What can I do if I have not filed tax returns for past years?

You may be in serious trouble with the IRS. You can file past year returns. There will be a fee assessed for interest and penalties on any outstanding tax liabilities. The IRS has years at its disposal to collect taxes owed. It is advisable that you have all the documents you need to file your returns. When you don’t file a tax return, the IRS will send you reminders. After some time, after multiple reminders, you may be faced with a Notice of Intent to Levy your assets and wages.

What if I file an old tax return that shows I should get a refund?

Refunds will be paid by IRS up to three years late. Refunds will not be paid on returns filed more than three years late.

Who is responsible for payroll taxes that were attributable to the wages of employees but then not paid to IRS?

Generally, the person who had the authority to write checks and make the financial decisions of the business can be held personally liable for the unpaid taxes.

Can I get any help if I owe more to the IRS than I can possibly pay?

There is a program within IRS called Offer in Compromise. This program focuses upon an individual’s ability to pay. If the individual’s ability to pay the tax debt over a period of five years is less than what is owed, some of the tax debt will be forgiven. If a taxpayer qualifies financially, substantial portions of overdue taxes, interest, and penalties can be forgiven altogether by IRS. In order to qualify for this program all your expenses in a month are taken into consideration, which include the money that you spend on: food and clothing, housing, transportation, medical expenses, student loan payments, and alimony and child support. If the total of these expenses is equal to or greater than the monthly income after taxes, then you most likely will qualify for the program.

What if I owe a lot of taxes but I do not qualify for the Offer in Compromise?

Taxpayers can qualify to make installment payments to IRS. The duration of the payments depends on the amount of the outstanding tax debt and the taxpayer’s financial position.

Which is a better program for gaining tax relief, Offer in Compromise or an installment payment plan?

An Offer in Compromise allows some of a tax debt to be completely forgiven, whereas an installment payment plan requires it all to be paid eventually. Also, interest payments are not charged to a taxpayer once an Offer in Compromise is agreed upon, but they are charged to a taxpayer on an installment payment plan until the balance is paid off.

What is a wage garnishment?

The IRS may use a wage garnishment or impose a levy in order to collect any past due taxes that you owe. The IRS can pursue any assets you own by multiple means including garnishing wages and bank accounts as well as imposing a levy upon your home, equipment, furniture, vehicles or other valuable possessions.

What can I do if I get a notice from IRS that it is going to garnish my wages or place a lien on my house?

Check to see whether you qualify for a Collection Due Process Hearing. If so, you may point out errors that the IRS has made, you may have an opportunity to inform IRS of extraordinary circumstances, or you may have an opportunity to present an acceptable plan to IRS.