Most people qualify to make payments on the IRS debt over time. The IRS typically calls these “installment agreements”.
There are different kinds of IRS installment agreements.
Some are set up to pay the IRS debt in full before the collection statute expiration date expires, some pay only a portion or even none of
Most individuals with IRS debt will qualify to make payments on the IRS debt over time. The IRS calls these arrangement installment agreements. These installment agreements can be based on time or they can be based on the taxpayer’s financial situation. (Learn more here)
When a taxpayer
When the IRS issues a CP40 letter, it means three things:
1. The IRS has assigned collection of your IRS debt to a private debt collector
The IRS is understaffed, and as a result has moved some collection files to private collection agencies. It’s chosen your file because it may have found it difficult to locate you or your assets.
Many taxpayers have the mistaken impression that making a “deal” with the IRS is an informal process. Unfortunately, it’s just the opposite. It’s a process governed by a number of laws and rules and also by how those laws/rules apply to the taxpayer’s situation. Once this is understood, it’s easier to understand
In 2011 and 2012 the IRS felt the need to make some changes in an effort to help Americans struggling with tax debt. Bankruptcy filings were up, and many people were still dealing with the effects of a serious economic downturn that began a few years earlier.
I get asked all the time about whether it’s true that the IRS will actually “forgive” or “settle” tax debt…I find myself thinking about it even when I don’t want to be.
It’s like a song that you can’t get out of your head.
So in another effort to answer the…here is another general review…
Faced with large tax debt and feeling hopeless? Take heart…if you are willing to create a “strategy” and combine it with some hard work and patience, there may be a real solution. The following are the most 5 common methods people use to deal with tax debt.
Congress limited the
The IRS Offer in Compromise isn’t always necessary or available. Most people with tax debt just don’t make good candidates for the IRS’ formal “settlement” program.
The question for those who do qualify for the Offer in Compromise is whether it’s really necessary to try?
There are ways to keep the IRS at bay that may be less “difficult” than
Many of our clients have large IRS debt and some don’t qualify well to settle their debt in an IRS offer in compromise.
The truth is…most people with tax debt don’t. (Read more about IRS Offers in Compromise and how they work)
Most Taxpayers end up in a payment plan either based on time, or in one that uses their