With taxes due this year will soon be on April 18, 2011, many consumers faced with this question: I know I owe a lot of money the Internal Revenue Service and / or the California Franchise Tax Board, and I know that it is not dischargeable. How to take care of it when I do not have any money to pay for it?
As discussed earlier (see Discharging Taxes Bankruptcy), the elderly, taxes are generally dischargeable bankruptcy. However, this does not help you if you owe money in 2008, 2009 or 2010 tax year to the IRS or the FBI. There are several options if you owe money for this fiscal year.
Installment Payments
If you owe the IRS money, or the FBI, but you do not have enough money to pay the full amount at one time, one of the options is to set up party paying the tax authority. Please note, this is not to stop the penalties and interest accrued on the amount of taxes. It simply means that the tax authority allows you to make installment payments. Both the tax authorities provide 60 months (5 years), the maximum pay their tax burden. Sell-in-Compromise (OIC)
If you currently do not pay your tax liability, and you know you can not pay the short term, you may be a compromise offer from the IRS and / or the FBI. Islamic conference program allows you to pay less than you owe, if you can prove that the proposal is best that you can do so by their circumstances. Every situation is different, so if you have the right to OIC different from the assessment. Both the FBI and the IRS require the taxpayer to fill out forms and return them in order to be considered that the application of the Islamic Conference.
Chapter 13 Bankruptcy
If you can not pay the tax authorities the full amount of your tax liability, another option to consider is filing Chapter 13 bankruptcy to pay your debt, Chapter 13 plan. Chapter 13S likely to continue or three years (36 months) or 5 years (60 months). Bankruptcy option is a great idea, especially if you owe other debts such as unsecured debt like credit cards, medical bills and personal loans. You will need to pay 100% of non-dischargeable tax liability because tax authorities are considered as priority unsecured creditors, unsecured creditors receive any from 0% to 100% of your debt, depending on the circumstances. One of filing Chapter 13 plan to pay their tax liability benefit is that only the actual tax liability is a priority. Fines and penalties are not on your account as you pay the debt in its Chapter 13 plan. This could potentially save a lot of money! Fines and penalties are dischargeable and treated in the same way as all other unsecured creditors.
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