Pay a Portion of What You Owe with a Partial Payment Installment Agreement

 The Internal Revenue Service (IRS) allows you, the taxpayer, to pay your tax debt in affordable monthly installments in which you determine the amount. These are called Installment Agreements. They are extremely helpful in affording the taxpayer time to pay their tax debt without the IRS forcing payment through liens, levies, wage garnishments and other collection tools. 

Of all the installment agreements available, the Partial Payment Installment Agreement (PPIA) affords the best of both worlds to the taxpayer. The taxpayer 1) makes affordable installment payments of his/her own choosing over a set period against the tax debt and 2) after that set period of time, the IRS considers the tax debt paid even if the full amount of the tax debt has not been paid. The IRS usually sets a time period of two years. You must provide full financial disclosure indicating your wages, assets, and expenses to the IRS. If you cannot afford a regular installment agreement and it is unlikely that you can pay the full amount of your tax debt, then the PPIA may be the most beneficial course of action for either you or your business.

The eligibility requirements for the Partial Payment Installment Agreement are similar to the Offer in Compromise. The IRS must determine that:

• You do not have enough assets worth liquidating to pay off your tax debt.
• Your wages do not cover the full payment of your tax debt without you incurring financial hardship and therefore you are unable to cover your basic living expenses.
• You do not have the earning potential to pay your tax debt in full in the upcoming years.
• You are unable to cover the minimum payment requirement of a regular installment agreement.
• You owe more than $10,000 in tax debt.
• You have not filed for bankruptcy.
• You can pay off some of your tax debt, but not all of it, before the statute of limitations expires.

So, if an Offer in Compromise and PPIA are similar, why are they both available? Due to its lack of finality, the IRS is more likely to accept a PPIA because they can review your ability to pay off your tax debt annually. If your ability to pay your tax debt in full increases, then the IRS can collect the full amount before the statute of limitations expires. This is a better outcome for the IRS since it can possibly collect a larger amount than it can with an Offer in Compromise which is final once negotiated and agreed upon. With an Offer in Compromise, the IRS can only collect what it negotiated to collect even if your financial situation improves. 

The statute of limitations is the time frame in which the IRS can lawfully seek payment for your tax debt. Usually, the statute of limitations for the IRS to collect a tax debt is 10 years for the date the debt was originally assessed. Once the statute of limitations expires, the IRS cannot collect the tax debt, interest, and penalties from you, even if you can afford to pay the tax debt.

Although you can negotiate a Partial Payment Installment Agreement on your own with the IRS, the question is: why would you? The application process involves the submission of many forms, is complicated and you can be out negotiated by the IRS agent. If you are not eligible for an Offer in Compromise and you cannot afford a regular installment agreement, then a PPIA may be best for you. Let a tax professional from Bullseye Tax Relief assist you. We will discuss all your options and direct you to your best option. Our following blogs will continue discussing other tax relief resolution options.

What is Currently Non-Collectable?

 As stated in previous blogs, there are several tax resolutions options available to taxpayers that are unable to pay an outstanding tax debt. Besides an Offer in Compromise discussed earlier, there is another tool to help alleviate the stress in resolving a tax debt that is being pursued by the Internal Revenue Service (IRS). It is called “currently non-collectable” or CNC. Just what is a currently non-collectable and how does it help me? 

Well, first of all, there are two requirements:

• You agree that you owe the IRS money
• Your financial situation makes it impossible to pay this money to the IRS without causing financial hardship or paying the tax debt results in your inability to pay for the basic living expenses

What are the benefits of having “currently non-collectable” status?

• The IRS cannot collect on tax debts against you
• The IRS cannot impose liens on your property to collect the tax monies owed
• All communications from the IRS by phone or letter stop

This does NOT mean that the IRS will not assess the account with interest and penalties or withhold any refunds. Those actions continue. If the IRS determines that at any point from 10 years to the date that your account was assessed as Currently Non-Collectable and that your financial situation had improved, then the IRS can collect that tax debt. However, if your financial situation never improved within those 10 years, then the IRS will likely write off the tax debt, interest, and penalties. 

So, who is eligible for Currently Non-Collectable status? Any taxpayer that can demonstrate that he or she is unable to pay off his/her tax debt without causing either financial hardship or resulting in the inability to cover basic living expenses will qualify for Currently Non-Collectable status. Proof must be given through bank statements or other documentation that wages and/or assets cannot be collected without triggering financial hardships. Basic living expenses include healthcare, housing, transportation, utilities, food and clothing. 

