TAX RESOLUTION and the existence of a ‘ self-employed ’ business . But the most attractive advantage of OIC over bankruptcy is the professional fee you charge , which ranges between $ 3,500 and $ 20,000 .
Installment Agreement . When a taxpayer has disposable income to pay tax debt in full until the CSED ( Collection Statute Expiration Date ), you can establish a payment plan either online , through the Practitioner Priority Service over the phone , or by mail . When the liability is less than $ 50,000 and the tax debt can be fully paid in 72 months or less , a Streamlined Installment Agreement is also an option , no financials are required and it ’ s fairly easy to establish . When the liability exceeds $ 50,000 you can go for a Full-Pay Installment Agreement over the remaining statute ( until CSED ). Collection information statements are required in this case . If the remaining monthly income is not sufficient to pay off the tax liability until the collection statute expires , you may then establish a Partial Pay Installment Agreement .
Currently Not Collectible Status . When the taxpayer has no equity in assets and no disposable income , the government can put a hold on the taxpayer ’ s account and stop all collection activities . This option is similar to a Chapter 7 bankruptcy , but without the credit reporting disadvantages . The statute with CNC ( Currently Not Collectible ) cases does not stop running , which means that at some point the tax debt can simply expire . However , the IRS will conduct ongoing reviews of the account , and if the taxpayer ’ s financial situation improves , the CNC status is lifted and the collection machine starts rolling again , adding back penalties and interest accrued over time .
Tax resolution is a great alternative when the bankruptcy route is closed . The case outcome definitely depends on the proficiency of the IRS representative . However , powered with invaluable tax resolution tools , bankruptcy attorneys can make the best of both worlds . PitBullTax Transcripts , available in October 2016 , automatically analyzes your clients IRS transcripts , calculates the earliest bankruptcy dischargeability dates and CSEDs , as well as provides auto-generated reports based on transcripts data . You can analyze unlimited tax years for a flat fee . PitBullTax Software , the leading IRS Tax Resolution software , makes you a “ go to ” tax resolution expert , while streamlining your cases . Go to www . pitbulltax . com for a free trial .
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National Association of Consumer Bankruptcy Attorneys Fall 2016 CONSUMER BANKRUPTCY JOURNAL 43