Step One to Resolving Tax Debt

Request IRS Transcripts

The first step in working towards resolving your tax problems. 

There are 3 ways you can find out how much your tax liability is. 

1. Set up or sign into your online IRS.gov account. 

2. Call the IRS - no bueno (not good), expect to be on hold for a bit depending on when you call them. 

3. Hire a tax professional like Pegasus Tax to pull them for you. We are way cheaper than most other firms. 

4. Hire an expensive tax resolution firm which may set you back anywhere from $100 to $500 or more. They may call this the discovery fee. 

   
   

Once you pull the transcripts you will see exactly how much you owe, if a tax lien has been filed and a history of every action the IRS or you have taken. It will also show any installment payments you may have made, and what status the IRS may have you in. 

What do you do when you have the transcripts? In most cases you will want to set up a payment plan especially if you have received any intent to levy notices. 

CP 504 LT 11 (wage and self employed) CP 90 CP 91 (garnishment of social security). 

Setting up a payment plan will halt any collection activity. In some cases depending on how much you actually owe the IRS, you may be able to use the online installment plan tool called OPA. 

However, if you are interested in knowing more about the IRS Offer in Compromise program (settlement of tax debt). You will want to hire a tax professional to see if your financial profile fits the guidelines. This program is a great way to settle IRS tax debt but it does have its pros and cons. To learn more about this program please give us a call 904-257-3145.

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