Does Anyone You Know Require Tax Debt Help
Owing the IRS money may having you panicking, and wondering if there is any way you can get tax debt help. The IRS wants their money now, but you don’t have it. You may feel hopeless, but there are things that you can do about what you owe the IRS; you can get tax debt help.
You need to start by gathering all of the pertinent information. How can you get tax debt help unless you know exactly what you are dealing with? Remember that there isn’t a quick fix for your tax debt help, or we’d all be doing it, and there wouldn’t be a point to paying taxes. Tax debt help that you can use is the best help for you in your particular situation.
There are things that you can do to get tax debt help for what you owe the IRS. The Offer in Compromise program is offered by the IRS to help people with tax debt who cannot pay. If you qualify, the IRS will give you tax debt help by allowing you to settle your debt for a lesser amount.
Before you start thinking that this is the tax debt help you for you, you need to know that not everyone qualifies for the Offer in Compromise program. To know why people don’t qualify for the OIC progam, you need to understand the formula that the IRS uses to determine whether someone is eligible or not. Once you do qualify, you need to look at the settlement amount the formula gives you; it may not be such a bargain.
Any assets you own, such as houses, cars, 401ks, IRAs, boats or property are taken into consideration in the formula for OIC. Your MDI, or Monthly Disposable Income, the money you have left over after paying your bills every month is the next part of the formula. The only bills the IRS counts are for the basics, anything like private school or credit card bills don’t count. Stipulations like this are the reason why the OIC program is not the right kind of tax debt help for everyone.
This is how the formula works. The IRS calculates the amount of equity you have in your assets, and how much MDI you would have over 4 years. You add the two together, and you get your OIC offer. You can see how this could be great tax debt help for someone who doesn’t own a house and has a low income.
But for someone who owns their houses or cars and has high credit card debt, the OIC offer may be close to or more than they owe the IRS already. Those people are better off trying to find alternate methods of tax debt help. Contact a reputable tax service that will help you figure out what kind of tax debt help would be best for you.
This is the reason why the wise people advice you to clear your debts on time so that the International Debt Collection Agency and other financial organizations would not start hounding you to repay your debts and life is reduced to penury if your loans are written off in the accounts book so one can imagine the sorrow watching your house and car being auctioned off just to repay the amount taken.