Use Caution When Seeking IRS Amnesty
Handling a tax issue requires both urgency and caution. When you’re considering the notion of IRS amnesty, you have to be careful not to fall for programs that either don’t exist or can’t deliver on the advertised services. Fortunately, there are reputable tax resolution companies which offer real-world solutions to your tax problem.
Avoiding Tax Amnesty Program Fiction
Before considering a tangible tax solution, it’s important to know what unrealistic programs you should avoid. For instance, an individual or company offering to settle your tax debt for “pennies on the dollar” should be bypassed altogether. Although there are many viable resolution options available to you, no “IRS tax amnesty program” really exists; in other words, no secret formula will make your tax debt disappear.
A trusted tax resolution organization will provide you a no-cost consultation and suggest a legal formal solution to your tax issue. How do you know who to trust? You’ll want to do your research by reading online client reviews, confirm that the company you’re considering has at least five years’ experience in handling IRS or state tax resolution, and that you won’t be required to pay any fees up front.
Healthy Alternatives to an IRS Amnesty Program
Whether you’re resolving your tax debt yourself or seeking professional assistance, there are many options which will allow you to affordably handle the issue. In the event that you can’t cover the full tax debt all at once, you may qualify for an IRS repayment plan, such as an Installment Agreement. This doesn’t reduce the amount you owe, but you can pay the liability in monthly allotments – much like a credit card (similarly, you will still be responsible for any penalties and monthly interest).
The closest program to IRS tax amnesty is the Offer in Compromise (OIC), which allows you settle your debt for less than the total owed. The eligibility requirements for an Offer in Compromise are strict, however, and only a small percentage of OIC’s are approved each year. Nevertheless, there are still other options available to you, especially if your financial situation is dire.
You Might be Currently Not Collectible
There is a chance that your finances are such that any amount paid toward a tax debt would present you with a hardship. If this is the case, you might be considered Currently Not Collectible (CNC). When you have CNC status, the IRS suspends collection efforts until you’re in a position to pay something toward your back taxes. If your financial situation doesn’t improve, however, you may be able to avoid paying your tax debt indefinitely. Remember, the IRS only has ten years from the date of assessment (the date they determined that you owed a debt) to collect.
Avoid Tax Amnesty, Enlist a Professional
While there are plenty of fictitious amnesty programs to sidestep, a licensed tax professional at Tax Defense Network can be a powerful ally when it comes time to resolve your tax issue. Such an individual can work with the IRS on your behalf and obtain an affordable, formal resolution. Even though IRS amnesty isn’t a realistic option, you’ll still be given a solution to handle your tax issue that works for you and your budget.