The pandemic caused many small business and individual taxpayers financial difficulties. Among those difficulties were the inability to meet payroll tax obligations as many businesses were only just meeting payroll and had to use accrued payroll (trust fund) taxes to survive. Other businesses may have already had an installment agreement in place but were unable to continue making payments and fell behind.
Individual taxpayers had to stay home and receive unemployment compensation that paid some but certainly not all of their essential living expenses. If they had an agreement with IRS, then they may not have been able to comply with the terms of their agreements while they were not earning a living.
We help businesses and individuals who either need to negotiate an installment agreement or re-negotiate an installment agreement because they either need to reduce their monthly payment amount or they are currently uncollectible. Some businesses and/or individuals may instead opt for an Offer-in-Compromise (OIC). This is an offer to compromise the total amount of tax penalties and interest and offer IRS a lower amount. During this difficult time, this is an option that individual and business taxpayers may want to consider.
If you owe IRS back taxes, call us before IRS levies your business bank account(s) and/or receivables. If you are an individual taxpayer, call us before IRS levies your bank account(s) and or wages. Of course, you can also call us if a levy is ongoing at this time. When you owe back taxes, time is not on your side.
And please, if you receive certified correspondence from IRS, pick it up and read it. If that certified Notice is a Final Notice of Intent to Levy, then you/we only have thirty (30) days to request a Collection Due Process (CDP) Hearing. A timely-filed CDP hearing request places a hold on proposed enforced collection action and gives you/us the opportunity to appeal enforced collection action and instead opt for a payment agreement, offer-in-compromise or to determine if you are in fact currently uncollectible. If the thirty days pass, IRS will proceed with levies. If you have a large amount of equity in your home, office or other fixed asset, the IRS by-way-of the US Department of Justice can enforce federal tax liens and foreclose on your property by filing a lawsuit against you in District Court. I am writing this to inform, because most taxpayers are unaware of how quickly a case can go from bad to worse if Notices are ignored.