Furthermore, the IRS must determine eligibility for CNC status using the following criteria:

• All tax returns, including those for past years, must be filed, otherwise the IRS will require you to do so
• Your wages cover no more than your basic living expenses
• You have no assets worth levying
• The IRS will calculate your basic living expenses and subtract them from your wages. If there is nothing left over or if the amount left over will not sustain you or will place you at a financial disadvantage so that you cannot cover basic living expense, then the IRS will consider your account as Currently Non-Collectable. 

The Currently Non-Collectable status is one of the tools that the IRS uses to help those with tax problems for which no other option, such as an Installment Agreement, is available. Once on a Currently Non-Collectable status, taxpayers must continue being up-to-date with their tax filings, otherwise they will lose their CNC status. This will result in a bad situation becoming worse. Filing tax returns and paying any amounts owed on time is extremely important. Do not hesitate calling us for assistance with your tax resolution problems. We are happy to help!

Eligibility for an Offer in Compromise

It sounds great. Make an offer to the Internal Revenue Service (IRS) to erase your entire tax bill! It is not that simple. If you can afford to pay the tax debt, you will be required to do so. By not paying the tax bill, you can incur a larger tax bill: one that includes penalties and interest! Not to mention, the IRS can place a tax lien or levy on any or all of your properties or bank accounts to collect the entire tax bill.

So, why would the IRS accept an offer that is less than the taxes owed? In a previous blog, we discussed that eligibility for an Offer in Compromise is determined by being able to pay the tax bill, with or without placing a financial hardship on the taxpayer. There is also the question of doubt of whether the taxpayer owes the tax bill. There might have been an error on the IRS part, or an error in reporting income, or …?

Before you can apply for an Offer in Compromise, you must meet a certain set of IRS requirements. You must make sure that all your tax documents have been filed on time in addition to these requirements. Furthermore, you should not have any past due penalties remaining on any previous tax debt.

Here are some additional requirements that must be met or your application for an Offer in Compromise will be denied:

- All tax returns you are legally required to file have been filed. (Your Offer in Compromise will be immediately rejected otherwise.)

- All required estimated tax payments have been made for the current year.

- You must have received a bill for at least one tax debt that you include in your Offer in Compromise.

- If you are a business owner with employees, all required federal tax deposits for the current quarter have been made.

- You must not be able to pay the full tax debt through a payment installment plan with any current or future assets.

- You must not have any open bankruptcy cases.

Before the Process:

1. To apply for an Offer in Compromise, you will complete IRS Form 656.

2. It is important to consider your “reasonable collecting potential” when setting up an offer. Do not overestimate or underestimate the offer.

3. For the IRS, “reasonable collecting potential” means your offer must be at least equivalent to not only your current assets but your anticipated assets and income with your basic living expenses deducted from that amount.

The Process Itself:

1. Both the IRS and you must agree that there is no possible way that you can pay the tax debt amount in full without potentially experiencing financial hardship.

2. Even if the amount offered is significantly less than the full amount owed, you must offer the maximum amount you can afford without experiencing financial hardship.

3. The IRS accepts the offer as the most you can reasonably pay without incurring financial hardship.

4. You must decide whether you want to pay the full amount at once or make payment installments.

5. The debt is considered “paid in full” once you pay the entire amount agreed to with the IRS.

Advice:

Although anyone can apply for an Offer in Compromise, the question is: should they? The application process is complicated, involving a lot of math and completing forms, not to mention corresponding with the IRS. This is best left to an expert. Call us today. We can advise you as to whether an Offer in Compromise is in your best interests. There may be a better option that fit your needs. Call us now. https://www.bullseyetaxrelief.com/eligibility-for-an-offer-in-compromise/

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Tax Problem Resolution Specialists, Bullseye Tax Relief, Launch New Webpages

Bullseye Tax Relief, located in Northridge, CA, but offering their IRS tax resolutions services nationwide, has announced several new web pages on their site. These new web pages cover topics like IRS Tax Problem Resolution, Payroll Tax Debt Relief and IRS Offer in Compromise. Visiting these web pages can give readers more insight into their potential options when it comes to tax resolution, payroll tax relief and offer in compromise to help pay off tax debt and reclaim their financial freedom.

 

“Many people aren’t aware of all of the options and services available to them to help them with payroll tax relief or tax resolution,” Maximos Behnan, the CEO of Bullseye Tax Relief, said. “There are plenty of ways we can help people with their tax debt. We wanted to create these new web pages so people know that there is hope and there is a place where they can go for trustworthy information. Most of all, we want people to know that they can do something about their tax debt and we’re here to help.”

