So what really happens when you are waaayyy behind in your taxes? You see those ads on TV that promise to reduce your debt -- "Call us! We'll handle the IRS for you!" How true are they? What is an offer in compromise, and what it the process for contactin the IRS Field Office? Can you do this without an attorney? Are they unfriendly!? Enter the IRS form 433A.
These are great questions! And, yes, you can do much of this without an attorney. This blog post will talk about what is required to "fix" deliquent taxes. Remember, an attorney (that would be Hanover Law, of course!) can really help sort through the mess and guide you in the process. However, believe it or not (gasp) -- the IRS is rather helpful in providing pointers and tips on how to move forward. The difference with an attorney is that we can often get help faster for you, and usually talk directly to the folks that make decisions on your case. More on that in a moment.
So is there a magic button? NO
If you owe taxes, you have a serious problem that must be resolved. The IRS will not hesitate to garnish your wages or place liens on your propert. However, it is often possible to schedule payment, or even place yourself in non-collectible status, based on your income. This process requires you complete an IRS form 433A.
A 433 form asks for information about assets and income, and is designed to let the IRS know all about your personal situation. If you filed jointly, you must also have your partner sign. There was, for some time, an interesting question as to how married, gay couples, would file 433's or other IRS documents that require married couples to jointly file various documents. However, that issue now seems to have resolved in favor of same-sex couples being treated as married couples as appropriate.
Be truthful! Avoid answering questions on the phone. If you request that an IRS representative contact you, you may be asked to complete the 433 on the phone. DO NOT DO THIS, as you are apt to make errors or mis-state amounts.
Also, it is important to remember that deferred payment plans, or "uncollectable status" does not remove the IRS debt! It is stilled owed, and will still continue to accrue interest. It will, however, stop liens and garnishments.
Need help with a tax matter? Give us a ring! We'll discuss your case for free on the phone. We have several VA, DC, and MD lawyers who have considerable experience in sorting out complex IRS matters.
Sean R. Hanover, Esq.
The Hanover Law Firm is located in Washington, DC and Fairfax, VA. We practice
in both state and federal courts in VA, MD, and DC.