Q. I've been paying off old income taxes through an installment plan, but with penalty and interest, it seems the amount I owe never decreases. I keep seeing commercials about ways to get past tax debt slashed. Is there a legal way to do this?
A: Uncle Sam is not your relative, but he will always be in your life. I understand your frustration with the installment plan that seems neverending because of the penalties and interest. Keep in mind plans are meant to be changed.
You do have options. Note: A taxpayer ends up paying more with an installment agreement. For example, if you owe $20,000, you actually pay $24,910 (based on a five-year plan and the 9% IRS interest rate).
The installment plan compromise offer is not for everyone, but you should seek advice from a tax adviser as soon as possible. So how do you find a reputable advisor?
Believe it or not the IRS has a Taxpayer Advocate Service. Go to www.irs.gov or
call (800) 829-4933 for more information. And always remember :THE and IRS together is "THEIRS!"
-- Gail Perry-Mason
A: Uncle Sam is not your relative, but he will always be in your life. I understand your frustration with the installment plan that seems neverending because of the penalties and interest. Keep in mind plans are meant to be changed.
You do have options. Note: A taxpayer ends up paying more with an installment agreement. For example, if you owe $20,000, you actually pay $24,910 (based on a five-year plan and the 9% IRS interest rate).
The installment plan compromise offer is not for everyone, but you should seek advice from a tax adviser as soon as possible. So how do you find a reputable advisor?
- Get referrals from people you trust.
- Interview tax firms that specialize in tax relief such as: www.txmstr.com/offerincompromise; www.ufsdebtconsolidation.org; www.jkharris.com or www.goodaccountants.com
Believe it or not the IRS has a Taxpayer Advocate Service. Go to www.irs.gov or
call (800) 829-4933 for more information. And always remember :THE and IRS together is "THEIRS!"
-- Gail Perry-Mason
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