Ending IRS Problems – Moving Forward
In reaching a resolution of a problem with a taxpayer, the IRS and States expect unconditional future compliance. As a condition of an offer in compromise, the tax agencies reserve the right to resurrect the tax bill and compound the tax problem in case of failure to file or pay future tax obligations. Unfortunately, many taxpayers who achieve resolution of their tax problem, end up having problems within one or two years by incurring another tax liability, or a tax return filing delinquency. In the years following the settlement of your tax problem, it is more important than ever to remain in the IRS’ good graces and comply with the filing and payment requirements.
Our ability and desire to assist clients does not end with the resolution of the problem. Our clients often turn to us for ongoing tax planning and compliance. Since we are familiar with their financial history and condition, we are uniquely positioned to prepare future tax returns and provide tax-planning strategies to and avoid subsequent problems.
Furthermore, many of the IRS problem resolutions reached with the government, require the clients to comply with all tax laws for up to five years. For example, The Offer in Compromise program requires that subsequent to acceptance, the taxpayer must remain current on all IRS tax obligations for a period of five (5) years. Therefore, if the taxpayer’s Offer in Compromise is accepted and paid in full, but he later fails to pay current income taxes or other taxes, it might be revoked by the IRS and give rise to a bigger problem.
Related Topic: Offer In Compromise