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:
loading
 
  



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:
http://www.articleside.com/finance-articles/tax-effective-ways-to-approach-an-irs-tax-debt-settlement.htm

Related Finance Articles Subscribe to RSS

Caravan Loans - Helps You to be in debt Caravan Loans
Published by Mark Fulton on February 3rd 2012 | Finance
Caravan Loan is extremely well-liked these days, insist in increasing and is basically liked car fi...
 
Profits of using TAXAS debt relief
Published by James Blee on February 14th 2012 | Finance
In economics language, Debt relief means to get relief from all the debts. Today, In USA debt relief...
 
I am in a debt management plan and have been made redundant – what can I do?
Published by James Falla on November 28th 2011 | Finance
With the possibility of wages being reduced and jobs being lost as a result of the government cuts, ...
 
Exactly what is a debt management program and just how can I get this service?
Published by Deby Suportie on February 15th 2012 | Finance
This article provides information about debt management program and it's significance in today's tim...
 
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...
 
Credit Counseling: Your first line of defense against crushing debt
Published by CVGiCanada on January 11th 2012 | Finance
Your Toronto credit counselor is someone you have to have a great deal of trust in. These profession...
 
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...
 
Consultants for debt consolidation
Published by Rajkumar Kaushal on May 17th 2012 | Finance
Debt settlement has something to debt management for debtors. Debt consultants make the whole differ...
 
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 creditors help you in learning more about bill and debt consolidation
Published by Joseph Goins on May 18th 2012 | Finance
People facing high bill problems can find a solution and relief through bill and debt consideration....
 
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...
 
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...
 
Settlement of debt in America
Published by Rajkumar Kaushal on June 23rd 2012 | Finance
Getting settlement in America when it comes to credit card is not very easy sometimes because of the...
 
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 ...
 
Stay away from the traps of the student debt
Published by Peter Paul on December 15th 2011 | Finance
The student debt can be avoided at all costs. Here are some tips to stay away from the traps of the ...
 
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...
 
What is debt advice UK and just how can one get this service?
Published by Deby Suportie on February 15th 2012 | Finance
Debt advice UK has aided many people affected by their debts. Through the years, providers have been...
 
Consumers of debt settlement
Published by Rajkumar Kaushal on May 17th 2012 | Finance
Exceptionally debt management and firms Debt information has become synonymous with keeping people. ...
 
Advice and tips for settlement of debts
Published by Rajkumar Kaushal on June 19th 2012 | Finance
Sometimes, it is when most people are in debt that they start looking for advice. Advice can be expe...
 
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 ...