How Can I Settle For Less With The Government For Back Taxes?
Back taxes can seem like the bottom falling out from under you when you owe them. With rising credit card debt on top of back taxes you may think that bankruptcy is the only option that you have for protection from the government. Often you wonder if you can settle for less with the government for back taxes that you owe without compromising your whole financial future. There is a way and it comes in the form of an offer-in-compromise.
Settle For Less With The government On Back Taxes And Save Money
What an offer-in-compromise entails is filing a form with the government for the specific purpose of settling your back taxes. The form called government Form 656 is available at their website or in your local government office. This form requires a $150 fee and at least 20% of the amount of the debt you owe in order to file it. Also, the government Form 433A must accompany it detailing your financial resources and assets. The government will take these forms along with your payments and make a determination based on your income and assets what you can actually afford to pay.
Other Options To Settle With The government On Back Taxes
You can also negotiate payment arrangements with the government if the offer-in-compromise is not a feasible option for you. The government will take monthly payments toward your back taxes owed. In this way you can also settle for less with the government on your back taxes depending on the amount of the debt. Often times it is easier to make payments than to utilize the offer-in-compromise as it will save you money in case your application is denied because you are not refunded any of your fees paid by the government.
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