Nothing to Fear

As a former IRS-Hitman I want to tell you there are a number of issues that can cause an IRS debt, but an IRS tax debt settlement could be just the answer you’ve been looking for.  Imagine having your debt reduced from $50,000 to $5,000!  It can happen even in the most difficult situations.      

Getting a tax debt settlement is a long and difficult process.  The IRS will try to block you at every turn.  But don’t worry, with Tax Defense Network going to bat for you there will be no need for you to stress over the IRS scare tactics.

Unfiled Taxes

Is it illegal to not file your income taxes?  Yes it is.  Can you go to jail for it?  You can, but it’s rare.  However there are other problems when you don’t file your tax returns.
The IRS will not negotiate with you for any kind of tax settlement because when you have unfiled taxes you’re not “in compliance” with the IRS.  You would have to file any back taxes with the IRS before you can even think about settling your tax debt.  Until you file your back taxes you will be unable to file an income tax settlement for the full amount due.  You also wouldn't even be able to file an accrued tax penalty IRS settlement to reduce your debt in part.  So before you can start the process of getting a tax settlement you have to file any past due tax returns.

Why should you have to file your tax returns so quickly?  Eventually the IRS will take the liberty of filing your taxes for you and that’s where the real nightmare can begin.  When the IRS files your taxes for you they don’t take into account any deductions or credits you would be entitled to.  The Substitute Filing system is designed to make sure you will owe the IRS.

941 Payroll Tax Debts

When you own a small business you have to make sure you withhold the taxes taken out of your employee’s paychecks and report those withholdings every quarter (every 3 months).  You also have to pay the IRS the withheld amount.  But owning a small business can be a financial struggle, especially early on.  Some business owners will skip one quarter to cover other business expenses; then try to pay the full amount on the next quarter.  This will cause a serious buildup of debt in a very short time due to non-filing penalties. 

Does the IRS settle payroll tax debts?  Yes and no.  Unfortunately the only way the IRS will settle a payroll tax debt is if your business has been closed.  If your business is still open the IRS considers you to have too much capital to qualify for a tax debt settlement. 

Tax Levies

A tax levy is a way for the IRS to collect on your debt against your will.  A tax levy can take the form of taking a part of your wages or seizing the money in your bank account, or any accounts you may have.  A tax levy also allows the IRS to seize any other property you have to pay down your tax debt.  A tax levy can only be removed once either the IRS collects everything you have, or you enter into an arrangement with the IRS to pay off the debt. 

Having a tax levy doesn’t prevent you from being able to get a tax debt settlement.  The IRS will even lift the levies while your IRS levy settlement case is being negotiated. 
For even more information on tax levies and how to fight the IRS visit our sister site: www.irs-tax-levy-hq.com. 

Tax Audit

A tax audit isn’t so much a tax problem in itself, but it is often the beginning of a tax debt problem.  If the IRS finds questionable information, or even false information on your tax return they will audit you.  A tax audit sounds worse than it is.  All the IRS does is open up your tax file, and review your tax return for mistakes.  If they find mistakes they will notify you, and you may even have a chance to refile your return.  But if your return results in a tax debt you’re going to need to take care of it.  Much like a tax levy, you can negotiate an IRS audit settlement with the Internal Revenue Service.