Are you ready to take control of your tax situation and work towards a resolution? In this post, we’ll outline five crucial steps to kickstart your journey to tax resolution.
Step #1: Obtain Your IRS Transcript
Start by visiting the official IRS website and accessing your transcript. Utilize their free online transcript service, or if necessary, request it by mail. Your transcript provides essential information about your tax history and can be a valuable resource in the resolution process. Here’s the link: IRS Transcript Service
Step #2: Gather Your Past 3 Years of Tax Returns
Your tax debt may stem from the past three years, making it vital to review these returns. These years could be pivotal in understanding the origin of your tax debt. Remember, you can only amend returns for up to three years.
Step #3: Obtain Relevant Tax Transcripts
Acquire tax transcripts for the past ten years or for the years you suspect the collection efforts are focused on. These transcripts provide insights into the IRS’s perspective on your tax liability for each year.
Step #4: Identify the Assessment Date
Determine the assessment date for your tax debt. The IRS has a ten-year window following the assessment date to collect the taxes they claim you owe. Understanding this timeline is crucial in planning your resolution strategy.
Step #5: Identify Impending Collection Statute Expiration
One of your immediate priorities is to identify any amounts nearing the collection statute expiration date. This date marks the point at which the IRS can no longer pursue collection efforts for specific tax amounts. In some cases, substantial amounts can be written off due to this statute’s expiration.
These five steps lay the foundation for your tax resolution journey. By taking these initial actions, you equip yourself with valuable information and insights that will guide your approach to addressing your tax debt. Stay tuned for future posts where we’ll delve deeper into each step, providing you with the knowledge and strategies you need to achieve a successful resolution. Remember, every step you take brings you closer to financial relief and peace of mind.
Kelly Coughlin, CPA
CEO, EveryDayCPA.com
Founder,TaxRxCenter.org