I owe IRS Debts but i don't know how and I need IRS Debt Help.
I owe IRS Debts but i don't know how and I need IRS Debt Help. It may be because I did not file returns a few years back, but I was sure I had enough withheld to cover my taxes.
Contact a tax relief agency or an IRS debt resolution firm. They can pull SFRs (substitute for returns) that the IRS prepared when you did not file your own returns.
The SFRs which will state your liability. If the returns the IRS filed are not accurate, then you can file accurate returns to replace the SFRs.
If you owe a balance, you should see if you qualify for a settlement through the IRS' Offer in Compromise program. If you earn enough to afford a payment plan, then you need to set up a formal installment agreement to repay the tax debt. An installment agreement will protect you from wage garnishment or a bank levy.
If you have an IRS tax debt of more than $10,000, then I suggest getting a consultation to see what your best strategy is.
If the IRS shows that you presently owe and you did not file that return, then it is clear that the IRS has filed that return for you. This IRS substitute-for-return (or SFR) is based on whatever income was reported to the IRS for you on that tax year. SFRs use only your standard deduction. If you would have shown a smaller tax liability had you filed a return and claimed other deductions, such as dependents or mortgage interest, then you need to file a replacement for the the IRS' SFR.
We are friends with the folks at Freedom Tax Relief ((800) 455-6829. Freedom Tax Relief can prepare a new tax return and represent you through the process of having the IRS set their SFR assessment aside and compute your actual tax liability on the real income and expenses you had. This could potentially zero-out the tax debt.
If you want Bills.com to find you a tax resolution firm, you can apply for help on the Bills.com IRS Tax Debt Help page.
Do not worry about finding old 1099’s for tax year. Freedom Tax Relief can have the IRS provide these numbers to FTR prepare the new return. Do not delay. If you have a balance due on that tax return, failure to file and pay may result in large penalties and interest.
In conclusion, I recommend you retain a firm to file a corrected return so the IRS will set aside its SFR balance.
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