Unlocking the Benefits of the Anchor Program: A Complete Guide to Tax Relief Solutions

Tax Relief Companies

Navigating the complex landscape of tax relief can be a daunting task, especially when you owe back taxes amounting to more than $10,000. Fortunately, there are specialized tax relief programs designed to help you resolve your tax issues. One such program is the Anchor Program. In this comprehensive guide, we will delve into the Anchor Program, its benefits, and how Finishline Tax Solutions can assist you in utilizing this reliable tax resolution method.

What is the Anchor Program?

The Anchor Program is a specialized tax relief program designed to help individuals and businesses negotiate their back taxes with the Internal Revenue Service (IRS). This program offers a structured approach to tax resolution, providing a roadmap for settling your tax debts in a manageable and efficient manner.

Benefits of the Anchor Program

Flexibility in Payment Plans

One of the most significant advantages of the Anchor Program is its flexibility in offering payment plans tailored to your financial situation. This allows you to pay off your back taxes without causing undue financial strain.

Reduced Penalties

The program also works towards reducing or eliminating penalties and interest charges, making it easier for you to clear your tax debts.

Legal Protection

By enrolling in the Anchor Program, you gain legal protection against aggressive IRS actions such as wage garnishments and asset seizures.

Eligibility Criteria

To be eligible for the Anchor Program, you must meet certain criteria:

  • Owe back taxes exceeding $10,000
  • Be willing to comply with future tax obligations
  • Have filed all required tax returns or be willing to file them

How Finishline Tax Solutions Can Help

Finishline Tax Solutions specializes in assisting individuals who owe back taxes exceeding $10,000. Our team of tax experts can guide you through the intricacies of the Anchor Program, ensuring that you receive the maximum benefits. We offer:

Consultative Approach

Our experts will assess your specific tax situation and recommend the best course of action.

Negotiation and Settlement

We will negotiate with the IRS on your behalf, aiming for a reduced settlement amount and manageable payment plans.

Ongoing Support

Our support extends beyond just resolving your current tax issues. We provide ongoing advice to help you maintain tax compliance in the future.

Contact us today to find out how we can assist you in resolving your tax issues through the Anchor Program.

Conclusion

The Anchor Program offers a reliable and structured approach to resolving back taxes. With its flexible payment plans and potential for reduced penalties, it serves as an effective tax relief program. Finishline Tax Solutions is committed to guiding you through this process, ensuring a smoother path to financial freedom.

Contact our tax relief experts today to find out how we can assist you in resolving your tax issues through the Anchor Program.

FAQs

What are the eligibility criteria for the Anchor Program?

To be eligible, you must owe back taxes exceeding $10,000 and be willing to comply with future tax obligations.

How long does it take to resolve tax issues through the Anchor Program?

The duration varies depending on the complexity of your tax situation. However, most cases are resolved within 6 to 12 months.

Can Finishline Tax Solutions guarantee a reduced settlement amount?

While we cannot guarantee a reduced settlement amount, our team of experts will negotiate aggressively with the IRS to achieve the best possible outcome for you.

For more insights on tax relief programs and strategies, visit our blog.

How to Deal with Back IRS Taxes: Practical Tips and Solutions

Owing back taxes to the IRS is a stressful and often overwhelming situation. However, it's crucial to approach this issue with a clear mind and a well-thought-out plan. In this comprehensive guide, we'll walk you through practical tips and solutions for dealing with back IRS taxes, helping you navigate the complexities of tax laws and IRS procedures.

Understand the Gravity of the Situation

Before diving into solutions, it's essential to grasp the severity of owing back taxes. The IRS has the authority to take severe actions, such as wage garnishments, property seizures, and even criminal charges, to collect the debt. Therefore, this is not an issue to be taken lightly or ignored.

Assess Your Tax Liability

The first step in resolving your back taxes is to assess how much you owe. You can request a transcript of your tax account from the IRS to review your tax liability. If the numbers seem overwhelming or confusing, consider consulting with tax professionals. They can provide a more in-depth analysis, help you understand the nuances, and guide you through the resolution process.

