Each approaching year, I intend to make my tax return on the date indicated, but for some reason I missed the April 15th deadline and finally, the year passes and I cannot make the report to comply with Uncle Sam. One more year passes and again the date beats me, and 10 total years of not having filed my report have been accumulating and, consequently, the amount of taxes to be added are $261,106. Maybe this is not the amount I owe, but by not reporting to the IRS, Uncle Sam makes my report on the total amount I earn each year without discounting any type of expenses from my business and did not apply credits from my dependents.
This is a true story from a trucker friend who hired Jagg Tax Solution, Inc. to represent him and solve this tax problem. Unfortunately, this is the situation many friends have with the Internal Revenue Service. On top of all this, we must add the problem that could occur with the Department of State, which can cancel our US Passport if we are US citizens or cancel our legal resident card if you owe them $51,000 or more. Such as the case of our friend. Remember, this law to cancel legal documents was signed on September 4, 2015 by then president Obama.
What can you do to solve the problem with your tax debt?
According to the Internal Revenue Service, it is recommended to comply with the tax law as soon as possible. Yes, the law is basic and asks you two requirements. First you have to make all the outstanding tax returns and send them to the IRS and, second, start paying your current taxes. In other words, you should plan to make your estimated three-monthly tax payments, that is, the quarter that passes quarterly. To meet these requirements, you will be ready to negotiate with the IRS.
What type of negotiation can you request from the IRS?
There are different options which you can choose from among the following:
1- Regular payment plan that would be for 36 months
2- Optimal payment plan for 72 months and prevents the IRS from increasing interest and penalties from the day they approve your payment plan.
3- Offer in Commitment, if you are not able to pay the total debt, you can offer a lower amount.