Do Owe Back Taxes to the IRS or State?

Know Your Options. Protect Your Rights.

If you owe more than $10,000 and have been dealing with delinquent tax issues, contact us to learn how we can help.

or call (888) 725-5725

How Much Do I Owe the IRS? How to Find Out if You Owe Back Taxes

Back taxes are simply money that you owe to the Internal Revenue Service. When you don’t pay your taxes or pay the wrong amount,  you owe “back taxes.”  If you continue to miss payments, you have “tax debt” that the IRS will try to collect.  And, whether you forgot to file, miscalculated your return, or just couldn’t come up with the money, it’s important to know that you are not alone. Actually, you’re among more than 14 million American taxpayers who owe back taxes, according to the 2020 IRS Data Book. So, don’t take it personally, but do take back taxes seriously.

if you’re getting letters from the IRS, then there’s a good chance you have tax debt
If you owe back taxes, ignoring letters doesn’t make the IRS, or your tax debt go away. In fact, it can make things worse. Just like any other collections agency, expect letters and additional fees until the issue is resolved. As a government entity, the IRS can also garnish wages, put a lien on your property, and keep future refunds.

Don’t expect to wait them out: The IRS rarely forgives debts and has 10 years to collect them before they are written off. This is known as a Collection Statute Expiration Date (CSED). Usually, once that date is passed, the IRS has no choice but to forgo your debt. But beware, there are exceptions: The CSED can be extended through various means, such as entering into an installment agreement, having property seized, or entering a period of non-collectability.

Tax Relief: Eliminate Your Back Taxes

When taxes are delinquent or overdue — typically from previous years — they are referred to as “back taxes.” And if you owe them, you might be wondering about tax relief.

Don’t let the IRS intimidate you!  As a taxpayer who owes a significant amount of back taxes, you may be overwhelmed by all your options.  Don’t worry though. We can help you understand your options and find the best path to resolve your tax issues with the IRS.

Being in debt with the IRS is stressful. Our team of tax experts understands that, and we’re here to help you navigate your options and find a resolution that works for you.

If you’ve received the notices because of past due taxes owed, call us at (888) 725-5725 today and we can help diagnose your situation a help provide the correct path forward

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The Rockwater Advantage

Experts in dealing with IRS Tax Issues for Businesses and Individuals

1 %

increase in gross IRS collection activity for both businesses and individuals over the last five years.

1 %

of Offer In Compromise requests were denied over the last two years.

1 %

is how much the average taxpayer has seen their dollar amount reduced after appealing an audit.

1 %

increase in the number of bank account levies issued between 2019 and 2020.

Let a Trusted Partner Help You.

Failure to act is the worst possible response when dealing with the IRS.  Don’t think they will forget about you if you keep quiet. Almost everything is negotiable, including back taxes. With decades of experience working with the IRS and every State, Rockwater Associates is your best hope of reaching a better deal. We have successfully helped thousands of people just like you overcome their tax problem: both small and large.

Solutions

How Can We Help You?

Rockwater’s team of trusted and experienced Enrolled Agents will act as the first point of contact on your behalf in all tax matters with the Internal Revenue Services (IRS) and State taxation authorities.  You will be a trusted partner who will collaborate with the Enrolled Agent assigned to your case.  We believe that frequent and transparent communication during all phases of your representation will be the key to produce the best experience and results for you.

It is possible to negotiate with the IRS by yourself, however, why spend the time doing it yourself when you can have a dedicated, experienced trusted adviser handle it for you? Especially if you owe more than $10,000 or you’re facing a tax audit.

Rockwater Associates can make a formal request detailing responsible cause can be made to the taxing authorities to reduce or eliminate your tax penalties on your liability.   A First Time Penalty Abatement allows a first-time non compliant taxpayer to request abatement of certain penalties for a single tax period.  The IRS will also consider forgiving late payment, late filing, and accuracy-related penalties based on reasonable cause. So, you’ll have to explain what circumstances led to the late filing, payment, or inaccuracy of your return (and there’s a high standard).

An Installment Agreement (IA) allows a taxpayer to pay off their balance over a period of time, typically ranging from 6 months up to 10 years. Depending on the amount owed to the IRS or State tax agency, the period can vary.  There are many types of Installment Agreements available to you and Rockwater works to determine the best option for you.  We work with you to determine the amount of each monthly payment based specifically on your personal assets, property and other financial information before negotiating with the IRS/State taxing agency to achieve the best reoccurring payment plan possible for you.

If your wages have been garnished to satisfy outstanding back taxes owed to the federal or state governments and it has caused you financial hardship, Rockwater Associates can step in to help with the release process and halt continuing garnishments.

Tax liens can be very pesky – if you owe taxes to the IRS or State governments, you probably already know this.  At Rockwater Associates, our experienced staff can help navigate the process to have your tax liens withdrawn.

A bank levy allows the IRS to levy – or withdraw – money from your bank account after attempting to contact you to obtain funds and sending first and final notices of intent to levy.   Rockwater can immediately engage with you and quickly work to release the bank levy against your account.

When working with the IRS, it is almost certain that there will be disputes or discrepancies between them and taxpayers. In order to obtain a non-biased determination of a situation or decision made by the IRS, Rockwater Associates can assist you in exercising your appeals rights.

We can engage with The Office of Appeals, an independent organization of the IRS, that acts as a third party to help the IRS and us resolve disputes through an informal, administrative process.

If you are currently going through or about to be going through the 4180 Trust Fund Recovery Penalty (TFRP) interview, Rockwater Associates can step in and represent during all phases of the 4180 interview including prep, actual representation at the interview, and problem solving solutions after the interview.

CNC Status is a temporary protection against any and all enforcement action from the taxing authorities. To qualify for CNC Status, also referred to as hardship status or Status 53, a taxpayer must provide documentation showing the taxpayer cannot meet their basic obligations and cannot pay their taxes without seriously harming their standard of living. 

Under CNC Status, the liability owed is removed from active collections and the IRS will wait for the taxpayer’s financial condition to improve. CNC Status is not a full resolution option – it is temporary.

Would you like to learn more about how our tax representation can get your life or your business back on track?

Click or Call (888)725-5725

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