Current Compliance Is Required for Any Tax Resolution

Current Compliance Is Required for Any Tax Resolution

When facing IRS tax problems, many taxpayers hope for quick relief through programs like Offer in Compromise, installment agreements, or penalty abatement. However, there's a crucial requirement that applies to every tax resolution option: You must be current with all your tax filings and payments. Without current compliance, the IRS will not consider or approve any resolution for your outstanding tax debt.

What Does "Current Compliance" Mean?

Current compliance means you have:

• Filed all required federal tax returns, even if you can't pay the balance due.

• Made all necessary estimated tax payments for the current year (if self-employed or required).

• Are up to date on federal tax deposits (for business owners with payroll obligations).

This is not just a best practice—it's a non-negotiable IRS rule for any taxpayer seeking relief or negotiation.

Why Is Compliance So Important?

The IRS's primary goal is to ensure taxpayers are meeting their ongoing tax obligations. If you're not current, the IRS sees little incentive to negotiate on your past-due debts. For example:

• Offer in Compromise: The IRS will return your application without review if you have unfiled returns or missing payments.

• Installment Agreement: You must be up to date on all current filings before an agreement is approved.

• Penalty Abatement: Reasonable cause for penalty relief will only be considered if you're compliant with current requirements.

The IRS in 2025: Increased Enforcement and Technology

The IRS is ramping up enforcement efforts in 2025, using advanced technology and increased funding to identify noncompliance faster than ever before. Automated compliance checks, AI-driven fraud detection, and more frequent audits mean that falling behind on filings or payments is riskier than ever.

How to Get—and Stay—Compliant

1. File All Outstanding Tax Returns: Even if you can't pay, submit every required return to avoid further penalties and to become eligible for resolution programs.

2. Make Estimated Payments: If you're self-employed or have variable income, make quarterly estimated payments for the current year.

3. Stay on Top of Payroll Taxes: Business owners must ensure all payroll deposits are made on time.

4. Seek Professional Help: A tax resolution specialist can help you identify missing filings, calculate estimated payments, and get back on track.

No matter what tax relief option you're considering, current compliance is the foundation for success. If you're behind on filings or payments, take immediate steps to catch up. Need help getting compliant or resolving your IRS debt? Contact our team at TaxResolve LLC for a confidential consultation and let us guide you toward a fresh financial start.

Remember: Compliance isn't just the first step—it's the ongoing key to keeping the IRS off your back and achieving lasting tax resolution.