What is the Purpose of PTIN in IRS Debt Settlement?
Tax debts are among the most vicious debts there are. They can be quite difficult to eliminate. Sometimes even complete bankruptcy and becoming homeless is not enough to be completely debt free. Since IRS has much more power than any other kind of debtor, that makes it much more difficult to escape such obligations.
IRS has been bestowed authority by the law that allows it to do much more than just send notices hoping you will pay off your debt one day. IRS has the authority to seize your business assets and property. They can also freeze your bank accounts with exception of those accounts that lie in territories outside of US jurisdiction, such as Switzerland or Bahamas. However, they can petition to those foreign governments and banks for your accounts to be released to them. Moreover, they can also seize your private accounts, properties and vehicles if the debt is too great. They can virtually leave you penniless and homeless and you can do nothing to stop them. The courts rarely, if ever, side with the one who has gone default on taxes. They almost always give their verdict in favor of IRS.
Pay off your debt today and avoid being treated like a criminal.However, all these scenarios are not likely to occur if you are cooperative with IRS agents. Even if you are unable to pay off the debt momentarily, you can still negotiate with them for leniency, reduction or leeway on time limits. The above-mentioned heavy-handed approach is only applied to the most belligerent of the individuals who desperately cling to their assets and stubbornly refuse to pay off their rightful taxes for whatever reason.
The best advice that can be offered to you is,
- You must not try and ignore the situation. The IRS will surely not ignore it so you must face it heads on.
- Get professional help if you are sure you cannot deal with IRS agents on your own.
- If you are truly suffering from economic hardship, apply for tax forgiveness. You may find yourself eligible for some compromises.
- If you cannot pay a lump sum, apply for an installment payment plan.
- Consider hiring a tax attorney if the debt exceeds 10,000$.
- Assess the status of your debts; the debt owed, the interest charges, the expected pay off dates.
- Make a budget. Use it to guide and track spending.
- Stop using credit cards. Cash only.
- Change debt enabling habits for the future. This includes dining out, entertainment expenses etc.
What is PTIN?PTIN stands for Prepare Tax Identification Number. All Tax preparers must file for it so they can receive their PTIN number. PTINs can be used on US Federal Tax Returns. They can also be used to claim tax refunds.
A PTIN number can easily be obtained or renewed online in short 15 minutes. It is also done free of charge. In case of failure of renewal, IRS has the right to impose severe penalties.