Arizona

IRS Debt Blog

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By Michael S. Anderson of Anderson Tax Law logo for Arizona tax attorney Michael S. Anderson P.C.
  • Want to Negotiate IRS Debt? One way to ensure that it never happens

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    You have some IRS debt and have figured out that if you can’t pay it, the IRS will collect it by seizing your paycheck, bank account etc.

    You don’t want that to happen of course, and you’ve heard that the IRS may even agree to a payment plan or even a settlement of the debt, so you give the folks at the IRS a call.

    A mildly impatient IRS collections employee answers after an eternity on hold. He asks you some questions and then asks whether you can pay the debt in full. You reply that you can’t, but would like to arrange a payment plan or even settle the debt.

    Problem

    ‘Hold on a minute” he says, “I see here that you haven’t filed some tax returns, and even though you’re self employed, you haven’t made any estimated tax payments for several months”.

    “We can’t discuss “negotiation” until you are “compliant. You have to file the missing tax returns and submit some estimated payments”. (If employed, you would need to correct your withholding amount).

    Solution

    You have to be willing to become “compliant” or in English…file the missing tax returns and or pay your tax with-holdings. If you don’t, there isn’t anything anyone can do to stop the IRS long term.

    The IRS considers compliance the same as putting skin in the game or showing that you desire to live up to your end of the bargain. You don’t do it, they keep collecting.

    If you have missing tax returns, get some help to figure out which returns need to be filed. If you haven’t been withholding get some help to figure out how much you should and start doing it.

    Then…you can negotiate with the IRS. We can help.