Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Tax Effective Ways to Approach an IRS Tax Debt Settlement

By Jacob Smith Subscribe to RSS | December 6th 2011 | Views:

A lot of individuals actually face tax problems especially when it comes to the Internal Revenue System (IRS). Many individuals owe back taxes or have trouble paying their taxes to the IRS but you can get income tax debt relief by first understanding their tax debt strategies. You may like to use any of the five relief plans to get out of the trouble with paying income tax debt to the IRS:

1. Tax debt settlement: You may like to ‘Offer in Compromise’ (OIC) where you may settle your tax debts for less than the actual amount. However, for this, you will have to convince the IRS that you are in no position to pay the debt. It is also important to note here that not everyone qualifies for the Compromise offer and only about 15% of the applicants may succeed in OIC. You may like to take the help of a tax professional who can help you determine whether or not you are eligible for the compromise. The OIC is a time consuming affair and may take you anywhere between 12 months to 24 months.

2. Offer an installment agreement: You may also be able to solve your tax problems with the IRS of you can convince the IRS for a monthly payment plan where you will pay off the tax debts to the IRS. This is an option considered by many tax payers who may not have qualified for an OIC or are not able to include their tax debt in a bankruptcy relief and yet look forward to resolving their IRS tax problems. According to this plan, an individual seeking tax debt settlement can opt for five primary types of payment plans. These include:

• Guaranteed Installment Agreements

• Streamlined Installment Agreements

• In Business Trust Fund Agreements

• Long-Term Installment Agreements

• Installment Agreements on Specified Balance Due Accounts

3. Partial payment installment agreement: This is a somewhat new program for the individuals with tax problems. This involves a long-term payment plan to pay off your debts. However, in this plan, the total of all your monthly payments never pay the whole debtand the unpaid debt expires as the statutory expiration date is reached on the collections.

4. No currently collectible: This option may be open to the tax payers who do not usually qualify for an ‘Offer in Compromise’ or the Installment Agreement. The Currently Not Collectible (CNC) may be opted by such individuals to get an income tax debt settlement. So, if you have a CNC status, you will be protected by the Statutes of Limitations and the IRS would agree to temporarily forgo any actions related to collecting taxes. With the improvement of your financial status the IRS can then remove the file from the CNC status and pursue active tax collection status once again. In fact, the IRS can also compel you to liquidate few of your assets before it grants the CNC status to you.

Jacob Smith - About Author:
Jacob Smith is a contributing writer for New Life Tax Relief on income tax debt and a senior debt analyst. He writes mostly on finance, tax problems, tax debt settlement.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Finance Articles Subscribe to RSS

Let the backend service provider resolve your backend tax settlement problems
Published by John Taylor on December 2nd 2011 | Finance
For the benefit of those that are handling debt resolution services, there are some professional bac...
Writing a review on debt settlement
Published by Rajkumar Kaushal on April 30th 2012 | Finance
Have you been having problems with your Debt Settlement reviews Now your worries will now be a thing...
How can i get dependable credit card debt advice and exactly how could it benefit me?
Published by on March 27th 2012 | Finance
Credit card debt advice is a program provided by debt companies to help those people who are battlin...
Loans from debt settlement banks
Published by Rajkumar Kaushal on May 30th 2012 | Finance
In the beginning Debt settlement IIc firms that take care of loans started with products that were f...
How to make use of debt settlement rating
Published by Rajkumar Kaushal on April 27th 2012 | Finance
In the beginning of debt settlement history, debt Settlement rated was unheard of until now. You mi...
Dumfries and Galloway debt figures reach record level
Published by Jack Gray on February 1st 2012 | Finance
A report by Citizens Advice Service was brought out a shocking number out of the people who are into...
How can I get Debt Reduction? How can a debt plan help me repay my debts?
Published by Deby Suportie on March 28th 2012 | Finance
Debt reduction is a program provided by debt companies so that those who are struggling with debts c...
Process of debt recovery in turkey within the Turkish law
Published by Rosa on November 26th 2011 | Finance
The process of debt recovery in turkey follows the Turkish Enforcement Law. Any legal entity in fore...
Outsourcing debt settlement is the best solution
Published by John Taylor on December 26th 2011 | Finance
If you are in the business of marketing debt resolution services, you should consider outsourcing de...
Credit card debt Relief- There is Hope of Relief Yet
Published by James Blee on December 22nd 2011 | Finance
Some people after receiving their credit cards do not know how to use them wisely. As they are easy ...
How to live free of debt in California
Published by Rajkumar Kaushal on May 15th 2012 | Finance
You must have seen debt settlement tips today or days back online. This is debt information for the ...
Why hire a credit card debt management company?
Published by Yossi A on January 12th 2012 | Finance
As a matter of fact, it not only clears your already existing debt but also offer valuable technique...
Making debt settlement easier with groups
Published by Rajkumar Kaushal on May 15th 2012 | Finance
Debt settlement forms and articles have become what a lot of people are making use of when it comes ...
Taking care of debt settlement
Published by Rajkumar Kaushal on May 12th 2012 | Finance
How do you choose good information on debt settlement bankruptcy in debt settlement? This is one que...
The best debt consolidation advice
Published by Fresh Finance on January 19th 2012 | Finance
Many cases of multiple charges, including credit card charges, economical credit score items from lo...
Contact Blake, THE professional and fair debt collection agency designed to take the hassle out of recouping your money!
Published by James Blee on June 16th 2012 | Finance
Leading from the front is Managing Director Howard Blake who understands the importance of successfu...
Consider outsourcing your debt settlement business
Published by John Taylor on December 5th 2011 | Finance
If your business involves debt resolution services, the business may quickly spin out of control due...
Eldridge Financial Blog: UK in recession again as recovery is ‘paralyzed’ by the European debt crisis, forecasted.
Published by Eldridge Blog on February 18th 2012 | Finance
Britain is once again suffering a recession and unemployment risks coming close into three million t...
Debt settlement through bankruptcy
Published by Govindsingh on June 26th 2012 | Finance
Bankruptcy has become what those down in debt and cannot pay make use of in starting over again. Wit...
Solving debt problems in the 21st century
Published by Deby Suportie on April 3rd 2012 | Finance
The number of people with debt problems continues to increase year after year. Even individuals who ...