I would say, 9 times out of 10, you do. If you owe very little money, $10,000 or under, generally, you can work out an acceptable payment plan by calling the number on the IRS letter itself. However, if you have higher taxes and complicated tax returns for reasons you did not file or pay, it’s generally better to get a professional tax person to help you because that person knows the ins and outs of the IRS, what can be put out to them and what you should not say.
How Much Can I Save With The IRS Offer In Compromise Program?
The IRS offer in compromise program is a great program if you qualify. The amount that you save depends on two things. One is how much you owe and of course, the other is what your financial picture looks like at the time that you file the offer. We would need to look at your assets and also your earning capacity. How much do you generally owe and spend on a month to month basis? You have to keep in mind that the IRS does not allow all expenses but we can generally utilize a lot of your monthly expenses to use up the income that you get. Therefore, each case is unique and the offer can go from 5% to 95% of what you owe.
When Will My Case With The IRS Be Over?
The time taken to resolve an IRS case varies with the kind of case it is. If we just set up an installment agreement, that generally takes two months or less. If we do an offer in compromise, that generally takes a year or more of negotiation. Penalty abatement appeals again can take 2 to 3 months. So, on average, except for an offer in compromise, you generally are looking at 2 to 4 months for a resolution.
I Have Gambling Winnings. Do I Owe The IRS?
Yes, you do. Gambling winnings are a form of income. Of course, as in any business, you can offset losses from the winnings. So you need a good accountant or CPA to help you prepare your tax returns but you do need to report your gambling winnings as income.
I Owe The IRS, Will The Government Take My Professional License?
The IRS is not out to take your professional license. That is not what they want. However, under proper circumstances, they can force you into closing your own business and your own professional business and accordingly to revoking your license by the authority that gave you the license whether it’s state or federal or even local. So the IRS does not take your license directly but it can result in your license being taken.
I Am Afraid The IRS Will Take My Home. Can They?
Yes, they can. However, it is not their desire to do so. Just as in foreclosure with a mortgage company, the mortgage company does not want the house, they want the money that you owe and they will work with you to that end. The same way the IRS does not want your house, they want to be paid. So if you can borrow against a house or determine any other way to start paying IRS back they will not take your house.
The IRS issued A Levy On My Bank Account. What Do I Do?
You need to either contact a professional immediately or contact the IRS. Once the IRS levies a bank account, the bank holds that money for 21 days before sending it to the IRS. That way, the taxpayer has a short timeframe and a window to work with the IRS to set up a payment plan or other solution so that the money can be put back into the account.
For more information on Tax Attorneys Dealing With IRS Issues In SC, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.