You've been denied? There's something you should know when you have an IRS tax debt. Very few tax professional companies will take your case on if you owe less than $7500. Some of them won't go below $10,000. Why won't they help everyone, even people with the lowest tax debt?
What I've seen... After I left the life of an IRS-Hitman and started helping people with their taxes, I worked along side some of these companies. The reason why these companies don't offer assistance to debts below $10,000 is that the legal fees associated with negotiating your debt with the IRS wouldn't be in your best interest. In fact, if you owe less than $7500, the fees could be as much as half your IRS tax debt.
One option... So what tax help can you get if the tax professionals won't work for you? You can always try to deal with the IRS on your own. As a former IRS-Hitman, I normally wouldn't recommend this course of action. But your tax debt amount gives you a little more freedom when dealing with the IRS than someone who owes $25,000 would have.
For example, if you enter into an IRS Installment Agreement, the amount of your monthly payment can be too high for you to comfortably pay. But with your debt level of less than $10,000, you can negotiate a much lower payment and make your IRS tax debt manageable.
A free service? But you wanted the help of a tax professional because you can't deal with the IRS alone. Don't panic because there is a free service offered through the IRS called the Taxpayer Advocate Service. The service is independent of the IRS and will keep your information confidential. The Taxpayer Advocate Service has two main goals in assisting people just like you, according to the IRS official website.
- Ensuring that taxpayer problems, which have not been resolved through normal channels, are promptly and fairly handled
- Identifying issues that increase burden or create problems for taxpayers: Bringing those issues to the attention of IRS management and making legislative proposals where necessary
Tax debt is difficult for anyone, whether you owe $500 or $100,000. But there are enough people out there who want to help you with your tax debt. For more information about the Taxpayer Advocate Service, visit the official IRS page: www.irs.gov/advocate
Now you have the smoking gun... Use it!
Labels: Back Taxes