The letters arrive in the mail unannounced, a source of anxiety and stress for taxpayers everywhere. The IRS is coming, and if you're not prepared, it could cost you dearly. That's why it's essential to understand the different types of IRS offers available to you in Mount Laurel, NJ, to ensure you can handle any tax problems that may arise.
The first type of IRS offer is the offer in compromise. It's an agreement between the taxpayer and the IRS to settle tax debt for less than what is owed. To be eligible, you must show that you can't pay the full amount owed because of financial hardship or extenuating circumstances. You'll need to provide detailed financial information, and the IRS will review your offer. If accepted, you can pay the agreed-upon amount in a lump sum or installment payments.
The second type is an installment agreement. If you can't pay your tax bill in full, an installment agreement allows you to make monthly payments over time. Interest and penalties will accrue on your outstanding balance, and you'll need to pay a fee to set up the agreement. The IRS may also require you to agree to a direct debit payment plan.
The third type of IRS offer is the currently not collectible status. This status means that the IRS has determined that you can't afford to pay your tax debt currently. You won't have to make payments, and the IRS will temporarily stop collection activities. However, interest and penalties will continue to add up, and the IRS may revisit your case later to reassess your financial situation.
The fourth type of IRS offer is penalty abatement. If you've been hit with harsh penalties for late filing, failure to pay, or another reason, you may be able to request that the IRS reduce or eliminate those penalties. You'll need to provide a valid reason for your late or non-payment, such as a natural disaster, severe illness, or fire.
Finally, the fifth type of IRS offer is innocent spouse relief. If your spouse or former spouse made errors on their taxes without your knowledge, leaving you with a tax liability, innocent spouse relief may be an option. You'll need to show that you didn't know or suspect the errors and didn't benefit from them.
The IRS can be a scary entity, but understanding the different types of IRS offers available to you in Mount Laurel, NJ, can help you navigate any tax problems that may arise. Whether it's an offer in compromise, an installment agreement, a currently not collectible status, penalty abatement, or innocent spouse relief, there are options available to help you settle your tax debt. Don't let the fear of the IRS hold you back. Get informed and take action now to protect your financial future.
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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