When you receive a notice from the IRS it often requests the payment of thousands of dollars within a short period of time. Very few people actually have the ability to pay such a large amount in such a short period. If you are unable to pay the stated amount, the IRS will often threaten to lien your assets or levy your wages and property. If this is your situation, you should seek a collection alternative.
Taxpayers who attempt to negotiate an installment plan without assistance often find themselves in a situation where they are paying an unsustainable amount of money to the IRS. In such instances, the likelihood that a taxpayer will default on his or her installment plan increases significantly. Despite this common experience, there are several ways to address outstanding tax liabilities, which do not involve an unreasonable monthly payment.
One of the primary tools used by the IRS to determine how to collect outstanding taxes is Form 433, Collection Information Statement. Anyone who has attempted to complete this form on his or her own understands how difficult, time-consuming, and intrusive the ordeal is. In some instances, a taxpayer may qualify for a streamlined agreement where completion of Form 433 is unnecessary. If you do need to complete a Form 433, however, we can provide you with guidance and a list of exactly what kind of supporting documentation you will need. An accurate and thoroughly completed Form 433 may allow you to qualify for monthly payments that are lower than the ones initially proposed by the IRS.
Additionally, a thoroughly completed 433 is necessary to qualify for an offer in compromise. An offer in compromise generally entails a large one-time payment in satisfaction of your entire liability. However, the IRS will only accept such an offer if you can demonstrate that your offer is the best chance they have to recover against your tax debt. Another possible collection alternative involves having your account placed in currently non-collectible or CNC status. Generally, a taxpayer is only placed in CNC status when they can effectively demonstrate to the IRS that the taxpayer does not have any excess income to pay the IRS after taking into account all of his or her necessary expenses.
A properly completed Form 433 is critical to attaining any of these and other collection alternatives. When you meet with us, our firm can advise you as to the most effective way to complete the form and outline what additional materials you may need to provide to the IRS.
Negotiating with the IRS
In addition to assistance with your Form 433, our firm can ensure that you get the best collection alternative that is available to you. With decades of experience in dealing with the IRS, we are familiar with many of the revenue officers and group managers in the Richmond office of the IRS and throughout the rest of Virginia. Furthermore, we know the most effective ways to get the results we are seeking. This working familiarity with both the IRS personnel and the internal procedures of the local offices will allow us to negotiate with authority and credibility. Let us use our experience to resolve your tax debt.
If you have a liability that you cannot afford to pay, contact our office to set up an initial consultation. We can let you know where you stand and provide you with a game plan to reach your goal.