Thanks for the opportunity to provide you with helpful information. I am an enrolled agent and I provide tax resolution services to individuals that can not afford to pay their outstanding tax obligations in full.
To get started I will need you to provide me with additional information.
1. What are your goals in dealing with the outstanding tax obligation?
You can always set-up an Installment Agreement with the Internal Revenue Service
and pay off your debt on a monthly basis, however, interest and penalties will continue to accrue on the debt until paid in full. This method works best when you can afford to pay them a substantial amount on a monthly basis.
2. An Offer in Compromise could potentially be an alternative
route for you when dealing with the Internal Revenue Service. This Offer is based on multiple factors one of which is what the Internal Revenue Service calls your Reasonable Collection Potential (RCP).
If you have no assets and you are nearing retirement age or you are of retirement age and you can provide a financial disclosure which identifies your monthly income vs. expenses with no real disposable income this may be the route for you. Of course you will need to provide all substantiating documentation i.e. bank statements, retirement account statements, etc.
Your current medical condition could play a role depending on your individual circumstances. You could have a healthy income but you have necessary expenses that you must pay out for on a monthly basis to maintain yourself and household and can not afford to pay this obligation in full. An example would be hefty medical expenses
for a dependent that is terminally ill or suffering from paraplegia.
All these factors would go into your Offer in Compromise which can take at least a year to resolve but you would potentially expend the least if you qualify. Refer to form 656-B Offer in Compromise booklet for more information.
You can always have your 2012 tax return reviewed to ensure all the necessary and allowable deductions
were taken on your behalf to reduce your taxable income
, thus, reducing your tax liability. If a tax consultant in your area reviews your tax return and finds points for amending you can always submit a 1040X ( Amended U.S. Individual Income Tax
Return) to reflect the changes and reduce the tax burden.
Again it all depends on your current financial situation and what you'd like to accomplish so based on what realistic goals you set I can provide you with the line of best fit or the best route.