Can’t Pay? You’re dirt poor. is economic hardship keeping your from paying your IRS Debt? Are you living paycheck to paycheck? Prove it. if you can do that, the IRS will actually stop collecting from you But how can you prove this to the most powerful collection agency in the world?

Review: if you qualify, the IRS will Suspend the Collections process. This is known as the Suspended Collections or Hardship Plan. But how do you know if you qualify? if paying the IRS would make you go without basic needs, then you could qualify.

What to provide: if you still think you qualify for an Offer in Compromise, get out your pen and paper. You’ll need to provide the following information in forms 433A (433B for Businesses)

• Food: Groceries, School Lunches
• Clothing: Replacement, Laundry Bill
• Medical: Medications, Hospital Bills, Doctor and Dentist Fees
• Taxes: Income-State, Income-Federal, Property, Other taxes
• Insurance: Car Insurance, Homeowners/Renter’s Insurance, Health Insurance, Etc.
• Transportation: Public Transportation, Parking/Tolls, Gas, Registration, Maintenance
• Professional Services Bills: Attorney, Tax professional, Accountant, etc.
• Installment Payments: car, credit card, student loan, personal loan, department stores, etc.
• Family Expenses: Child Support, Alimony, Private School, College, Child Care
• Other: Charitable contributions, entertainment, recreation, subscriptions, household and cleaning supplies, personal items, payments you make to help Dependants, etc.

Plus: the IRS won’t let you off that easily. You’ll also need to provide detailed information like your place of work, bank accounts, investments, money not in your bank account, real estate, credit cards, cars, and personal assets. if you have enough assets to satisfy your debt, the Hardship Plan may be denied.

Bare Minimum: What does the IRS consider Basic Needs? Not your car payments, credit card payments, student loan payments or even money for your Retirement plan. the IRS considers your need for food, housing, transportation, and medical bills your basic needs. so if you’re sending your kid to an expensive university, watch out. the IRS might make you send them to community college.

Now you have the Smoking Gun.use it

IRS Hardship Plan – What You Need to Know to Qualify and Pay Off Your IRS Tax Debt

Tags: car insurance, insurance car

This entry was posted on Saturday, January 28th, 2012 at 5:00 pm and is filed under News. You can follow any comments to this entry through the RSS 2.0 feed. You can leave a comment, or trackback from your own site.