| Some Americans owe back taxes at some point in | | | | to the IRS. You should receive a reply within 90 days. |
| their lives. When you're unable to pay your taxes to | | | | - Filing for bankruptcy: Tax debts are discharged under |
| the IRS, tax bills can arise. Interest and penalties are | | | | Chapter 7 or Chapter eleven, twelve, or 13 bankruptcy. |
| also added to the tax liability. If you're enduring from | | | | Chapter seven bankruptcy allows you to liquidate your |
| this type of IRS problem, what must you do? | | | | debts and Chapter 11, 12, or 13 bankruptcy lets you |
| There are 5 methods to settle your tax bill. Your | | | | negotiate a payment plan. |
| present financial situation will help determine which | | | | - File Form 656 (Offer in Compromise) to reduce your |
| method will work best for you. | | | | tax liability, either by lump sum settlement or short-term |
| - A long-term reduced amount payment plan, or | | | | settlement plan, by giving evidence of Doubt as to |
| partial-pay installment agreement | | | | liability, Doubt as to collectibility, or Hardship. |
| - Installment agreement: Monthly payment plan *Either | | | | - Presently not collectible status: The IRS will not collect |
| of these two installment agreements may need you to | | | | a tax debt for a specified duration, typically a year. |
| accomplish Form 9465 (Installment Agreement | | | | This means that you cannot pay. Form 433-F must be |
| Request) and Form 433-A (Collection Information | | | | filled out. You will receive a yearly statement showing |
| Statement). You will need to determine the sum you | | | | how much you owe. |
| can afford to spare for your monthly payment. Three | | | | You can determine how to resolve your tax bill with |
| months' worth of documents of income and expenses | | | | the help of a tax professional. IRS problems can stress |
| are needed to complete Form 433-A. A letter is also | | | | you out. Why not get this circumstance under wraps |
| written asking for an installment agreement. Send it | | | | and start living your life again? |
| with the forms and 3 months' worth of documentation | | | | |