Tax Compliance

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The IRS will not work with taxpayers on the more complex methods of tax resolution unless the taxpayer is in “compliance”. What this IRS term entails is that the taxpayer has filed all his or her tax returns for the past six years. The returns should have been filed on time including extensions and taxes due paid by the April 15th end to the tax season for the preceding tax year.

 

It the taxpayer fails to make payments to the IRS in the current tax year equal to 100% of the tax due from the preceding tax year, or 90% of the tax due on the current year tax return, the taxpayer is considered to be out of compliance for not having made quarterly estimated tax payments throughout the year.