Owing money to the Internal Revenue Service puts you in a bad situation. You can not get out of it by filing an extension without enclosing a check or ignoring the official notices in your mailbox. Instead of avoiding the problem at long as you can, you should take some initiative and try a tax debt offer in compromise New York accountants say might solve your dilemma.
This government program is designed to help taxpayers settle their outstanding debt with the government. Those who qualify come to a satisfactory agreement with the agency to repay a portion, instead of all, of the money owed. Not everybody can take advantage of this program. The IRS looks at thousands of cases each year and only approves about forty percent.
There are two different types of programs. The first is the lump sum payment. With this plan you will have to pay the agreed upon amount, in its entirety within five months from the time the IRS gives its approval. You must send twenty percent of the agreed amount along with your application. This money is not refundable.
The periodic payment is the second option. You have longer to repay the debt than with the lump sum plan. You can stretch this repayment plan to two years. You must make the initial payment along with the application. As with the lump sum plan, this initial payment does not mean your application will be accepted, and will not be returned to you if you are denied.
There is no point in wasting your time applying for this program unless you have a chance of approval. First you have to convince the Internal Revenue Service that you won't be able to pay what you owe within ten years, which is the maximize time the government has to collect money owed. To convince them, your assets and cash on hand must be minimal, or non-existent.
The second consideration is that you have the money to repay the government, but paying in full will be an economic hardship for you. You can bet that what you consider hardship and what the IRS considers hardship will not be one and the same. Thirdly, there is a real possibility that you don't really owe the money, or you owe them money but the amount is in question.
The Internal Revenue Services does not just pick a number out of the air when it comes to what it expects you to repay. They have formulas that determine the offers they make. The taxpayer can claim deductions and exemptions however. You should maximize the deductions and minimize the assets, but do it in a truthful way.
Nobody wants to be in a position of having to negotiate with the IRS. The best way to avoid it is to pay what you owe on time. Negotiating a settlement is your next best option.
This government program is designed to help taxpayers settle their outstanding debt with the government. Those who qualify come to a satisfactory agreement with the agency to repay a portion, instead of all, of the money owed. Not everybody can take advantage of this program. The IRS looks at thousands of cases each year and only approves about forty percent.
There are two different types of programs. The first is the lump sum payment. With this plan you will have to pay the agreed upon amount, in its entirety within five months from the time the IRS gives its approval. You must send twenty percent of the agreed amount along with your application. This money is not refundable.
The periodic payment is the second option. You have longer to repay the debt than with the lump sum plan. You can stretch this repayment plan to two years. You must make the initial payment along with the application. As with the lump sum plan, this initial payment does not mean your application will be accepted, and will not be returned to you if you are denied.
There is no point in wasting your time applying for this program unless you have a chance of approval. First you have to convince the Internal Revenue Service that you won't be able to pay what you owe within ten years, which is the maximize time the government has to collect money owed. To convince them, your assets and cash on hand must be minimal, or non-existent.
The second consideration is that you have the money to repay the government, but paying in full will be an economic hardship for you. You can bet that what you consider hardship and what the IRS considers hardship will not be one and the same. Thirdly, there is a real possibility that you don't really owe the money, or you owe them money but the amount is in question.
The Internal Revenue Services does not just pick a number out of the air when it comes to what it expects you to repay. They have formulas that determine the offers they make. The taxpayer can claim deductions and exemptions however. You should maximize the deductions and minimize the assets, but do it in a truthful way.
Nobody wants to be in a position of having to negotiate with the IRS. The best way to avoid it is to pay what you owe on time. Negotiating a settlement is your next best option.
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