Explore Your Options

There are several avenues you can take to resolve your back IRS taxes. Below are some of the most effective methods, each with its pros and cons.

IRS Payment Plans

If you can't pay your tax debt in full, the IRS offers various payment plans. These include short-term and long-term arrangements, each with its own set of qualifications and terms.

Short-Term Payment Plans

These are suitable for taxpayers who can pay off their debt within 120 days. The advantage of this option is that you won't be subject to any setup fees. However, it's essential to ensure that you can meet the payment deadlines to avoid additional penalties.

Long-Term Payment Plans

Also known as installment agreements, these plans allow you to pay your debt over an extended period, usually more than 120 days. While this option provides more time, it does come with setup fees and interest, which can add to the overall debt.

Offer in Compromise

An Offer in Compromise (OIC) is an agreement between you and the IRS to settle your tax debt for less than the full amount owed. However, not everyone qualifies for an OIC. It's advisable to consult with tax relief experts to determine your eligibility. The process involves a thorough review of your financial situation, and there are specific criteria that you must meet to be considered.

Take Professional Help

Sometimes, the complexity of tax laws and IRS procedures can make it challenging to resolve back taxes on your own. In such cases, seeking professional help can be invaluable.

Tax Attorneys

Tax attorneys specialize in tax law and can provide legal advice on how to deal with the IRS. They can also represent you in negotiations and legal proceedings. Their expertise can be particularly useful in complex cases involving large amounts of debt or legal complications.

Enrolled Agents

Enrolled agents are federally licensed tax practitioners authorized to represent taxpayers before the IRS. They can assist in filing returns, making payment arrangements, and other tax-related matters. Their services are generally less expensive than those of tax attorneys but can be equally effective for most tax issues.

Act Promptly

Time is of the essence when dealing with back IRS taxes. The longer you wait, the more penalties and interest will accrue, making your debt even more challenging to pay off.

File Any Missing Returns

If you have unfiled tax returns, submit them as soon as possible. The IRS is more likely to work with taxpayers who are making an effort to comply. Filing your returns can also reduce additional penalties for failure to file, which can be quite substantial.

Communicate with the IRS

Ignoring IRS notices will only worsen the situation. Open a line of communication with the IRS to discuss your circumstances and possible solutions. Being proactive in your communication can often lead to more favorable terms in any payment plans or settlements.

Conclusion

Dealing with back IRS taxes can be daunting, but taking a proactive approach and exploring your options can make the process more manageable. Whether you choose to navigate IRS payment plans, seek an Offer in Compromise, or opt for professional tax relief services, the key is to act promptly and responsibly.

IRS Hardship Program: A possible relief if you owe back taxes to the IRS

Filing Back Taxes

The IRS Hardship program, also known as the Currently Not Collectible (CNC) status, is a program that allows taxpayers who are experiencing financial hardship to postpone paying their taxes. If you are approved for CNC status, the IRS will not take any collection action against you, such as garnishing your wages or seizing your assets, until your financial situation improves.

Potential benefits to the IRS Hardship program

  • Relief from collection action: As mentioned, if you are approved for CNC status, the IRS will not take any collection action against you. This can provide much-needed relief if you are struggling to pay your taxes and are being harassed by the IRS.
  • Time to pay: If you are approved for CNC status, you will have time to pay your taxes when your financial situation improves. This can be especially helpful if you are going through a temporary financial setback, such as a job loss or a medical emergency.
  • Interest and penalties may be reduced: If you are approved for CNC status, the IRS may agree to reduce or suspend the interest and penalties that have accumulated on your taxes. This can help to lower the overall amount that you owe.
  • Avoiding tax liens and levies: If you are approved for CNC status, the IRS will not file a tax lien or levy against you. A tax lien is a legal claim against your property to secure payment of your taxes, while a levy is the actual seizure of your property to satisfy your tax debt.

