Federal Income Tax

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Federal tax debt often develops over time. Missed filings, under-withholding, self-employment income, penalties, and interest can compound quickly, leaving taxpayers facing balances that feel unmanageable. Once a tax liability has been assessed, the Internal Revenue Service has broad collection authority, including liens, levies, and wage garnishment.

Addressing federal tax debt is not about disputing how the tax was calculated. It is about understanding what has already been assessed and determining whether the IRS will accept a structured resolution under existing programs and procedures.

At The Tancredo Law Firm, P.A., our role is to help taxpayers evaluate and pursue IRS resolution options once the scope of the tax liability is known. We do not prepare tax returns or calculate tax liability. When necessary, we coordinate with certified public accountants, enrolled agents, and other tax professionals so that resolution efforts are based on accurate and complete information.

The IRS offers several programs that may allow taxpayers to resolve outstanding tax liabilities over time or for less than the full balance owed. The availability of these options depends on income, assets, compliance history, and the nature of the tax debt.

Common resolution options include:

• Installment Agreements
  A structured payment plan that allows the taxpayer to pay the balance over time. Terms vary based on financial circumstances and the amount owed.
   
• Partial Payment Installment Agreements
  In some cases, the IRS may accept payments that do not fully satisfy the balance before the collection period expires, based on demonstrated inability to pay in full.
   
• Offer in Compromise
  A settlement program that allows the IRS to accept less than the full amount owed if the taxpayer can show that collection of the full balance is unlikely. Offers are highly fact-specific and closely reviewed.
   
• Collection Holds and Enforcement Relief
  Under certain circumstances, collection activity may be paused while resolution options are evaluated or financial hardship is documented.
   

Each program has eligibility requirements, documentation standards, and procedural rules that must be followed carefully.

IRS resolution is rarely immediate. The process often involves:

1. Confirming that required tax returns have been filed
    
2. Gathering detailed financial information
    
3. Submitting applications or proposals to the IRS
    
4. Responding to follow-up requests or challenges
    
5. Negotiating terms within IRS guidelines
    

Time frames vary significantly. Some matters may resolve within a few months, while others take longer depending on complexity, backlog, and enforcement posture. During this period, maintaining compliance with current tax obligations is critical.

IRS resolution programs are not automatic, and approval is never guaranteed. Not every taxpayer qualifies for settlement, and not every case results in a reduction of the total balance. Interest and penalties may continue to accrue during portions of the process.

Successful resolution depends on accurate financial disclosure, timely responses, and a realistic understanding of what the IRS will and will not accept under current law.

Federal tax debt often exists alongside other financial pressures, including civil judgments, wage garnishment, and consumer debt. In some cases, bankruptcy may play a role in addressing certain tax obligations or in stabilizing finances while tax resolution is pursued. Coordinating these strategies requires careful planning and timing.

Federal tax matters require patience, documentation, and a clear strategy. Our focus is on helping clients understand where they stand, what options may be available under current IRS programs, and how tax resolution fits into their broader financial picture.

If you are facing IRS collection activity or struggling with outstanding federal tax debt, we invite you to contact The Tancredo Law Firm, P.A. to discuss whether resolution options may be appropriate for your situation.