Any Truth To The Stories About Neglectful Individuals Who Settle Back Tax Debt For Pennies On The Dollar?
by Chris on February 15, 2010
Yes, there certainly is. This is not just the cloth of urban legend. It happens all the time through the use of a application that the menacing Internal Revenue Service, themselves, has devised to help deadbeat people settle back taxes. The program is known as an "Offer in Compromise", or more briefly an "OIC". The IRS has been known to accept as little as one (yes that's right, the figure "1") per cent of an amount unpaid on a tax debt and call it square.
These OIC's are entirely up to the government's decision, mainly because there is no lawful right to have a valid tax bill downsized by the IRS. That being said, the IRS must give a correctly delivered Offer fair deliberation.
Look at the case of Henry who was living on a static income and found himself in arrears to the IRS to the tune of $13000. That's because a back tax bill can grow at a fast clip with all the additional fees, penalties and interest that they ascribe to it. These things take on a life of their own after a while. Henry did the smart thing and enlisted the help of a counselor to represent his case to the IRS. The settlement services advisor managed a huge reduction from the full amount of $13000, getting it whittled down to a workable $2000! This was an amount that Henry could be able to to repay and get back to his life without the IRS hounding him.
If this OIC thing is starting to sound like it could be the ticket for you, keep in mind that merely wanting to do a deal with the IRS is not satisfactory of a platform. After all, wouldn't everyman like to have his or her tax indenture marked down? You first have to make the grade for an Offer in Compromise by showing the IRS that one of these conditions exist:
What the IRS calls "Doubt as to Collectiblity". Simply put there is some doubt as to whether they can collect the debt from you.
"Doubt as to Liability". There is some rational question as to whether you owe the tax bill at all. This one is highly unusual.
Lastly, due to some lessening circumstances, the payment of the full amount would cause you an economic difficulty or would be unfair or inequitable.
The bottom line here is if you think you might qualify for one of these juicy reductions in your back tax debt, you should look for professional help in making the call, and if a good case exists, hire them to act for you before the IRS. This is not anything you want to do on your own. The adage from the law profession " he who acts as his own attorney has a fool for a client" would also apply in going before the Internal Revenue Service with an Offer in Compromise.
The Advantages Of A Tax Credit
A tax credit is nothing more than savings on your tax return and funds paid out by the government. These credits are usually subtracted from the final tax amount you owe.
Know More Concerning Alternative Herbal Medicine In The Modern Times
Alternative herbal medicine is gaining popularity with over 80% of the world's population choosing to use herbs for some aspect of their primary health care according to the World Health Organization. Alternative medicine relies on more than a regular dosage of prescribed herbs for the treatment to be effective.
Going On A Diet To Remain Healthy And Maintaining Your Youth Isn't That Easy
If going on a diet to stay healthy and maintain your youth were easy, then everybody would've been in their ideal weight by now.
Do You Know How To Use Your Fat Burning Diet And Exercises To Keep On Top Of Cellulite?
Transforming food into fat seems all too easy for most of us. Losing fat is far more difficult, and to accomplish this, we have only three alternatives:
Personal Dental Care: It's Never Too Late - If You're Guilty Of Neglecting Or Abusing Your Teeth Fix It Now!
If you are guilty of neglecting or abusing your pearly whites in the early years of your life (by not brushing regularly, by smoking a lot of cigarettes, drinking a lot of caffeine, etc) you might find yourself getting a bit self-conscious when you smile.
Tips To Making A Personal Social Network
Having your own social network site has many benefits such as making you money from advertising and increasing your visibility for other purposes.
Time Management Planning For Student Nurses
After almost four years of nursing study, at first glance you can say that a nursing student has overcome everything, from accomplishing all the requirements of her academic subjects up to useful jobs in the hospital.
Awareness Of Chinese Herbal Medicine. Know More About Its Historical Past
Maintaining health by restoring the balance of energy, body and spirit is the main focus of Chinese herbal medicine. There is a difference between the methods of Chinese herbal medicine and traditional methods