As a result of the economic crisis of recent years, many American taxpayers have applied for and received cancelation of some debts such as mortgages, car loans, and credit card bills. One thing that some citizens may not know, though, is that their canceled debt may be subject to income tax by the IRS. While the tax bill they get at the end of the year may be considerably less than the debt that was canceled, it may still put a strain on the household budget. The best way to prepare for this is to speak with a tax professional to find out if your canceled debt is taxable well in advance of the income tax deadline.
How Debt Cancelation Affects Your Taxes
Can You Settle Your Taxes with an Offer in Compromise?
Do you owe a large amount of back income taxes to the IRS? If you do, you might have heard about the "offer in compromise" arrangement, which may allow you settle your tax debt for far less than the amount you currently owe. The sticking point, though, is the difficulty of meeting the stringent requirements that will qualify you for an offer in compromise. When you learn more about this option works, you'll be able to find out if you can settle your taxes with an offer in compromise.
How to Resolve Past Due Income Taxes
If you're in the unfortunate position of owing past due income taxes to the Internal Revenue Service, you may be feeling concerned about what the agency can do to try to collect these funds from you. You may even be unsure about how to go about resolving this matter appropriately. Learning what you should do about past due income taxes is important, because the longer this situation goes on, the worse the possible consequences can be. Here's what you can do to resolve a past due income tax bill.
File an Appeal to Settle IRS Tax Disputes
Are you facing a tax lien or levy from the IRS? Unresolved tax debt can be a difficult situation to escape, especially if the amount you owe is sizable. Trying to settle these issues can be even more difficult if you believe that the IRS has erred in the amount of taxes it says you owe. In this case, you might want to file an appeal to settle your IRS Tax dispute. The appeals process makes it possible for you to request an additional investigation into your calculated tax bill. In some cases, a successful appeal can lead to a reduced tax bill or even a cleared account.
What is an IRS Tax Settlement?
Help with IRS Tax Payment & Installment Plans
Ways to Resolve Your IRS Troubles
If you've been dealing with some tax issues with the IRS, you might be wondering what result you can expect. The answer is that there are usually only a small number of possible results to any tax trouble with the IRS but the one you receive depends largely on your particular situation.
Can't Pay Your Entire Tax Debt? Make an Offer in Compromise
Pay Off Your Tax Debt with an IRS Payment Plan
If you owe back taxes to the IRS you might be worried about how you'll resolve your account with the agency. The IRS has plenty of resources to track down and penalize potential tax cheats so it's always best to find a way to pay your balance as soon as possible. The good news is that you can pay your back tax bill in an affordable way by using an IRS payment plan. Before you're able to set-up payment plan arrangements though, you'll need to learn the different types of available plans for you.
Penalty Abatement: How You Can Qualify
Do you owe back taxes to the IRS because a life emergency prevented you from filing your return on time? If so there's a possibility that you'll qualify for an IRS relief provision called penalty abatement. If you're able to get an abatement, you may be able to have your late filing penalties forgiven. However, qualifying for this provision is not easy and the IRS will not offer it to you simply because you made an error on your forms or forgot to send in your return on time. If you'd like to inquire about receiving penalty abatement don't deal with the IRS alone. Request the assistance of a qualified tax resolution specialist.
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