Ask Phil Video SeriesAuthored by Deanna Aldayyat, Content and PR Specialist
Optima Tax Relief’s Chief Tax Officer and Lead Tax Attorney, Phil, answers another question from Reddit from a taxpayer who owes more than $230,000 to the IRS, has had their passport suspended, and can’t afford to pay the tax liability in full.
How Serious Is the Situation?
The first question is what IRS notices the taxpayer has received and who is sending them. If the case has been assigned to a revenue officer, the situation is more serious. Otherwise, the taxpayer may be dealing with what the IRS considers seriously delinquent tax debt.
Get Current With Your Tax Returns
The first step is getting back into compliance. That means making sure all required tax returns have been filed and that enough taxes are being paid through estimated payments or withholding going forward. Otherwise, new tax liabilities can continue to build.
Review Your Financial Options
Next, review the taxpayer’s financial situation to determine which resolution option may fit. Depending on their circumstances, that could include an installment agreement or Currently Not Collectible status.
Don’t Wait to Take Action
Addressing the tax debt is especially important when a taxpayer’s debt has been certified as seriously delinquent. Taking action may help address the certification and work toward getting the passport restriction reversed.
Not having enough money to pay a large IRS tax liability in full doesn’t mean you have no options. The sooner you start addressing the problem, the better positioned you may be to prevent penalties, interest, and collection actions from getting worse.
If you need tax help, contact us today for a Free Consultation