Sunday 27 May 2018

Options For Tax Debt Relief Help New York

By Shirley Stone


The IRS expects you to pay your taxes on time each April. When you fall behind or cannot afford to pay what you owe, you could find yourself subject to expensive fines and penalties. These extra costs will be added onto what you already owe to the government. Instead of ignoring your bill or thinking you do not have to pay at all, you might resolve the issue faster by seeking advice and guidance from people trained in the IRS codes. With tax debt relief help New York taxpayers like you may settle your account and pay far less than what the IRS initially charged you.

One of the most common deals people take with the IRS involves making an Offer in Compromise. This deal is sometimes referred to as an OIC, and it is basically an offer to settle what you owe for a lower amount. Sometimes the amount is for pennies on the dollar. An OIC protects your income and your assets at the same time.

Instead, it will be based on your current income as well as what liquid assets you have at your disposal. You are expected to make a realistic compromise so the IRS knows you are in earnest with your offer. Offering too little will more than likely get the OIC rejected. You are expected to base it on the money you earn and have in your bank account as well as any valuables that could be sold off if necessary.

Your next option would be to ask for a payment agreement or installment arrangement. This option allows you to make monthly payments based on what you earn each month. The payments are affordable and are not designed to put stress on your finances.

Most of these arrangements are set up to last for anywhere from three to six years. You pay on it as if you were paying off a line of credit. Once the debt is paid, your account will be closed. The government may also report your timely payments to the three credit bureaus.

You may wonder what happens if you cannot even afford to make a reasonable offer. What happens when you barely scrape by each month and have just enough to cover for the basics? This case could call for CNC status. CNC status means your account cannot be collected on. However, it will still have penalties and interest added onto it until you can afford to pay on it.

The government only has 10 years to collect on a debt that you owe it. After 10 years has passed, it has to by law forgive the obligation. You may wish to ask your adviser if the amount is older than 10 years old so you can avoid paying on it altogether.

The government will pursue tax debts aggressively if you fail to pay what you owe each year. You may find yourself heavily penalized and possibly at risk of having your assets levied or seized. You might pay off what you owe for less than you expect while still abiding by the legal codes by using any of the current payment options available to you.




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