You can access your tax account online through the IRS website or contact the IRS directly. You’ll need to provide personal information for verification.

The IRS may file a substitute return for you based on the income information they have, which might not include all deductions and credits you’re entitled to. Failure to file can lead to penalties, interest charges, and potential collection actions like wage garnishment or bank levies. Repeated failure to file can even lead to additional penalties or criminal prosecution.

The IRS generally has a 10-year statute of limitations for collecting assessed taxes. However, this doesn’t mean you shouldn’t file older unfiled returns, especially if you are due a refund.

While the IRS often focuses on the past six years for enforcement, it’s best practice to file all unfiled returns, regardless of how old they are. You need to prove you filed, and there’s a three-year limit to claim any potential refunds.

Yes, if you overpaid in a previous year, you are generally eligible for a refund if you file the return within three years of the original due date. After that, the refund is forfeited.

Generally, no, due to the statute of limitations on collections (typically 10 years). However, interest and penalties continue to accrue until the debt is paid or the statute expires. It’s not advisable to rely on the statute of limitations as the IRS can take aggressive collection actions during that time.

It’s unlikely to go to jail solely for owing back taxes. However, you could face legal consequences for tax fraud, tax evasion, or intentionally failing to file a return. Honesty and proactive engagement with the IRS are crucial.

Several options exist, including:

• Paying in full: The simplest way to resolve the debt and stop interest and penalties from accruing.
• Setting up a payment plan (installment agreement): Allows you to pay the debt over time with monthly payments, including interest and penalties.
• Offer in Compromise (OIC): An agreement with the IRS to settle your tax debt for a lower amount than what you owe, based on your financial hardship.
• Currently Not Collectible (CNC) status: Temporarily delays collection actions if you can’t afford to pay basic living expenses, although interest and penalties may still accrue.
• Penalty Abatement: Requesting the IRS to waive penalties due to reasonable cause (e.g., illness, disaster).

You can apply for an installment agreement online through the IRS website, or by submitting Form 9465, Installment Agreement Request. Eligibility and terms vary based on your debt amount and ability to pay.

An OIC allows certain taxpayers facing significant financial hardship to resolve their tax liability for a lower amount. The IRS considers your income, expenses, and asset equity when evaluating an OIC. The application process is complex and requires submitting Form 656 and Form 433-A (OIC), along with a fee (unless you meet low-income guidelines).

If you demonstrate to the IRS that paying your tax debt would create a significant financial hardship (inability to meet basic living expenses), they may temporarily place your account in CNC status, halting collection efforts. However, interest and penalties continue to accrue, and the IRS periodically reviews your financial situation.

Yes, the IRS may grant penalty relief under certain circumstances, such as “reasonable cause” (e.g., illness, death in the family, natural disaster) or through a “first-time penalty abatement” program if you have a clean tax compliance history for the previous three years.

You may qualify for CNC status. It’s crucial to communicate with the IRS rather than ignoring the debt.

Yes, if you fail to address your back tax debt, the IRS can take enforced collection actions, including wage garnishment (taking a portion of your paycheck) and bank levies (seizing funds from your bank accounts).

An IRS payment plan itself doesn’t directly impact your credit score. However, a Notice of Federal Tax Lien, which the IRS may file in cases of significant tax debt, can negatively affect your credit.

Yes, if the IRS certifies your tax debt as “seriously delinquent” (generally over $59,000 as of 2024, adjusted annually for inflation), the State Department can deny your passport application or renewal.

A tax lien is a legal claim by the IRS against your property when you fail to pay your tax debt. It can make it difficult to sell or refinance assets.

Yes, if you are due a tax refund while on an IRS payment plan or if you have outstanding back taxes, the IRS will typically offset (apply) the refund towards your existing tax debt.

A tax relief company can work to negotiate with the IRS to potentially halt or prevent enforced collection actions. However, they cannot guarantee immediate cessation of such actions, especially if they are already in progress. Prompt action and communication are crucial.

Tax relief companies assist individuals and businesses in resolving their tax debt issues with the IRS or state tax agencies. They may offer services such as negotiating payment plans, applying for Offers in Compromise, seeking penalty abatements, and representing clients during audits or collection actions.

