5 Ways To Solve Your IRS Problems
Let’s talk about the five ways to solve your IRS problem. The first and most obvious is to pay in full, and if you can do that, by all means do so. If you can do so but maybe not today maybe you need a little bit more time, it might help you to know that the IRS routinely grants up to 120 days without any kind of additional penalties, if you ask for additional time, if that applies to you. So certainly if you think it might, give them a call. Secondly, you might qualify for an installment agreement. That's going to depend on your financial situation and what kind. There are different kinds of installment agreements. Some you can get without any financial information at all. If you can do that it's called a streamline installment agreement and you can get information for whether or not you qualify for that on the IRS website. There are more complex installment agreements that you do have to give more in-depth information about your income, your assets and your expenses but that is a way that you can solve your problem. Thirdly, you may qualify for Currently Uncollectable Status. Currently Uncollectible Status means that based on your current income, and your allowable expenses, which are determined by the IRS, you cannot afford a regular monthly payment at this time. If they determine that you are in Currently Uncollectable Status your account will in effect be put on the shelf for the time period that they have to collect on your account. This is 10 years from the date of assessment typically which will continue to run but collection actions will not be taken on your account. So you're basically put on the shelf unless your situation improves during that time.
You can also consider in some cases that you might qualify for an Offer in Compromise. Now not everyone qualifies for this avenue but it is a possibility. If your income and assets are such that you cannot afford the full pay liability in the time period left to collect, then you may be a candidate for an Offer in Compromise. Finally, and lesser known, some people might qualify for bankruptcy protection. Personal income tax can in some cases be discharged in a Chapter 7 or Chapter 13 bankruptcy depending on when it was filed and how old the debt and if you timely filed your returns. Definitely seek the help of a bankruptcy professional if you think you might otherwise qualify for bankruptcy. If you think you need more information just search our site. By all means feel free to look through our Member Provider Section where we have a list of providers who have been vetted by our team who are in your area and want to help.