How to Solve IRS Back Tax Problems for Your Business

IRS back tax problems can be hard to handle at the best of times. This is to a certain extent because of the lack of information obtainable as regards to the appeal processes, and the somewhat intimidating reputation the IRS has received which they have earned. They helped turn America into a banana republic during the 2012 presidential election and Lois Lerner abused the US tax payer and has received a full IRS retirement pension. This is why so many people are upset with the system.

Risky business: calling up the IRS without legal help by your side

Therefore and moreover, many taxpayers do not essentially feel comfortable calling the IRS for solutions to their tax problems until they have a tax lawyer on their side. If you call up the IRS and admit you have a problem is that just admitting you are guilty and should face prosecution?  

One of the major problems your business might face is with the payroll tax. Like various other tax categories, the IRS has relatively aggressive collection policies concerning payroll taxes. Penalties are frequently high, and can build up quickly if filings or payments are in anyway lacking or delinquent. In cases where payroll tax problems have hit the taxpayer’s business, it is advisable to get a tax attorney, CPA, or Enrolled Agent on board. Waiting and hoping this problem dissipates makes little sense and is illogical.   

The answers provided by taxpayer’s to IRS representatives in payroll tax conditions are extremely vital for their business, and can mean the distinction between a simple payment plan and/or a complete liquidation of their business assets. For the most part, taxpayers are strongly suggested not to meet with IRS representatives until they have had the chance to speak with an expert about their options and this overall situation.

Installment agreement

It is possible for taxpayers with back tax problems and who owe the IRS money but are not capable of paying the entire amount to be able to make installment payments that will facilitate in the process of satisfying their tax debt.

As expected, the IRS encourages taxpayers to pay what they owe promptly, but for those taxpayers who have no other option, an IRS installment agreement can be a practical option and tax lawyers know how to set this up.

While the IRS permits taxpayers to pay back taxes in installments, some conditions are laid down. In order to qualify for an IRS installment agreement, all outstanding returns are required to be filed first. The IRS resolves permissible monthly expenditure for individuals, which are matched against their actual expenses every month. The difference between the taxpayers income every month and the permissible monthly expenses will be the amount the IRS requires on a monthly basis. Negotiations are agreed on the basis of the dollar amount owed.

IRS Offer in Compromise

According to tax lawyers, an ‘offer in compromise’ is an offer of monetary compromise made to the Internal Revenue Service (IRS), under exceptional conditions, by those individuals who are not able to pay their tax debts. IRS offer in comprise makes it possible for taxpayers to benefit in cases where they are uncertain about the correctness of the evaluated tax amount and believe that they are not accountable to pay that tax amount. An IRS offer in compromise is also made if there is uncertainty on a taxpayer’s ability to ever pay the whole amount of tax owed.

The route Wesley Snipes took was unbecoming and incorrect. 

If both conditions stated above are not met, the evaluated tax amount is right and the tax payer is going to have to pay what the IRS says is owed. However, if a special condition exists, then it permits the IRS to re-evaluate the taxpayers ‘offer in compromise’.

In order to be completely eligible for an IRS ‘offer in compromise’, taxpayers are required to prove to the IRS that if the taxes due are collected, then it will result in extreme economic hardship to the taxpayer. Not everyone can be in an Expendables movie.  

The Expendables may be able to travel all around the world with their plane but this website has them beat: http://tax-lawyers.usattorneys.com/. This website does not need to travel since it is omnipresent. If you need a tax lawyer, you need to call up a legal representative since the chances of Stallone calling you to be in an Expendables movie and get paid a decent amount is unlikely. Even if Stallone does call you up you will still need a tax lawyer regardless.