 

Tax problem resolution and IRS tax resolution services are relevant to millions of Americans. That’s why the Tax Problem Resolution page on Bullseye Tax Relief discusses all of the major options people have when it comes to any IRS problem resolution needs. Some of the most common services are Offer in Compromise, Penalty Abatement and Installment Agreements, but there are so many more options and services available depending on the specifics of the situation. Visit the page to learn more about which IRS tax resolution services are best for you.

 

Offer in Compromise, also known as IRS Offer in Compromise or Tax Offer in Compromise, is a tax resolution service specifically for those who are unable to pay off their tax debt without experiencing financial hardship. With the help of tax problem resolution specialists like Bullseye Tax Relief, the total amount of debt owed can be negotiated with the IRS to reduce it to a much smaller amount. Interested readers can visit the Offer in Compromise page to learn more about the qualifications and process.

 

The last of the new web page additions is the Bullseye Tax Relief page about Payroll Tax Debt Relief, which can be viewed by clicking the link included in this sentence. On this page, readers can learn more about payroll tax, like what it is, and what the components are. The page also goes into more detail about payroll tax relief and the options and process involved with resolving any payroll tax issues.

 

To view more information about IRS tax resolution services, simply visit the Bullseye Tax Relief website at www.bullseyetaxrelief.com. For a consultation or appointment, Bullseye Tax Relief can be reached by email at info@bullseyetaxrelief.com or by phone at (844) 582-3323. Bullseye Tax Relief is located at 16933 Parthenia St #202, Northridge, CA 91343 and open from 10 a.m. to 7 p.m. Monday through Friday.

Article Source:  https://www.bullseyetaxrelief.com/tax-problem-resolution-specialists-bullseye-tax-relief-launch-new-webpages/

Tax Problem Resolution Specialists, Bullseye Tax Relief, Launch New Webpages

 

Bullseye Tax Relief, located in Northridge, CA, but offering their IRS tax resolutions services nationwide, has announced several new web pages on their site. These new web pages cover topics like IRS Tax Problem Resolution, Payroll Tax Debt Relief and IRS Offer in Compromise. Visiting these web pages can give readers more insight into their potential options when it comes to tax resolution, payroll tax relief and offer in compromise to help pay off tax debt and reclaim their financial freedom.

“Many people aren’t aware of all of the options and services available to them to help them with payroll tax relief or tax resolution,” Maximos Behnan, the CEO of Bullseye Tax Relief, said. “There are plenty of ways we can help people with their tax debt. We wanted to create these new web pages so people know that there is hope and there is a place where they can go for trustworthy information. Most of all, we want people to know that they can do something about their tax debt and we’re here to help.”

Tax problem resolution and IRS tax resolution services are relevant to millions of Americans. That’s why the Tax Problem Resolution page on Bullseye Tax Relief discusses all of the major options people have when it comes to any IRS problem resolution needs. Some of the most common services are Offer in Compromise, Penalty Abatement and Installment Agreements, but there are so many more options and services available depending on the specifics of the situation. Visit the page to learn more about which IRS tax resolution services are best for you.

Offer in Compromise, also known as IRS Offer in Compromise or Tax Offer in Compromise, is a tax resolution service specifically for those who are unable to pay off their tax debt without experiencing financial hardship. With the help of tax problem resolution specialists like Bullseye Tax Relief, the total amount of debt owed can be negotiated with the IRS to reduce it to a much smaller amount. Interested readers can visit the Offer in Compromise page to learn more about the qualifications and process.

The last of the new web page additions is the Bullseye Tax Relief page about Payroll Tax Debt Relief, which can be viewed by clicking the link included in this sentence. On this page, readers can learn more about payroll tax, like what it is, and what the components are. The page also goes into more detail about payroll tax relief and the options and process involved with resolving any payroll tax issues.

To view more information about IRS tax resolution services, simply visit the Bullseye Tax Relief website at www.bullseyetaxrelief.com. For a consultation or appointment, Bullseye Tax Relief can be reached by email at info@bullseyetaxrelief.com or by phone at (844) 582-3323. Bullseye Tax Relief is located at 16933 Parthenia St #202, Northridge, CA 91343 and open from 10 a.m. to 7 p.m. Monday through Friday.

 

Source: https://www.pressadvantage.com/story/38262-tax-problem-resolution-specialists-bullseye-tax-relief-launch-new-webpages