What if I Can’t Afford to Pay My Taxes?

If you are among the approximately 8 million taxpayers who owe money on their taxes each year, tax season can be stressful. It is especially worrying if you don’t have the money required to pay off your taxes due to poor budgeting, a recent job loss or another financial hardship. Fortunately, there are several options available to make the payoff process easier.

Depending on how much money you owe and how long you need to come up with the cash, there are a few different options for working with the IRS. While short-term solutions are usually the best option to avoid interest and heavy fines, there are also long-term options available if you are in a real bind.

File on Time and Wait for the Bill

If you have a short-term cash flow problem and simply need a few more weeks to pay off the balance, the most important thing to do is file your taxes by the deadline. Many benefits come with filing a return on time, even if you can’t pay off the balance right away. If you don’t file by the deadline, you can expect a 5% monthly late fee. If you haven’t filed within two months, the late penalty is your entire tax balance or $435, whichever is less.

File your return and wait to receive a notice detailing how much you owe. The IRS sends bills out to people who owe taxes a few weeks after the deadline. Waiting for the bill to arrive in the mail will give you a few extra weeks to come up with the funds. However, you should only use this strategy if you are certain you can pay off the amount owed within 30 days of the filing deadline. You can expect a 0.5% monthly fee for unpaid balances. While this might not seem like a large penalty, it can add up if you don’t pay off the balance immediately.

File an Extension

If you are unable to pay by the deadline, but you are confident you can pay within four months, a payment extension may be an option. The IRS typically offers 120-day payment extensions to qualified taxpayers. While there is no fee to apply for an extension, you are still subject to penalties and interest. You will need to pay a minimum monthly penalty equal to 0.5% of your entire balance.

The IRS does offer a Fresh Start Program that enables qualified taxpayers to receive concessions on interest and fees. You can apply for an extension by calling the IRS at 1-800-829-1040 or visiting the Online Payment Agreement portal.

Request a Monthly Installment Plan

Applying for a monthly installment plan is a great option for those that owe back taxes but can pay off their balance within a set period of time. There are two ways to get on a monthly installment plan. You can include a Form 9465 with your taxes when you file. You can also submit an online payment plan application on Irs.gov after you submit your return.

There are a few important things to know before setting up an installment agreement.  You are not eligible for a monthly installment plan if you have neglected to file your taxes in previous years. Therefore, make sure you’re filing your taxes consistently each year. You will be given up to 72 months to pay off your tax balance once your installment agreement is approved. However, this is not an option if you owe more than $50,000 in combined taxes and interest.

Submit an Offer in Compromise

If you simply cannot afford to pay the taxes you owe, requesting an offer in compromise might be a good option. Essentially, you make an offer to the IRS and they can accept or decline the offer. When deciding whether or not to accept your offer, the IRS considers the following:

  • Assets
  • Income
  • Ability to pay
  • Expenses

You will need to pay an application fee of $185 when you send in your application. This fee can be waived, however, if you meet certain qualifications. Be prepared to pay 20% of the overall offer upfront. The rest of the amount can be paid off in monthly installments. If you fail to pay the reduced amount, the IRS can sue you to recoup the original tax debt amount.

General Tax Payment Guidelines

Whether you owe $50 or $50,000 in taxes, there are a few guidelines you should follow when dealing with the IRS. Read below for some general tips:

  • Be straightforward with the IRS: Don’t think your debt problem will go away if you simply avoid the IRS. The IRS is usually more likely to work with individuals who are upfront about their inability to meet all of their financial obligations. Talk to the IRS before the tax filing deadline and be honest during the entire process.
  • Always file your annual return: Many people will not file their return if they can’t pay off their tax balance. This is not a good idea. If you don’t file your returns, the IRS will be less likely to work with you on past due balances and you will not be eligible for installment agreements. You may also be subject to legal ramifications if you fail to file a return.
  • Seek help: If you have a particularly complicated tax situation or you are feeling overwhelmed, seek the advice of a tax professional. A professional will be able to advise you on the best course of action to take.
  • Pay a small amount: Even if you can’t pay your whole balance, send in a small payment if it is financially feasible. This will show the IRS that you are making a good faith effort to settle your taxes and they may be more willing to work with you.

Contact Tax Resolve Today for Professional Advice

If you have IRS tax debt or you have unfiled tax returns and you want advice from a professional, contact Resolve Tax today. Tax Resolve is experienced in a multitude of tax issues including wage garnishment debt negotiation. All services are affordable and confidential. Contact Tax Resolve today and take back your peace of mind.






Here’s How To Get Help for Back Taxes

In 2018, Americans owed the Internal Revenue Service more than $131 billion in back taxes, plus the interest and penalties accrued. What’s even more terrifying is that just over 14 million people owed all this money. That works out to a per-capita debt load of more than $9 million. Of course, there are specific people who owe tens of millions of dollars and some people who owe only a few hundred, but it does give an idea of how that debt load spreads out.

Regardless of where your debt falls along that range, you might feel fearful of what lies ahead. After all, the IRS has access to more information about you and does not need to abide by all the same rules private lenders and collectors must follow. From revoking your passport to seizing assets, there are many actions the IRS can take to make a person’s life difficult. Thankfully, it need not come to this. There are several actions you can take to resolve your tax debt problem.

What To Do When You Owe Back Taxes

It’s important to note that only a financial professional can answer this question as it directly applies to you. However, there is some general information you can keep in mind. Having this information handy makes it easier for you to ask more specific questions when you speak with a tax professional:

  1. File Your Back Taxes

If you have not filed your old returns just yet or made the proper amendments, you might feel hesitant to do it. After all, until you file those returns, the IRS technically has no idea that you owe them, right? That might be true for some time, but they do eventually catch on. When they do, this might pose problems for you or even your heirs.

