HOW TO ELIMINATE AN OLD TAX DEBT
June 8, 2017
Do you have an old tax debt lurking in your past? Owing money you cannot repay is extremely stressful.
If you’re interested in eliminating your old tax debts, our staff would love to help you.
Here are some things you should be aware of when you’re dealing with an old tax debt:
Find out the exact amount you owe. Since this is an old tax debt, the amount you owe will include fees and interest. The IRS or other taxing authority that the debt is owed to should provide you with documentation that shows the amount of back taxes you owe and the fees and interest. This information will be necessary whether you are considering an Offer in Compromise or a bankruptcy.
Consider an Offer in Compromise. An Offer in Compromise is also known as an OIC. With an OIC, you may be able to reduce the amount you owe in income taxes to the IRS or to New York State. An OIC can be a complex process, and there is no guarantee that the IRS or NYS will reduce your tax debt. Talking to a professional can be extremely helpful. The OIC has specific eligibility rules. For federal taxes, check the IRS website to see if you’re eligible for this process. Visit the NYS Department of Taxation and Finance website for more information on an OIC for NYS income taxes. One very important requirement for both state and federal income taxes is that you must have filed your tax returns. If you have not filed tax returns, you will not be eligible for an OIC.
Consider Filing Bankruptcy. Federal and New York State income taxes can be eliminated through bankruptcy. To be eligible to have your tax debts eliminated through bankruptcy, the tax debt must be at least 3 years old, and you must have filed a tax return. Our office can answer your questions about your specific tax debt situation.
Old tax debts can haunt you, but you don’t have to let them take over your life. You can eliminate them and move on to working toward your financial dreams.
WE CAN HELP! Give our office a call.