It’s no secret that millions of taxpayers struggle to pay their taxes. The IRS is unyielding when collecting money they think is theirs, so if you’re facing back taxes owed, the federal government advises seeking assistance as soon as possible before they resort to aggressive measures like taking money out of your bank accounts and seizing wages or property.

The IRS offers several different installment agreement payment plans to help taxpayers pay off their tax debt. These plans include:

1. Guaranteed Installment Agreement: This plan is available to taxpayers who owe $10,000 or less in taxes. The taxpayer must agree to pay the debt in full within three years and have filed all required tax returns. No financials are required.
2. Streamlined Installment Agreement: This plan is available to taxpayers who owe $50,000 or less in taxes. The taxpayer must agree to pay the debt in full within 72 months and have filed all required tax returns. Generally, you do not need to provide financial information to the IRS.
3. Partial Payment Installment Agreement: This plan is available to taxpayers who owe more than $50,000 in taxes. The taxpayer must agree to pay a portion of the debt over the statutory period which remains on the account, generally within ten years of the assessment date, and must have filed all required tax returns. Full financial disclosure is needed, and most likely, a lien will be filed.
4. Extended or Flexible Payment Plan: This plan is available to taxpayers who owe up to $250,000 in taxes and cannot pay the debt within 72 months. The taxpayer must agree to pay 100% of the debt over a more extended period, up to 120 months. No financial information is required. However, a lien may be filed.
5. Currently Not Collectible: This plan is available to taxpayers who cannot pay their taxes due to financial hardship. The taxpayer’s account will be placed on hold for some time, during which the IRS will not take any collection action. Interest and penalties continue to accrue. Financials are required, and a lien may be filed.
6. Offer in Compromise: This program is available to taxpayers who cannot pay the total amount of taxes owed and cannot pay through an installment agreement. The taxpayer may be able to settle their debt for less than the total amount owed. Many times, for a fraction of what’s owed.  There are strict eligibility requirements and full financial disc; more is required.

Taxpayers should consult with a tax professional to determine the best payment plan.

Before you enter the daunting maze of IRS regulations, consult a Tax Relief Expert at our office. Schedule your complimentary consultation to assess your situation and compare your options for tax relief today! Contact us now.

It is a costly mistake to address IRS tax debt. Interest compounds daily, similar to credit card debts, and the amount owed often doubles every several years due in part to penalties and interest. Now is the time to take charge of your finances by addressing this head-on before it spirals out of control. The IRS Installment Agreement can be an excellent option for taxpayers who can’t pay the IRS off lump sum.

Our firm has the expertise and skill to navigate the IRS and help you resolve your tax issues, even if you have unfiled returns from multiple years. Through an Offer in Compromise, which is IRS’s debt settlement program, we may be able to settle your entire tax debt- including penalties and interest for up to 85% off if you qualify! 

Our team can guide you through this process, and we invite anyone who wants professional advice on dealing with their taxes to contact us so that they can find a permanent solution to their problem. Need help? Get in touch with us now!

Filing taxes can be a daunting process, but for some, it’s much more than that – tax audits. This stressful situation involves having the IRS put your tax return under a microscope to see if you reported all your income and if you overstated your deductions and expenses. 

The IRS’s primary goal in an audit is to assess more taxes, penalties, and interest. It’s an intimidating experience that most Americans dread facing!

An IRS audit can cause even the most squeaky-clean of taxpayers to become fearful and anxious when defending themselves to an auditor. It’s understandable why the majority feel powerless in this situation. You also have to understand and get comfortable with, in the eyes of an IRS auditor, you are guilty until proven innocent. There are better places to be than just navigating the tax code alone.

Tax audits don’t have to be a source of fear if you’ve remained compliant with all the rules and regulations. The best way to ensure peace of mind is to work with an experienced Tax Resolution Specialist who represents clients in such matters and has a good track record. Contact our firm for a complimentary no-obligation consultation to assess your situation.

The IRS released more cryptocurrency tax guidance for the first time in over five years. With this, a new was added to the 1040 Schedule 1, which asks all taxpayers:  if “At any time during 2019, did they receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”

Starting in 2019, all tax preparers must ask their clients whether they have any cryptocurrency-related activities during the year. This means that clients must begin to get ready for additional scrutiny.

Does the IRS treat cryptocurrencies as?

Cryptocurrencies such as bitcoin are not taxed outright. In other words, simply owning bitcoin does not mean you owe taxes. Instead, you need to report the gains and losses you incur when buying, selling, and trading cryptocurrencies on your tax return.

In this sense, buying and selling cryptocurrencies triggers capital gains and losses reporting requirements just as they would for buying and selling stocks, another form of property.

To stay clear from the IRS, make sure to admen any prior returns in which you had any crypto transactions and provide all information on them moving forward.

If you have any questions regarding this, please contact our Washington Heights/Inwood NYC location, where our Tax preparation experts are willing to assist you with this matter.

As many of you know, the health insurance issue was significant for the tax years 2016 – 2018, especially with the government charging penalties for not having health care coverage.

For the new tax year, we will see a massive component of the Affordable Care Act (ACA) that goes away!  

For the tax year beginning in 2019, individuals won’t have to pay a federal penalty for not being covered by insurance or by an exemption, and the individual shared responsibility payment has been permanently reduced to zero. Remember that for the previous tax years of 2016-2018, the penalty was more significant than $695 per individual or 2.5% of household income. Please remember that a handful of states invoke a penalty for not having insurance – which may not change.

Most Taxpayers will continue to receive Forms 1095-A, B, and C containing information about insurance coverage and should keep these forms with their records. Taxpayers who purchase insurance coverage through the marketplace will continue to receive Form 1095-A. 

 If anyone happens to have any questions regarding their tax-related penalties, please do not hesitate to contact our NYC office, which handles your tax preparation and business needs.  We have served the Washington Heights / Inwood area for over 20 years.