Disclaimer:
Kennedy Tax Solutions specializes in complex tax matters for businesses of any size, and individuals with tax liabilities (generally) of $25,000 or greater. This disclaimer does not apply to services like audit defense, collections defense, or tax appeal (federal or state) which are reviewed on a case by case basis.
You Owe a Fair Bit of Debt
(25K to 50K)
You owe an amount that can’t be paid off with a lump sum payment and will need to take a form of installment payments to address the balance.
The payment plan is likely going to cause a “squeeze” on the family finances.
Some level of collection activity has started. To “fix” this you will need to look at all options for reducing the indebtedness or a payment plan that works for the family budget.
You Owe Too Much Debt
(50K+)
You owe an amount that is larger than your family finances can afford.
Current family finances won’t get close to paying the balance off. Collection activity (either actual or anticipated) has started and the pressure is going to wreak havoc on your life.
You may be locked up unable to move on addressing the issue. You need to get matters resolved quickly before IRS puts a lien against your home, levies your against your bank account, or places a garnishment against your wages.
To “fix” this you will need to look solely at reducing the indebtedness through an appeal of the issue that created the tax problem or tax reduction programs offered by the IRS or state Department of Revenue.
Oh My Gosh! Level of Debt
(To large to pay off)
You owe an amount that will never be paid off.
This category of tax debt is often common for small to medium-sized businesses with individuals making significant earnings. Collection action is in full swing and there appears to be no light on the horizon line.
You are worried that everything you have worked for in your life will be sucked up in a settlement. You are spending all your time either worrying or attending to the debt. Business income likely has suffered. You need to get matters resolved immediately before matters go from bad to worse.
To “fix” this you may need the intervention of a court to help stabilize you and your family’s finances. You will need help in backing down collections, settlement options, reduction of the indebtedness (if wrong) through appeal, or tax reduction programs offered by the IRS or state Department of Revenue.
