If you’re not in the financial state to pay owed taxes, you can file for “Currently Not Collectible” to tell the IRS that you’re currently unable to pay. You must attach all the documents that show that you really cannot afford to pay off those debts, or your request may be rejected.
You can negotiate for a partial pay installment payment if you currently aren’t able to afford a short-term tax payment installment plan.
The installments will be divided into increasingly smaller ones as a result.
Remember that there is typically a strict limit of approximately ten years.
Considering that this is an uncommon manner of payment and that it is never a good idea to irritate the IRS,
To avoid being assessed by the IRS, you might wish to talk with your tax advisor.
If you have a substantial back tax burden, you may choose for an installment agreement to break it up into manageable payments.
You can simplify the process and eliminate the stress of making a hefty payment all at once by setting up a monthly payment schedule.
It is possible to stop a tax liability from being transmitted from one spouse to the other by filing as an innocent spouse.
One spouse shouldn’t be responsible for the other’s tax debt if it occurred before to the marriage.
You can submit a “Offer in Compromise” form if you don’t have enough money to pay down the total tax bill.
This form will let the IRS know that while you are willing to pay a reduced amount, you are unable to pay the full amount due.
Similar to a CNC form, you must provide proof that you cannot pay the debt in full. Once the form has been accepted, you must provide an updated financial statement each month.
Once your income rises above the OIC cutoff, they will once more begin to charge you the full amount.
You can be assessed extra fees or interest if you file your tax return after the deadline.Fortunately, this problem can be rectified rather quickly by submitting a past-due return form.
You may be eligible for a tax return for the sum you’ve previously paid in error, which might help you save even more money
If you’ve been charged with a tax penalty of any kind, you can apply for an abatement to have the fines minimized or eliminated entirely.It could be a better idea to speak with your tax adviser about how to make a case for a decrease because you will need a clear reason as to why you want to file for this.
Tax debts have a ten-year statute of limitations after which they are forgiven.This hardly ever occurs since the IRS will always find a way to retrieve its money. To avoid paying taxes, you shouldn’t rely on this.If you don’t have any assets, cash, or property that the IRS can seize, you might be able to avoid paying taxes for 10 years. However, the IRS will typically obtain their money through a tax lien or levy.