Settling Tax Debt

You might be among the many Americans who have the inability to settle taxes, and with the additional sum of interest and penalties, you have a tax bill and IRS problems.

There are 5 possible options to settle your tax bill. Your current financial situation will determine which option will work best for you.

• A long-term reduced dollar amount payment plan, or partial-pay installment agreement
• A monthly settlement plan, or installment agreement*You will have to fill out a Form 9465 or Installment Agreement Request and Form 433-A or Collection Information Statement to be eligible for any of these two installment agreeements. You also have to determine what you can afford as monthly settlement and send a letter of request and 3 months' worth of documentation showing your expenses and income within ninety days.
• Declare bankruptcy to liquidate your debts (Chapter seven bankruptcy), or ask for a settlement plan (Chapter 11, 12, or 13).
• Offer in Compromise: Pays your bill for less than what you need to pay by a lump sum payment or obtain a short-term payment plan with reduced amount. Form 656 (Offer in Compromise) is filled out and you should meet one of these criteria: Doubts as to collectibility, Doubts as to liability, or Hardship.
• Be on currently not collectible status, meaning you are unable to pay, so the IRS can't collect from you for a specified duration, typically a year.

Get the situation under control so your life can go back to normal. A tax professional can give IRS Help to  resolve your IRS issues and tax bill.

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Originally posted 2008-01-08 04:30:04. Republished by Blog Post Promoter