A lot of people, who owe the Internal Revenue Service money, think they can file an extension, without writing a check, and buy some time. This is not true. Not filing isn't an option for most. Avoiding their notices in your mailbox will not make them go away. It is possible to make arrangements to pay back what you owe. It can be complicated however. The laws on tax debt offer in compromise New York tax payers apply for may save you a lot of money and headaches.
In its simplest form, this is a program that allows taxpayers to settle with the government for less than what is owed. You must make the payments as agreed upon until the debt is cleared. Once that is done there is a monitoring process, but as long as you pay your taxes on time, you are in the clear. Not everyone is a candidate for this program. Qualifying is difficult. Out of the thousand of applicants every year, the IRS approves less than half.
There are two plans available for those who qualify. The first one is a lump sum payment. This is a good idea for those who can borrow or find enough cash to pay back the government within five months of approval. A twenty percent down payment is required when you turn in the application. This payment is no guarantee you will be approved and is not refundable.
The second option is the periodic payment. This gives you more time to pay back the agreed amount. You will have six to twenty-four months of payments. The first payment must be sent along with your application. Before you agree to either one of these plans, you have to be pretty sure the IRS is going to approve your application.
There is no point in wasting your time applying for this program unless you have a chance of approval. First you have to convince the Internal Revenue Service that you won't be able to pay what you owe within ten years, which is the maximize time the government has to collect money owed. To convince them, your assets and cash on hand must be minimal, or non-existent.
Another determining factor is whether paying the total amount will create an economic hardship for you. You must be aware that by hardship the government does not mean inconvenience. The third possibility is that you may not owe the money, or at least not in the amount the IRS thinks you do.
It is very important to understand how the amount you pay back, if you are approved, is determined. They have formulas they use to determine what you can reasonably afford to pay. Once they come up with a number, you are allowed deductions and exemptions. Your best bet is to downplay the value of your assets and come up with as many acceptable living expenses as you can.
Nobody wants to come to the attention of the IRS. The best way to achieve this objective is to pay your taxes in full on time. If you can't do that, negotiating a settlement you can live with is the next best thing.
In its simplest form, this is a program that allows taxpayers to settle with the government for less than what is owed. You must make the payments as agreed upon until the debt is cleared. Once that is done there is a monitoring process, but as long as you pay your taxes on time, you are in the clear. Not everyone is a candidate for this program. Qualifying is difficult. Out of the thousand of applicants every year, the IRS approves less than half.
There are two plans available for those who qualify. The first one is a lump sum payment. This is a good idea for those who can borrow or find enough cash to pay back the government within five months of approval. A twenty percent down payment is required when you turn in the application. This payment is no guarantee you will be approved and is not refundable.
The second option is the periodic payment. This gives you more time to pay back the agreed amount. You will have six to twenty-four months of payments. The first payment must be sent along with your application. Before you agree to either one of these plans, you have to be pretty sure the IRS is going to approve your application.
There is no point in wasting your time applying for this program unless you have a chance of approval. First you have to convince the Internal Revenue Service that you won't be able to pay what you owe within ten years, which is the maximize time the government has to collect money owed. To convince them, your assets and cash on hand must be minimal, or non-existent.
Another determining factor is whether paying the total amount will create an economic hardship for you. You must be aware that by hardship the government does not mean inconvenience. The third possibility is that you may not owe the money, or at least not in the amount the IRS thinks you do.
It is very important to understand how the amount you pay back, if you are approved, is determined. They have formulas they use to determine what you can reasonably afford to pay. Once they come up with a number, you are allowed deductions and exemptions. Your best bet is to downplay the value of your assets and come up with as many acceptable living expenses as you can.
Nobody wants to come to the attention of the IRS. The best way to achieve this objective is to pay your taxes in full on time. If you can't do that, negotiating a settlement you can live with is the next best thing.
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