I'm In Tax Trouble
You are in tax trouble, getting those dreaded notices. What are your options.
Offer In Compromise (OIC)An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer's tax liabilities for less than the full amount owed. It can be far more reasonable than an IRS installment agreement, but you have to see if you qualify based on your unique financial situation and specific case.
Installment Agreement (IA) Partial Pay Installment Agreement (PPIA)These are well-structured installment agreements that can slash penalties by 50%. The IA is an agreement to pay what*s owed in full while a PPIA lets you pay a reduced amount. These agreements generally run 6-72 months,
Penalty AbatementThis agreement strips away penalties tacked onto your tax balance. Penalties include failure-to-file, failure-to-pay, and failure-to-deposit (for business owners). If you*ve never had a penalty before, a first-time abatement (FTA) penalty waiver may apply. Otherwise, your tax relief consultant can fight for a reasonable cause abatement if any of the following apply:
* Illness, death, or incapacitation of the taxpayer or their immediate family
* Fire, casualty, natural disaster, etc. affecting the taxpayer
* Inability to obtain records and documents
Currently Not Collectible (CNC)In cases of extreme financial hardship, your tax rep can argue that you can*t afford to pay anything. With this option, your tax debt goes on the back burner, and you make no monthly payments although penalty and interest keep accruing. The big advantage of CNC is that the 10-year statute of limitations on collection keeps ticking so you might be able to ride it out and pay nothing on the tax debt.
If you*ve received an IRS final notice or threatening letter, don*t ignore it. Instead, contact us to speak with a tax resolution specialist to get the IRS off your back for good.
BankruptcyYou may be eligible to have the debt discharged. Different federal districts have different rules but the minimum rule is that you filed a tax return, the due date of the return is at lest 3 years old, the return has been filed for at least 2 years and the assessment of taxes is at least 240 days old.