Hiring a tax professional (Enrolled Agent, CPA, or tax attorney) can be beneficial if you have complex tax issues, a significant amount of debt, or feel overwhelmed dealing with the IRS. They can analyze your situation, explain your options, help you navigate complicated procedures, and represent you with the IRS.

Enrolled Agents (EAs): Federally licensed tax practitioners who have demonstrated competence in tax law and are authorized to represent taxpayers before the IRS.
Certified Public Accountants (CPAs): Licensed by state boards of accountancy, CPAs have expertise in accounting and taxation and can represent clients before the IRS.
Tax Attorneys: Lawyers who specialize in tax law and can provide legal representation in complex tax disputes.

Fees vary depending on the complexity of your case and the services provided. Some firms charge a flat fee, while others may bill hourly or based on a percentage of the debt reduction. Be wary of large upfront fees without a clear explanation of services.

• What are your qualifications and experience (Enrolled Agent, CPA, Tax Attorney)?
• What specific services do you offer that are relevant to my situation?
• What is your fee structure? Get a detailed breakdown in writing.
• Who will be handling my case directly?
• What is your Better Business Bureau (BBB) rating and are you accredited?
• Can you provide references or testimonials from past clients?
• What are the potential outcomes of my case, and what is your estimated timeline for resolution?
• Do you have experience negotiating with the IRS on cases like mine?
• Are there any additional or hidden fees?
• What is your process for communicating with me and the IRS?

Be cautious of companies that:

• Make unrealistic promises (e.g., guaranteeing a specific reduction in debt).
• Pressure you to pay large upfront fees.
• Advise you to stop communicating with the IRS.
• Lack proper credentials or licensing information.
• Have a poor rating with the BBB or numerous negative online reviews.
• Claim they can settle your debt for pennies on the dollar without thoroughly reviewing your financial situation.

The IRS has various programs and initiatives aimed at helping taxpayers with tax debt, and the term “Fresh Start” was used to describe a series of these changes implemented over time. While the specific “Fresh Start” name might not be actively used for a single program, the IRS continues to offer options like expanded installment agreements and easier OIC qualification.

It can take anywhere from 1 week to more than a year. It depends on which resolution option we pursue and how quickly the IRS can verify your financial situation.  It also depends on how available you are to work with your tax professional. The more you keep in touch with your accountant, the better he or she can meet filing deadlines, and the quicker the process might go.

A tax professional will charge anywhere from $2,000 to $5,000 and up to resolve your tax problems. But don’t focus too much on this figure. A qualified tax professional can save you thousands of dollars, so choose your provider based not on fees but on qualifications, experience, proven results, and the money you will be saving by securing the most favorable tax relief you are entitled to.

Yes, most reputable tax professionals will allow you to pay in installments, as the work is being completed.  Be sure to honor whatever agreement you work out with your provider. If you miss payments, he or she will likely suspend your account until you resume payments, which can delay the resolution process.

You should be prepared to provide every document that relates to your financial situation. Here are some examples:

• Bank statements
• Insurance policies
• Car title
• Mortgage records / lease agreement
• Receipts
• Pay stubs

Each officer is different – but you should know that they will turn your records inside out. They operate on overkill, gathering every single document that might in any way reflect your financial situation. The IRS also strictly adheres to deadlines, and if you miss a particular filing date, you might need to start over at the beginning of the process. This is another reason why it’s important to make yourself available to your tax professional.

When working with an accountant, the success of your particular strategy partially depends on you. Here are three points to keep in mind when getting your tax resolution efforts under way:

Collaborate with your tax professional. Getting your tax problems resolved requires work from both you and your CPA. You will need to provide records and financial information for the process to work well. Please don’t expect that you can step out of the picture and still get the results you want.

Make yourself available. Your tax professional will need to contact you frequently. Give him or her all your contact information – your home, work, and cell numbers, your fax number, all your email addresses, and your mailing address. If you fail to maintain contact with your CPA, then he or she cannot help you.

Develop an attitude of grace. Your CPA will be sympathetic with you, but remember to be considerate of your CPA in return. Your tax professional is working directly with IRS officers, some of whom are incompetent, indifferent, or punitive. Please remember the hard work your accountant is doing on your behalf. Manage your stress, anxiety, and composure so your CPA can work far more effectively for you. Always remember your CPA is in your corner and on your side.