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Tax Resolution

If you owe federal taxes and need help, don’t panic—there are ways to resolve it! Attorney JC Elgin has helped many individuals navigate their tax problems. Here are some common options that can make things easier:

1. Payment Plans (Installment Agreements)

If you can’t pay all your taxes at once, the IRS may let you set up a payment plan. This lets you pay smaller amounts over time, usually monthly. You’ll still need to pay interest and fees, but it can make paying off your tax debt more manageable.

2. Offer in Compromise (OIC)

This is an option for people who can’t afford to pay their full tax bill. An Offer in Compromise allows you to settle your tax debt for less than you owe if you meet certain qualifications. You’ll need to prove to the IRS that paying the full amount would cause financial hardship.

3. Currently Not Collectible (CNC) Status

If you can’t afford to pay anything because of your financial situation, the IRS might put your account in “Currently Not Collectible” status. This means they’ll stop trying to collect your debt for now. However, interest and penalties will still add up, and they may revisit your case in the future.

4. Penalty Abatement

Sometimes, the IRS will reduce or remove penalties on your tax debt if you can show you had a good reason for not paying on time, like a serious illness or a natural disaster. This is called penalty abatement.

5. Innocent Spouse Relief

If you’re facing tax problems because of something your spouse or ex-spouse did on a tax return you filed together, you may qualify for Innocent Spouse Relief. This can remove or reduce your responsibility for the debt.

6. Appeals

If you don’t agree with the IRS’s decisions, you have the right to appeal. This gives you a chance to argue your case and possibly lower your debt or resolve other disputes.

7. Bankruptcy

In some cases, tax debt can be included in bankruptcy filings, but this depends on specific rules and your financial situation. This option is more complicated and often requires professional advice.

Attorney Elgin can help you with your tax issues. Give us a call today.