Last Things First

One of the mistakes taxpayers make when they are working to settle their IRS debt is to understand their primary focus must be on their current tax liability. I had a recent case where a client made a substantial payment on his account ... a payment that would take him below the lien threshold. However, he failed to make sure he covered his current liability. He was denied a lien release because he was not in compliance with his quarterly estimated payments. He would have been better off making a full deposit representing his previous year's tax liability. He would be in compliance with his most recent years and would qualify for a release of the lien and other reductions. In discussing this client with an IRS customer service agent, the home was driven home. The IRS wants you to demonstrate current compliance FIRST.

If you have questions about your tax situation, please contact us through our website.