It's important to note that the IRS Hardship program is not a permanent solution. If your financial situation improves, you will be expected to resume paying your taxes. Additionally, the IRS may review your case periodically to ensure that you are still experiencing financial hardship.

How can I get approved for CNS status by the IRS

To apply for Currently Not Collectible (CNC) status with the IRS, you will need to provide financial information to demonstrate that you are unable to pay your taxes. You will also need to provide information about your income, expenses, and assets.

Here are the steps to apply for CNC status:

  1. Gather your financial information: You will need to provide detailed information about your income, expenses, and assets. This includes information about your employment, any business income or expenses, your monthly bills and expenses, and any assets you own, such as a home or car.
  2. Complete Form 433-F: This is the Collection Information Statement for Wage Earners and Self-Employed Individuals. This form is used by the IRS to gather information about your financial situation. You can download Form 433-F from the IRS website or request a copy by calling the IRS.
  3. Submit your financial information to the IRS: You can submit your financial information to the IRS by mail, fax, or online through the IRS's e-Services portal. Make sure to include a completed Form 433-F and any other supporting documentation.
  4. Wait for a response from the IRS: It may take several weeks or months for the IRS to review your financial information and make a decision on your CNC status. The IRS may also request additional information or documentation before making a decision.

If you are approved for CNC status, the IRS will send you a letter stating that your case has been placed in CNC status. If you are not approved, the IRS will continue to pursue collection action against you. If you disagree with the IRS's decision, you can appeal the decision through the IRS's appeals process.

Are there tax relief companies that I can seek help from to get CNS status approved?

Yes, there are companies that specialize in providing tax relief services to individuals and businesses who are struggling to pay their taxes. These companies may be able to help you apply for Currently Not Collectible (CNC) status with the IRS or negotiate a payment plan or offer in compromise.

It's important to be careful when choosing a tax relief company, as some companies may not be legitimate or may charge high fees for their services. Here are a few things to consider when choosing a tax relief company:

  1. Research the company: Check the company's reputation by reading online reviews and checking with the Better Business Bureau.
  2. Look for a company that is transparent about its fees: Choose a company that is upfront about its fees and does not require you to pay a large upfront fee.
  3. Make sure the company is legitimate: Avoid companies that make unrealistic promises or guarantee that they can reduce your tax debt.
  4. Make sure the company has access to tax experts, such as an enrolled agent or a tax attorney in-house.

It's generally a good idea to get a consultation before hiring a tax relief company. You may want to all the questions answered, to get advice on the best course of action for your situation.

What questions to ask before hiring a tax relief expert services

If you are considering hiring a tax relief expert, it's important to do your due diligence to ensure that you are working with a reputable and competent professional. Here are a few questions you may want to ask before hiring a tax relief expert:

  1. What is your background and experience in tax relief? Look for a professional who has relevant experience and credentials, such as an enrolled agent or a tax attorney.
  2. How do you charge for your services? Look for a professional who is upfront about their fees and does not require you to pay a large upfront fee.
  3. Can you provide references from past clients? Ask for references from past clients to get an idea of the professional's track record. Check testimonials online. These are from legitimate clients that have used the services from this company in the past.
  4. What is your success rate in negotiating with the IRS? Look for a professional who has a proven track record of successfully negotiating with the IRS.
  5. Do you have any specialties or areas of expertise? Consider hiring a professional who has specific expertise in your area of need, such as negotiating an offer in compromise or applying for Currently Not Collectible (CNC) status.
  6. What is your policy on communication and availability? Look for a professional who is responsive and available to answer your questions and provide updates on your case.
  7. What is your policy on confidentiality? Choose a professional who is committed to protecting your privacy and keeping your information confidential.

At FinishLine Tax solutions, our experts have been helping individuals with special tax situations nationwide and can help you with your tax problem. FinishLine ranked #1304 on Inc. Magazine's 2022 Inc. 5000, a prestigious list of the nation's fastest-growing private companies.

