If you do not pay your tax in full when you file your tax return, you will be issued a bill for the amount owed. This bill initiates the collection process, which will continue until your account is satisfied or until the IRS is no longer permitted to collect the tax, such as when the time or period for the collection expires.

From Billing To Collection

You file your tax return, usually annually by April 15 or quarterly for businesses with employees. If you owe taxes, the IRS will send you a bill. This first bill includes the tax you owe, plus any interest and penalties. If you don’t pay your first bill, the IRS will send you at least one more bill. Remember, interest and penalties continue to accrue until you’ve paid your full amount due. If you still don’t pay after receiving your final bill, the IRS will begin collection actions, which can range from applying your subsequent tax refunds to the tax due to seizing your property and assets.

Options If You Can’t Pay In Full Now

Installment Agreement

If you can’t pay the full amount at once, the IRS allows you to make smaller periodic payments over time by applying for an Installment Agreement. To be eligible, you must file all required tax returns. A setup fee applies to agreements over 120 days. Payments can be made via direct debit, payroll deductions, electronic funds transfer, or check. For assistance, check out the IRS Fresh Start Program.

Offer In Compromise

If you are unable to pay your debt in full or through installments, you may be eligible for an Offer in Compromise. This allows you to settle your unpaid taxes for less than the full amount you owe. Before the IRS can consider your offer, you must file all required tax returns, make all required estimated tax payments for the current year, and make all required federal tax deposits for the current quarter.

Currently-Not-Collectible Status

If you need additional time to pay, you may request to postpone the collection process and report your account as Currently Not Collectible. If the IRS determines that you cannot afford to pay off any of your tax debt due to financial hardship, they may temporarily delay collection until your financial situation improves. Note, being on CNC status does not eliminate your tax debt; penalties and interest continue to accrue.

Collection Process Overview

If you are unable to pay your taxes, it’s crucial to reach an agreement with the IRS. The IRS Fresh Start Program includes four main programs designed to help: Currently Not Collectible (CNC), Offer In Compromise (OIC), Installment Agreement (IA), and Penalty Abatement (PA). These programs allow qualified taxpayers to reduce or even eliminate their tax debts.

Resolve Your Tax Bills

If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!

How Simple Is Qualifying?

Qualifying for the Fresh Start Program is simpler and quicker than you might think. Here are the steps to find out if you are eligible in as little as 3 minutes:

• Fill out some basic information about yourself and your back taxes here.
• Have a representative reach out to you to discuss your eligibility.
• Go through the enrollment process and finally reduce or eliminate your tax liabilities.

For more information or assistance, visit our website or call us at (888) 235-0004 for professional guidance and support.