There are potential criminal and financial penalties attached to not filing your returns. Subsequently, the sooner you get this out of the way, the better it tends to be.

  1. Pay as Much as Possible

There is an idea of the IRS becoming perfectly unreasonable when it wants its money. There is some truth in this, but for the most part, the agency is willing to work with American taxpayers. If you make arrangements with them early on and pay as much as you can in a lump sum and/or an ongoing basis, they might give you more leeway.

Remember: the agency has over 14 million people to pursue and more than $131 million to reclaim. The person trying to catch up on payments might not rank at the top of its priorities.

  1. Seek Professional Assistance

Depending on your circumstances, you might need either a tax professional, an attorney or both. They can inform you of your liabilities and rights as well as advise you on how to move forward. No matter how much you owe and how awful things might progress, having professional expertise to draw from can help to lighten the burden, boost your confidence and help you make fewer or no errors that might make things worse.

This is especially important if an IRS Revenue Officer makes an appearance in your life and begins to do some digging. Seeking representation is generally a wise move, here.

  1. Pursue IRS Programs

The IRS often has a few programs you can use to make more manageable payments or even discharge the debt. The three most common options are filing for non-collectible status, arranging affordable installments or making an offer in compromise.

Non-collectible status occurs when you owe way more than you can ever hope to pay back. Affordable installments allow you to make smaller payments over time. Offer in compromise allows you to make a lumpsum offer to the IRS to settle the debt. Note that there is no guarantee the IRS will allow you to use any of these programs, but they are worth looking into.

Why You Should File Sooner Rather Than Later

Failure to file the following four returns could result in spending up to $10,000 for each year you did not file or up to a year in prison:

  • Form 941
  • Form 1040
  • Form 1065
  • Form 1120

The IRS also provides its own reasons that people should file past due returns as soon as possible. Note that they encourage doing so even if you cannot pay the balance due:

  • Keep Your Refunds: One of the many ways the IRS gets back money owed for prior years is to simply not issue refunds for current or future years. You could also lose the right to claim specific credits.
  • Get Your SS Benefits: This mostly applies to self-employed persons, but if you do not file your returns, you miss the opportunity to pay into the SS fund. This could create problems for you if you become disabled or when you retire as you might not be eligible for benefits.
  • Avoid Interest and Penalties: As mentioned before, penalties and interest can start to pile up on those unfiled tax returns, so the sooner you file them, the better. If you already struggle to pay the actual number, imagine how insurmountable the debt load might feel when the IRS adds these.
  • Obtain Loans More Easily: Whether you’re applying for a zero-APR loan to consolidate your credit card debt or you’re about to buy your first home, lenders tend to ask for copies of your tax returns. Self-employed persons might need tax returns going even further back than nine-to-fivers.

How To Choose the Right Professionals

Unfortunately, there are scammers on the internet posing as genuine professionals and businesses. These people deliberately take advantage of taxpayers in the hour of need. To ensure this does not happen to you, always work with a reputable and accredited business. You also need to ensure the business hires competent professionals and puts you first.

At Resolve Tax, we have spent years creating success stories, such as one client who settled a $225,000 debt for just $20. Not only can we help you become one of our success stories, but we can offer tax preparation services to reduce the chances of you finding yourself in this position a second time. Give us a call at 1-800-721-3890 for more information today.



  1. https://www.irs.gov/pub/irs-soi/18db16co.xls


Can I Be Arrested for Not Paying Taxes?

Most people who have tax problems didn’t start out trying to break the law. Usually, tax issues begin when you forget to file your return one year or you don’t enough have money to pay off your balance. One year of tax problems can suddenly turn into several years and before you know it you owe tens of thousands of dollars you cannot afford to pay back. You may now be wondering if you can be arrested for not paying taxes.

While there is no easy explanation to this question, the short answer is maybe. While you could get prison time for lying on your tax return, you cannot be imprisoned for not having the funds to pay your taxes. Read below to learn more about possible consequences if you fail to pay your taxes.

Understanding Criminal and Civil Charges

Most tax proceedings are civil matters and not criminal. It is important to understand the difference between criminal and civil proceedings. Criminal cases involve an action that is considered harmful to society as a whole and are considered offenses against a specific jurisdiction. If convicted in a criminal court, you can be sentenced to prison time. Civil matters, on the other hand, involve private disputes between organizations or individuals. You cannot typically be sent to prison over a civil matter.

If you are audited by the IRS and they determine that you owe money, they may place a civil judgment against you to collect the past due tax balance. Generally, the only crimes that are prosecuted in a criminal court are tax fraud and tax evasion. You may be subject to a prison sentence if the IRS files criminal charges and you are sentenced in a criminal proceeding.

Tax Crimes That Come With Prison Time

Audit rates have reached an all-time low. According to the Tax Policy Center, the IRS audits less than 1% of returns annually.  However, this does not mean you are in the clear and are free to become complacent on your tax returns.

The IRS is much more likely to work with individuals who can’t pay their taxes but still file their returns as opposed to people who don’t pay and don’t file a return. However, if you file a return and something triggers a red flag, an investigation may be opened and you could be subject to a criminal proceeding if criminal conduct is suspected.

While being arrested for tax issues is not the norm, it does happen. Here are a few actions that could land you in a prison:

  • Tax evasion: Tax evasion occurs when you deliberately avoid taxes by lying about your earnings or reporting too many deductions. A tax evasion conviction comes with a prison sentence of up to five years.
  • Tax fraud: Fraud occurs when you deliberately attempt to deceive the IRS. Fraud is different than a mistake or omission because of the deliberate nature of the act. Reporting more children than you actually have is a common type of tax fraud. Like tax evasion, tax fraud can come with a five-year prison sentence.
  • Failure to file: Failing to file a return can also come with a prison sentence of one year for each year you didn’t file.  If you didn’t file for five years, you could get up to five years in prison.
  • Helping someone evade taxes: If you help someone evade the IRS, you could be sentenced to up to 5 years in prison, depending on the specific acts committed.