Tax Relief Solutions: Consult with a Tax Relief Expert before 2023 Tax Season

Tax Resolution

The IRS has several policies to help taxpayers and businesses lower their tax burdens and solve tax-related issues. However, identifying the laws and changes applicable to you may be challenging.

A tax relief expert can help you navigate these policies to avoid costly mistakes. By consulting them before the 2023 tax season, you will maximize deductions.

Ways a Tax Relief Expert Can Assist

The high inflation experienced in 2022 influenced the IRS to change tax brackets for joint and single filers. This means that you will likely pay a lower or the same amount of tax even if your income increases slightly. A tax relief expert can help you determine the amount you owe based on the new tax brackets. Further, they will calculate the credit you qualify for to lower your tax burden.

Each state has different laws on inheritance and estate tax. For example, Texas does not charge inheritance tax, but you will incur federal estate taxes. However, you will only have this obligation if the inherited property exceeds a particular value.

Tax relief experts understand estate and inheritance tax laws. With their help, you can determine if you qualify for an exemption and present the needed documents.

Other ways an expert can assist before the 2023 tax season are:

  • Identifying itemized tax deductions you qualify for
  • Filing a tax appeal
  • Disputing a tax refund
  • Filing back taxes
  • Filing your 2022 taxes

If you owe the IRS, you need to repay to avoid penalties and fines. Consulting a tax relief expert allows you to verify if the amount listed in your notice is correct. The professional can also help you apply for an installment program if you cannot repay the debt in one payment.

Consulting an expert on tax debt will ultimately lower the risk of wage garnishment and liens. Besides, you may stop the IRS from seizing your assets.

How to Find a Good Tax Relief Expert

Tax consultants have varying qualifications and specialties. It is crucial to research when looking for a professional before the 2023 tax season. This way, you can get value for your money and avoid common tax mistakes.

One way to find a good tax relief expert in your area is by asking for referrals. These can come from family, friends, and local social media groups.  When you consult someone who has helped a loved one before, you can feel confident with their guidance.

Other tips for finding a good tax relief expert are:

  • Read online reviews
  • Ensure the tax resolution firm has a proven track record
  • Look for a CPA with enough tax education
  • Verify certifications

Proper communication is vital when dealing with a tax resolution expert. When looking for someone to consult before the 2023 tax season, ensure they have reliable written and verbal communication. The expert should also explain the current tax laws in a way you can understand.

Tax Relief Services You Can Get At FinishLine Tax Solutions

FinishLine Tax Solutions specializes in national tax relief and resolution. We have a team of CPAs and attorneys who can help you navigate different policies and repay taxes. Some of the offered services are:

Another service offered by FinishLine Tax Solutions is business tax preparation. Our experts can also help you apply for a Fast Track Settlement (FTS). This program speeds up tax dispute resolution using alternative methods.

Contact FinishLine Tax Solutions to Talk to an Expert

Navigating the 2023 tax season does not have to be complicated and frustrating. FinishLine Tax Solutions offers the resources and guidance required to understand tax laws. Consulting us allows you to maximize deductions and evade penalties. Contact us now for help with your tax situation.

IRS issued an alert to tax payer to adjust 2023 withholding

IRS starts accepting 2022 taxes starting from today Jan 23, 2023. At the same time, IRS is reminding tax payers to revisit their withholding from their paycheck towards 2023 taxes. If you are not withholding enough taxes, you are at the risk of paying penalties when you file 2023 taxes. If you are withholding more than what your obligation is, you are effectively giving the government an interest-free loan.

There are resources for you to determine the close to the right amount of taxes you will owe to the IRS.

Tax Withholding Estimator, this tool calculates the taxes owed based on the tax codes for 2023 and help taxpayers determine if they have to make any adjustments to their withholding in order to avoid owing taxes and potentially end up paying penalties for insufficient withholding when they file taxes the following year.

