Many people are faced with tax problems. Owing taxes to the IRS is certainly not the best position to find yourself in, however, if you find yourself in a situation where you need IRS tax debt relief, there are solutions available. In addition to the typical kinds of debt consolidation, many people seeking help for IRS debt can find a solution by making use of the currently not collectible status, various installment arrangements, or even the offers available in a compromise program. Many people find tax debt relief in one of these options.
Currently Not Collectible Status
With the filing of IRS Form 433-F, which is the Collection Information Statement, it will allow a taxpayer the ability of being considered currently not collectible according to the IRS. If for some reason you are facing a serious financial hardship, it is important that you consult a knowledgeable tax professional in order to discuss the filing of Form 433-F. This form will provide official evidence to the IRS of your inability of having the means too pay any tax debt. As a result, all collection activities by the IRS will cease, this will include any tax liens or wage garnishments. During the time a taxpayer in under the currently not collectible program status, an annual statement will be sent by the IRS indicating the mount still owed on the debt. This statement is not a bill of any kind; it is just an IRS requirement to send it to you every year as a matter of notification. There is a statute of limitations of ten years on any tax debt collection; this still applies for a taxpayer who is currently not collectible. This simply means that if for some reason the IRS is not able to collect the tax debt within the ten year period after which a taxpayer has declared the currently not collectible status, any tax debt will then automatically expire and will no longer be owed.
Installment Arrangements
Another solution for tax debt relief that could potentially be very useful is a payment plan for monthly installments. Setting up this installment arrangement is usually the most convenient method to finding a solution of paying off any tax debt you owe to the IRS. However, in order to make an installment arrangement, you have to either fill out the necessary form and send it either by mail or you can obtain the necessary form on the IRS website. This installment arrangement will have a fee assessed to the new installment plan. This fee can range anywhere from $45 up to $105 and will depend on the individual situation you happen to have. Payments are generally to be made automatically and will be taken directly out each month from your back account. The day the money is withdrawn is usually up to your choosing. This can typically be a very good way to finally get some tax debt help, as the IRS realizes it is better to receive the payments late and broken into several monthly payments rather than not being able to receive any payments at all from you.
Offers in Compromise
This program may be a very smart option, especially if you happen to owe a large sum of money that you will likely be unable to ever pay off. This Offers in Compromise program will require the filing of the Offer in Compromise and will entail making an offer of repayment to the IRS for an amount that is less than what the full amount of your original tax debt that is owed. If you happen to qualify for this Offers in Compromise relief program, you will have to agree to pay either a lump sum amount or you can spread your payments out over a period of 24 months. In order to apply for the Offer in Compromise, it is necessary that you fill out the IRS Form 656, which is the Offer in Compromise form, in addition you will also need to fill out form 433-A, which is the Collection Information Statement.
Related posts:
- IRS Tax Debt Settlement If you owe back taxes to the IRS, chances are...
- The Challenges of A Tax Attorney One of the most critical situations that can happen to...
- Medical Debt Consolidation If you are burdened with more medical bills than you...