Back Taxes Exit Strategy
Are you in tax trouble and find yourself desperately searching for a way out? If you answer yes to the last question then this article is a definite must read as I will reveal several of the best ways to resolve your back taxes issues once and for all. The first way to resolve your back taxes issue is the most obvious one that is to simply pay the exact amount owed. However this option usually is difficult because of the high amount that can become due all of a sudden which places an unexpected burden on the tax payer. No matter how high the amount is the IRS will grant you the option of entering an Installment Agreement with them. These installment agreements are usually broken down into affordable monthly payments that offer the burdened tax payer financial relief from paying one lump sum. Before you can successfully enter one of these agreements you should make sure that your tax filing status is updated as this is one of the main reasons that tax payers are refused installment Agreements in the first place. The next method applies to the tax payer that cannot make the monthly payment of an Installment Agreement for one reason or another. A tax payer in this type of situation can file “Not Collectable” which will ultimately exempt them from further tax obligation. A stipulation of executing this type of arrangement resembles the previous status in that requires you be up to date on your tax filing status to be accepted. Besides filing “Not Collectable” tax payers that find that they are not able to pay the taxes owed can elect to file “Offer In Compromise” if they qualify. What does filing “Offer In Compromise” consist of exactly? This particular filing status requires the taxpayer to fully disclose all financial records so that the IRS can make an accurate account of their case. For the most part in this type of filing the IRS is looking to prove beyond a reasonable doubt that given the financial documents provided plus the possibility of the liquidation of assets that the tax payer in question truly cannot pay the debt owed.
I hope this information on Back Taxes has been useful. Please visit http://www.101taxstrategies.com if you would like more information.
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