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.
Instead, it will be based on your current income as well as what liquid assets you have at your disposal. You are expected to make a realistic compromise so the IRS knows you are in earnest with your offer. Offering too little will more than likely get the OIC rejected. You are expected to base it on the money you earn and have in your bank account as well as any valuables that could be sold off if necessary.
The next choice you have involves requesting what is called an installment agreement with the IRS. An installment agreement is basically a payment arrangement that involves making monthly payments based on your current income. Each payment is designed to be affordable and within your means.
The government will then figure out how much you can afford to pay each month based on how much you earn. The payments will not be so high you cannot afford them. Instead, they may actually be low enough to fit into your household budget relatively easily.
If you cannot afford to offer anything at all nor even satisfy a payment agreement, you could ask the IRS to put your account in a status called Currently Not Collectible or CNC. This status essentially means you are suffering extreme financial difficulties and cannot afford to make payments. During the time the account is in CNC status, your amount will still accrue interest and penalties.
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.
Instead, it will be based on your current income as well as what liquid assets you have at your disposal. You are expected to make a realistic compromise so the IRS knows you are in earnest with your offer. Offering too little will more than likely get the OIC rejected. You are expected to base it on the money you earn and have in your bank account as well as any valuables that could be sold off if necessary.
The next choice you have involves requesting what is called an installment agreement with the IRS. An installment agreement is basically a payment arrangement that involves making monthly payments based on your current income. Each payment is designed to be affordable and within your means.
The government will then figure out how much you can afford to pay each month based on how much you earn. The payments will not be so high you cannot afford them. Instead, they may actually be low enough to fit into your household budget relatively easily.
If you cannot afford to offer anything at all nor even satisfy a payment agreement, you could ask the IRS to put your account in a status called Currently Not Collectible or CNC. This status essentially means you are suffering extreme financial difficulties and cannot afford to make payments. During the time the account is in CNC status, your amount will still accrue interest and penalties.
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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