Are you in need of IRS tax debt relief? Has the State sent you a tax notice?
Community Tax Relief has a 2 Step Program to Settle Your Tax Debt!
At Community Tax Relief, our tax debt professionals have years of experience negotiating with the IRS and will be able to find you the best possible resolution plan available based on your financial status.
Our Proven Two Step Program allows our tax negotiators to identify key issues and understand your unique circumstances before establishing a formal resolution plan with the IRS, thereby tailoring your final resolution plan specifically to your unique financial needs.
Step 1. Investigation - Community Tax Relief will complete a full investigation of your current financial status. During this investigation step we will ask you to provide all financial documentation. We will also file Power of Attorney (IRS Form 2848) which will allow us to obtain your information on file at the IRS or state tax authority. Once we have all the appropriate information regarding your current financial status and the details regarding your tax liability, we will analyze your resolution options. Once we determine the resolution strategy that we believe is the most appropriate for your unique financial situation, we will begin step two.
Step 2. Tax Preparation & Resolution - Our tax negotiators will prepare your resolution proposal and contact the IRS or state tax authority on your behalf. We will submit to them the resolution we determined in step one. If they accept the resolution, we will contact you with the details and dismiss our Power of Attorney (IRS Form 2848). You can contact our resolution team at any time and we will stay in contact with you throughout the entire resolution process.
Tax Debt Resolution Programs Include
- Setting Up Payment Plans for Tax Debt
- Negotiating Penalty Abatement
- Reducing Tax Liability
- Audit Representation
- Audit Reconsideration
- Amend Tax Returns
- Tax Return Review
- Tax Levy Investigation
- Tax Lien Investigation
- Setting Up Payment Plans for Tax Debt Such As:
Offer in Compromise
Hardship Installment Agreements
Complex Installment Agreements
Streamline Installment Agreements
- And more…
Several Methods of Payment Plans are Available with the IRS. Each is unique to a delinquent taxpayer’s financial needs and qualifications.
- Offer in Compromise (OIC): If an individual can claim that they will be put into financial hardship status as a result of payment of tax debt, they may be eligible for an Offer in Compromise. An OIC allows a taxpayer to settle their tax debt for an amount less their full tax liability. The IRS accepts the OIC if they believe that the amount of money an individual offers them is the maximum amount of money they will be able to receive in a set period of time. The full liability of tax debt will not be removed from the records of the IRS until the terms agreed upon on the OIC are met in full.
- Installment Agreement (IA): Installment Agreement is a payment plan that can be made with the IRS that allows a person to make smaller monthly payments to settle outstanding tax debt. IAs can be used as an alternative to paying the full amount of tax debt at one time. The payments or installments amount is based off what the IRS believes an individual will be able to pay based on their assets. Installment Agreements can last between 6 months and 2 years; this is dependent on the size of the installments, the taxpayer’s finances, and the total amount that the IRS will try to collect.
- Traditional Installment Agreement: Is a “full pay” installment agreement in which the taxpayer pays as much as they can as determined by their financial documentation for the duration of their debt. Through an installment agreement, a taxpayer will pay off their full tax liability in a set amount of time determined by the IRS.
- Streamlined Installment Agreement: A Streamlined IA is applicable for taxpayers that owe $25,000 or less in tax debt. The taxpayer must also agree that they will be able to pay off the entire tax debt balance in 60 months. The benefit of a SIA is that the taxpayer will not be required to have financial disclosure with the IRS.
- Conditional Expense Installment Agreement: A Conditional Expense IA can be used if a taxpayer has a monthly expense or debt that they are required to pay off, such as credit cards, loans, and 401k to name a few. The taxpayer must provide financial documentation to the IRS and prove that they will be required to continue to make payments to their conditional expenses for the duration of their installment agreement. The duration of the installment agreement is typically 60 months and the taxpayer will be required to pay off their entire tax debt in this period of time.
- Stair-Step Installment Agreement: A Stair-Step IA can be applied for by a taxpayer that is near paying off an expense that will enable them to make a larger payment towards their tax debt. The taxpayer will be required to make payments towards their tax debt and their other outstanding debt (i.e. car, mortgage, loan, child support, etc.). Once the debt is paid off within 12 months, the taxpayer will be required to make larger payments for the next 48 months towards their tax debt. The payment amount will “step up” once the taxpayer pays off their other debt and has more disposable income.
- Partial Pay Installment Agreement: A Partial Pay IA is an agreement in which the taxpayer will not be required to make full payment of their tax liability. The taxpayer will be required to provide all financial documentation to the IRS. The IRS will accept a Partial Pay IA if they believe that the taxpayer will only be able to pay a portion of their tax liability within the time set for the Statute of Limitations (the IRS has up to 10 years to collect tax debt after the date of assessment). This is similar to an OIC agreement, except the taxpayer will be required to make payments until the expiration of the Statute of Limitations.
- Currently-Not-Collectible (CNC): CNC is a resolution plan with the IRS that can be available for individuals that are able to prove that they are in “financial hardship”. The taxpayer must disclose all financial documentation to the IRS and prove that their current expenses exceed their monthly income. A taxpayer in CNC status will need to continually submit documentation to prove their “financial hardship” until the Statute of Limitation (10 years) is reached for the IRS to collect the tax debt. If the taxpayer’s income increases or they are able to make payments, the taxpayer will be taken off CNC status and will then be required to make payments to the IRS.
- Penalty Abatement: The IRS may agree to remove some of the penalties that have been assessed for tax liability through Penalty Abatement. A Penalty Abatement proposal asks the IRS to remove penalties for failure to file or pay tax on time. In order to be eligible to have penalties to be removed, a taxpayer must show through their proposal that there was reasonable cause for the noncompliance for repaying tax debt and due diligence in resolving the tax debt.
Act Today! Contact Community Tax Relief today and talk with a representative to learn more about the tax relief services that we offer!
Phone: (877) 971-3232