When taxpayer season begins in January each year, you might think you have plenty of time to file and pay your taxes on time. In reality, the four months you have until the April 15 deadline can go by in a flash. You may be scrambling at the last minute to file your return and come up with the money to pay whatever amount you owe to the federal government. By knowing your choices for tax debt relief help New York filers like you could spare yourself time, inconvenience, and fear as well as money you might not be able to afford to part with right now in order to settle with the IRS.
Your first option for dealing with the burden is to make what is called an Offer in Compromise. An Offer in Compromise or OIC is essentially an offer to pay your obligation for less than its original worth. However, it also reflects fairly what you make and have in assets and what you are capable of paying right now.
Before the IRS will accept an OIC, it expects you to make a reasonable offer that reflects what you actually earn and how much your assets are worth. If you earn a reasonable income and have assets like real estate at your disposal, you cannot offer a few hundred dollars and expect the IRS to take it. You have to offer a sum that is reasonable for your financial means but will still leave you with money on which to live.
The next choice that might be suggested to you is a payment agreement. Just like how you would pay on a line of credit or a loan, you can make monthly payments on your IRS obligation. To use this option, you have to fill out the right paperwork found on the IRS website.
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.
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.
The government only has 10 years to collect on a debt that you owe it. After 10 years has passed, it has to by law forgive the obligation. You may wish to ask your adviser if the amount is older than 10 years old so you can avoid paying on it altogether.
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.
Your first option for dealing with the burden is to make what is called an Offer in Compromise. An Offer in Compromise or OIC is essentially an offer to pay your obligation for less than its original worth. However, it also reflects fairly what you make and have in assets and what you are capable of paying right now.
Before the IRS will accept an OIC, it expects you to make a reasonable offer that reflects what you actually earn and how much your assets are worth. If you earn a reasonable income and have assets like real estate at your disposal, you cannot offer a few hundred dollars and expect the IRS to take it. You have to offer a sum that is reasonable for your financial means but will still leave you with money on which to live.
The next choice that might be suggested to you is a payment agreement. Just like how you would pay on a line of credit or a loan, you can make monthly payments on your IRS obligation. To use this option, you have to fill out the right paperwork found on the IRS website.
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.
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.
The government only has 10 years to collect on a debt that you owe it. After 10 years has passed, it has to by law forgive the obligation. You may wish to ask your adviser if the amount is older than 10 years old so you can avoid paying on it altogether.
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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