Statute of Limitations for Criminal Charges

There is a statute of limitations for tax crimes such as fraud and evasion. The IRS has three years after you a tax return to audit you. However, if you fail to report 25% of your income, the statute of limitations is six years.

If the IRS decides to pursue a criminal case, they must file charges within three to six years of the violation, depending on the nature of the alleged offense. It is important to note that the statute of limitations clock does not start until you actually file your return. For example, if you file a fraudulent return seven years ago but never paid the taxes owed, the IRS cannot pursue charges against you.

Options When You Cannot Pay

If you owe more in taxes than you can pay, you have options. Read below for more information:

  • Installment agreement: If you owe less than $50,000 in taxes, you may be eligible to pay down your balance over a specific amount of time by making monthly payments. Arrangements are also available for people who have higher balances, but the paperwork is more extensive.
  • Offer in compromise: You can get an offer in compromise if the IRS agrees to settle your account for less than you owe. This is generally only an option if the IRS does not think they will be able to recoup all of their money. You generally have to pay 20% upfront and then make monthly payments to pay off the balance.

Avoid Mistakes Beforehand

To avoid any potential tax issues down the road, it is important to always file your returns on time and to file for an extension if you need extra time to pay. It’s also a good idea to work with a certified accountant when filing your taxes to avoid any mistakes.

Even if you do not have the money to pay off the entire balance, be upfront with the IRS. They will be more willing to work with people who are upfront than those who evade communication. If you have a complicated tax situation and you think that you need advice, consult with a tax professional. They can help advise you to avoid more problems down the line.

Call Resolve Tax Today for Assistance

If you have a problem with IRS tax debt, wages garnishments, or unfiled tax returns, contact Resolve Tax today for more information. Call today to speak with a certified counselor who can help you sort through your options and come up with the best course of action.





10 Vital Steps To Help Prepare for Tax Resolution

Resolve Tax has compiled some helpful steps that a delinquent taxpayer can do to help with their tax resolution. If you would like to discuss your tax issue, you may contact Resolve Tax at 800-721-3890, Option 1, and request a free financial consultation. In the meantime, making the following financial moves is encouraged:

  1. File all past tax returns. If you have unfiled returns, the IRS will require that they be filed prior to considering any tax negotiations whatsoever. If you need tax preparation assistance, we can prepare returns regardless of the state you live in and we beat competitor’s prices.
  2. If you are a wage earner (W2) you need to correct your tax withholdings so you are having the proper amount of federal taxes deducted from your paychecks. The IRS has updated the W4 form that you complete with your current employer as of January 2020. Please consult with your employer on the completion of the W4 or contact Resolve Tax.
  3. If you are 1099 self-employed or an independent contractor you should be paying your current estimated tax payments to the IRS. Estimated tax payments are made quarterly and are usually calculated from your prior years return. When your current year return is prepared the tax preparer should provide you with 4 quarterly voucher slips that will show the amount you need to pay, where you need to mail, and the due date. If you have not been making quarterly estimated tax payments we recommend that you determine how much you should be paying and send payments monthly rather than quarterly. Essentially, it is recommend that you take the quarterly voucher slip and divide by 3 and send that amount in monthly. You may include a copy of the quarterly voucher slip with the monthly payments. Your intention of becoming complaint will become more apparent with you making monthly estimated tax payments and will only help in the negotiation of a tax resolution.
  4. Attempt to keep your tax balance due under $100,000. Once you owe over $100,000 your IRS file is more likely to be transferred to the field and a revenue officer assigned. Revenue Officers are assigned locally and are much more aggressive on collecting against you for the back taxes you owe. Most delinquent taxpayers are assigned to the automated collection system which takes longer and is not as scrutinizing as a revenue officer. Revenue officers have a limited amount of cases assigned to them, live in your locality, and have access to an arsenal of financial information and may subpoena 3rd parties to gain information about you. Therefore the avoidance of a revenue officer should be priority one. Please note that you do not need to owe over $100,000 to get assigned to a revenue officer.
  5. Limit the use your bank account. If you operate out of a bank account and you are listed as an account holder on the signature card and you owe IRS back taxes, they have the potential to levy your account. Therefore it may be best to limit the funds you keep in your bank account or simply cash your checks rather than deposit them. The IRS will not give you prior notice to issuing a bank levy and when it hits all funds in your account will be frozen. It is very rare that the IRS will release back to you any funds seized by the bank levy so it would be in your interest to minimize this from occurring. Additionally, most banks charge a bank levy implementation fee which will make your account go negative as it is on top of the levied funds. If you want professional help, we can help protect your assets once we are retained. If you would like to discuss your back tax issue give us a call at 800-721-3890, Option 1.
  6. If you operate out of a bank account limit your deposits to your paychecks only. Any other deposits will be scrutinized by the IRS. Additionally, you should not be transferring funds to or from other bank accounts. The IRS tracks all cash transactions of $10,000 or more so it is advisable to keep any bank transactions below this amount.
  7. Do not comingle your money with someone who does not owe IRS taxes. Doing so could jeopardize them and cause confusion when your tax settlement is being reviewed. If your name is on another person’s bank signature card their account could be seized for your back tax debt debt.
  8. Consider being an account signer or power of attorney on a bank account rather than an owner. Some banks provide this option. As an account signer you may perform all transactions on the account as if you were the owner except opening and closing the account. However, since your social security number is not attached to the account as an owner it is immune from IRS levy for back taxes you owe.
  9. Start keeping receipts and or all records involving your financials. It is better to have too much documentation then not enough. Regardless of the tax resolution, the IRS will most likely require some documentation so having more would be better than less as it could affect the outcome.
  10. Attempt to keep your housing and utilities bills in your name only. We recommend that if you lease or rent that the agreement have your name as the sole renter if possible. We also recommend that you put as many utility bills in your sole name as possible as this will help in the negotiations of your tax settlement. It is also advisable that you attempt to show that these expenses are being paid from your income. It is recommended to have your vehicle solely in your name also.

