Sunday, May 24, 2009

I have 2008 tax liability! Will the IRS factor this in with all other years?

I recently had a client to ask me they could include their tax liability for 2008 in with the other outstanding liability owed to the IRS? First of all, you need to make sure you filed your return on time, to show the IRS that you will continue to stay in compliance going forward. By compliance, I mean filing your returns on time and paying any outstanding liability.

There is a possibility that the Internal Revenue Service will factor in the liability. However, there is no guarantee that this will happen. The IRS is very reluctant to factor in this liability because it conveys to them the inability to stay in compliance.

Recently I had a taxpayer that I worked to get them into Currently Non Collectible as their resolution with the IRS, to find out they were going to owe $50,000 for 2008. If we are talking about a small liability to consider, then the IRS would be more accommodating. When we are talking about liability of this caliber, they will not only factor this amount in, but default their resolution as CNC.

In order to achieve CNC, your monthly disposable income cannot be over $ 25.00 a month. While their current financials supported this, the IRS will see an inconsistency with the income. They will question the adjusted gross income. How is that they basically have no income but they incurred a liability like this. They will become suspicious of where the income went during the 2008 tax year.

This is a perfect example of why the IRS will not factor in the current liability with the current liability. Don't let this be you, contact a reputable resolution firm to handle your tax debt today !

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