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Back Taxes: Why You should Seek Help From Tax Resolution Experts

Dealing with taxes is stressful for many people. Even if you are diligent and organized, you may find yourself owing back taxes to the IRS. You may not know the best way to deal with owing money to the IRS. Fortunately, there is help available. 

If you have outstanding back taxes, it may help to work with a tax resolution expert. A tax resolution expert can provide professional advice and assistance. They help individuals and businesses resolve their tax debt on time and cost-effectively. 

With their expertise, a tax resolution expert can help you get your finances back on track. They can also save you money in the long run. Here are a few reasons why you should get help from tax resolution experts to resolve back taxes.

Experienced Guidance

Tax resolution experts can provide invaluable guidance and advice. Thus, they can help you make the best decisions for resolving your back taxes. They will also take time to assess your unique situation. Doing so allows the experts to provide you with a customized plan to get the best possible outcome.

Tax resolution experts have a wealth of knowledge on tax law. Given their experience, they can help you understand your tax situation. You will be able to better comprehend why you owe taxes and your options for resolving your back taxes.

Negotiation Skills

Tax resolution experts have had years of experience negotiating with tax agencies. They know the best strategies to negotiate favorable terms with the tax agency. 

These strong negotiation skills can be a major benefit when resolving back tax debts. Tax resolution experts handle negotiations to create a manageable payment plan for you.

In addition, the experts can help negotiate a settlement with the tax agency. Doing so can result in a reduced amount of taxes owed. 

Cost Savings

A tax resolution expert can help you utilize the right strategies to minimize your tax debt. In doing so, they help save you money. 

Tax resolution experts can also help you set up a payment plan that makes back taxes more manageable. Doing so can help taxpayers avoid additional penalties and interest.

Filing taxes can get complicated, and you might make costly mistakes. When you work with a tax resolution expert, they can help you avoid making mistakes. Thus, they can help save you time, money, and stress. The experts can also ensure you get the best possible deal when resolving your back taxes.

Reduced Stress

Dealing with back taxes can be stressful and overwhelming. A tax resolution expert can help you relieve some of that stress. They can take the burden off your shoulders and deal with the paperwork and negotiations. In doing so, they allow you to focus on other important issues. 

Working with tax resolution experts can also afford you peace of mind. You can rest easy knowing that your back taxes are being handled correctly. Experts will work to ensure that you get a resolution that is in your best interests. 

Save Your Credit Score

Your credit score measures how trustworthy you are in paying back debt. It’s important because it affects what types of loans you can get. It also impacts how much you’ll pay for them.

Owing money in the form of back taxes can hurt your credit score. The unresolved debt will reduce your credit score. A lower credit score may make it difficult for you to get a loan. Experts can help you with timely tax resolution, saving your credit score. 

Reach Out to the Tax Resolution Experts at FinishLine Tax Solutions Today

Working with a tax resolution expert to resolve back taxes is a wise decision. They have the expertise to help you resolve your back taxes effectively.

At FinishLine Tax Solutions, our tax resolution experts are ready to help. We can provide you with the guidance you need to resolve your tax issue. Don’t wait any longer. Contact us today to get the help you need.

Back Taxes Help: How to Set Up a Payment Plan With the IRS

Filing Back Taxes

Back taxes can drive you into significant debt due to penalties and accumulating interests. You may also lose your assets due to liens imposed by the IRS. Setting up a payment plan is the best way to avoid such consequences while organizing your finances.

The IRS allows taxpayers to pay their debt using various installment plans. It also offers tax forgiveness programs to reduce the burden of delinquent taxes.

Here, we discuss ways to set up a payment plan with the IRS. We will also cover some debt relief programs you can consider.

Apply Online

One way to set up a payment plan with the IRS is by applying online. Log in to your e-filing portal using your account ID. After that, complete Form 9465 (installment agreement request) and submit it.

This document will require you to provide details needed during payment plan processing. Such may include the amount you owe, your employer, and your bank information. It also provides a section inquiring about the amount you can afford and the date you want to remit the installments.

