As a business owner or individual taxpayer, navigating the complexities of the Internal Revenue Service (IRS) and state tax agencies can be overwhelming. It’s important to understand that the IRS is a collection agency and its primary goal is to collect taxes owed to the government. To accomplish this, the IRS has a variety of enforcement measures at its disposal, including tax liens, wage garnishments, and property seizures.
Fortunately, there are options available for taxpayers to resolve their tax debts with the IRS. One such option is tax resolution, which is the process of negotiating with the IRS to find a solution for paying back taxes owed. This process can involve a number of different forms and procedures, but it typically begins with the taxpayer submitting an Offer in Compromise (Form 656), Installment Agreement Request (Form 9465), or Currently Not Collectible status request (Form 433-F).
In addition to federal tax resolution, many businesses and individuals also struggle with sales tax and payroll tax resolution. Sales tax is a tax imposed on the sale of goods and services, while payroll taxes are taxes that are withheld from employees’ paychecks to cover Social Security and Medicare taxes.
To resolve sales tax debts, a taxpayer may need to complete Form ST-5, Application for Sales Tax Exemption, and provide documentation to support the exemption request. In some cases, the taxpayer may need to enter into a payment plan with the state tax agency to pay off the sales tax debt in installments.
For payroll tax resolution, a taxpayer may need to complete Form 941, Employer’s Quarterly Federal Tax Return, to report and pay any payroll taxes owed to the IRS. In some cases, the taxpayer may also need to complete Form 944, Employer’s Annual Federal Tax Return, or Form 945, Annual Return of Withheld Federal Income Tax, to report and pay any payroll taxes owed to the IRS.
It’s important to note that the forms and procedures involved in tax resolution can be complex and may vary depending on the individual circumstances of the taxpayer. As such, it is strongly recommended that taxpayers seek the assistance of a certified public accountant (CPA) or tax professional to guide them through the tax resolution process.
In conclusion, resolving tax debts with the IRS and state tax agencies can be a challenging and time-consuming process. However, by understanding the various forms and procedures involved in tax resolution and seeking the assistance of a professional, taxpayers can take steps to resolve their tax debts and regain financial stability.
Forms and Form Numbers:
- Offer in Compromise (Form 656)
- Installment Agreement Request (Form 9465)
- Currently Not Collectible status request (Form 433-F)
- Application for Sales Tax Exemption (Form ST-5)
- Employer’s Quarterly Federal Tax Return (Form 941)
- Employer’s Annual Federal Tax Return (Form 944)
- Annual Return of Withheld Federal Income Tax (Form 945)
Note: The information provided in this article is general in nature and is not intended as tax advice. Taxpayers should consult a tax professional for specific advice regarding their individual tax situation
The IRS uses various forms and requests to help taxpayers resolve their tax debts. Here are some of the common collection forms and requests used by the IRS:
Financial Information Form 433-A (OIC) – This form is used to gather financial information from taxpayers who are seeking an Offer in Compromise (OIC) to settle their tax debt.
1. Power of Attorney and Declaration of Representative Form 2848 – This form authorizes an individual to represent a taxpayer in dealings with the IRS, including tax collection and resolution matters.
2. Installment Agreement Request Form 9465 – This form is used to request an installment agreement to pay a tax debt in installments instead of paying the full amount at once.
3. Collection Information Statement Form 433-F – This form is used by the IRS to collect financial information from taxpayers for tax collection purposes.
4. Request for Taxpayer Advocate Service Assistance Form 911 – This form is used to request assistance from the Taxpayer Advocate Service (TAS), a free service provided by the IRS to help taxpayers with tax problems.
5. Request for Transcript of Tax Return Form 4506-T – This form is used to request a transcript of a taxpayer’s tax return, which is used by the IRS in tax collection and resolution matters.
In addition to these forms, taxpayers may also be required to provide additional documentation and financial information to the IRS during the tax resolution process. It’s important to work with a professional tax resolution expert who can assist you with navigating these forms and the resolution process, and help you reach a favorable resolution with the IRS.
IRS Collection Forms:
-Form 668-A(c)(DO), Notice of Federal Tax Lien
-Form 668-W(c), Notice of Levy on Wages, Salary, and Other Income
-Form 668-W(c) (ACS), Notice of Levy on Wages, Salary, and Other Income
-Form 668-W(ICS), Notice of Levy on Individual Retirement Accounts (IRAs)
-Form 668-W(Seizure), Notice of Seizure of Property
-Form 668-L, Notice of Levy and Sale of Property
IRS Tax Lien Forms:
-Form 668-A(c)(DO), Notice of Federal Tax Lien
-Form 6120, Request for the Release of a Federal Tax Lien
-Form 12277, Application for the Discharge of Property from a Federal Tax Lien
-Form 14135, Request for Certificate of Discharge of Property from Federal Tax Lien
-Form 8822-L, Change of Address for a Federal Tax Lien.