IRS

The most common IRS payment plan is an Installment Agreement. This tax debt payment plan is widely popular due to most taxpayers being eligible for one of its various types.  Under this payment plan, taxpayers can pay their debt amount in fixed monthly payments in order to fulfill their tax debt amount. The IRS charges…

The IRS begins the collection process for tax debt by sending notices to taxpayers with details of the amount owed and repayment options available. Taxpayers that resolve their tax debt avoid any additional problems but those who ignore or do not make efforts to resolve the back taxes risk aggressive collection actions. The IRS has…

Tax debt resolution does not involve the full payment of the tax debt amount in cases where taxpayers cannot afford to pay their entire back taxes. Those who do not have the financial means to pay their entire tax debt should consider applying for an Offer in Compromise for tax debt reduction. Under this debt…

Filing taxes jointly is not always beneficial. Sometimes, a spouse intentionally understates their taxes on their return without the knowledge of the other spouse, who simply signs the return without knowing its contents. When it leads to back taxes, both the spouses are held responsible for it. Even if the married couple divorces later, the…

The IRS has introduced flexibility its tax debt programs, the Installment Agreement and Offer in Compromise. Now, the process of resolution is more relaxed. The evaluation and resolution process for Offer in Compromise includes more flexibility in considering the ability to pay and fewer requests for additional information about finances. Under the Fresh Start initiative…

The Installment Agreement is one of the most commonly used tax debt payment plans. Taxpayers who are looking to pay their back taxes, but cannot afford to pay the entire amount can apply to pay it in fixed monthly payments under an Installment Agreement. To make the resolution process easier, the IRS has introduced flexibility…

Tax debt resolution can sometimes involve the reduction of a tax debt amount, a reduction of penalties, and/or the forgiveness of a tax debt. Even though a reduction or a forgiveness of an IRS debt is achieved taxpayers who clear strict qualifying guidelines, taxpayers can make efforts to get their penalties reduced or forgiven to…

The resolution of tax debt may or may not require the payment of the debt. Currently Not Collectible is an IRS payment plan where taxpayers receive a stay of collections and the postponement of payment because of their inability to fulfil the tax debt in their current financial situation. If taxpayers do not have the…

It is becoming increasingly difficult for tax evaders to hide their assets overseas. The Foreign Account Tax Compliance Act (FATCA) has brought greater transparency in financial dealings of U.S. taxpayers with offshore bank accounts. The IRS is making deals with more countries in order to cut down on tax evasion by wealthy taxpayers who hide…

When taxpayers think about resolving their tax debt, they look for ways to decrease their overall tax liability. While there are many ways to reduce a tax debt legally and stay within IRS rules and regulations, not every taxpayer qualifies for tax debt reduction. It is advisable to use legal tax help to understand the…