The IRS considers any forgiven debt as a source of income, of which you have to pay taxes on? You have probably been surprised with the receipt of a Form 1099-C in the mail during tax season if you have ever settled any given debt entirely, or for less
When you cannot pay the taxes you owe, you can establish an installment agreement with the IRS. This allows you to pay down the balance over time. If you are assessed taxes you are unable to pay in a future tax year, you can add that new balance to your
Not many things in life can be more stressful than owing the IRS money, particularly if you can't easily lay your hands on it. Fortunately, you have a few options when this happens. It becomes a matter of determining what's best for your personal situation. Tax Debt Can Snowball Quickly
The ultimate goal of tax planning, overall, is to end up owing as little in taxes as possible, by arranging your financial affairs, appropriately. This may be accomplished in three ways: by taking advantage of any (and all) applicable tax credits, increasing tax deductions, or reducing your overall income.
In general, the Internal Revenue Service (IRS) has 10 years to collect unpaid tax debt. After that, the debt is wiped clean from its books and the IRS writes it off. This is called the 10 Year Statute of Limitations. It is not in the financial interest of the
When individuals and businesses do not have the ability to pay a tax debt, the offer in compromise is the IRS’s mechanism for reaching a settlement. It’s not universally approved and there are a lot of requirements that go into obtaining approval if you submit one, but the process