Hi – Michelle Divan here. I represent taxpayers in Denver, CO – and nationwide – who cannot pay their taxes or have back tax debt. Each month I grab a topic that is germane to taxpayers that have debt or issues with the IRS. Last month I focused on how to remove Tax Liens – selling your house, refinancing, and having them withdrawn, and you can see my historic bloc posts here. This month I am focusing my attention and education on collections and how to handle the situation when you owe the IRS money.
On June 15, the IRS mailed 5 MILLION collection letters…5 million. That is a lot of taxpayers that were unable to pay their taxes. Most tax preparers have seen several factors contributing this: lack of work due to COVID; reduced hours, etc. Couple that number with the collections cases the IRS already knew about pre-COVID – hint, it is over 15 million. The IRS hired 10,000 new investigators to address these 15 million non-filing and collections cases. The IRS halted many investigations and collection during the COVID crisis …. I am guessing that these 10,000 new employees are itching to get to work!
Ok – big numbers and statistics aside, what do you do if YOU got a collection letter? Don’t panic, this is where I can help. The first route would be to get you into a payment plan with the IRS. While you will pay some interest, this gives you the freedom to spread these payments out. Some payment plans, called Installment Agreements, can be spread out over 72 months.
While a payment plan, can help most taxpayers, sometimes the monthly amount owed will be a further financial burden. Sometimes, if the numbers align, we can make an offer to the IRS for less than the full amount owed. This is called and Offer-in-Compromise (or OIC.) There are many rules and requirements to filing OIC’s and I can definitely help there!
Are you or someone you know in this situation – or have other outstanding tax issues that you want solved? Contact me today and let’s get working on this. I can be reached at 303-250-0122 or [email protected]