Every taxpayer has an obligation to file his or her returns each April and pay whatever they owe to the government on time. Sometimes, however, meeting this important obligation can be difficult or impossible especially if you are already experiencing financial difficulties. Rather than avoid this duty altogether, you could seek out remedies that will put you on the right side of the IRS without compromising your income or your assets. By considering all of your options for tax debt relief help New York taxpayers like you can settle what you owe in a timely and legal manner.
One of the most common deals people take with the IRS involves making an Offer in Compromise. This deal is sometimes referred to as an OIC, and it is basically an offer to settle what you owe for a lower amount. Sometimes the amount is for pennies on the dollar. An OIC protects your income and your assets at the same time.
Depending on your financial limitations, the government may accept the offer and allow you to send in a check or money order or use a debit or credit card to close out the account. To make an OIC, you are required to complete and submit the necessary paperwork on the IRS website. The paperwork must accurately reflect your earnings and asset holdings and be reasonable according to your financial means.
Your next option would be to ask for a payment agreement or installment arrangement. This option allows you to make monthly payments based on what you earn each month. The payments are affordable and are not designed to put stress on your finances.
Most of these arrangements are set up to last for anywhere from three to six years. You pay on it as if you were paying off a line of credit. Once the debt is paid, your account will be closed. The government may also report your timely payments to the three credit bureaus.
You may wonder what happens if you cannot even afford to make a reasonable offer. What happens when you barely scrape by each month and have just enough to cover for the basics? This case could call for CNC status. CNC status means your account cannot be collected on. However, it will still have penalties and interest added onto it until you can afford to pay on it.
When you seek out advice and counsel on your IRS debt, you may ask how old the debt actually is. By law, the government can only pursue collection on past balances for 10 years. Once a debt is 10 years or older, it must be written off by the government, and the taxpayer forgiven for the obligation.
The government will pursue tax debts aggressively if you fail to pay what you owe each year. You may find yourself heavily penalized and possibly at risk of having your assets levied or seized. You might pay off what you owe for less than you expect while still abiding by the legal codes by using any of the current payment options available to you.
One of the most common deals people take with the IRS involves making an Offer in Compromise. This deal is sometimes referred to as an OIC, and it is basically an offer to settle what you owe for a lower amount. Sometimes the amount is for pennies on the dollar. An OIC protects your income and your assets at the same time.
Depending on your financial limitations, the government may accept the offer and allow you to send in a check or money order or use a debit or credit card to close out the account. To make an OIC, you are required to complete and submit the necessary paperwork on the IRS website. The paperwork must accurately reflect your earnings and asset holdings and be reasonable according to your financial means.
Your next option would be to ask for a payment agreement or installment arrangement. This option allows you to make monthly payments based on what you earn each month. The payments are affordable and are not designed to put stress on your finances.
Most of these arrangements are set up to last for anywhere from three to six years. You pay on it as if you were paying off a line of credit. Once the debt is paid, your account will be closed. The government may also report your timely payments to the three credit bureaus.
You may wonder what happens if you cannot even afford to make a reasonable offer. What happens when you barely scrape by each month and have just enough to cover for the basics? This case could call for CNC status. CNC status means your account cannot be collected on. However, it will still have penalties and interest added onto it until you can afford to pay on it.
When you seek out advice and counsel on your IRS debt, you may ask how old the debt actually is. By law, the government can only pursue collection on past balances for 10 years. Once a debt is 10 years or older, it must be written off by the government, and the taxpayer forgiven for the obligation.
The government will pursue tax debts aggressively if you fail to pay what you owe each year. You may find yourself heavily penalized and possibly at risk of having your assets levied or seized. You might pay off what you owe for less than you expect while still abiding by the legal codes by using any of the current payment options available to you.
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