There are lots of solutions to solving tax debt with the IRS: Offers in Compromise, IRS Payment Plans, IRS Non-Collectible Status, and the IRS’s 10-year statute on collections – these are all useful tools. But there are situations where these tools won’t solve the entire problem. Most people would be surprised to learn that bankruptcy…
When tax payment deadlines are missed, with no return being filed – which should always be done even if no money can be paid at that time – penalties and interest begin to accrue. And at the rates enforced, things begin to snowball very quickly. Penalty abatement is the removal of penalties after they have…
If you are financially unable to make tax payments, the IRS may qualify your account as “currently not collectible”. This means you can defer making payments to the IRS until you’re financially able to pay. What Does Currently Not Collectible Status Imply? Once the IRS determines your account is currently not collectible, that designation means…
An offer in compromise (OIC) is a legal, binding agreement between a taxpayer and the IRS that settles a taxpayer’s liability for less than the full amount owed, sometimes for a lot less than the full amount owed. This is the only debt settlement program that has been codified into law in the Internal Revenue…
The Internal Revenue Service offers a variety of options to taxpayers who can’t immediately pay their taxes in full. A partial payment installment agreement (PPIA) is one of these options. Requesting a PPIA with the IRS is easier and less time-consuming than requesting an offer in compromise, but it still requires attention to detail and…
An Installment Agreement is an agreement between the IRS and the taxpayer that enables the taxpayer to pay their debt over time (generally 60-72 months) when he or she can’t pay the full amount owed in a lump sum. 4 Types of Installment Agreements Under the IRS Fresh Start Program If the taxpayer owes $10,000…
You’ve probably heard one of the huge tax resolution firms, online, on TV, or radio, stating that the IRS writes off millions of dollars each year, and the inference is to get you to want to tap into that. Usually what’s been advertised lately has been an offer in compromise (OIC) also known as the…
