TAX RESOLUTION and the existence of a‘ self-employed’ business. But the most attractive advantage of OIC over bankruptcy is the professional fee you charge, which ranges between $ 3,500 and $ 20,000.
Installment Agreement. When a taxpayer has disposable income to pay tax debt in full until the CSED( Collection Statute Expiration Date), you can establish a payment plan either online, through the Practitioner Priority Service over the phone, or by mail. When the liability is less than $ 50,000 and the tax debt can be fully paid in 72 months or less, a Streamlined Installment Agreement is also an option, no financials are required and it’ s fairly easy to establish. When the liability exceeds $ 50,000 you can go for a Full-Pay Installment Agreement over the remaining statute( until CSED). Collection information statements are required in this case. If the remaining monthly income is not sufficient to pay off the tax liability until the collection statute expires, you may then establish a Partial Pay Installment Agreement.
Currently Not Collectible Status. When the taxpayer has no equity in assets and no disposable income, the government can put a hold on the taxpayer’ s account and stop all collection activities. This option is similar to a Chapter 7 bankruptcy, but without the credit reporting disadvantages. The statute with CNC( Currently Not Collectible) cases does not stop running, which means that at some point the tax debt can simply expire. However, the IRS will conduct ongoing reviews of the account, and if the taxpayer’ s financial situation improves, the CNC status is lifted and the collection machine starts rolling again, adding back penalties and interest accrued over time.
Tax resolution is a great alternative when the bankruptcy route is closed. The case outcome definitely depends on the proficiency of the IRS representative. However, powered with invaluable tax resolution tools, bankruptcy attorneys can make the best of both worlds. PitBullTax Transcripts, available in October 2016, automatically analyzes your clients IRS transcripts, calculates the earliest bankruptcy dischargeability dates and CSEDs, as well as provides auto-generated reports based on transcripts data. You can analyze unlimited tax years for a flat fee. PitBullTax Software, the leading IRS Tax Resolution software, makes you a“ go to” tax resolution expert, while streamlining your cases. Go to www. pitbulltax. com for a free trial.
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National Association of Consumer Bankruptcy Attorneys Fall 2016 CONSUMER BANKRUPTCY JOURNAL 43