Altering your financials now will help regardless of the tax resolution you are seeking. It is never too late to prepare and taking the above steps is a step in the right direction. Due to the complexity of IRS tax resolution programs it is always advised to seek help from an experienced tax company. Resolve Tax meets the criteria. We have been operating since 2005 and have tax practitioners and other seasoned tax professionals whose expertise is negotiating tax settlements. We have negotiated many Offers with the IRS and know what they can and cannot request and we take great pride in providing only that which is required by law. We know how to prepare, negotiate, and resolve your tax issue. We encourage you to call now for a free phone consultation at 800-721-3890 or contact us at https://www.resolvetax.com/contact/ and complete our online form and we will get back to you.


Resolve Tax Team

Do You Need IRS Revenue Officer Representation?

If you owe money to the Internal Revenue Service, you might benefit from IRS revenue officer representation. An important thing to realize when faced with tax debt is that you are not alone. In fact, one in five Americans expected to owe the IRS some money when filing their taxes this year. Despite how common it is to owe the IRS money, this is definitely not a situation you want to procrastinate on fixing.

The IRS can resort to many tactics traditional creditors can’t to ensure they receive every last penny on time or with fees. Unfortunately, many people have no choice in putting off tax payments or might not even know they owe the IRS money at all. IRS revenue officer representation can help you resolve many of the issues that arise in these instances.

Common Ways People Acquire Tax Debt

If you owe the IRS money, you might already know how that came to be. However, there are millions of Americans who owe federal taxes and have no idea. How did this happen? Sometimes, when people hire accountants or tax preparers, they do a poor or dishonest job of filing taxes. The methods they use to save you money may cost you in the long run. Should the IRS conduct an audit, you then discover many years after the fact that you owe tax money plus fees.

Another common way you might have a tax debt you knew nothing about is if your spouse filed the returns jointly. Even if you did not work during the tax-filing periods, a joint return leads to joint liability. This can put you on the hook for taxes your spouse failed to pay. If you divorced and the settlement did not address these debts, the divorce might not absolve you. This is one reason many formerly dependent spouses rely on IRS revenue officer representation.

Business owners also commonly rack up tax debt. This is because when working for someone else, the employer becomes responsible for paying a portion of the employee taxes while the employee pays the rest. When paying yourself as a business owner, you pay the full portion of the taxes and must remember to keep up with payments throughout the year. If the business made just enough to cover expenses and pay a salary, you might owe taxes on that salary.

What To Expect When an IRS Revenue Officer Is on the Case

When tax debt remains unpaid for some time, IRS revenue officers might get assigned to your case. These agents have one task and that is to collect on the debt owed. They can exercise immense power to get this done. Here are some of the things you might experience before hiring IRS revenue officer representation.

  1. Personal Visits

Most creditors might only call and pressure you to pay. IRS revenue officers might visit your home, unannounced. They could even show up where you work. They can make it all the way up to your front porch or to the driveway, even if you put up a “No Trespassing” sign. When interacting with these officers, be courteous and polite, but be careful about disclosing any personal or financial information or making any promises. If you ask them to leave, they should do so.

  1. Personal Outreach

If you refuse to speak to the officer — and sometimes even if you do — they might reach out to the people closest to you. This includes visiting with the neighbor you’ve been arguing with about the placement of the fence for the past five years. It might also mean reaching out to your parents, adult children, siblings or other family members who can report on your financial situation. This is the point where many people first consider IRS revenue officer representation.

  1. Harassment

Some people might refer to debt collection as harassment the second the officer showed up in the driveway. However, there are allowances in place for this. Even so, there are clear lines drawn that constitute violations of their policies and your rights as a taxpayer. Here are some actions that fall into this category:

  • Calling you or anyone else without stating upfront that they are a revenue officer
  • Using profanity or stating obscenities while talking with you
  • Making repeated phone calls with the intention of annoying you
  • Threatening to cause harm or injury

What To Expect After IRS Revenue Officer Representation

One of the best things you can do to protect your finances and peace of mind is to hire representation. Once the IRS receives a notification of this, the officer then needs to speak with your hired representation.

This takes the burden off your shoulders and puts you in a much better position to negotiate your way out of trouble. It should also put a stop to the phone calls, personal queries and visits. Here are some common debt resolution options you might choose.

  1. Innocent Spouse Relief

If the debts owed actually belong to your spouse, you might qualify for this type of relief with the help of IRS revenue officer representation. Unfortunately, you might still owe some taxes as you may have benefited from the income or the incorrect deductions the spouse made that led to refunds they did not deserve. However, the new dollar value is typically much lower.

  1. Make Payments

The easiest way to keep the IRS at bay is to make payments. You can even do so in installments. To qualify for this, you generally need to have covered all or most of your state tax liabilities. The plan often lasts for only 120 days, but you might qualify for longer terms if you owe bigger debts.

  1. Offer a Settlement

Like traditional creditors, the IRS allows qualifying individuals to offer a settlement in lieu of making the full payments. An offer in compromise might require proving to the IRS that you are genuinely incapable of repaying what you owe. IRS revenue officer representation can help you determine what to submit.

There are many more tax resolution options available that Resolve Tax can help with. Contact us today to help restore your peace of mind and your financial health.