Contact the IRS by Phone

Another way to set up an installment plan is by calling the IRS. Use the number 800-829-1040 to apply for debt relief for personal taxes. On the other hand, if you need an installment plan for your business, use 800-829-4933.

The IRS may provide phone numbers on the bill or notice sent by mail. Contact this number if you do not want to fill out the payment plan form. The agent will then request some information and use it to request a payment plan on your behalf.

Apply by Mail

The method used to set up a payment plan by mail can vary. If you request a tax relief program while submitting your returns, attach Form 9465 to the front. However, send the document to the nearest IRS office if you mailed your tax return forms or filed them online.

Contact a Tax Resolution Expert

Working with a tax resolution expert is the best way to set up an installment plan with the IRS. Professionals can review your financial documents and help you file back taxes. They will also consider your income and expenses before recommending a suitable tax relief program.

When setting up a tax forgiveness plan with an expert's help, they will identify all the documents needed for the process. Afterward, they will guide you in filling out various forms or do it for you. The expert will then verify your application before submitting it to the IRS.

IRS Tax Payment Plans to Consider

 The IRS has several IRS fresh start programs to help you deal with back taxes. Such include:

The short-term installment plan is available if you owe a total amount of less than $100,000. When applying for this program, you won't pay a setup fee. Still, you will have to clear the total debt in 180 days or less.

If you owe the IRS less than $50k, you may qualify for a long-term installment plan. The setup fee is $31 when applying online and $107 when using other methods.

An IRS offer in compromise lets you pay less than what you owe. However, you must remit 20% of the debt when sending your application. If the IRS approves your request, you may clear the balance in installments.

An IRS hardship program stops all debt collection measures. Such may include imposing tax liens and freezing bank accounts. Still, the interest and penalties on the owed amount will continue accruing until you can pay.

Reach Out to FinishLine Tax Solutions to Set Up a Payment Plan

Getting tax relief services from expert tax relief companies ensures you opt for a program suitable for your financial capability. At FinishLine Tax Solutions, we provide reliable back taxes help.

Our CPAs and tax attorneys will offer all the guidance and assistance you need. They may also advise ways to manage debt and deal with a tax audit. Call us now for a consultation.

For Texas Tax Payers: Tax Resolution Options If You Owe $10K or More to the IRS

Tax Resolution

Owing the IRS means more penalties and fines if you do not come up with a payment plan. You may also lose control of your assets if the government seizes them or impose a tax lien. If you have a debt of more than $10k, you may wonder how to repay it without straining your finances.

Read on to discover several options you can explore and their eligibility criteria. We will also cover each tax relief option's terms and suitability for various conditions.

Installment Payment Plan

One way to deal with tax debt is by setting up an installment agreement plan. This way, you can pay a specified amount for a given period and avoid accumulating penalties.

Apply for an installment plan online and pay a setup fee of $31. Alternatively, submit your application physically or by mail for a $107 charge.

Once the IRS receives and reviews your application, you can agree on a reasonable repayment plan. A short-term installment program is suitable if your total debt is less than $100k. On the other hand, a long-term agreement is ideal for debt that is not more than $50k.

The eligibility criteria for installment payment plans will depend on specific programs. Still, you must meet some basic requirements such as:

  • You filed all past returns
  • You cannot pay the total amount once
  • You do not have a current bankruptcy filing

Applying for an installment agreement plan will allow you to stop IRS debt collection measures. Further, you can qualify for other forms of credit like mortgages.

An Offer in Compromise (OIC)

If you cannot pay your entire tax liability due to severe financial problems, you may qualify for an offer in compromise. This program allows you to settle the debt for an amount lower than the actual value.

Submit an OIC application if you filed all past returns and submitted the estimated payments. You can also request consideration if you have a valid extension for the current financial year returns.

When the IRS receives your OIC application, they will review it and evaluate various factors. Such include your ability to pay and asset equity. They will also verify your income and revise your expenditure for a given period.

