Tax Law (Questions About Taxes)/Authoring And Taxes

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Question
Dear WILLIAM D MCCONNAUGHY,

Before I go any further with this, I would like you to view this website: http://www.eclectics.com/articles/taxes.html. Now here is my situation. I am currently unemployed and have been formally unemployed for a while now. The IRS has been holding me for unpaid back taxes since 2006. They communicate with me via a P.O. Box. I write blogs via the internet. Recently, I wrote a book and I had that book published and released earlier this month of November 2015. My P.O. Box was on my website (now removed). I was sent a letter from the IRS over which I received over the weekend. Is this a coincidence (I'm under the impression it was not)? I have not made one dime on this book so far, as it has just been released. Making money (I pray I will and Mr. McNNaughy please believe when I inform you I'm praying daily) takes time. My book falls under the category of social sciences, and I read someplace online most people are apparently seeking an escape from reality through NOVELS (my words): Romance, thrillers, sci-fi, etc.. Therefore, I'm hoping it sells during a time when people are wondering what in the world is going on. I'm going to meet with an IRS personality/or call someone, but my main problem is References. That part is difficult to do in terms of making a deal to repay the debt back at a lower amount on a monthly basis. Do you believe they will allow me to skip that part? What options do I have? I will wait for your reply. Thank you.

William

Answer
William:

Settlements with IRS on delinquent tax accounts is contingent upon three core factors:

1.  How much time the IRS has on the statute of limitations for collections, and

2.  How much is owed, and

3.  Your financial capability to pay on what is owed.  

IRS routinely grants settlements daily to taxpayers with delinquent accounts, based on the three core factors I describe above.  These settlements may take the form of an Offer In Compromise, a Partial Pay Installment Agreement, a Full Pay Installment Agreement, or closure as a Currently Not Collectible account.  

In order to secure the optimal settlement that you would qualify for it would be prudent for you to secure the services of a tax professional who has proven experience in settling delinquent tax accounts with IRS.  Doing this work yourself invites a settlement which may be far less desirable than what you may qualify for due to your lack of experience and knowledge in these matters.  Keep in mind it is not the job of the IRS to advance your interests ahead of theirs.  It is their job to collect tax due.

I hope this helps you in taking the right course of action in your best interests.  

William McConnaughy, CPA  

Tax Law (Questions About Taxes)

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WILLIAM D MCCONNAUGHY, CPA

Expertise

Federal income tax questions.

Experience

Former IRS Revenue Agent. Former Enrolled Agent. Self-employed Certified Public Accountant since 1990.

Organizations
American Institute of Certified Public Accountants Better Business Bureau

Education/Credentials
Bachelor's Degree Accounting Major San Francisco State University Master's Degree Taxation Golden Gate University

Past/Present Clients
Too many to list.

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