  1. https://www.cnbc.com/2020/01/29/one-in-five-fear-theyll-owe-the-irs-money-this-spring.html
  2. https://www.irs.gov/payments/payment-plans-installment-agreements
  3. https://www.irs.gov/businesses/small-businesses-self-employed/innocent-spouse-relief
  4. https://www.irs.gov/payments/offer-in-compromise

What Is IRS Officer Representation?

Very few — if any — persons set out to owe the IRS money on purpose. As the most powerful tax agency in the country, no one wants to go toe to toe with Uncle Sam’s treasury department. Even so, there are many instances where a person may end up owing taxes and need IRS revenue officer representation to move forward.

Maybe you didn’t realize your tax bill would be quite so high. You could have also lost the tax money you set aside in an unsuccessful investment. Unfortunately, the IRS cares very little about why you fail to pay and may only insist that you do.

What Happens When You Don’t Pay?

When you don’t pay your tax bill, the Automated Collection System starts to seek repayment. It begins with a series of letters that work their way up to an urgent request for payment. This urgent letter also includes a forewarning of the IRS’ intention to turn to levy action.

Ultimately, the IRS has several options at its disposal to reclaim its funds:

  • Revoke your passport
  • Garnish your wages
  • File a notice of federal tax lien
  • Take your assets
  • File charges for tax evasion

Some debtors get assigned a revenue officer. Like an agent at a collections agency, this person may handle your case directly and is tasked with getting you to repay what you owe.

What Will a Revenue Officer Do?

Unlike most collections agents, revenue officers may do more than just call. They may also visit where you work or live. These agents generally identify themselves via a photo ID card colored white and blue.

It’s their job to track you down and ensure you pay back as much money as possible and as soon as possible. To do this, they may independently resort to all the actions outlined above to ensure you pay by choice or by force.

What To Do When Assigned a Revenue Officer

Many people fall into the trap of providing personal and financial information to this officer in hopes of playing to their sympathies. They may also want to paint an honest picture of their financial standing to show they truly cannot pay. However, what you see as an inability to pay may translate as tax evasion to the IRS.

Because of this, more people are seeking out IRS Officer Representation. To do this, you call on your right to representation via IRS Publication 1. This allows you to find a professional who will act on your behalf to guide you through the complexities that lie ahead.

If you have been assigned a revenue officer, then it’s important to act quickly. Seek revenue officer representation as soon as possible to protect yourself and your interests. Call Resolve Tax today at 1-800-721-3890.

Payroll Tax Relief Help

Owning your business is one of the greatest joys and accomplishments in life. Setting your own hours, deciding your own pay and taking vacation time when it best suits your family needs is truly amazing. However, owning a business also comes with more responsibilities, including paying all the payroll taxes for yourself and the people you employ. Failure to pay these taxes on time may result in the need for payroll tax relief help.

What Are Payroll Taxes?

If you are new to business ownership, payroll taxes may take you quite by surprise. One reason for this is that they are much higher than what you pay when working for someone else. That’s because your employer paid a portion of those taxes, but now you pay the full amount yourself. If you employ someone else, you pay a portion of their taxes too. Self-employed people pay the full 15.3% of Medicare and Social Security taxes, while employees pay 7.65%.

What Happens When You Don’t Pay?

No business person deliberately dodges payment of taxes they and the IRS know they owe. That means intentionally going up against the country’s most powerful tax agency and no one would wish that on themselves. However, cash flow is a problem even in old and established businesses, which can make sourcing payroll tax payments incredibly difficult.

Regardless of the reason, the IRS will want its money. If you have fallen a few quarters behind, then a field office may take on your case. If it gets assigned to an individual revenue officer, this person may visit the business and even your home as part of their efforts to pressure you to repay.

What Can You Do?

To get payroll tax relief, the best thing to do at this point is to seek representation. Tax laws in America are incredibly complex. There may be loopholes the agent may not inform you of or rights that fall by the wayside because you were unaware of them. Having a representative on your side helps to reduce these instances.

It is also important to be selective about the information you provide to revenue officers. They may catch you off guard as you open up shop or when you return home from the gym. This surprise visit may compel you to let your guard down and give information away to earn their sympathies and a little leeway.

This is more often than not a mistake. They are only doing their job, so be polite. However, get professional assistance as soon as possible before they resort to heavyhanded tactics. For more information about how Resolve Tax can help, give us a call at 1-800-721-3890.

Negotiation of Non-Collectible Status

Did you know that millions of Americans fall behind on their taxes each year? When you go through hard times financially, it’s easy to put off paying your taxes until the deadline has passed. Unfortunately, there are many penalties for delinquency, so it’s important to either pay the taxes or attempt to qualify for non-collectible status. Here are a few things you should know before you apply.

Penalties for Delinquency

If you’re delinquent and don’t do anything to resolve your situation, penalties could be levied against you. Possible consequences for unpaid taxes include:

  • Fines
  • Wage garnishment
  • Tax lien
  • Property seizure
  • Bank levy
  • Jail time

To avoid these penalties, it’s important to file your taxes on time, each year. When this isn’t possible for lack of funds, you may qualify for non-collectible status

Understanding Non-Collectible Status

Sometimes there are valid reasons for falling behind on taxes. That’s why the “non-collectible status” category was created. It’s a good option for people whose monthly expenses are higher than their gross monthly income. If this situation describes you, then you may want to see if you qualify.

If it’s determined that you qualify, it does not mean your debt is forgiven. Instead, it means your obligation to pay taxes is temporarily put on hold. Though you will not be required to pay taxes while you qualify for non-collectible status, interest and penalties will continue to accrue. Additionally, the IRS has the right to analyze your financial information later on to determine if you still qualify to file under this status.

Here are a few more details you should know about filing under this status:

  • You can make voluntary payments toward your tax debt if you choose to, even while your file is still in non-collectible status.
  • You can only file under this status temporarily, while you meet its qualifications.
  • A federal tax lien will be filed if it hasn’t already been filed previously.

