Self Help Materials and FAQ

IRS Myths and Facts

Many people who owe federal taxes feel afraid of the IRS. This flyer provides accurate information about what the IRS will and won’t do if you have a tax debt.

Responding to an IRS Audit If You Claimed Kids on Your Taxes

This flyer provides information about how to respond if you are being audited by the IRS and claimed children on your tax return.

Currently Not Collectible: What To Do If You Can’t Pay Your IRS Debt

What can you do if you owe federal taxes but can’t afford to pay? This article explains what “Currently Not Collectible” status is, who may qualify for it, and how it can be helpful.

FAQ on Collection Issues

Q: I received a letter from the IRS and it says I owe them money. I don’t understand why. Also, I don’t have the ability to pay them back. Will they garnish my pay check?

A: They will probably not immediately levy (the IRS calls it “levy” when they take money from your bank account or pay check), but it is possible if you have not been in communication with them. If you can show that you are not ignoring the IRS and working towards a solution, they normally do not levy your bank accounts.

Q: I see those late-night TV commercials of places that say they can negotiate your IRS back taxes, for “pennies on the dollar” – can you do that for me? If I offer to split it 50/50 isn’t that better than “pennies on the dollar”? Can you help me negotiate a 50/50 split?

A: Sure, it’s possible to have a very low amount accepted for back taxes owed. I have seen Offer in Compromises (OIC) for as low as $10 accepted for liability over $10,000. But the taxpayer was homeless, jobless, and on public assistance. Putting in an offer with the IRS is not like putting in an offer to buy a house or car. One does not offer, haggle, negotiate, and then shake hands and make a deal. It’s actually a formula and process where taxpayers prove their financial status according to the Internal Revenue Manual at 5.8.5. There are certain annual standards that the IRS changes every year here.

Q: Can you help me work out a solution with the IRS?

A: Possibly. First of all, LITC’s do not help people with do tax returns. If you need help filing your taxes, check here to find a Volunteer Income Tax Assistance site in your area. If you have some of these tax issues, click here to see the 4 different ways to apply for LITC assistance.