Proven Ways to Settle Your Tax Debt with the IRS
Over the past few years, the IRS has become increasingly stringent with its tax regulations. There have also been changes in tax legislation at both the state and federal level. As a result, individuals and business owners have found it hard to circumvent their tax problems, especially the outstanding debt. The following strategies may help. Installment payments By issuing a Collection Information Statement, Form 433F , you can request the IRS for an installment payment plan. The IRS will review your application and write you a notification letter to explain the proposed payment terms. It may charge you up to $105 and allow you to make your payments within the five-years timeframe. You’ll also have to promise that you’d pay all of your future taxes on time and full. Offer in Compromise (OIC) The OIC is a formal agreement between the IRS and the taxpayer that settles your debt for a lesser amount than the one owed. Under the Internal Revenue Code, this tax resolution option applies...