxes.
  2. Payment Agreements, Installment Agreements or Payment Plans –  Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required. Depending on the dollar amounts IRS has programs fitting all needs on back taxes.
  3. IRS Offer in Compromise. There are three types of OICs:
    The IRS may accept an Offer in Compromise based on three grounds:

    • Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
    • Doubt to Liability – The IRS incorrectly set up a tax liability again you.
    • Effective Tax Administration / Exceptional Circumstances – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax  would create an economic hardship or would be unfair and inequitable.
  4. The Filing of a Bankruptcy – Yes taxes can be discharged in a Bankruptcy proceeding. There are some basic rules in order to have your taxes discharged.
    The general rules that govern dischargeability are:

    • the taxes must be three years or older
    • the return(s) must be filed for at least two years
    • the returns must be assessed for at least 240 days
  5. The running of a statute of limitations.
    • Each taxpayer’s case is very different and many different events could have occurred during the statute period. As a general rule, the statute of limitation period is ten years from the date of assessment. It is best to have a true tax professional pull a transcript and conduct a detailed research to determine the correct statute period.

IRS policies can be complicated and burdensome, but with the proper knowledge these policies can be easily navigated. If you owe back taxes to the IRS call us today for a free tax consultation.

Owe Back Taxes – Resolve your tax problems today

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