Roni Lynn Deutch, the renowned “Tax Lady” and bestselling author of The Tax Lady’s Guide to Beating the IRS and Saving Big Bucks on Your Taxes, offered some free but valuable tax advice in a July 109 article published by WomanEntreprenuer.com. In her article “Do You Owe the IRS?”, Roni Lynn Deutch gives six options on how to deal with your current tax debt. Her advice applies to regular individuals as well as entrepreneurs, and Roni Deutch advises that you take care of your tax burden as soon as possible. “The longer you wait to resolve a debt, the more interest and penalties the IRS will tack on,” Roni Deutch writes, “so even if you don’t have the money to fully pay your tax bill, you need to take action.”

First, Roni Deutch advises, is to make sure your tax bill is completely legitimate. “Don’t be afraid to check the math and question the totals,” Roni Deutch advises. “Simple mistakes on a tax return can result in big tax bills.”

After you made sure the IRS has come up with the right numbers, there are six options you can go. Roni lists them off as the following:

1. Pay in Full: Roni Deutch admits that this may seem pretty obvious, but she points out this unpleasant option is preferable to “IRS collections hounding you day and night, putting liens and levies on everything you own.” She says that simply selling a valuable asset is far more simple way to resolve your tax debt.
2. Offer in compromise. If you can’t afford to pay in full, you could be eligible to have an offer in compromise, and where you pay a lump sum for a smaller amount then was originally owed. But according to Roni Deutch, it is very difficult to qualify for this plan.
3. Installment agreement. Roni Deutch says the installment agreement is much more likely scenario. The IRS will used its own calculations to figure out how much a reasonable monthly payment will be. The calculation is based on your income minus your “allowable expenses.” These expenses can only be food, housing, transportation, and other necessities, so it’s possible your monthly payment may be high.
4. Streamlined installment agreement. Roni Deutch writes that “This form of resolution is less intrusive than a regular installment agreement because it does not involve an extensive financial disclosure of income vs. expenses.” Streamline installment agreements are for taxpayers with tax bills under $25,000. This plan is based on the amount to pay off taxes within five years or less.
5. Currently not collectible. If you simply cannot pay your tax bill because all your money goes to living expenses, the IRS will stop trying to squeeze money from you. According to Roni Deutch, “The idea is that the IRS won’t have to waste resources trying to collect from you until your financial circumstances change or your debt expires.”
6. Wait it Out. Believe it or not, tax debts expire 10 years from the date of assessment. But Roni Deutch warns that waiting for your tax bill to “expire” is not a simple matter of hunkering down and waiting it out. She says the IRS has plenty of tricks up its sleeves to extend the life your tax bill.

Roni Deutch advises that you contact the Taxpayer Advocate Service to get information and get through the IRS bureaucracy. This Taxpayer Advocate Service is an independent agency withi the IRS that makes sure the taxpayers know their rights and learn the best ways to resolve their tax bills. But failing that, you can still turn to a tax lawyer such as Roni Deutch to help you get on the right side of the IRS.

Article Source: Do You Owe the IRS? (WomenEntreprenuer.com)

Tags: roni lynn deutch, tax lady