this was done in 2004. i do not have $2000 cash but i do want to pay off this debt and whatever interest. my questions are-
1-is there any chance i could negotiate a settlement say about $700 or an agreeble figure?
2-can i negotiate for a payment plan, are such offered by irs?
3-am wondering what other option(s) if any, would be available to me that am not aware of that could help my situation alittle better.
you are unable to full pay your liability you should consider financing the full payment of your tax liability through loans, such as a home equity loan from a financial institute or credit card. The interest rate a bank charges is usually lower than the combination of interest and penalties imposed by the Internal Revenue Code. If you cannot pay in full immediately, the IRS offers short-term extensions of time to pay in full from 10 to 120 days.
you cannot full pay your tax liability in a lump sum, the IRS offers a payment by installment option. An installment agreement would allow you to make a series of payments over time. Installment agreements may be set up in various ways:
Direct Debit from your bank account,
Payroll Deduction from your employer or
Regular Installment Agreement
If you enter into an installment agreement, your payment amount should be based on your ability to pay and should be an amount that can be maintained over the duration of the installment agreement
call 1-800-829-1040 , 1-800-829-0922 or the number on the notice that you received
on Jul 1st, 2009 at 10:49 pm
Strangely enough, the IRS has a "taxpayer advocate" service:
http://www.irs.gov/advocate/index.html
Ask them.
References :
on Jul 1st, 2009 at 11:02 pm
you are unable to full pay your liability you should consider financing the full payment of your tax liability through loans, such as a home equity loan from a financial institute or credit card. The interest rate a bank charges is usually lower than the combination of interest and penalties imposed by the Internal Revenue Code. If you cannot pay in full immediately, the IRS offers short-term extensions of time to pay in full from 10 to 120 days.
you cannot full pay your tax liability in a lump sum, the IRS offers a payment by installment option. An installment agreement would allow you to make a series of payments over time. Installment agreements may be set up in various ways:
Direct Debit from your bank account,
Payroll Deduction from your employer or
Regular Installment Agreement
If you enter into an installment agreement, your payment amount should be based on your ability to pay and should be an amount that can be maintained over the duration of the installment agreement
call 1-800-829-1040 , 1-800-829-0922 or the number on the notice that you received
References :
on Jul 1st, 2009 at 11:18 pm
Offer in Compromise is method to possibly settle tax debt in full for amt less than you owe, contact the IRS, you stand a bit better chance of a correct answer with then than this site.
References :
28 yrs IRS Collection Div, retired
on Jul 1st, 2009 at 11:25 pm
First of all make sure the IRS calculations are correct. Depending on what the error was, they may not have taken everything into account. If you do owe the full $2000, you can either enter into an installment agreement or try to get an offer in comprimise. However, the IRS is unlikely to accept an offer of $700 unless you can show that there is no way for you to pay anymore.
References :