Popular questions

The IRS requires the form 656. Form 656 analyzes your net income and available assets. Based on this information, the IRS decides if you can pay your entire tax debt or if you qualify for a payment reduction. Data collection for Form 656 is crucial. The Form must be detailed and accompanied by supporting documents. Tax Relief Helpers can quickly determine if this process is an option for you. If not, we will negotiate a payment plan with the IRS.

Gathering the correct financial documents to include as proof can take weeks. This depends on how organized your accounting is. Once Form 656 is completed and sent to the IRS, the process takes at least 6 months. However, if you get rejected, an appeal can take up to 2 years. Tax Relief Helpers has the experts to handle each step of the Offer in the Compromise procedure.

Suppose you are unable to pay your basic living expenses AND your taxes. In that case, your account with the IRS will be assigned a status called Currently Non (not) Collectible or CNC. 

With Currently Non (not) Collectible or CNC status, your assets are protected since you cannot pay for your basic living costs. Therefore, the IRS will not be able to seize your assets or income (levy).

However, the IRS can file a lien (a claim by the government to secure payment). Notice of Federal Tax Lien (NFTL) is attached to all your assets and is only erased once you pay your debt. A lien also affects your credit score.

You have between 6 months and two years to get organized. In return, the IRS will not bother you during this time. However, as soon as you are ready to resume payments, your CNC status is lifted, and you must adhere to a plan to pay back your debt. Nevertheless, if you cannot pay your basic living expenses, the CNC status can continue forever if you qualify.

Under certain circumstances, the IRS will waive penalties on your tax debt. For individuals and businesses, the most common is called a First Time Abate or IRS One Time Forgiveness. First Time Abate falls under the category of “administrative waiver.” From time to time, the tax authorities will announce other available administrative waivers in official communications.

Riots, hurricanes, earthquakes, and fires are common reasons people can not afford a penalty. Personal circumstances, such as disability, death, or illness by you or your immediate family, can also sometimes qualify. Also, if you prove the system went down and delayed your payment, your late payment penalty can be erased.

Use Form 843 to request forgiveness of certain taxes, fees, interest, and penalties. However, Tax Relief Helpers will guide you on the supporting documentation and save you time if you are eligible. 

In 2011, the Federal Government clamped down on the IRS to relieve taxpayers from tough stances that compounded interest and penalties. Unfortunately, their rigorous methods made tax debt very hard to pay off. The Fresh Start Program, or the Fresh Start Initiative, aims to provide tax relief and simplify tax debt repayment.

Business Owners can qualify if they:

Owe less than $25,000 and can pay within 34 months
Are current with federal tax and employment tax filings
Meet other requirements that Tax Relief Helpers can determine for you.

People qualify for the program if they:

Have less than $50,000 in IRS debt 
Can pay the debt in less than 5 years
Have never been late paying IRS tax
Are in good standing with the IRS
Can set up a direct payment method
Agree to follow the installment payment plan
Have an Offer in Compromise and pay within the year
Are unemployed, they can ask for 6 months to delay payment

Each agreement is unique. The first payment is usually due shortly after the agreement is signed. However, the IRS may approve a start date of up to 30 days to get your financial situation in order. After that, you will receive a schedule with the amount you must pay and the due dates for each monthly installment. The most important thing is always being on time with payment because the IRS has arranged to help you. Not paying as promised will result in penalties and interest, thus making your payments even more difficult.

First, you must prove that you can pay the debt to qualify. The IRS will need Form 9465 to arrange a monthly schedule of payments. 

Form 9465 lists your income, assets, and expenses to help the IRS figure out what amount you can realistically pay monthly. If you owe more than $50,000, you must provide more information on Forms 433-A or 433-F.  

Tax Relief Helpers will help you with all the forms. We will also guide you step-by-step in this process to make it manageable. Once the forms are complete, we can mail them by post, or electronic filing.

When the federal government intends to offset your payments, it means that they plan to use the payment that you are expecting to receive (such as a tax refund, Social Security benefit, or federal salary) to pay off a debt that you owe to the government.

For example, if you owe unpaid taxes to the IRS, the government may use your expected tax refund to pay off your tax debt instead of issuing you the refund.

The government can also offset your payments for other debts, such as unpaid student loans, child support, or other federal or state debts that you owe.

If the government intends to offset your payments, they will typically notify you in advance and provide you with an opportunity to dispute the debt or enter into a repayment plan. If you do not take any action to resolve the debt or enter into a repayment plan, the government may proceed with the offset and use your payment to satisfy the debt.

Once your debt is paid off, you will resume standard refund processing time. Typically, the IRS pays refunds in less than three weeks. However, it can take an additional time if you do not use the electronic filing system.

Once you have proven to the IRS that you are really you, your refund will undergo standard processing times – around 21 days. However, fixing your identity theft problem can take months before the IRS confirms your identity!

Do you need identity protection? You can ask for an Identity Theft Pin via www.irs.gov/IPPIN. Once you enter your personal information, your pin will be valid for the tax year, and if you misplace it, you can retrieve it using the same URL. We suggest using this system every year and opting in to do this when asked.