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      December 18, 2017

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Why Would The IRS Settle My Tax Debt?

There are few words in the English language which can evoke fear in Americans in quite the same way as “Internal Revenue Service” can.

Even law-abiding, annual tax filers cringe when they hear those words. The fear of being audited often is an irrational one, even for those who take creative liberties with their deductions.

But what happens to those who legitimately owe back taxes? What is the best way to handle their debt with the least amount of pain from the IRS?

According to the most recent figures, the IRS estimates that over 20 million Americans owe back taxes. There are numerous reasons for each and every case of back taxes being owed. For some, a tough economy has made it difficult to pay what is owed to a variety of creditors, not just the IRS. Unfortunately, the IRS has a job to do, and they are not swayed by excuses for failure to pay taxes.

The IRS has a number of options available at their disposal for collecting overdue taxes. Actions they are permitted to take include the seizure of assets, the placing of liens on a taxpayer’s property, garnishing wages or claiming future tax refunds.

Prior to taking any action to recover overdue taxes, the IRS will send a notice to the taxpayer, outlining the full amount owed. It is required by federal law to itemize the full amount, indicating how much is the actual tax owed, how much is penalties for failure to pay and how much of it is interest.

Once that notice is issued, the taxpayer will have a set amount of time in which to pay the amount in full before the IRS will take one of the actions at its disposal to recover the funds.

So what do you do if you are among the 20 million Americans who owe back taxes?

There are a number of options available to taxpayers who find themselves in this predicament.

One of the most popular courses of action is for taxpayers to enter into what is known as an installment agreement with the IRS. Taxpayers who agree to an installment repayment plan are seen as being in compliance, and the IRS is less likely to take a harsher course of action to recover back taxes. The only downside to an installment plan is that interest continues to accrue on the total amount owed while taxpayers are making payments, similar to what happens when a person makes only the minimum payment on a full credit card balance.

Another option, which the IRS makes available on its own website, is what is known as an “offer in compromise”.

This option allows taxpayers to settle their debt for less than the full amount that is owed if they can prove that paying in full would cause a financial hardship for them. Qualified candidates for this option must meet specific criteria as determined by the IRS, and must provide documentation supporting their ability to pay, income level, current expenses and asset equity.

Anyone who currently is in the process of bankruptcy does not qualify for this option.

Final tax plan expected to keep medical deduction and grad student waiver, a relief to millions

Andrew Devendorf has contacted Sen. Marco Rubio's office every other day for the past month to beg the Florida Republican to make sure Congress's final tax bill doesn't make graduate school unaffordable for him and 179,000 other PhD students in the United ...

Published:  Wed, 13 Dec 2017 20:00:00 GMT



Ridgewood Offers Tax Relief

One Bergen County village has a new property tax savings program. The goal is to encourage people to shop locally and get rewarded on their tax bill. CBS2's Meg Baker has the details.

Published:  Thu, 14 Dec 2017 15:21:55 GMT



Barrasso: Tax relief for Wyoming

Earlier this month, Republicans in the U.S. Senate voted to give Americans relief from high taxes. The tax plan is good news for anyone who wants to keep more of their hard-earned money. The non-partisan Tax Foundation estimates that the average Wyoming ...

Published:  Fri, 15 Dec 2017 16:07:00 GMT



CCIR to Congress: BEAT Will Negate Tax Relief for Consumers and Businesses

WASHINGTON, Dec. 16, 2017 /PRNewswire/ -- Today the Coalition for Competitive Insurance Rates (CCIR), the leading voice for continued and increased competition within the insurance industry, expressed disappointment in the House-Senate Conference Agreement ...

Published:  Sat, 16 Dec 2017 15:47:00 GMT



Tax relief for the middle class

Recently, after years of discussion over tax reform ideas, the Senate passed legislation that will provide tax cuts for middle-class families and make our tax code competitive so America can once again become the best place in the world to do business.

Published:  Fri, 15 Dec 2017 06:50:00 GMT



Nebraska petition drive seeking $1.1 billion worth of property tax relief is expected to kick off next week

Trent Fellers, executive director of Reform for Nebraska's Future, confirmed Tuesday that he has filed language for an initiative petition drive with the Secretary of State's Office. He said he anticipates launching the drive next week, after the final ...

Published:  Tue, 12 Dec 2017 21:09:00 GMT



Taylor: Save your money with tax relief programs

I would like to summarize some of the most common property tax exemptions: school tax relief (STAR), senior citizen's exemption, veteran's exemption, and exemption for persons with disabilities. There have also been some changes in the state property tax ...

Published:  Mon, 11 Dec 2017 21:35:00 GMT



Owners of properties damaged in L.A. County fires urged to seek property tax relief

The Los Angeles County Assessor's office has set up a disaster relief telephone line to help the owners of properties damaged in the county's three fires to apply for property tax relief. Assessor Jeffrey Prang said any property that had damage of $ ...

Published:  Fri, 08 Dec 2017 20:43:00 GMT



Latest tax plan may be a relief to Greater Philadelphia's many grad students

Colleges and universities in the Philadelphia region may be breathing a sigh of relief after news broke Wednesday that a controversial tax increase for graduate students won't be included in the tax reform bill Republicans plan to send to President Trump ...

Published:  Thu, 14 Dec 2017 09:14:00 GMT



HOEVEN: Advancing tax relief for middle-class families, small businesses, farmers and ranchers

Last week, the U.S. Senate took an important step forward in advancing tax relief for middle-class families and our small businesses. After an open floor debate and voting on amendments offered by members of both parties, we passed a tax reform package ...

Published:  Fri, 08 Dec 2017 13:21:00 GMT



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