• Jim Payne

Steps in dealing with past due IRS debts in Gainesville, FL

Gainesville, FL taxpayers can avoid Liens and Levies by not ignoring IRS correspondence and doing the following steps:


Step 1 – You must get current with all your filings. There is simply nothing to negotiate until how much you owe is established.


Step 2 - Make any payments that are due on the on the current year tax returns. The IRS will not negotiate if the problem looks like it is continuing to build.


Step 3 – Figure out your options. This requires that you fill out a form 433 to access your future cash flows and your current assets that might be available for liquidation. Depending upon how this analysis comes out, you might be able to:

· Make an installment agreement to get the back taxes caught up.

· Make an Offer in Compromise where the IRS will take some smaller amount in a lump sum or deferred payment plan in order to end the problem. This is not a free giveaway. You must be able to prove to the IRS that it is unlikely that they will ever be able to collect the whole debt because of your situation.

· File bankruptcy to discharge some of your debts in general including possibly some IRS liabilities.

· Convince the IRS that the tax debt is simply not collectible currently and that their best option is to move the account to a sort of inactive status. This debt does not go away. Periodically, the IRS will probably make some attempt of revisiting the case until the Statue of Limitations has passed (generally 10 years).


Step 4 – Begin dealing with the IRS.

· If you qualify for a Streamlined Installment Agreement (owe less than $100,000 and clear it in 84 payments or less), go online and setup the payment plan.

· Otherwise, you need to contact IRS Collections and begin negotiations.


Step 5 – If you cannot make a satisfactory deal (remember, you are not likely to like any deal that the IRS proposes), the IRS will likely begin collection processes by attempting to levy your bank accounts. It is critical that you request an appeals hearing within 30 days of the notice date.


Getting these steps right will most likely avoid the problems of having your property levied. The IRS liens are automatic, but they will work with you regarding filings. The bigger the number of the debt, the more it pays to get professional representation.


If you, or someone you know, is having an IRS issue in Gainesville, FL, please feel free to contact me at either (352) 317-5692 or by email at jim@backoffice2.net


You can also visit https://backoffice2.net for more information.

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