Although filing under this status won’t relieve you of your ultimate obligation to pay back taxes, it will relieve your financial burden temporarily. In the meantime, you should work to find more suitable employment or living situations that will allow you to meet your tax obligations going forward.

Find Out if You Qualify

Tax matters can be confusing for the average person, so don’t be concerned if you need help. Resolve Tax offers a variety of services designed to help you get in better standing with the IRS. To find out if you qualify for non-collectible status, call us or contact us through our online form today.

Delinquent IRS Taxes and Collection Process

After you file a tax return with a balance due, the IRS will send a progression of IRS notices. The first notice is known as an Amount Due notice. This notice will inform you of your balance due and any penalties and interest that have accrued. This notice will give you 30 days to pay the balance due or contact the IRS to determine repayment options. The next notice is known as the Final Notice of Intent to Levy. This notice is issued roughly 45 days after the amount due notice. The IRS must issue this notice in order to take collection actions such as wage garnishments or bank levies. Therefore, even if you established a repayment plan, the IRS will still send this notice.

Most IRS collection notices are issued from the Automated Collection System or “ACS” for short. Therefore, most delinquent taxpayers are directed to contact ACS to address their tax issue. However, certain files are sent to the field for enforcement. If your file is moved from ACS to the field, you will receive contact from the agent that gets assigned to your file. The agents in the field are known as revenue officers. Most files that are sent out to the field owe over a certain threshold, have a history of not filing returns, or are self-employed individuals. Revenue officers are required to be much more scrutinizing in the evaluation of your financial circumstances when determining your tax resolution options. Therefore, if your file is transferred to the field, be prepared to provide massive amounts of financial paperwork.

Whether your delinquent tax file is assigned to ACS or the field, knowing what you must present is key to the outcome. Most taxpayers assume that the IRS knows everything about their financial circumstances and therefore, provide more information than necessary.  The financial presentation is critical in negotiating your tax resolution with the IRS. Too much information can disqualify or alter your tax resolution options in a negative way. In fact, this is why most tax practitioners do obtain superior tax resolution outcomes. Here at Resolve Tax, I know exactly what financial information to present, how to present it, and how it will effectuate the tax resolution outcome. If you have delinquent taxes, it is advisable to seek assistance from a tax practitioner before contacting the IRS. I recommend every delinquent taxpayer assert their publication 1 rights and retain a tax practitioner.

The Difference between Tax Practitioner Designations & IRS Representation

(Updated 7/19/2019)

There are 3 types of approved IRS tax practitioners.

  1. Attorney;
  2. CPA; or,
  3. Enrolled Agent.

All 3 designations are approved to represent taxpayers before the IRS. There is ABSOLUTELY no different treatment or distinction made by the IRS regardless of designation.

Unfortunately many tax resolution firms have capitalized on the tax practitioner distinction by selling the false claim that you want to be represented by an attorney. An Attorney is provided the right to represent taxpayers before the IRS simply because they are licensed attorneys. There is no special education or specific training that an attorney must take to represent taxpayers before the IRS. Often times, many of the large tax resolution firms will hire an attorney simply for advertising purposes. It is very common for the attorney at large resolution firms to be nothing more than a figurehead. Many of them do not actually work the tax resolution client files at all. This was the case with the Tax Offices of Roni Deutch, Freedom Tax Relief, Taxmasters, JK Harris, Signature Tax Relief, and Optima Tax Relief.

The only tax practitioner who is required to have actual working knowledge of the IRS to earn their credentials are Enrolled Agents. An enrolled agent must pass a rigorous exam administered by the IRS. This exam covers all forms, publications, and extensive knowledge of IRS rules and procedures. This is why you will find that most tax resolution firms use enrolled agents to actually negotiate and truly represent their tax resolution clients.

Even CPAs have more direct education and training in regards to actual tax representation than attorneys. The CPA exam is 14 hours long and tests the competency of accounting. Many tax resolution firms hire CPAs to prepare tax returns, handle client bookkeeping and company accounting and billing.

It is unfortunate that so many taxpayers have been led to believe that an attorney is required to represent them before the IRS. It would be even worse for those taxpayers who bought into the myth to find out that the attorney never worked their file and that they were charged much more than they would have had they just hired an Enrolled Agent or a CPA.

If you are an individual or business with an IRS tax debt, have a wage garnishment, bank levy, or have unfiled tax returns, call 1-800-721-3890 or fill out the form below. Resolve Tax has helped many satisfied taxpayers that were in the same position you find yourself in right now. Let Resolve Tax help you with your tax debt issue as quickly and favorable as Resolve Tax did for past clients. All information provided is confidential and nothing will be shared.

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Unfiled IRS Tax Returns & IRS Substitute Filed Returns

The worst thing a taxpayer can do is not file tax returns.

If you earn enough income to be required to file, you should do so even if you owe. The IRS charges a penalty for late filed tax returns that can be avoided by filing on time. Unfortunately, if you cannot pay on time, you will still incur penalties and interest. However, filing on time will waive the failure to file on time penalty which can be substantial.

If you do not file tax returns for years you met the filing requirement, the IRS will eventually file them for you. These returns are known as “SFR” or substitute filed returns. The IRS SFR unit simply uses the income documents reported under a taxpayer’s social security number to prepare the unfiled returns. When the SFR unit creates the unfiled return, they send a Notice of Deficiency to the taxpayer to inform them of their determination. The notice of deficiency will provide the taxpayer the opportunity to:

  1. Accept the SFR return, or,
  2. Appeal the SFR prepared return.




If the taxpayer does not respond by the due date on the notice of deficiency, the SFR return is finalized by the IRS and after a certain period of time, collection notices will be mailed. The SFR unit does not collect outstanding taxes so once the SFR filing is closed, the file is transferred to the “ACS” automated collection unit for further action. ACS will send a progression of collection notices for each tax year there is a balance due. The 1st notice is known as the amount due which provides the total balance due with penalties and interest. It provides the ACS phone number and normally gives 30 days to pay the balance due or contact the IRS to resolve the tax balance. If the taxpayer does not respond, the IRS will send the final notice of intent to levy informing the taxpayer that the IRS may seize income or assets after the date on the notice without further warning.

