If You Want To Settle Your Tax Debt

2010-05-26T06:50:00.001-07:00

In case you are unable to pay your taxes to the IRS, tax bill arises; interest and penalties are added to the tax liability. What actions should be made in this case?

We offer you 5 ways to deal with your tax bill. The choice depends on your current financial situation.

A long-term reduced amount payment plan, or partial-pay installment agreement
Installment agreement: Monthly payment plan
Choosing one of the two offered agreements, be sure to accomplish Form 9465 (Installment Agreement Request) and Form 433-A (Collection Information Statement). Calculate your future monthly payment. Form 433-A requires three months' worth of documents of income and expenses. Then you write a letter asking for an installment agreement. It is send together with the forms and 3 months' worth of documentation to the IRS. The reply is expected within 90 days.

Filing for bankruptcy: Tax debts are discharged under Chapter 7 or Chapter eleven, twelve, or 13 bankruptcy. Chapter 7 allows you liquidating your debts and Chapter 11, 12, or 13 bankruptcy lets you negotiating a payment plan.

Form 656 (Offer in Compromise) is filed to reduce tax liability. This is done through lump sum settlement or short-term settlement plan, by giving evidence of Doubt as to liability, Doubt as to collectibility, or Hardship.

- Presently not collectible status: A tax debt is not collected by IRS for a specified period. Form 433-F must be filled out. A yearly statement will show the amount you owe.

A tax professional will assist you in the procedure of your tax bill resolution. Use this opportunity to lighten up your life.

IRS Tax Software

If You Want To Settle Your Tax Debt