Many taxpayers have a good reason to file for tax debt resolution with the IRS. Perhaps they were behind on their taxes or didn't realize they had to pay them at all. Others are charged tax debt when they didn't owe any tax at all. Yet others are innocent of any wrongdoing but still find themselves in tax trouble. Whatever the case, IRS debt resolution can help taxpayers resolve their tax problems and hopefully get rid of their financial problems once and for all.
There are several options available for tax debt resolution. One option is to pay the back taxes through the normal process of income tax filing. Many taxpayers find this option appealing because they don't want to deal with the hassle of going to court or working with the IRS. If a taxpayer can't afford to make their payments, they may be able to negotiate an arrangement with the IRS that allows for early payment. In some cases, taxpayers can settle their tax debt by entering into an Installment Agreement.
A tax debt resolution will work with a trained IRS agent and will generally result in the return of a refund. The IRS understands that many taxpayers are struggling financially and looking for any way to avoid or reduce their tax debt. However, it is not in the IRS' best interest to pursue taxpayers who just aren't paying their taxes. For this reason, the IRS will work closely with the taxpayer to determine what the best solution is for them. Some options for tax debt resolution include: Offer in Compromise (OIC), Installment Agreements (IA), or Currently Not Collectible status. Each of these options has its own benefits and drawbacks.
OICs represent an alternative to bankruptcy for most taxpayers. OICs generally result in a lower settlement amount and typically a lower interest rate. In addition, the penalty for failure to pay the debt is not as severe as the penalties involved in bankruptcy. With an OIC, taxpayers are typically able to pay back the debt within two years. The IRS does not pursue repayment of this tax debt in most circumstances.
Installment Agreements (IIA) work more like an IVA. However, an IIA is a "limited voluntary agreement." This means that the IRS is not required to pursue repayment of the tax debt. In most cases, an IIA will result in the release of a large portion of the tax debt, which will pay off the debt in about two years. Visit gps services com for all your tax needs.
Currently not collectible status means that the IRS will not pursue a tax debt resolution on the taxpayer's financial obligations. The tax debt will be frozen until such time that the taxpayer's current financial situation allows for the repayment of the tax debt. The IRS may issue a notice of deficiency if the taxpayer is not in compliance with their tax debt agreement. Read more about tax here: https://en.wikipedia.org/wiki/Tax.