If you have unfiled tax returns and need a tax preparer, Resolve Tax can help. Whether you have your income documents for each year, Resolve Tax will file a power of attorney and order those documents to prep the unfiled returns. Once you become compliant I can determine what tax resolution options are available to you. If you would like more info, please contact Resolve Tax at 800-721-3890.

Settling IRS Debt through the Offer in Compromise Program

If you have amassed an IRS tax debt, you may be a candidate for the IRS offer in compromise program. This program is the only option available to possibly receive tax relief that provides a significant reduction in not only the principal balance due but the penalties and interest that have accumulated as well.

In order to be considered for tax relief through the offer in compromise, you must be compliant. Compliance requires 2 things:


  1. All past tax returns must be filed; and,
  2. You must have corrected the issue that caused you to have balances due in the past.




Most often delinquent taxpayers are not having the proper withholding on their paychecks or they are self-employed and not paying taxes on this income. If you are an employee and not paying enough tax then you must correct your W4 with your employer so that sufficient taxes are being deducted. If you are self-employed then most likely you must be paying estimated tax payments. These are quarterly payments you send to the IRS throughout the year. Normally the amount of your estimated tax payment is determined from your prior year tax return balance due. Your tax preparer should provide 4 voucher slips indicating the amount you should be sending quarterly and where to mail these payments.

Once you have become compliant, you may be a candidate for tax relief through the Offer program. Most often, the best candidates are those who have little equity in real estate, bank accounts, and investment accounts. Additionally, you must be able to show the IRS that your monthly expenses are in line or exceed your monthly income. The key to determining this is to know which expenses will be allowed by the IRS. Many expenses are not considered necessary and as such will not be subtracted from your monthly income.

Roughly 35% to 40% of annual offers in compromise submitted are accepted. Most accepted offers are submitted by tax practitioners since they are versed in packaging offers.  If you believe that you meet the criteria above or simply want a free consultation to determine your tax relief eligibility, give Resolve Tax a call at 800-721-3890.

Stopping IRS Wage Garnishment on Paycheck

Did you know that if the IRS issues a wage garnishment on your current employment they could leave you with as little as $199 per week! When your employer receives Notice of Levy from the IRS, it comes with IRS Publication 1494. Pub 1494 is a chart that instructs your employer on how to calculate the amount of your check to seize per pay period and remit to the IRS.
Publication 1494 determines your garnishment based on the following information:
1. Your Filing Status;
2. How often you are paid; and,
3. How many exemptions you are entitled to claim.
Therefore, someone who is single, paid weekly with no dependents would be entitled to no more than $199 per period whereas someone who was married with 2 dependents would be entitled to $533 per check. Either way, the IRS has no compassion when it comes to effectuating IRS wage garnishments. As you can see, the implementation of a wage garnishment is completely calculation based and clearly creates financial hardships for most immediately.
Normally when an employer receives a notice of levy to garnish your paycheck from the IRS, they should provide a copy of the notice to you. The notice of levy will indicate the type, years, and amounts that the IRS claims are owed. Many employers will not implement the levy for 1 pay period in an attempt to give their employee an opportunity to get an IRS levy release to them. An IRS levy release is issued by the IRS and sent to the employer directing them not implement the levy. This release can be in full or partial.
Requirements for Levy Release:
1. The IRS will not consider a levy release if you are not compliant. This means that all past tax returns must be filed. If you have not done so, you will be required to fax any unfiled returns to the IRS before they will discuss a possible levy release;
2. You will be required to negotiate an IRS Installment Agreement. If the balance owed is less than $25,000, the IRS will usually accept an offer of a monthly payment that will pay off the balance in 60 months. For example, if you owe $15,000, the IRS should allow a monthly payment of roughly $250. If the balance due is above $25,000 and below $50,000, the IRS will usually allow a monthly payment that can repay the balance in 72 months as long as you agree to have your payment directly debited from a financial institution.
If an installment agreement is established, the IRS agent should be willing to fax the IRS levy release to your employer. You should have your HR or payroll departments fax number available as you will be required to provide. If you do not, the IRS agent will mail the levy release to your employer and until your employer receives, the levy will stand.
If you cannot afford an installment agreement, then you might qualify for a reduced installment agreement or a temporary uncollectible status. In order for this to be determined, the IRS will require that you present your financials to them. The IRS has a form 433F that can be completed and presented via phone. It is important to note that many of the expenses that we all pay, may not be expenses that the IRS deems acceptable in determining an inability to repay. Essentially, the IRS has created “allowable” expense categories and limits on them as well. Therefore it is very important to understand the allowable expenses and limits as all too often taxpayers present their financials to be told they can actually afford more then had they not presented their financials. Some expenses that will not be allowed are the cost of private school for your children, higher education cost for your children, repayment of your child’s student loans, more than 1 vehicle payment up to $517 per taxpayer who owes the tax liability, and, whole life insurance payments. Additionally, there are maximum allowed expenses amounts for housing and utilities, operating expense for vehicles, and for food and the like.
If you feel that your financials warrant the inability to establish an installment agreement you may want to contact ResolveTax.com at 800-721-3890. Resolve Tax offers a free financial analysis to determine if this may be the case. There is even the possibility that your financials will warrant tax settlement whereby I can reduce your total tax repayment to pennies on the dollar. Why not let Resolve Tax determine if IRS tax relief is an option for you?

