What Steps Should You Take If You Have an IRS Tax Problem?

The reason why you would have an IRS problem is if you have a balance due; the IRS thinks that you owe them money.

The first thing to determinet is if the amount that the IRS says that you owe them is correct, and if so, simply pay them off.

If you pay them off, you are finished with that particular problem.

There’s nothing else you need to do and there’s no enforced collection activity that the IRS can do against you.

If you do owe the IRS and you determine that you do owe them the amount that they say but you don’t have the money to pay them in full, you have to enter into some kind of agreement.

Whether it is an Installment Agreement, where you offer to pay it off over time, or get yourself set up as Currently Not Collectible when you have no ability to pay, or alternatively file an Offer in Compromise, where you pay less than what the IRS says that you owe.

Regardless of which solution you’re going to put in place, you need to first get an account transcript of all of the years in question.

Why do you need to get an account transcript?

The reason is simple, you need to know what the status of the account is year by year, if a tax return has been filed, and if there is a balance and how much it is. Until you get the account transcript, you don’t really know.

Why do you need to know this information?

If you get an Installment Agreement, or set up as Currently Not Collectible, or an Offer in Compromise, the IRS is going to demand that you be current with all of your tax filings.

Obtaining your account transcripts is the only way you can know with certainty,that the IRS thinks you are current with all of your tax filings.

So remember, if you have an IRS problem, if you can’t pay it in full, the first thing to do is get an account transcript from the IRS to find out exactly what the problem is, what they have done, and where you stand with them.