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| 0.21cm } --> | | | | Are you aware that taxes may be dismissed in a |
| People get behind on their taxes for many reasons: | | | | bankruptcy. Many individuals, and attorneys, are |
| divorce, health issues, loss of a close family member, | | | | unaware of that! For many who are eligible, |
| personal bankruptcy, business failing, etc. It doesn't | | | | bankruptcy often is the means to fix their tax |
| matter how your tax obligations came to be. The | | | | problems. However, not everybody qualifies to |
| question is how will you fix them. There are several | | | | eliminate their tax arrears in bankruptcy. Specific |
| alternatives to solving Delinquent Taxes. | | | | guidelines must be met first. Should you file bankruptcy |
| | | | | and don't meet the guidelines, you'll be shocked after |
| Offer In Compromise | | | | your bankruptcy is finished once you find that you've |
| | | | | still got a tax issue and the IRS is in hot pursuit. |
| It's a fact that the IRS settles a huge number of | | | | Appropriate pre-bankruptcy preparation is critical for |
| taxpayer's overdue tax debts for just cents on the | | | | figuring out if bankruptcy is or can be a workable |
| dollar every year! Why don't you know this? Well, it's | | | | option. |
| simple. The IRS doesn't publicize that the law allows | | | | |
| many taxpayers to negotiate their old tax debts for a | | | | Running the Statute of Limitations |
| small percentage of what they owe. What's in it for | | | | |
| them! They'd rather just seize and levy everything you | | | | Are you aware that the IRS is limited in the time period |
| possess. Who qualifies for the Offer In Compromise | | | | it has to go after collection of overdue taxes? |
| Program? Taxpayers who are able to show an | | | | Typically, the IRS has ten years from the time the |
| inability to repay their overdue taxes in a short time. | | | | taxes are assessed (usually on the filing date) to |
| | | | | recover any outstanding taxes, penalties, and interest. |
| Payment Plan | | | | Once the ten years goes by, you don't legally owe |
| | | | | your debt. Like all tax legislation, you'll find exceptions to |
| For people who don't qualify for an Offer In | | | | the rule. The 10 year time period may be extended in a |
| Compromise, a Payment Plan could be the way to | | | | number of ways. Often the IRS will attempt to recover |
| solve your issue. Many individuals have the ability to | | | | overdue taxes, either through ignorance or on purpose, |
| pay their tax debts but only need a little time to pay it | | | | after the statute of limitations has run out. You should |
| off. Negotiating settlement terms you can accept is the | | | | notify the IRS that they don't have legal power to |
| key. Regrettably, penalties and interest will continue | | | | recover the overdue taxes. Running the Statute of |
| being incurred on your outstanding balance while you | | | | Limitations can often be an economical approach to |
| pay the debt off. However, you could be eligible to | | | | take care of your past due tax debt. |
| have the penalties eliminated or Abated. Interest on the | | | | |
| principal tax owed, very rarely can be Abated. | | | | Lien Subordination |
| | | | | |
| Penalty Abatement | | | | Frequently taxpayers can't get home equity loans to |
| | | | | repay their old tax debt as the IRS has filed Federal |
| The IRS charges penalties for nearly everything these | | | | Tax Liens against their home. These Liens not only |
| days-filing late, paying late, underpaying your estimated | | | | become public record but also appear credit profile, |
| tax if you're self-employed, negligence if you make | | | | thus keeping you from obtaining a loan to repay the |
| errors in preparing your tax return, etc. Its absurd how | | | | taxes that created the Liens to start with. It looks like a |
| many kinds of penalties exist. The initial intent of | | | | Catch-22 scenario. Should you have substantial equity |
| penalties was to punish taxpayers who didn't follow | | | | in your residense to pay towards your tax arrears, |
| the law and to keep compliant citizens from falling out | | | | there's a way out. A Lien Subordination enables the |
| of line. However, the reason penalties exist today is | | | | IRS to cut back its Lien priority and provide your |
| that they've become a big revenue generator for the | | | | financial institution superior Lien priority guarding their |
| government. Many citizens could pay off their tax | | | | loan in exchange for the cash from the borrowed |
| debts if it weren't for penalties that double, triple, or | | | | funds. By doing this, the IRS gets the equity it had a |
| quadruple their tax bill in so short a time. Well, there is | | | | Lien against and your lender is safeguarded by their |
| relief for many taxpayers from IRS penalties. The law | | | | superior Lien. Should you have sufficient equity to full |
| allows taxpayers who have "reasonable cause" to file | | | | pay your old tax owed, a lot of banks won't even |
| for a Penalty Abatement. | | | | need a Lien Subordination to guard their loan. They'll |
| | | | | just pay the borrowed funds straight to the IRS. Once |
| Bankruptcy | | | | paid, the IRS will end the Federal Tax Lien. |