7 Big Tax Changes in 2015

Below is an article by Jeff Reeves of Investorplace.com providing some the of major tax changes coming in 2015.

As 2014 draws to a close, it’s nearly time for the annual deluge of tax forms – including 1098’s reporting mortgage interest or W-2’s from employers reporting your annual wages.

But while gathering documents for the past year’s taxes is important, equally pressing is the need to adjust your budget to account for changes in the tax code that take effect starting on New Year’s Day.

After all, you have been paying taxes and making retirement contributions all year even though taxes don’t need to be filed until the following April. While there are a handful of last-minute strategies to play catch up on 2014 tax obligations, the sad reality is that many folks who have waited until now to think about their taxes are too late.

A better strategy is to plan ahead based on what you think you will owe the Internal Revenue Service, and be proactive on your withholding and savings strategies.

Regardless of what your situation looks like in 2014, here are seven big changes that will affect a large number of taxpayers starting in January 2015.

Health Insurance Penalty: Part of the Affordable Care Act mandates that all Americans have health insurance, or pay a tax penalty as a result. In 2014, the penalties are 1% of your household income or $95 per person – whichever is greater. But in 2015, those penalties ramp up significantly to 2% of total household income, or $325 per person. That can really add up for a middle-class family of four. If you’re not covered and paying a penalty on your 2014 taxes, make sure you get health insurance ASAP to avoid penalties as we enter a new tax year in January.

401(k) Limits: The limit on employee contributions to a 401(k) plan will increase to $18,000, up $500 from 2014’s cap. That means you tell your payroll department to adjust up your contribution starting on the first of the year to ensure you save the maximum allowable in 2015. Also, the “catch-up” allowance for those over than 50 has also been increased, allowing for an additional $6,000 in contributions instead of the $5,500 cap previously. These new contribution levels are also applicable to 403b accounts and most 457 retirement plans as well.

Flexible Spending Account Limits: The annual limit on employee contributions to flexible spending accounts is now $2,550 for qualified health care expenses. That’s up $50 from 2014, so make sure you opt in for this new maximum amount if you take advantage of a health care FSA.

Standard Deduction: The standard deduction – that is, the basic tax break extended to all Americans each year — rises to $6,300 for single filers and $12,600 for married taxpayers filing jointly in 2015. That’s up $100 and $200, respectively, from 2014 figures. The standard deduction is crucial to tax planning and withholding, because if you cannot itemize enough deductions to surpass this amount, this is the only tax break the government will likely be giving you on next year’s tax return.

Tax Brackets: For the new tax year starting in January, income tax thresholds have again been adjusted up for inflation. The highest tax rate of 39.6%, for instance, will now apply to single filers who make over $413,200 and married couples making $464,850. Both figures are up about 1.6% from tax year 2014. For more information on specific income tax brackets by filing status, check out the latest IRS revenue procedure document.

IRA Rollovers: Starting in 2015, you can only make one single rollover from an IRA in a 12-month period. This is a bit tricky, because you can still make as many “trustee-to-trustee” transfers as you wish, moving your money directly from one provider to another. What the new IRS rule targets is the practice of withdrawing all those funds and then re-depositing them in a new account – a tactic some folks were using as a short-term, interest-free loan. To protect yourself, limit all rollovers to direct transfers in 2015 if you plan on moving money more than once.

AMT Changes: The so-called “alternative minimum tax” is quite a headache for many middle-class Americans. Since certain breaks can significantly reduce your tax bill, the IRS created the AMT to set a limit on those benefits – and ensure a minimum tax burden on you. The Alternative Minimum Tax exemption amount for tax year 2015 is $53,600 for individuals or $83,400 for joint filers. That’s up slightly, about 1.5% from 2014.

IRS Relaxes Review of Tax Relief with Fresh Start Program

Did you know that the IRS recently implemented the Fresh Start Program which has relaxed the rules in regards to releasing an IRS tax lien, implementing an Installment Agreement, and negotiating tax relief through the Offer in Compromise Program:

For IRS tax liens, it used to be that once the IRS filed the lien, they would not consider releasing until the tax debt was paid in full. With the Fresh Start Program, the IRS will now consider the release of an IRS lien if a taxpayer negotiates a direct debit installment agreement and once 3 consecutive payments have been made. The IRS will only consider this for installment agreement where the balance due is under $50,000. Additionally, the IRS has increased the requirement of filing a federal tax lien to tax balances above $10,000. Therefore for taxpayers who owe less than $10,000 the IRS will normally not bother pursuing a lien. The IRS will also allow certain taxpayers to apply for withdrawal of lien if they meet certain payoff criteria and apply by filing the appropriate paperwork.

The IRS is now allowing taxpayers to negotiate installment agreements on tax balances up to $50,000 without the necessity to provide a full financial disclosure. This is an increase from the prior requirement that demanded financial disclosure once you owed over $25,000. Normally, the IRS will consider allowing the repayment of a balance up to $50,000 over 72 months as long as the taxpayer agrees to the payments being directly debited from their bank account. If a taxpayer would like to negotiate this type of an agreement they must complete form 9465 and mail to the IRS for review and acceptance.

The most significant alteration made by the Fresh Start Program is in the relaxing of the way an Offer in Compromise is reviewed. The Offer in Compromise program allows those taxpayers who cannot repay their outstanding tax debt the opportunity to settle for a fraction of what is owed. The IRS has revamped the calculating formulas used to determine a taxpayer’s “ability to pay.” This has drastically increased the number of taxpayers who qualify for tax relief. However, due to the complexity of preparing, submitting and negotiating an Offer very few qualifying taxpayers have taken advantage of this opportunity.

If you would like more information, have questions, or want to be represented in front of the IRS regarding a back tax issue, please contact Resolve Tax at 800-721-3890. I’m are here to help.