Getting into Compliance with the IRS

You can’t ask to have any debt forgiven until you get into “compliance” with the IRS.  So, the next step is to get into compliance.  Here is what you need to do to get that done.  

5. You should almost always file your past due tax returns, but there are some exceptions and filing needs to be done carefully so additional debt is not triggered.  

Before any debt can be forgiven, the taxpayer needs to get into compliance.  This means all past due returns must be filed. You don’t have to pay off all your debt at this time; we’ll talk about what you need to pay in the next item.     

However, there are a couple of really big “if’s” when it comes to this step.  In rare situations, filing can trigger more debt.  Also, filing a particular way can also trigger more debt.  

That’s why it just makes sense to get a tax resolution professional involved in every step of this process, so they can keep you out of more trouble than you’re already in.  

6. Pay your current taxes.

While you don’t have to pay all of your old IRS debt, you do have to be paying in your current taxes.  This is part of getting into compliance.  You need to be able to show IRS that you can pay your taxes that are current.  

This means that if you have a job as an employee, withholding is being withheld from your current paychecks. Or, if you’re an entrepreneur taking draws, that you are currently making your estimated tax payments.