7 Ways to Resolve Tax Debt Before Retirement
After spending almost a lifetime working and being on a schedule, the last thing you want to worry about is tax debt. Owing back taxes prevents hardworking people from being able to do very human things that we all have a right to do – such as buying a home or even retiring.
Why Should You Settle Your Tax Debt Before Retirement?
You can save as much money as you can, but if you owe back taxes when you’re ready to retire, a levy could be placed on your account. During a time that you should be relaxing and living for yourself and your family, you don’t want to be in a position where you’re paying off debt.
So How Do You Resolve Tax Debt Before Your Retirement?
To make sure that you don’t owe the IRS in your retirement years, make sure you catch up on your filing. Ideally, everyone would file every year, but realistically that doesn’t happen for multiple reasons. If you find yourself owing back taxes, catching up on the years that you didn’t file could significantly reduce your tax debt.
After catching up on unfiled taxes, you can see what’s left over of your debt. For some, the leftover amount is payable within their means. For others, the debt may still be too high to pay off. If you are completely caught up on your taxes, and you still owe a large amount of back taxes, you can start looking into relief options.
The average American is likely to reach out to the IRS to make a payment plan, but often get stuck in hefty payment plans that they can’t afford. That’s where relief programs such as the Fresh Start Initiative come in to save the day.
Fresh Start has four options for tax debt relief: Installment Agreement, Offer in Compromise, Currently-Non-Collectible, and Innocent Spouse. Knowing which resolution you qualify for and which is best for your case prior to negotiating with the IRS is a huge advantage that we achieve here at TaxRise.
Working with a tax relief company that provides a devoted team for your case can provide the results that you need at a faster rate.
Qualify for Tax Relief Before and During Retirement
You can pre-qualify for tax relief services by taking our brief survey. We will contact you to complete your free consultation over the phone shortly after.
Any new or systemic Liens and/or Levies will also be suspended for the time being.
For taxpayers who are considered “seriously delinquent”, the IRS will suspend any new certifications for the remaining period. Any taxpayer who falls into this category in reminded and encouraged to enter into an Installment Agreement or apply for an Offer In Compromise.
The IRS will not forward any new delinquent accounts to private collection agencies at this time.
Taxpayers have until July 15, 2020 to verify to the IRS they are qualify for the Earned Income Tax Credit or to confirm their income. If the taxpayer is unable to verify their credentials or provide appropriate documents for this credit, they are encouraged to notify the IRS before the deadline. No cases will be denied this credit for failure to provide requested information until July 15.
Case workers will continue business as usual. However, most case work will be conducted remotely (video/over the phone conferences). Any requests for documentation sent by the Office of Appeals should be responded to in a timely manner to ensure a smooth process.
The IRS will continue to take the appropriate measures to stay compliant and protect the applicable statutes of limitations. In situations where certain statutes may be compromised, taxpayers are encouraged to extend such statutes. Otherwise, Notices of Deficiency will be issued by the IRS and similar actions will be pursued to protect the interests of the government in preserving such statutes. Where a statutory period is not set to expire during 2020, the IRS is unlikely to pursue the foregoing actions until at least July 15, 2020.
Practitioners are reminded that PPS wait times may be significantly longer, depending on staffing levels and allocations going forward. The IRS will continue to monitor this as situations develop.
“The IRS will continue to review and, where appropriate, modify or expand the People First Initiative as we continue reviewing our programs and receive feedback from others,” Rettig said. “We are committed to helping people get through this period, and our employees will remain focused on these and other helpful efforts in the days and weeks ahead. I ask for your personal support, your understanding – and your patience – as we navigate our way forward together. Stay safe and take care of your families, friends and others.”
Learn how easy it is to qualify for tax savings.