Do you owe back taxes? We can help
We understand that hardships happen. As accountants, we can provide guidance, advice, and support to help you resolve your back tax debt and become compliant with your tax obligations.
Understanding your options
If you owe back tax debt, you have several options available to you:
- Pay the taxes in full:
This is the easiest option, but it may not always be financially feasible to pay the full amount owed.
- Offer in Compromise:
This IRS program allows taxpayers to settle their back tax debt for less than the full amount owed. To qualify for an offer in compromise, you must provide financial information to the IRS and demonstrate that you cannot pay the full amount of you tax liability. Dunn and Apell Accounting specializes in offers in compromise and will help you gather the required financial information.
- Payment plan (Installment agreement):
You can request an installment agreement to pay your taxes over a period of time. The IRS has different installment agreements that vary based on the amount of tax debt and your ability to pay. If you do not qualify for an offer in compromise, an installment plan is often the next best choice. We can review your financials, help you select the right plan, and complete the required paperwork on your behalf.
- Currently not Collectible status:
You can request this status if you have a significant financial hardship and can’t afford to make payments on your back tax debt. This status will temporarily halt collection actions by the IRS, but interest and penalties will continue to accrue.
- Abatement of penalties:
You can request abatement of penalties on your back taxes, if you can show reasonable cause for not paying the taxes on time.
As a last resort, you can discharge most types of taxes in a bankruptcy, but certain restrictions apply, such as taxes related to fraud, taxes due within the last three years, and taxes assessed within the last 240 days. We can provide guidance and advice regarding bankruptcy, such as the financial implications and the financial information needed, but we can not assist with the bankruptcy petition. A licensed attorney is required to file a bankruptcy petition for you.
It’s important to communicate with the IRS and comply with tax laws and regulations to avoid enforcement action such as wage garnishment, bank levy, seizure of assets, etc., and penalties. Our friendly and experienced tax professionals can help you navigate these options and find the best solution for your unique financial situation.
We specialize in offers of compromise
The licensed tax professionals at Dunn and Accounting are well-versed in tax laws and regulations, as well as the procedures and guidelines for submitting an offer in compromise. If an offer in compromise is the best solution for you, we can help you gather the financial information required by the IRS, prepare the offer, and negotiate with the IRS on your behalf.
Here are a few specific ways we can help you with an offer in compromise:
- Reviewing your financial situation and providing an assessment of your ability to pay the tax debt
- Preparing and filing the necessary forms and documentation with the IRS
- Providing guidance on how to gather the financial information needed to support the offer
- Calculating the offer in compromise amount and negotiating the best deal with the IRS
- Advising you on how to maintain compliance with tax laws after the offer in compromise is accepted
- Representing you in case of communication and/or negotiation with IRS