Will I Go To Jail For Not Paying My Taxes?

Actually, very few people who owe back taxes go to jail. You do not go to jail for owing back taxes. We do not have debtor’s prisons in the United States, so the simple fact of owing is not criminal. What is criminal is when you cheat on your tax return, do not report income or report false deductions and claims for credits, etc. So just owing the taxes will not result in criminal activity.

What Is The Fresh Start Program? How Does It Work?

The Fresh Start Program is a very unique program by the IRS designed to help taxpayers with lower amounts of taxes owed. They will work with the fresh start program if you owe under $50,000. The way program works is that the IRS will let you pay your taxes over 7 years. If you can meet a certain minimum monthly amount, depending on how much you owe, and you can pay it off within 7 years, you will not have to give the IRS all of your financial information. This is called a streamline installment agreement. Also, a part of the fresh start program is that if you owe less than $25,000, most of the time, the IRS will withdraw any liens that they have filed against you.

Can I Get My Penalties Forgiven?

Penalties are, like it sounds, a slap on the wrist for not filing or paying your taxes on time. The IRS charges interest like a mortgage company does and they will not forgive the interest but many times if you have a reasonable and good explanation for why you were late in filing or paying, the IRS will agree to forgive the penalties that they have charged. Each of those penalties could add up to 25% or more of the total tax. Another important thing is that this program is mainly for people who have not been in trouble for 5, 6 or 7 years. Usually if you’ve only been in trouble for one year or two, we can usually get the penalties forgiven.

What Is An Offer In Compromise?

An offer in compromise is a contract between the taxpayer and the Internal Revenue Service. What we tell the IRS is that, based on the financial condition of this taxpayer, it is not reasonable to assume that the taxpayer can pay the entire amount due within the time that the IRS has to collect which is basically 10 years from the time the tax is filed. So to be successful in an offer in compromise, we primarily look at two factors: (1) how much the taxpayer owes and (2) what his current financial situation is. It is not just a guess, it is not something that we’ll just throw out there to see if they’ll take it. It is very detailed financial analysis and calculations to come up with an exact number that we offer to the IRS.

How Long Does The IRS Have To Collect Taxes?

The IRS typically has 10 years to collect either from the later of when the taxes were due or when the tax return was filed. So it means that your taxes must be collected within 10 years from the date that you actually filed.

What Is A Streamline Installment Agreement?

A streamline installment agreement is typically used when there is a total amount of $50,000 or less owed. This allows us to set up a payment arrangement with the IRS for an amount that will pay off the debt and we can possibly spread that out over 72 months or 6 years as long as the taxpayer agrees to have that money or that amount debited out of their bank account. This also allows us to get some type of payment arrangement with the IRS set up without submitting any of the taxpayer’s financial information. So streamline agreements allow the IRS liability to be resolved in a little bit quicker fashion than if we have to gather and submit the taxpayer’s financial documents.

How Can I Make A Deal With The IRS For Less Than What I Owe?

It isn’t always possible to make a deal for less than what you owe but there are 3 primary ways we use to reduce taxes. (1) If we show the IRS that you can only afford to pay a certain amount each month and that amount does not pay your debt in full by the time the time runs out to collect that debt, then you will not pay the total amount that you owe and when the time runs out for the IRS to collect, the remaining debt will be written off. (2) File for an offer in compromise and that’s where we tell the IRS that based on your current financial situation, it is not reasonable to expect that you can pay the whole amount due in the time that they had to collect. So, in that case, we offer to pay a certain amount to satisfy the whole debt and if the IRS agrees, it will write off the remainder of the debt. (3) Ask the IRS to forgive penalties if you can show them a reasonable cause for why you did not file or did not pay your taxes on time.

For more information on Non Payment Of Taxes In South Carolina, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.

Office Location

11 McGee Street
Greenville, SC 29601

Phone: (864) 271-7940
Fax: (864) 370-3413
Toll Free: 1-800-216-1116