The Philippine Department of Tourism (DOT) completed its first Cruise Tourism Development Strategy under the assistance of the United States Agency for International Development (USAID).More >
1. Installment agreements An installment agreement is a payment option for those who cannot pay their entire tax bill by the due date. The Fresh Start provisions give more taxpayers the ability to use streamlined installment
agreements to catch up on back taxes and also more time to pay.
The new threshold for requesting an installment agreement has been raised from $25,000 to $50,000. This option requires limited financial information, meaning far less burden to the taxpayer. The maximum term for streamlined installment agreements has been raised to six years from the current five-year maximum.
If your debt is more than $50,000, you’ll still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F). You also can pay your balance down to $50,000 or less to qualify for this payment option.
With an installment agreement, you’ll pay less in penalties, but interest continues to accrue on the outstanding balance. In order to qualify for the new expanded streamlined installment agreement, you must agree to monthly direct debit payments.
2. Offer in Compromise Under the first round of Fresh Start in 2011, the IRS expanded the Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers. An Offer in Compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
The IRS recognizes many taxpayers are still struggling to pay their bills so the agency has been working on more common-sense changes to the OIC program to more closely reflect real-world situations.
Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
TAXSAVERSPRO can help you if you have unpaid taxes with the IRS. For free consultation please call (510) 538-7188. We have Attorney and CPA available to discuss your options.
Alvin Maglan, CPA has more than 30 years of experience in tax matters having worked with accounting firm of SyCip, Gorres, Velayo & Co. and other Fortune 500 companies in the U.S. He works at Taxsaverspro, Inc. a tax consulting company that has a complete staff of Attorney, CPA and tax consultant that can help you save more on your taxes and in all problems in taxes. For free consultation you may call 1-877-456-9266.