How do I settle my Tax Debt with the IRS?
IRS is a government agency with a reputation which is, quite frankly, draconian among many of the average citizens. There are many who view it in less than stellar light. It has nothing to do with the efficiency or effectiveness of the corporation. This is solely due to the kind of job IRS was formed to do. There are simpler ways than you may think to Settle Your Tax Debt With IRS.
IRS is responsible for collecting Taxes and enforcement of Taxation Laws.
No one likes to pay taxes. Paying a significant sum from all the hard-earned money will sour anyone’s mood. Not to say people do not understand the necessity for it. Regardless, it is not a pleasant activity either for the rich or the poor.
A delay in paying off the taxes incurs a debt towards IRS on your part. When the deadlines pass, the penalties kick in. Despite their draconian reputation, IRS is still a government agency which tries an approach which is considerably polite towards those who have incurred the debt to remind them of their obligations in the forms of E-mails or letters. If those individuals or corporations still refuse to pay off the debt, for any imaginable reason, does it resort to the increasingly less than polite methods. Methods, which may even escalate to pay garnishments, seizing of accounts and property. However, there are a number of solutions available to those individuals who wish to avoid such a fate.
Offer in Compromise (OIC)
IRS offers OICs to those who are deserving of it. Such an offer is a way to settle the tax debt for less than what you actually owe. You may have come across such adverts where such slogans as ‘settle your tax debt for pennies on the dollar’ are written. Those agencies or individual debt settlers refer to this very policy of IRS, even if it is a highly oversimplified and misleading slogan. Regardless, it is the Best IRS Debt Settlement Method.
IRS does not have a policy of handing out OIC’s to just about everyone who asks.
The debtor must prove beyond a reasonable doubt that they deserve to benefit from such a policy. They must prove that they actually have extraneous circumstances which prevent them from paying off what they owe. They must prove that they have no nefarious intentions where they hide the bulk of their wealth and intend to deceive the government into receiving less than they are rightfully owed in accordance with the laws.
Tax Debt Settlement Procedure
Following are easy to follow step by step instructions on how to Settle with the IRS for less than you owe;
I) Apply for the Form 656 from IRS. It is the form for Offer in Compromise (OIC) Policy.
II) There is a mandatory fee of $186 to be paid for it which you must comply with.
III) Provide a complete financial disclosure of your income, assets, equity and expenditures.
IV) The IRS reviews and considers your application.
V) If the application is deemed acceptable, the settlement negotiations can begin.
VI) The settlement is reached with IRS in the form of a percentage of your total debt you can afford to pay.
VII) IRS offers you up to 2 years to repay the decided upon amount.
Note: Filing taxes for every new year must be continued on your part as usual. If you receive a refund from filing within the determined two-year period, then they will simply apply it towards your Settling with the IRS to make it easier upon you in the long run.
Eligibility for Debt Settlement
There are certain pre-determined requirements which regulate the eligibility for acceptance of an
application regarding Tax Debt Settlements with IRS, such as;
I) The applicant must have current tax filings.
II) The applicant must have received at least one bill in regards to the tax debt they wish to include in their application.
III) The applicant must make all required payments for the required year.
IV) The applicant must not have an open bankruptcy proceeding going on.
V) The determination of whether the applicant has the means to pay the agreed upon amount with an installment program must be done solely by the IRS.
VI) The applicant must not have any assets in the form of equity that could be used to pay off the back taxes in the full.
SG Inc. CPA is an organization based in Dallas, Texas. We have the experience and extensive understanding of the system when it comes to Tax Debt Settlement. We can help the individuals or corporations who find themselves in need of our services and fulfill them satisfactorily. Our work speaks for itself. There are many clients who have given positive feedback to our work and praised us in excellent terms. You will find that our work is also considerably cheaper than you would expect. We have fine teams of settlers, attorneys, negotiators and specialist agents who are more than capable of finding proper solutions to your problems. Contact us any time for free advice.