Before the IRS approves an offer in compromise, you will submit an initial payment in a lump sum. This is often 20% of the total amount you owe. If the IRS accepts your offer, they will send a confirmation letter. The document will include guidelines on clearing the balance in five or four installments.

Filing a Currently not Collectible Status

If you cannot cover living expenses and pay a tax debt, you may file a currently not collectible status. This program allows taxpayers to stop the IRS from using debt collection measures. Such may include wage garnishment, seizing assets, or freezing accounts.

When applying for this tax debt relief program, the IRS will require information about your expenditure and income. They will also need you to fill out a Collection Information Statement.

Filing a currently not collectible status is only suitable if you are in a severe financial crisis. This is because the program only delays the IRS from collecting what you owe. Still, the penalties and fines will accumulate until you can pay fully or apply for a different debt relief plan.

How to Identify the Most Suitable Tax Resolution Option

Identifying the best tax resolution plan can be tricky due to several options. Consulting an expert will help you evaluate your choices and eligibility for each program. Further, it ensures you organize your documents and file past returns before applying.

Get Tax Resolution Services in Texas

Seeking professional tax resolution services will help you determine how to deal with debt. Moreover, it protects your finances and allows you to avoid significant penalties.

At FinishLine Tax Solutions, we help Texas taxpayers that owe the IRS set up payment plans. Our professionals will ensure you pick a relief program suitable for the debt amount and your financial situation. Call us now if you owe the IRS $10k or more.

Dealing With Tax Debt: How to Set Things Right With the IRS

Dealing With Tax Debt: How to Set Things Right With the IRS

Remitting all the taxes you owe can be challenging, especially when facing financial problems. If you owe the IRS, it is vital to act promptly to avoid penalties and significant debt. This step can also prevent tax liens and stop the IRS from using harsh debt collection measures like seizing your assets.

Are you wondering about the best ways to deal with tax debt and protect your finances? Read on for tips on setting things right with the IRS and the benefits of working with a professional if you have delinquent taxes.

1. Ask for a Deadline Extension

Sometimes, you may fail to remit taxes due to delays. For example, you might be waiting for an investment to mature and use the funds to pay what you owe.

If you will likely get the funds to clear tax debt soon, it is advisable to ask for a deadline extension. While the IRS will not charge any fees for the process, they will impose a 0.5% monthly penalty on balance.

Requesting a short deadline extension will help you avoid paying fees associated with other tax relief programs. Besides, it gives you more time to get your finances in order and repay the total amount.

2. Apply for Installment Payment

If you cannot pay the taxes you owe in full, you should apply for debt relief. The IRS provides an installment agreement program to help taxpayers pay the amount they owe over an extended period.

Still, you must meet the eligibility criteria, including filing back taxes. Besides, your debt should be less than $50,000 but more than $10,00, including fines and penalties.

When the IRS accepts your application, they will require you to send a given amount each month for an agreed period. For example, if you choose a short-term installment plan, you will clear the debt within 120 days. On the other hand, the IRS will require you to pay delinquent taxes within 72 months with a long-term plan.

Enrolling in an IRS installment agreement program will help you avoid accruing penalties and fines. Further, you get more time to organize your finances and pay the debt without worrying about collection measures.

3. Do Not Ignore the Matter

While you may not be in a financial position to pay taxes, ignoring the issue will only worsen it. File your returns on time to avoid penalties associated with failing to submit your forms. Further, determine the most suitable repayment program and send your application within the deadline provided by the IRS.

If the IRS sends a notice or contacts you regarding tax debt, you should respond promptly. This measure will help you set things right and avoid consequences like:

  • Property seizure
  • Ruined creditworthiness
  • Imprisonment
  • Bank levies
  • Wage garnishment

4. Contact a Tax Resolution Expert

Dealing with tax debt may be confusing without professional help. Set things right with the IRS by consulting a resolution expert near you. These will assess your situation and determine the best way to deal with accrued debt. Besides, they can identify the most suitable tax debt relief program and help you apply.

