Workshop on Collection Options
- Bankruptcy
- Offer in Compromise
- Installment Agreement
- Currently Not Collectible
- Full Pay
- Liability
The options only tax debt workshop offered by Collection Alternatives discusses only the 6 options above. Here is some brief information on each option.
BK - Bankruptcy will require a lawyer and is settled in bankruptcy court. If your case is discharged then your debts are removed. If your case is dismissed, your debts are not removed. Like most options, while in bankruptcy you must stay in compliance with filing and paying. There are 4 chapters available in bankruptcy: 7, 11, 12 and 13.
OIC - An Offer in Compromise will determine your reasonable collection potential, in other words what you can afford to pay monthly plus the value of all your assets. Not only do you have to stay in compliance with filing and paying, but you must stay in compliance for 5 years after acceptance.
IA - Streamline installment agreements are available on smaller balances and do not require financial information or a lien to be filed. If you cannot afford the streamline amount, or owe over the limit, then financial information will be required and a lien will be filed. The collection statute expiration date can play a big part in how much your monthly payment will be.
CNC - If you cannot pay, then your account can be placed in currently not collectible status, but penalties and interest will continue and refunds will be offset. Financial information is required to determine your inability to pay and a lien will be filed. Some items to consider before currently not collectible status are sell or refinance real property, retirement account withdrawal, reverse mortgage or liquidate assets.
FP - While sometimes the most challenging, full paying a tax debt means no lien or release of lien, no financial information, no monthly payments, less penalties and interest, no worry about levy action and no more refund offsets. Full paying a tax debt means no more worries and a large burden off your shoulders.
LIAB - If you do not agree with the taxes owed, you can dispute the tax in a number of ways. Paying taxes owed is hard, but paying taxes you do not agree with can be even harder. So, when given the opportunity to dispute the taxes owed, take it and provide all the documents to prove the items in question, this can either reduce or eliminate the tax due.
These options are available to everyone, some stop the penalties and interest, some require a lien and some require financial information, but they all stop collection action like levies and allow you to breathe easy, knowing your tax debt has been resolved. If you have questions or would like to sign up for a workshop please call me at Collection Alternatives.