Hi Everyone,

Over the years, I have encountered the following myth about late taxes, balance owed, etc. and I want to take a moment to clear it up for everyone’s benefit:

Myth: If I know that I owe money, I should avoid filing or contacting the IRS in any way. Avoiding filing & contact avoids owing.

Truth: False. The initial penalties for not filing are a whopping 10 times larger than those for not paying.

In other words, the IRS wants you to file, even if you cannot pay. Counterintuitive? Not if you consider how many options the IRS has for those that cannot afford to pay:

• Offer in compromise: basically, this gives you the option to pay pennies on the dollar toward your tax debt. It is a form of IRS tax debt settlement, in a way. Of course, you have to show proof of your inability to pay. This is best for those that do not see light at the end of the financial tunnel
• Currently non collectible: this pauses many of the IRS’s collection activities until you are able to obtain funds. This is perfect for those that know they will have a job soon but just need a bit more time
• Payment plans: this allows a comfortable payment cycle for your balance. Of course, they assess interest. Tip: you can often negotiate the terms on this one, just like the others (;
• Innocent spouse: This & other related statuses allow you to remove IRS issues that may have been caused by a spouse or ex spouse
• Penalty abatement: These are oft-unknown IRS programs that allow you to request penalty removal. There are several types, each for its own situation
• Taxpayer advocate services: The IRS assigns you a sort of “tax social worker” on your case that finds solutions for you. This is excellent for those that do not want to pay thousands for professional support, which often use the same channels to accomplish what your IRS case manager can do for you for free.

So, if you are in any of the following situations, below, please consider the above.

• Receiving IRS or state letters & avoiding them
• Know they owe a balance but afraid to file
• Already have an assessment but cannot comfortably afford to pay it

Do you need help figuring out a complicated tax situation? Simply reply below and we’ll get back to you immediately.

​Thanks,

George Dimov, CPA

www.dimovtax.com

george@dimovtax.com