How do I settle with the IRS on taxes owed? How likely is it they will settle & how much will th
The key to financial power lies in your credit rating. If you plan to get a home loan, save money and get better credit starting now!
I just found out I owe $7000 in taxes for last year, due to my income from my [now defunct] partnership being listed as a "Guaranteed Payment" instead of a passive, capital draw (loan from the company). I disagree, but getting the investor/partner to amend the K1 in my favor is unlikely, as poor records were kept and this K1 favors him as far as tax deductions go. And I'm probably not going to be able to fight him.
I've heard the IRS works with people in these cases. I'm 24, unemployed, don't own a house, have $2,000 in credit card debt. I've got about $6,000 cash in hand, but I'm moving next month and half of it'll be gone within 6 weeks. Do you think the IRS will settle with me? And how much, realistically, can I expect the IRS to knock off of that amount? How do I go about negotiating a settlement with the IRS after my return is filed so I don't get penalized. Also, H&R Block wants $408 to do my taxes? Is this excessive? Jackson Hewitt told me they couldn't do it, period. Thanks!
How do I settle with the IRS on taxes owed? How likely is it they will settle & how much will they settle for?First of all, if you go to www.irs.gov, with your income, you can do your taxes electronically for free - and DON't go to Jackson hewitt, did you see the scam that they are in?
If the IRS settles, which is usually 60%, you will have to claim that as income as a forgiven debt. When you file, you can set up a payment plan and pay all of it (with interest), or write to them requesting a payment plan - and then when you go to your appointment you can discuss getting it settled - honestly, for the few thousand you will save, I would try to go for a payment plan, so it doesn't ruin your credit.
More Related Questions and Answers ...
The loan information post by website user , we not guarantee correctness.