JK Harris reminds taxpayers with back tax debt of their rights and options

GOOSE CREEK, SC, August 15, 2010

Samuel Trotter, Enrolled Agent with JK Harris and Company, the nation's largest tax representation company, reminds delinquent taxpayers they have rights and options when it comes to repaying their back tax debt.

While the majority of Americans receive a tax refund each spring, a percentage of individual taxpayers and small business owners owe the IRS back taxes. For these delinquent taxpayers, they have options for getting back into the good graces of the IRS.

"The IRS offers repayment and settlement options for taxpayers looking to get out from under their tax liability," said Trotter. "Understanding these programs is critical however."

Anyone who can afford to repay their entire tax debt in one lump sum payment, should pay the debt as soon as possible to avoid excessive interest and penalties.

For taxpayers who cannot repay their liability in one lump sum, they have the option of setting up an Installment Agreement to make consistent monthly payments to repay their tax debt. If you owe less than $25,000, the process is straightforward. Form 9465 is completed and mailed in with the tax bill to the IRS by the taxpayer. The IRS will inform the taxpayer in 30 days if their payment plan has been accepted.

For those who owe more than $25,000, a Form 433F, Collection Information Statement is required in addition to the Form 9465. This will require gathering financial documentation to show your current financial situation.

Taxpayers who find themselves in a hardship situation may qualify for the Offer in Compromise (OIC) program. The OIC program allows taxpayers to pay a portion of their tax debt to settle their account with the IRS. The taxpayer must meet the program's qualifications and they must continue to file their tax returns for five years after the acceptance of their offer.

"It is important to remember when weighing your tax resolution options that everyone's tax situation is different," Trotter said. "If you are not versed in tax law, settling your own tax debt with the IRS can be tricky. Taxpayers must remember the function of the IRS is to collect revenue for the Department of the Treasury."

Trotter reminds taxpayer they have the right to representation before the IRS. Lawyers, CPAs and Enrolled Agents are the only three designated professionals who are allowed to represent a client before the IRS.

"If you go to the IRS without a professional representing you, you are at the mercy of the IRS," said Trotter. "It is always in the taxpayer's best interest to seek a professional's assistance."

Taxpayers who have tried to negotiate with the IRS and who believe they have been treated unfairly also have the right to seek help from the Taxpayer Adovcate Service. Taxpayer Advocate Service (TAS) is available to assist taxpayers who are experiencing economic harm such as not being able to provide necessities like housing, transportation, or food, taxpayers who are seeking help in resolving problems with the IRS, and those who believe an IRS system or procedure is not working as it should.

JK Harris & Company, LLC, (www.jkharris-company.com) based in Goose Creek, S.C., is the nation's largest tax representation firm and has served over 250,000 customers since its founding in 1997 by John K. Harris. For further information, please contact Gina Anton, Director of Communications, at (843) 576-2255.