Do you owe back taxes to irs? Dealing with the IRS can be a scary thing. The IRS can claim your wages, social security payments, bank accounts, insurance proceeds, accounts receivable, real estate property, and even your house. Try some tips to protect your livelihood.
If you owe IRS back taxes, Tax Debt Settlement Options Offer in Compromise, or OIC, is an option allowing the person to offer the IRS aggressive payments over short time frame, about 5 to 24 months, and in return the IRS will compromise or forgive the remaining debt.
In Installment Agreements, those who owe IRS money can pay monthly to satisfy their debt. There are several types of installment agreements. A Streamline Installment Agreement, or SIA, can be used for people owing back taxes less than 25,000 dollars and pay off the debt within 60 months and documentation is not needed.
A Conditional Expense IA is for those who owe back taxes with other monthly obligations, like credit cards, or 401K, but can still pay the debt within 60 months.
People who owe back taxes can use a Stair Step IA, where the debtor agrees to pay an amount agreed upon for 12 months, then a larger sum for the next 48 months, fulfilling the debt within 60 months.
The Traditional Installment Agreement is where the person who owe IRS money agrees to pay as much as they can for the whole debt.
Another available solution is the Partial Payment Agreement, or PPIA, an installment plan where the IRS receives full financial disclosure from those who owe back taxes to derive a monthly payment amount which will satisfy the statute agreement but not the full amount that is owed, and the debt is considered repaid when the statute duration is satisfied.
For people who owe back taxes where their allowable monthly expenses are greater than monthly income, Currently Non Collectible, or CNC, can be implemented as a temporary solution to avoid enforced collection for people who owe back taxes, provided those who owe back taxes to IRS submit full financial disclosure to generate yet another way out from owing back taxes.
Penalty Abatement or PA is where the IRS relieves some of the penalties if those who owe back taxes show reasonable cause for falling behind and due diligence in resolving the debt.
The above shows those who owe back taxes that they don’t need to fall victim just because they owe IRS money. More can be found here.