Options Available To Deal With IRS Debt
November 5, 2015
There are several options available to deal with your IRS Debt:
1. Submit an Offer in Compromise:
If you qualify, you can settle with the IRS for less than you owe. When you submit an Offer in Compromise, the IRS will settle with you based on your reasonable collection potential. The IRS will take into account your monthly disposable income, as well as equity in assets to calculate your settlement amount.
2. Setup an installment agreement:
If you owe the IRS less than $50,000, they will accept any installment agreement as long as it pays of your balance within 72 months. If you owe more than $50,000, the IRS will require you to submit a financial information statement, to determine what monthly amount you can pay them.
3. Currently Not Collectible Status(CNC):
If you qualify for CNC status, the IRS will not attempt to collect the balance you owe them at this particular time, but will review if the status is appropriate several times a year. The IRS does file a tax lien once the CNC status is filed. This option is sometimes useful for retired individuals or couples, whose only asset is their home and whose main income is social security.