Thursday, April 2, 2009

Get Rid Of Your Tax Debt Once And For All

Its frustrating with owing tax debt and carrying this burden around not knowing which route to take. However,its worse negating the next steps in getting this behind of you . The average taxpayer is not well versed in knowing how to negotiate with the IRS. One thing, a taxpayer can count on when having tax liability is that there is a light at the end of the tunnel and you may not have to satisfy the entire liability.

You may not know it, but the Internal Revenue Service only has ten years to collect on your tax liability. There is an acronym called CSED (Collection Statutory Expiration Date), which tells the IRS and other tax specialist just how long the IRS has to collect on your tax debt.

If your liability falls under $ 25,000, the IRS will accept an Installment Agreement based on the liability owed. The IRS will take the amount you owe divided 50 (months) t0 get the amount required to pay until the debt is satisfied. In case like this you will always pay the debt in full. However, with a partial pay installment agreement you will not satisfy the debt in full.

This is why they call it a partial pay installment agreement because you will not have to pay the liability in full. What a relief this would be of a tax professional could negotiate this kind of settlement with this IRS. Question is, do you qualify? Partial pays are not normally granted unless the IRS deems this liability never being paid in full. Therefore they will negotiate a payment that will satisfy some of the debt allowing the rest of the debt to fall off when the CSED dates run out.

This is why handling an extensive issue own your own may not your best option. There are trained Enrolled Agents that have prior experience with the IRS that can help negotiate a resolution like this if you qualify. If you have a large tax liability and the IRS does not see much future income potential, then you might be a good candidate for Partial Pay Installment Agreement.

1 comment:

footbolito17 said...

even i had a hard time dealing with my IRS debts...tsk tsk