Another way a tax resolution professional may assist is by filing back taxes and determining the total amount you owe. They will then develop a tax relief plan and meet with IRS officials on your behalf.

If the IRS seized assets and imposed a bank or property lien, you cannot use the funds to finance debt. A tax resolution professional will help you negotiate a lien release. Further, they will ensure you only apply for a debt relief program that will not cause more financial challenges.

Contact FinishLine Tax Solutions to Set Things Right With IRS

Setting things right with the IRS can protect your reputation and lessen financial problems. At FinishLine Tax solutions, we will help you deal with debt using an ideal repayment plan. Our professionals can also determine the debt relief plan you qualify for and present the required forms. Contact us now to lower the effects of unpaid taxes.

Owe the IRS $10K+?: See if you qualify for IRS Tax Forgiveness Program

Owe The IRS 10k See If You Qualify For IRS Tax Forgiveness Program

Your debt may increase rapidly due to penalties and fines when you owe delinquent taxes. The IRS can also take measures like imposing tax liens on your property, requesting a financial audit, or freezing your assets to recover the amount due.

Applying to a tax forgiveness program allows you to repay your debt over a specified duration. Here, we discuss some options you can use to repay your debt if you owe $10,000 or more and their eligibility criteria.

A Short Term Installment Agreement

One option you can use to clear a $10k+ IRS debt is a short-term installment plan. This agreement allows you to pay the debt within 180 days or less. For you to qualify for a short-term installment plan, your debt must be less than $100,000, including penalties, interests, and fines.

A Long-Term Installment Agreement

A long-term installment agreement is suitable if your total debt is less than $50,000. When you qualify for this IRS Fresh start program, you must repay what you owe within 72 months. In most cases, the installments you remit each month will depend on your debt amount and financial capability.

Offer in Compromise

An offer in compromise (OIC) is an IRS tax debt relief program that allows you to repay a lower amount. To qualify for this plan, you must file past returns and deposit the estimated tax requirement for the current year. If you are a business owner, the IRS will also require you to make all federal tax deposits.

Once you qualify for an offer in compromise, the IRS will determine the amount you can pay based on your financial situation. They will then require you to make specific monthly deposits to clear your debt.

Another IRS tax resolution option under the offer in compromise program is lump sum cash. This plan involves making a 20% deposit of the offer amount when sending your OIC application. If the IRS accepts your request, you will clear the remaining balance in five or fewer installments.

Currently Not Collectible (CNC)

Financial hardships can make it tough to clear your tax debt. Luckily, the IRS provides a currently not collectible plan to stop collection measures until your situation changes.

Before you qualify for this plan, you must prove that paying the debt will cause significant financial hardships. The IRS will then conduct period reviews to assess your situation and require you to start installment payment if your status improves.

Penalty Abatement

Penalty abatement is an IRS tax debt relief program involving a penalty reduction or removal. When applying for this plan, you must provide a reasonable cause for failing to meet your tax obligations. Some aspects that will qualify you for a penalty abatement are:

  • A natural disaster that destroyed vital personal documents
  • Severe illness or death of your immediate family
  • Inability to get records needed for tax preparation

How to Apply to the IRS Fresh Start Program

The forms needed when applying to a Fresh Start program will depend on the selected repayment plan. Consult a tax resolution expert to determine the most suitable option depending on your debt and ability to pay. After that, gather the needed documents and submit them alongside your IRS tax debt relief application.

You may need to deposit a certain fee when sending a Fresh Start application. A tax resolution expert will help you determine the charges for each program. They can also recommend applying online or via mail based on your preferences.

Determine If You Qualify for a Tax Forgiveness Program

Navigating IRS tax resolution can be challenging without help. At Finishline Tax Solutions, we have a team of CPAs and attorneys who can help you determine eligibility for the Fresh start program. They will then file your taxes and ensure you apply for an appropriate repayment plan. Call us today to schedule a consultation.