Unpaid Taxes

Unpaid taxes can be handled in two ways, one is do it yourself or the second is to hire a tax professional to help you out. Going DIY on unpaid tax issues is advisable if you owe the IRS less than $5,000 and if you know how to go about coordinating with the IRS about your unpaid taxes.

Because of the current economic crunch, the Internal Revenue Service seems kinder to taxpayers who are actively trying to resolve their unpaid tax debts. The agency is now more accommodating of individuals and businesses that coordinate with them regarding a more favorable payment plan according to their financial situation. To clear your unpaid taxes, you have five tax resolution strategies:

  • Installments: you can establish a monthly payment plan with the IRS so you can pay off what you owe in unpaid taxes in small installments each month. This is the fastest arrangement that you can set up with the IRS. The good thing is that the IRS is required by law to agree to this payment method if your balance is no more than $10,000.
  • Partial payment: This is a great way to settle your unpaid taxes for possibly less than you owe. This is actually less time-consuming and relatively easier than negotiating an offer in compromise. In this setup, you will need to make regular payments to the IRS on a monthly basis. What makes it different from the first strategy is that you don't really get to pay your whole unpaid tax debt. Once you've fulfilled the predetermined terms of the installment agreement, the IRS will forgive the remainder of your tax debts.
  • Offer in compromise: This is one of the most common strategies that tax relief experts tap into to help their clients with unpaid taxes. In this setup, you settle with the IRS for less than the amount you owe. For this, you must qualify based on your lack of assets and inability to pay and other factors to effectuate the offer in compromise.
  • Currently Non collectible: There are also cases when you can seek a sort of tax holiday because you are incapable of paying off your unpaid tax debts. After the IRS finds evidence that you do not have the capacity to resolve your tax debt, collection activities including garnishments and levies will be stopped for a year. Even when the order is in effect, the 10-year statute of limitations covering tax collections will still be applicable. This means that if the IRS is unable to collect your unpaid tax debt within a designated 10 year period, your tax debt will expire.
  • Bankruptcy: You can also clear your unpaid tax obligations by filing for bankruptcy. However, understand that this should only be considered as a last resort. You shouldn't even consider this route if you think that you can settle your tax debt with other strategies. You need to consult with a bankruptcy attorney to see if you qualify to discharge your unpaid tax debt.

There is wisdom in hiring a tax professional especially if you're incapable of paying off your unpaid tax debt. With a tax expert like Mike Habib, EA, you can resolve your unpaid tax obligations through a strategy that is more attuned to your financial situation. Mike Habib will personally work on your case to settle with the IRS for the best resolution strategy. Call Mike today at 877-788-2937.

Client Reviews
Mike has given us peace of mind! He helped negotiate down a large balance and get us on a payment plan that we can afford with no worries! The stress of dealing with the IRS is huge and Mike helped us through it all. The peace of mind is invaluable, thank you Mike! April S.
Mike Habib - Thank you for being so professional and honest and taking care of my brothers IRS situation. We are so relieved it is over and the offer in compromise process went just as you said. Mike is very professional and will give you honest answers to the OIC process and you can really trust him. You won't be sorry you chose him! Joe and Deborah V.
Mike is a true professional. He really came thru for me and my business. Dealing with the IRS is very scary. I'm a small business person who works hard and Mike helped me see that they are not that scary after all. He was always there with the answers I needed and was very good about calling me back which I appreciated since your first reaction is to freak out and ask a million questions. He solved a messy case and worked very hard to resolve it. His rates are VERY reasonable for the amount of work he does! I give him my highest recommendation! Marcie R.
Mike was incredibly responsive to my IRS issues. Once I decided to go with him (after interviewing numerous other tax professionals), he got on the phone with the IRS immediately (as in the same day I signed with him) to squash an impending issue. And he worked directly with them to quickly come to a resolution I am very happy with. I'd highly recommend reaching out to Mike to see if he can help you with any IRS issues. I'm very satisfied! Marshall W.
I’ve seen and heard plenty of commercials on TV and radio for businesses offering tax help. I did my research on many of them only to discover numerous complaints and unresolved tax issues. I found Mike Habib through my own online search and contacted him. He was very professional with great communication, always answering my questions and concerns. Mike resolved my complicated tax problem just as he said he would. I would definitely recommend his services to family and friends. Nancy & Sal V.