If you’ve never filed a tax return, you might be expecting the IRS to come after you. Failing to file your tax return is a bad thing, but it might not be for the reasons you’re expecting. You might have already let the IRS keep too much of your money.
An offer in compromise allows you to pay less than the full amount that you owe in satisfaction of a tax debt. OICs are often marketed as settlements for “pennies on the dollar,” but there is actually a rigid set of rules that determine if you’re eligible and how much you need to pay.
The IRS is one of the most powerful creditors, but can it damage your credit score if you don’t pay? Here’s what you need to know.
A CP2000 notice is an IRS letter telling you that the IRS has adjusted your tax return and you owe money. It will usually contain the heading “Notice of Proposed Adjustment for Underpayment/Overpayment.” Here’s what you need to know if you receive one.
Have you received a notice from the IRS stating that you owe back taxes, or do you know that you have unpaid taxes that the IRS might not know about yet? If so, you have three options.
A CP501 notice is a reminder that you owe money to the IRS. You should have already received a CP14 or other notice stating that you have a balance due. A CP501 means that the IRS still has not received your payment and is getting closer to taking further collections action.
An IRS installment agreement is a payment plan that allows you to pay your taxes over time. You can use an installment agreement either for your current year taxes or for tax debts from previous years.
If you’ve received a CP13 notice, it means the IRS made changes to your return that did not change what you owe. This might be because you weren’t using the full amount of a non-refundable tax credit or because you had a large enough deduction to keep your income in the 0% bracket.