Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 08-24-2011, 11:27 AM
Junior Member
 
Join Date: Aug 2011
Posts: 2
Post Offer in Compromise: The Best Way for IRS Tax Debt Settlement

If you owe back taxes to the IRS, you may have to suffer a lot since IRS back tax does not get easily discharged. With the help of IRS tax debt settlement program, you can try to fix up your debt muddle. But, it is for certain that in most cases your application will be turned down. Only a few special cases will be deemed to be serious enough to be granted tax exemption. IRS has laid down specific circumstances when your debt can be settled at reduced amount.

1) If there is any doubt or any dispute regarding the collect able status of the debt, IRS may halt sometime or stop collecting the debt right away.

2) If any mistake happens in examining the tax payer’s legitimate amount of debt or interpreting any law, IRS cannot ask for the back taxes from you. If IRS fails to judge a tax payer’s evidence, then also the same will apply.

3) In the third case, a debtor may have financial capacity to pay off back taxes. But if it becomes unprofitable, inconvenient or inadequate to retrieve the back taxes, IRS may leave the matter and give you tax relief.

In order to qualify for ‘offer in compromise’ a tax payer must fulfill other criteria. For examples,

1) He must not be through bankruptcy procedure.
2) He should fill up all previous tax return forms.
3) He needs to purchase a $150 form and a 656A form.

There are different income categories laid down by IRS. If anyone falls below the low income category level, IRS may relieve him from purchasing the $150 form. However, 656A form is needed to be filled up by the tax payer. It details out every category and helps to determine whether a tax payer is eligible for the tax exemption or not.

Making a lump some payment is a way to settle tax debt. IRS allows you to pay in 5 to 6 installments around 20% of the amount due. And this due amount has to be included in the form 656A.

There is also short term periodic payment benefit that a tax payer can avail. IRS may give you 60 monthly installment payment facilities. But, all payments have to be met within 24 months of the IRS offer.


Last edited by Samatg : 09-01-2011 at 10:40 PM. Reason: No links


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 08-25-2011, 08:55 AM
Junior Member
 
Join Date: Jan 2009
Posts: 11
Gee! Nice Article rking!

It seems you have some experience in this area and I really think this article is going to help me deal the IRS!

Do you think the IRS is more amenable due to the severe economic crisis?

Thank you for sharing your expertise in this area!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 01-26-2013, 02:41 PM
Junior Member
 
Join Date: Jan 2013
Posts: 1
Debt settlement

I was in debt for over 6 months and was living from one payday loan to another. I couldn't take it anymore. I learned about consolidating my loans but was hesitant because i know there are a lot of scams going on.


Last edited by TaxGuru : 01-27-2013 at 09:54 AM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
2010 tax law changes offer expanded tax benefits for Special Charitable Contributions for Certain IRA Owners. TaxGuru General 0 01-29-2011 12:52 PM
Californians who lose their homes may face state income debt on cancelled debt!! TaxGuru California 0 09-09-2009 10:57 AM
What is a Structured Settlement? TaxGuru General 0 07-21-2009 01:28 AM
Does California State offer an installment agreement? TaxGuru California 0 07-14-2009 12:25 PM
tax issues related to debt settlement sweetdish IRA/Sep 1 02-05-2009 10:36 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning