IRS Debt Settlement Program Explained
Debt Settlement Program : As part of the stimulus package passed by the House of representatives in early 2009, a bill called the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, (The acronymassets) was proposed to the US Senate. This bill proposed to expand the IRS Debt Settlement program to include tax debtors. The program is outlined in H.R. 2684 Bill S. 3611. It included extending the IRS procedures, establishment of a trusted-identity service to protect the identity of said debtors, stopping collection accounts and stopping garnishments. Any tax debtor with an open tax lien, assessed collection amount in default and at least $25,000.00 of unfiled tax returns would be eligible for settlement and eventual debt forgiveness. A provision to revoke the debt and any future tax liability immediately upon filing bankruptcy.
In anticipation to HR 2684, the House bill called for the withholding of taxes from the release of an individual’s personal tax lien to a limit of $10,000.00 if the lien was filed by a federal tax lien. Under the bill, every lien filed on a non-taxpayer’s property would be set aside with the maximum amount of $100,000.00 assessed by the IRS based on the assessed value of the security. This bill breeding in the Senate bill effectively removing federal tax lien concessions.
increasing penalties for failures to file and paycheck federal income tax return and cutting back pay raise benefits. creditloankr
The IRS Debt Settlement program should be considered if the tax lien qualifies. Many otherwise law abiding tax payers find themselves behind in filing, paying their taxes on time and eventually found to owe a significant amount in unpaid tax liabilities. The IRS takes the financial hardship of the tax payer against the right of the entity. Case in point, a married couple that made a $60,000.00 income and could not afford to pay taxes owed $15,000.00 in taxes. This was due to the slow economy and cut in pay that began in 2008. If the tax lien qualified it was released as soon as payment was rendered. The tax lien would have been re-assessed from the date of the release of Chapter 7 bankruptcy. If the individual (both husband and wife) didn’t want the property in question, a Chapter 13 bankruptcy filing could have been filed to protect the assets as a good faith effort to pay back taxes. This is what a Chapter 13 would do. It’s all about the Plan. Who you contact, how the Plan is set up. Congress was looking out for the people when they changed the Bankruptcy Code in 2005. Let this be into effect, sooner rather than later!
The IRS Trust Fund Recovery Penalty and the penalties on late filed returns
IRS Trust Fund Recovery Penalty
Receiving a refundable demand or Notice of deficiency, a lien has been filed against a taxpayer’s real property
The IRS has assessed a tax and has issued a Notice of Demand for Payment
Maybe you have an IRS hot warrant on your personal property. If there is a movement a fine, penalties and interest are added to the assessment.
You have conditions on aLienand in your local jurisdiction, these penalties and interest are based on either the total amount of the lien, the value of the lien, the type of lien or the reason the lien exists.
Seven and a half years has passed since the IRS assessed a lien against your property
Your tax arrears are over seven and a half years older
You have paid your taxes on time – IRS Balance Due
There is no valid reason why you have unfiled tax returns when you owe taxes
The IRS did not file a substitute for return (SFR) because they were unable to verify the information contained in your tax returns.
You neglected to file a tax return because you knew that you did not file.
You have not provided the requested information on your tax return and IRS has not had an opportunity to verify the information provided on your tax return.
You do not have enough money or assets to pay your tax liability or the amount of any tax liability that would be assessed.
The taxpayer is entitled to a refund because of statute of limitations.
You don’t think that you owe taxes
You’re not Evicted because you Can’t afford the rent.
You’re Donations exceeded charitable contribution deduction from your 941 income.
You incurred necessary expenses in researching and evaluating your situation.
You’re one of the 5% of taxpayers who get too much back. The rest have a Raise and that is farmer’s market suddenly opened up financially.
You’re going to The motivation rally.
You’re going to Delaware to Demo Live for a week or so. You see a lathe and it looks really nice. You totally want to have that.