Aug 1, 2008

Your Tax Debt- The Right Question- The Right Option..

I have blogged in pieces on this in the past. There are many solutions or a combination of solutions to your tax debt problem. The key in resolving them is knowing about each of the options and which avenues you should pursue. This blog has spoken about the popular options and their misconceptions (Offer in Compromise, Currently not collectible)- but, I have put what I believe is a good summary of all of the options (they can be summarized into 5 major headings)- so here they are:

Tax Abatement programs
1. Offer-in-Compromise: Doubt as to Liability
2. Offer-in-Compromise: Doubt as to Collectibility
3. Offer-in Compromise: Effective Tax Administration
4. The Partial Pay Installment Agreement (this was an OIC in the past)
5. Innocent or Injured Spouse Relief
6. Amended tax returns to reduce liability
7. Audit Response/Taxpayer Advocate Response
8. Civil Trust Fund Penalty Negotiation
9. Collection Appeals Program
10. Collection Due Process Appeal
11. Audit Reconsideration

Affordable payment plans
12. 60 month payment terms
13. Ability to pay payment terms
14. Use of net realizable equity to pay-down liability- lien subordination, etc.

Deferral programs
15. Currently Not collectible Status (CNC-Status 53)
16. Negotiated 30 to 120 day extension to full pay
17. Negotiated 12 month payment plan for the lifestyle adjustment, conditional IAs

Penalty Abatement programs
18. Penalty Abatement request for reasonable cause
19. Penalty Abatement request for IRS error

Tax Expiration Programs
20. Statute of Limitations
21. Defunct Business

All do not always apply, but you should consider them if they are applicable. All of them need to consider the time at which the IRS has to collect (i.e. the collection statute of limitations or "CSED").

These are technical areas. You will need to consult or research in depth to know if they apply and if there is an opportunity there. You will need to know the right questions to be asking to know what the possible outcomes are...

Feedback on these options is always welcome.

1 responses:

Anonymous,  August 14, 2008 at 12:03 PM  

Jim, Great idea to list our services

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