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IRS audit payments / Help with IRS and back taxes in Chicago

If you have been through an IRS Audit and now owe additional taxes, interest, and penalties, or if you just have back taxes to pay, there are options to consider.

If you do not feel that the audit was handled properly, then you have the right as a taxpayer to take the examination into the appeals process. Generally the auditors that handle appeals are more experienced and possibly much more professional than the agents that handled the initial examination.

Before pursuing such an avenue, one should be reasonable sure that the evidence they have to present is strong enough to warrant an appeal in the first place. Don’t file an appeal just because you’re angry.

If the left over balance is reasonable, then you have five choices:

1. Pay it off.
   This is always the best alternative. In the long run, it will cost you much less.
2. Forget about it and pray that it goes away.
   This never works because the IRS is forever. They aren’t going anywhere, and they aren’t going away. The problem simply gets worse, and worse.
3. Payment plan.
   Doing a payment plan is always effective. You simply agree to pay off the debt over an extended period of time. Interest and sometimes penalties will continue to accrue. But whatever you agree to in the plan, had better be extremely affordable. If you get into a payment plan that you cannot afford and miss payments, then the plan will be terminated and all additional enforcement actions, including levies and liens, will once again be available means of enforcement to the revenue officers.
4. Offer-and-compromise.
   The ability to reduce federal taxes in an offer-and-compromise has been greatly reduced in recent years under the auspices of discrimination. Please see the article in this website regarding offer in compromise. If you are a candidate for this process, then it can be quite effective in reducing certain federal tax liabilities.
5. Bankruptcy.
   This should only be considered as a last resort. It is quite difficult to get federal taxes included in a straight liquidation case and your credit will be tainted for years. Frankly, if you are considering bankruptcy strictly to remove federal taxes, then you should consider an offer and compromise. Although they are difficult to accomplish, your credit will not suffer the ultimate black mark of a bankruptcy.

Please give our offices a call to discuss your options.