Mount Laurel, NJ: IRS Collection Alternatives

Industry Observer with OnPoint Resolution LLC

OnPoint Resolution at Mount Laurel, New Jersey have helped many clients through their back tax issues. How you might ask?

Well, there are three main collection alternatives to resolve a back tax debt:

  1. Installment Agreement:
    • An installment agreement is an agreement to pay the taxes back over time. There are three variations of the installment agreement: Regular, Streamlined, and Partial-Pay. Which type of agreement works best for you will depend upon your personal circumstances and is something we can help you address when you are ready.
  2. Uncollectable Status:
    • Uncollectable status is when the IRS determines that you are unable to make current tax payments. When a taxpayer is deemed uncollectable the IRS may still file a Notice of Federal Tax Lien to secure its position in the taxpayer's assets but will not otherwise take enforcement action to seize (or levy) the taxpayer's assets or income streams. 
  3. Offer in Compromise:
    • An Offer in Compromise is an agreement where the IRS agrees to accept less than the total amount owed to it and the taxpayer agrees to pay the amount negotiated, as well as maintain his or her tax compliance for 5 years following the acceptance of the Offer in Compromise ("Offer").
    • The basis for an Offer is a formula referred to as "Reasonable Collection Potential" or "RCP." RCP is effectively the net equity in assets plus the taxpayer's excess future income for 12 or 24 months, depending upon how the Offer is structured. There can be significant planning done to help a taxpayer maximize the potential for the Offer's acceptance. 

If you or someone you know has an issue with paying their federal taxes and needs help to end their IRS nightmare, call us today at 973.840.7350. Meet with me. 

Fanta Kaba

OnPoint Resolution LLC

309 Fellowship Road, suite 200

Mount Laurel, NJ 08054

Tel. 973.840.7350

Fax. 347.344.6942


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