If you've been dealing with some tax issues with the IRS, you might be wondering what result you can expect. The answer is that there are usually only a small number of possible results to any tax trouble with the IRS but the one you receive depends largely on your particular situation.
1. Resolve your account painlessly.
Surprisingly, not all tax problems end badly. In some cases, you might be able to get your account resolved with little to no trouble. This typically happens if you've been audited for a simple reason such as a math mistake or a question about a deduction. If you're able to resubmit your return with the correct calculations or the supporting documentation for your deductions you'll have your account resolved quickly.
2. Submit your entire payment in full.
If you owe a balance due to the IRS you always have the option to pay your account in a lump sum. Even if your account is past due, you can always bring it up to date by simply paying your total balance due in full. If your balance is already up to date paying it in full will help you avoid additional charges such as penalties and interest.
3. Make payments over time.
What if you can't pay your entire balance at once? You'll still have the option to set up an installment plan which allows you to send in a small amount each month to keep your account with the IRS current. You can request an installment plan by completing Form 9465 and sending in in or by requesting a plan during a phone conversation with an IRS representative.
4. Request an offer in compromise.
One of the lesser known outcomes when you're having tax trouble with the IRS is the offer in compromise. This arrangement is not well known because it's rarely approved, but in a few cases, the agency will consider this plan. An offer in compromise allows a taxpayer to pay a small portion of their total balance and have the rest forgiven. Qualifying for this arrangement, though, is tricky since the IRS only tends to grant an offer in compromise to taxpayers who have no hope of paying their balances.
5. File an appeal with the IRS.
The final option you have to resolve your tax issues is to appeal the IRS decision on your account. While this action may not settle your account it does give you a chance to have your case examined by another representative. In a few rare cases an appeal does result in a change of decision.
No matter your tax troubles, you still have options when you're dealing with the IRS. Choosing which option is best for your account will help you decide which steps to take in resolving your tax issues.