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Apr 25, 2018

Options if I am unable to pay at the conclusion of audit

One of the more ironic things about getting audited by the IRS is the fact that you probably cannot pay what they are asking of you in the first place. You might not be under audit at all if you had the ability to come up with the money that they are suggesting you owe the IRS. As such, you might wonder what you should do in the event that you end up with an audit that results in you having to pay some amount of money to the IRS. There are a few options that are on the table if you are unable to pay the full amount that they suggest that you owe at the end of your audit.

Offer In Compromise

This is an agreement that you may strike with an IRS agent to pay some portion of what it is that they say you owe. Many people go for offering about twenty-five percent of the total that they are said to owe in exchange for forgiveness of the remaining seventy-five percent of the total bill that has been calculated for them.

The IRS will review each case individually of course, but they are often willing to make this kind of compromise with taxpayers because they would rather get something out of the deal than nothing at all. The IRS knows that many people cannot pay the full amount that they owe after audit. They want to at least get some money from those individuals rather than nothing.

Installment Plans

Just as you might use installment plans to pay for a kitchen appliance for example, so too might you use these plans to pay for the backed taxes that you owe. A lot of people few options but to use an installment plan to pay back what they owe over time. They may have had the best of intentions when they were paying their taxes throughout the year, but sometimes life just catches up to you. In order to get back to even with the IRS, sometimes people have to use installment plans to get there.

Currently Non-Collectable

Some people are in such dire straights that they are unable to pay the full amount of the audit or even installment payments. Those individuals can ask their tax attorney to file paperwork with the IRS on their behalf to have their debt declared to be “currently non-collectable”. That means that they IRS will stop pestering them about the debt for the time being but will continue to send occasional reminders that they do in fact owe this debt at some point.

This is a method that takes some of the heat off of those who owe money after an audit for the time being. However, it does not eliminate the burden of paying back this debt at some point in time. Rather, it just extends out that time frame a little longer than what might have otherwise have existed. That is still better than nothing given the circumstances.

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New York, NY 10005

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Queens

35-37 36th St,
Astoria, NY 11106

Phone

888-977-6335

Brooklyn

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14th Floor,
Brooklyn, NY 11201

Phone

888-977-6335