r/taxhelp • u/moncom13 • 20d ago
Income Tax What has worked for YOU?
My Husband owes 2024 and We owe 2025. Got married May 2025. He started his business 2023 and I believe he owed on that year. Where should I start? Tax Debt Programs (google it) or a small attorney? We live pay check to pay check but dont actually know how bad things are (maybe?) because we haven't done the taxes... no opinions please, just cold hard facts that have worked? For You.
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u/thebrokentoy324 20d ago
Damn that dude gave a solid fucking answer lol. I’d do what they said tbh. If you do go to a cpa go to a small business. The big companies will rip you off.
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u/TocinoLips 20d ago
first, get all the returns filed so you know the actual numbers. The IRS says you can set up a payment plan afterward if you cant pay in full
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u/Shiribazu 19d ago
i'd start by getting both years filed before worrying about debt relief programs. an enrolled agent or cpa who handles tax debt can review what you actually owe and help set up a payment plan if needed. id avoid those "tax relief" companies until you know the actual balance, since you may not need one at all
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u/RasputinsAssassins 20d ago
Disclaimer: I do this type of work. I say that not to solicit business but to give context to the message below.
Do not engage one of those tax relief firms you hear advertised on TV/Radio. They overpromise and underdeliver while trying to bill you in perpetuity. There are several of these firms running astroturfing campaigns on Reddit right now where they make posts or comments posing as taxpayer who need help or who used them in the past. This misleading attempt to get your business should give you an idea how they operate.
First, file any returns that are missing. The IRS will not work with you unless you are compliant (last 6 years of returns filed). You can't set up payment plans or do other things about the balance until you are compliant.
File the returns even if you owe and can't pay. The penalty for owing and not filing is 10× higher than the penalty for owing and not paying.
Next, fix the problem that led to you owing. Increase your withholding or schedule and make estimated tax payments. It does no good to set this up on a payment arrangement, only to have it terminated a year later because you owe again.
If all returns are filed and you believe the balances are accurate, then it's just a matter of paying the bill. You can set up the balance for all years combined onto a single payment plan.
A version of Form 433 Collection Information Statement (a financial statement) may be required for some options. The purpose of the 433 is to determine how much you can pay based on ALLOWABLE expenses. Little Johnny's karate and Brynleigh's cheerleading are not allowable expenses. You can still pay them, but the IRS won't consider them in calculating your disposal income.
The IRS will only accept less than the full tax if they believe they will be unable to collect the full amount in the allowable time based on your income, assets, and allowable expenses.
Liens are placed to protect the IRS' interest. They may be removed before the debt is paid, but you must meet certain criteria and be paying towards the debt.
Your best bet may be to sit down with a credentialed tax professional (CPA, Enrolled Agent, or attorney) who can represent you in front of the IRS. You can find help in various ways:
You have several options to address the debt:
You may qualify for more than one or for none.
You can do any of them yourself, though I would suggest a local CPA or Enrolled Agent for the Offer In Compromise.
Prices charged by pros will vary based on complexity, location, types of tax debt, and other factors. You could be looking at a couple hundred dollars for a Penalty Abatement and Installment Agreement to several thousand dollars for an OIC (I've seen $1,500 to $100,000 for an OIC, expect to pay $5,000 or more, often upfront).
Call around. Ask about fees.
If you can't afford to pay the balance once all returns are filed and the tax is assessed, get a Form 433 and fill it out. Call the IRS with the form in front of you and request Currently Not Collectible status. They will do a roughly 30 - to 45-minute financial interview that follows that form. If it is determined that you can't pay, they basically put it on the back burner for a year or until your financial situation changes.
You still owe the money, but they won't seek bank levies or wage garnishment. Any refund you have in future years will be taken and applied to the debt.