Tax Talk

Question: I’ve been getting notices from the IRS saying I owe them for back taxes. This is stressing me out and starting to affect other areas of my life. What should I do?

Answer: Owing money to the IRS or State can be intimidating and throw your life out of whack, but ignoring these notices will only make things worse. The IRS has several debt settlement options, but it’s important to take action before they garnish your paycheck and/or levy your bank account. One of these options is an installment agreement payment plan.

There are several types of installment agreements. One of them is called a “partial pay” installment agreement, where it’s possible to reduce the total outstanding balance owed to the IRS based on how much time is left on the 10-year collection statute. The IRS does not “advertise” this option for obvious reasons. We know how to obtain this solution, but you must take the first step and call us to see if you qualify. It would be best if you had a professional expert in your corner to help you deal with the IRS. You can’t do this on your own; you’ll get crushed. As a matter of fact, going or talking to the IRS without representation could be the worst thing you can do. It’s like going to court without a lawyer. The IRS does not have your best interests at heart.

Mark Diehl is the founder and president of Diehl CPA LLC and a Certified Public Accountant licensed in Alaska. He has a Bachelor of Science and a Master of Science degree in Accounting from Western Governors University. Mark has previously worked with the Minnesota Department of Revenue as a tax auditor, so he knows the audit process very well. Diehl CPA is Alaska's expert in Tax Negotiation and Mediation.