The IRS is ramping up its collection efforts, and this will undoubtedly impact taxpayers who have unresolved debts. The agency, now strengthened by additional funding from the Inflation Reduction Act, is on a mission to improve enforcement and bolster its resources by hiring more agents and staff. For those who owe back taxes, this means more rigorous scrutiny and an increased likelihood of collection actions, such as wage garnishments or bank levies.
If you’re a taxpayer with outstanding IRS debt, this resurgence in activity might seem overwhelming, but there are ways to manage the situation and find relief. Fortunately, the IRS offers several programs that provide relief to those struggling to meet their obligations.
Navigating IRS Collections: What You Can Do
If you owe the IRS, the possibility of enforcement action can create a great deal of anxiety. However, you don’t have to feel powerless. There are specific options designed to help taxpayers reduce or even temporarily pause their tax obligations, depending on their financial situation. Two of the commonly used programs are the Offer in Compromise (OIC) and Currently Non-Collectible (CNC) status.
The Offer in Compromise (OIC)
The Offer in Compromise is one of the well-known relief options available for taxpayers. This program allows individuals to settle their tax debt for less than the total amount owed if they can demonstrate financial hardship. It’s important to note, however, that qualifying for this program is not guaranteed for everyone. The IRS will take a close look at your financial situation, including income, expenses, and the equity in your assets, before approving an OIC.
If the IRS determines that the amount you offer to pay represents the most they can reasonably expect to collect from you, they may accept your OIC. This process can take several months and requires detailed paperwork, so many taxpayers turn to professionals for help in navigating this process.
Currently Non-Collectible (CNC) Status
For taxpayers in severe financial distress, Currently Non-Collectible (CNC) status may provide a temporary reprieve. When a taxpayer is granted CNC status, the IRS acknowledges that they are currently unable to pay any portion of their tax debt due to financial hardship. As a result, collection actions are suspended, and the taxpayer is not required to make payments on their outstanding tax balance for the time being.
Although CNC status offers temporary relief, it doesn’t erase the debt—interest and penalties will continue to accrue, and the IRS may periodically review your financial situation to see if you’re capable of making payments in the future. This option can be beneficial for those experiencing short-term financial difficulties, as it provides breathing room while the taxpayer’s financial situation improves.
Seeking Professional Help with Your Tax Problems
If you’re facing IRS collection actions, tackling the problem on your own can feel like an uphill battle. But there are professionals who can help you manage your tax situation more effectively. This is where companies like National Tax Debt come in.
National Tax Debt is a respected tax resolution firm with a deep understanding of IRS procedures and tax law. Their experienced team of CPAs, enrolled agents, and tax attorneys is dedicated to helping individuals and businesses resolve tax challenges and alleviate the stress associated with mounting tax debt. With more than 80 years of combined experience, the firm has a successful track record of helping clients settle tax issues, file back taxes, and negotiate with the IRS to stop collection actions.
National Tax Debt has the expertise needed to navigate complex IRS programs like the Offer in Compromise and Currently Non-Collectible status. They can help taxpayers submit the necessary paperwork, understand their options, and negotiate on their behalf to secure the ideal outcome.
The Importance of Taking Action
Ignoring tax debt is never a good option. The IRS has the legal authority to take action, including seizing wages, levying bank accounts, and placing liens on property. However, taxpayers don’t have to let things get to that point. Seeking professional help early can make a huge difference in how your situation plays out.
By working with a team of experienced professionals, you can gain a better understanding of your situation and explore the options available to you. Tax resolution experts can help you get back on track, whether that involves filing overdue returns, setting up a payment plan, or qualifying for a relief program like OIC or CNC status.
About National Tax Debt
Founded in 2009, National Tax Debt is a trusted tax resolution firm with a mission to help individuals and businesses resolve their tax issues. The firm specializes in assisting clients with unfiled tax returns, IRS levies, wage garnishments, and a variety of other tax-related problems. Over the years, National Tax Debt has earned a reputation for providing personalized solutions tailored to each client’s unique financial situation.
What sets National Tax Debt apart is its commitment to client care. The firm understands the stress and uncertainty that IRS debt can cause, and it provides a compassionate, client-centered approach. The team focuses on clear communication and transparency throughout the resolution process, helping clients understand their options and guiding them toward the ideal outcome.
With over a decade of experience, National Tax Debt has built a solid track record of success, helping thousands of clients resolve their tax problems and regain financial stability. Their expertise and dedication have made them a trusted partner for taxpayers across the country. Whether you’re facing wage garnishment, need help filing back taxes, or want to explore your options for resolving tax debt, National Tax Debt is here to help.
Country: USA
Media Contact Name: Diana Winfrey
Company: National Tax Debt
Email: info@nationaltaxdebt.com
Phone Number: 866-362-6469
Website: www.nationaltaxdebt.com
Published by: Khy Talara
