When taxpayer season begins in January each year, you might think you have plenty of time to file and pay your taxes on time. In reality, the four months you have until the April 15 deadline can go by in a flash. You may be scrambling at the last minute to file your return and come up with the money to pay whatever amount you owe to the federal government. By knowing your choices for tax debt relief help New York filers like you could spare yourself time, inconvenience, and fear as well as money you might not be able to afford to part with right now in order to settle with the IRS.
Your first option for dealing with the burden is to make what is called an Offer in Compromise. An Offer in Compromise or OIC is essentially an offer to pay your obligation for less than its original worth. However, it also reflects fairly what you make and have in assets and what you are capable of paying right now.
Before the IRS will accept an OIC, it expects you to make a reasonable offer that reflects what you actually earn and how much your assets are worth. If you earn a reasonable income and have assets like real estate at your disposal, you cannot offer a few hundred dollars and expect the IRS to take it. You have to offer a sum that is reasonable for your financial means but will still leave you with money on which to live.
The next choice you have involves requesting what is called an installment agreement with the IRS. An installment agreement is basically a payment arrangement that involves making monthly payments based on your current income. Each payment is designed to be affordable and within your means.
Most installment agreements are set up to last no longer than six years. During that time, you essentially pay off your debt bit by bit until it is paid off in full. It also reflects positively on your credit and can boost your credit score in some instances.
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.
When you seek out advice and counsel on your IRS debt, you may ask how old the debt actually is. By law, the government can only pursue collection on past balances for 10 years. Once a debt is 10 years or older, it must be written off by the government, and the taxpayer forgiven for the obligation.
By knowing the choices available to you, you can make a proactive decision regarding your tax debt and what kind of help you want to pursue. You take the upper hand to stop penalties and interest. You also can determine how fast or slow the amount is paid off in full, releasing you from any further duty to the government. Your income and assets will come into play during the process.
Your first option for dealing with the burden is to make what is called an Offer in Compromise. An Offer in Compromise or OIC is essentially an offer to pay your obligation for less than its original worth. However, it also reflects fairly what you make and have in assets and what you are capable of paying right now.
Before the IRS will accept an OIC, it expects you to make a reasonable offer that reflects what you actually earn and how much your assets are worth. If you earn a reasonable income and have assets like real estate at your disposal, you cannot offer a few hundred dollars and expect the IRS to take it. You have to offer a sum that is reasonable for your financial means but will still leave you with money on which to live.
The next choice you have involves requesting what is called an installment agreement with the IRS. An installment agreement is basically a payment arrangement that involves making monthly payments based on your current income. Each payment is designed to be affordable and within your means.
Most installment agreements are set up to last no longer than six years. During that time, you essentially pay off your debt bit by bit until it is paid off in full. It also reflects positively on your credit and can boost your credit score in some instances.
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.
When you seek out advice and counsel on your IRS debt, you may ask how old the debt actually is. By law, the government can only pursue collection on past balances for 10 years. Once a debt is 10 years or older, it must be written off by the government, and the taxpayer forgiven for the obligation.
By knowing the choices available to you, you can make a proactive decision regarding your tax debt and what kind of help you want to pursue. You take the upper hand to stop penalties and interest. You also can determine how fast or slow the amount is paid off in full, releasing you from any further duty to the government. Your income and assets will come into play during the process.
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When you are looking for information about tax debt relief help New York residents can come to our web pages today. More details are available at http://www.ultimatetax-relief.com/services now.
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