Back Tax Question

Ernie Neve, CPA

October 2, 2019

QUESTION: If I owe a lot of back taxes to the IRS, how do I know whether the offer in compromise or installment agreement is right for me? Who determines which option is best? 

ANSWER: Thanks for your great questions and congratulations on beginning the process of tackling your tax debt head-on. Ultimately, you’ll have the final say on which option is best for you, assuming you meet the criteria for qualification. But you’ll need the help of a qualified tax resolution professional to decide which option you should choose, so your first order of business should be to meet with a qualified tax resolution specialist in your area. 

The first step he or she will take is to analyze your previous returns and your current financial situation. Analyzing your previous returns will allow your qualified tax professional to make sure no errors were made in your previous filings that may have resulted in inflated tax debt to the IRS. After all, why go into negotiations with the IRS claiming you owe more than you actually do? 

If you owe a substantial amount in (back) taxes but are unable to pay that debt, even over time, you may qualify for the IRS’s offer in compromise. This program allows you to go to the IRS and negotiate a one-time settlement that often amounts to a significant discount. This program is intended for taxpayers who, because of financial calamities, health problems or a host of issues, are unable to pay off their tax debt. If you do not qualify for the offer in compromise, then a properly structured installment agreement may be your best option. This allows you to pay off your debt over time through manageable monthly payments. 

We at the Neve Group are experts at navigating the IRS maze. We will customize a resolution plan to fit your individual needs and help you permanently solve your IRS problems. Please contact Ernie Neve from the Neve Group at 610-278-8900 or visit www.solveyourtaxproblemtoday.com.  

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Phone: (610) 278-8400
Email: eneve@nevegroup.com