Summer has officially begun. This is intended to be a nice and relaxing time. That is what some of you have in mind. Others discover that they commute more by bicycle or on foot.
We have a struggling economy. It seems certain that there will be more due to inflation, rising interest rates, and high prices for everything from petrol to food to nearly all necessities.
Some individuals will experience job loss, while others will simply struggle to make ends meet. They will consequently have to make challenging decisions. That may entail not filing their US income taxes for some. That is the beginning of a risky game that people play.
One year after the next, you begin to accrue a sizable tax liability. Then you hear: “Do you owe the IRS $10,000 or more? Are you tired of your profits being eaten away by income taxes, which may be as high as 30%?
Let our tax resolution specialists assist you if you pay $75,000 or more in taxes annually. We frequently bargain with the IRS to lower our customers’ taxes by 30% to 40%, resulting in annual tax savings of $100,000 or more on average. Our methods have been tested and are IRS-compliant.
Does this sound like anything you know? Have you seen or heard any of these commercials? There is a decent possibility that you do. You pay more attention to these advertisements now because you owe the IRS money.
It’s likely that if your debt has been public for a while, one of these businesses may have even sent you an official-looking postcard or letter in the mail offering to assist you.
There are ways to “bargain” with the IRS, but it’s not really that easy. On the other hand, it’s also not really complicated.
Really, there aren’t many options accessible to you for handling your IRS tax debt. In general, you can choose from the following:
Use any extra cash, investments, or retirement funds to pay down the tax bill in full. Right, I see.
Sell or refinance an asset (such as a home, boat, car, or stock) to raise the funds necessary to partially or fully pay down your tax burden. Of course, to sell or refinance, you need IRS approval.
Sign a Payment Plan Agreement (IA). The IRS refers to it as thus, but you probably know it as a payment plan.
Generally, if the sum is under $250,000 and you can pay the tax debt in full within the remaining 10-year collection term, you won’t be required to give financial details.
Submit financial forms (Form 433) to request the status of “Currently Not Collectible” (CNC). They take your account at this point and put it on hold until the collection period is through.
This is presuming you have little to no equity in your assets and that you have no way of making payments from your existing income. Oh, and during the period of collection, there cannot be a significant change in your income.
Submit financial documentation (Form 433) to get a Partial Pay IA (PPIA). In this case, your financial situation indicates that you are unable to pay the whole amount of the tax debt during the remaining collecting term. You MUST renew this status every two years and show financial documentation.
Submit funding requests for the Offer-in-Compromise (OIC) programme (Forms 433 and 656). You “settle for less than what you owe” at this point.”
Do not, however, mistake this for “negotiating.”” It is entirely based on your facts and circumstances as well as a mathematical formula to determine if you are eligible for this programme (OIC) or any of the programmes previously mentioned.
We don’t want to make this procedure too easy. Every taxpayer can take care of this for themselves. Should you? is the question.
You probably shouldn’t interact with the IRS directly if you owe them money, just like it’s advised against doing so in legal proceedings. At least if the amount you owe them is less than $10,000.
Please contact a certified tax expert for assistance (CPA, EA, attorney). Naturally, this is what we do at our company. In addition, we have the expertise to handle a variety of circumstances.
If you find yourself in this predicament and are prepared to face your circumstances head-on and are fed up with losing sleep, please contact our office. With a helpful and nonjudgmental approach, we will be pleased to assist you.
Read more:-
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- The Left Turns Against Itself
Keep your head up till next month. You may keep a cheerful mindset by being grateful for what you have.
