QUESTION:
I always seem to owe taxes in April, and since I am trying to get my tax liability straightened out, I’ve heard I cannot owe any more taxes or it will adversely affect my potential to negotiate an offer in compromise or an installment agreement. Is that true?
ANSWER:
Well, you’ve made it through another tax season. It is true that you cannot continue to owe the IRS money in taxes each year after you file your return. Depending on whether you work for wages or whether you are self employed, the IRS may require you to do one of two things. If you are an employee, you may be required to reduce the number of dependents on your W-4 with your employer so that the amount of taxes withheld from your check increases. If you are self-employed you will be required to make estimated tax payments each quarter depending on the amount of taxes you owed for the previous year. By paying these taxes, you will continue to be in compliance. This puts your best foot forward with the IRS and prevents any installment agreement or offer in compromise from being defaulted or cancelled by the IRS.
If you have a tax problem, I will be happy to talk with you about your situation and tell you how I can help. Your initial consultation is free and you will be under no obligation. The sooner you take action to solve your tax problem, the sooner you can rest easy and cease worrying about those taxes. Also, I want to let all of my readers know that I can help you with real estate, probate, domestic and personal injury matters also. If you need help with any legal matter, please call today for your free consultation.