What if I still owe taxes, after you complete my past due returns?

What if I owe taxes after you complete my past due returns?

Below are facts that can help you, should your past due returns include, an amount owed to the IRS.

If you owe, once your past due returns are completed, and some of you will, you will have several options.

1. You can request that we prepare a "Request for an Installment Agreement" and if accepted by the IRS, you can pay your tax bill, monthly, including penalties and interest over 60 months (5 years)

2. Or, you can hire a Tax Attorney or Enrolled Agent to file an Offer in Compromise. This is where you offer the IRS pennies on the dollar, of what you owe, and if accept, you pay the amount you agreed upon and your tax bill is wiped clean.

The OIC - Offer in Compromise is based upon a formula. If your financial situation fits into the formula, there is a good chance the IRS will accept your offer.

A Tax Attorney or an Enrolled Agent, usually will charge you between $2500 to $5000 to file an Offer in Compromise. Tax Accountants or Tax Preparers are not allowed to file OICs for taxpayers.

You may want to sit down and read the new, OIC Form 656 very carefully before you do anything. (If you can read and following instructions, you will have a better understanding of the OIC process)

3. The third most popular option is to file Bankruptcy.

Not all of the past due returns show an amount owed. Many of the returns have a refund. Refund checks are only mailed to taxpayers, IF, the file the past due returns within 3 years from the date the tax return was do.