Before You Pay Thousands for Tax Relief, Know Your Options.

Tax debt is scary. And when you're scared, a company promising to make the IRS problem disappear can sound pretty damn good.

But before you hand anyone thousands of dollars, understand what you're actually paying them to do.

A surprising amount of tax resolution starts with tools and information the IRS makes available directly to you. Some situations absolutely need professional help. Others don't.

Here are some places to start.

Start Here: IRS Tax Debt Help

The IRS now has a Tax Debt Help tool that walks you through questions about your situation and points you toward possible resolution options.

You don't need to provide your name, Social Security number or address to explore the tool.

IRS Tax Debt Help
https://www.irs.gov/payments/get-help-with-tax-debt

Check Your IRS Account and Transcripts

Before you can solve a tax problem, you need to know what the IRS actually has.

Your IRS Online Account can show balances, payment history, notices and other account information. You can also obtain transcripts showing returns, income information and activity on your account.

IRS Online Account:
https://www.irs.gov/payments/online-account-for-individuals

Get Your Tax Record / Transcripts:
https://www.irs.gov/individuals/get-transcript

Missing Tax Returns

If you haven't filed all of your required returns, start there.

You do not have to pay the entire balance in order to file a return. In fact, most IRS payment plans and resolution options require you to get your required returns filed before you can move forward.

If you're comfortable preparing your own returns, FreeTaxUSA is the software I recommend to friends and family who don't need professional preparation. I'm not affiliated with them, I don't get paid if you use them, and there's no referral link here. I just think it's a solid, inexpensive option.

They also support prior-year returns, which can be helpful if you're trying to get caught up.

FreeTaxUSA:
File with FreeTaxUSA

Past-Due Returns:
https://www.irs.gov/businesses/small-businesses-self-employed/filing-past-due-tax-returns

Payment Plans

Can't pay everything at once? That doesn't automatically mean you need a tax relief company.

The IRS offers short-term payment plans and longer-term installment agreements for taxpayers who qualify.

IRS Payment Plans:
https://www.irs.gov/payments/payment-plans-installment-agreements

Offer in Compromise

Yes, the IRS really can settle some tax debts for less than the full amount owed.

No, everybody does not qualify.

The IRS considers your income, expenses, assets and ability to pay. You can use its pre-qualifier before paying someone thousands of dollars to tell you whether an Offer in Compromise might even be realistic.

Offer in Compromise:
https://www.irs.gov/payments/offer-in-compromise

OIC Pre-Qualifier:
https://irs.treasury.gov/oic_pre_qualifier/

Currently Not Collectible

If paying the IRS would prevent you from meeting necessary living expenses, the IRS may temporarily delay collection.

This is commonly called Currently Not Collectible, or CNC, status.

CNC does not erase the debt. Penalties and interest can continue, and the IRS may review your financial situation later. But for someone experiencing genuine financial hardship, it can provide breathing room.

Currently Not Collectible / Temporary Collection Delay:
https://www.irs.gov/businesses/small-businesses-self-employed/temporarily-delay-the-collection-process

Penalty Relief

Sometimes part of that terrifying IRS balance isn't tax at all. It's penalties.

Depending on your circumstances and compliance history, you may qualify for penalty relief.

IRS Penalty Relief:
https://www.irs.gov/payments/penalty-relief

Do You Need Professional Representation?

Maybe.

A complicated case, multiple unfiled years, collection activity, liens or levies, disputes with the IRS, or simply being completely overwhelmed can make professional representation worth paying for.

But representation should provide something you actually need.

Before hiring anyone, ask:

-What exactly are you going to do for me?

-Who will actually handle my case?

-What resolution are you recommending, and why?

-What happens if I don't qualify?

-What am I paying for?

-And what can I reasonably do myself?

Good tax representation isn't about keeping you confused enough to need us.

It's about helping you understand the problem, your options and what makes sense for your situation.

And if you can handle it yourself?

I'll happily tell you that too.

Stay Sharp. 🗡️

-VH