Offer in Compromise (OIC) – TaxMama.com: Recent Episodes
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Reprint of article from July 2003 – as we come to the end of a tough set of COVID years:
And speaking of Independence Day ….
I just got off the phone with a friend. She’s decided to file bankruptcy.
This was a very long road for her. Like other friends, she’s a very moral person. In our generation, bankruptcy is not something we take lightly. It’s not just a casual discarding of inconvenient debts and frivolous charges. It’s a measure of failure. Even the thought of it darkens the air around us. There’s a heavy weight pressing down our shoulders, the pit of our stomachs. And it’s not just letting ourselves down. It’s also about letting other people, our creditors, down, too.
I’ve taken many people down this road. Some skipped blithely along, rejoicing in the abdication of all responsibilities. Most, though, resisted, and clung to their principles. With bloody, scraped fingers and toes, they scrabbled futilely, as they were dragged by the hair to the inevitable destination.
Every single one of those people is fully healed. And happy. And totally relieved. Of the burden. And the guilt they carried along with the debt. And the guilt of the bankruptcy.
No, it’s not a pretty thing to have to see. Or to go through. Watching honorable people, people with great dignity, collapse.
The reality is – as this friend said, she had paid $36,000 over the last 4 years – and reduced her debt by $5,000. No, not all of that is interest. Often, much of it results from not being able to earn the money you need during those stressful times, and having to dip into loans to get by.
A great deal of it is the penalties and interest on tax debt. And trying to get an offer in compromise today is more difficult than it has been in five years.
Like many people, she tried CCCS – but some creditors refused to cooperate – and continued to hound her. Regardless, her credit was shot. She had to screen her calls.
I saw one man, many years ago, earn hundreds of thousands of dollars each year, yet kept getting deeper and deeper into debt, paying down old bills. It took him over 5 years to decide to file bankruptcy and start over. His head is clear.
Finally I realized something. What is the point of struggling so hard to keep getting further behind? Your credit is already ruined. If you simply let go, you could start all over. You wouldn’t even need to earn all that much just to meet your current, diminished lifestyles.
You could finally take a breath.
So, today, I am telling you – look over your financial situation. If you are struggling like this, perhaps it’s time to give yourself permission to reclaim your financial independence.
It’s not the answer for everyone. And, still, don’t take it lightly.
But is it time to file bankruptcy?
RESOURCES
Debt Relief Options
Bankruptcy & Debt
Ilyce Glink – Credit and Finance Books
Liz Weston – Credit Guidance & Resources
The post Bankruptcy & Freedom first appeared on TaxMama.
Today TaxMama® wants to help you avoid losing your passport, if you owe the IRS too much money. You need to act quickly. Dear Family, You’ve been hearing a lot in the past couple of years that the IRS will start revoking passports of Americans who owe taxes. Well, the process is now in [...]
The post Are you Losing Your Passport? first appeared on TaxMama.
When I started teaching the IRS Practice Series at CPE Link, I needed an easy way to prepare my pro-forma collections forms. It was especially important to have a tool that would integrate the most current National Standards, exclusions from assets, etc. PITBULL SOFTWARE provided me with the tools that I need. Not only do [...]
The post PitBull Tax Resolution Software Demo first appeared on TaxMama.
Today TaxMama® hears from Sallie in the TaxQuips Forum who is puzzled. “I am trying to prepare an offer in compromise. When I go through the computations in the updated Form 656 package, the offer amount equals more than the tax they owe! I’m missing something. Please help.” Hi Sallie, What you’re saying is, that [...]
The post OIC – Slashing Tax first appeared on TaxMama.
…to Help a Greater Number of Struggling Taxpayers Make a Fresh Start Courtesy of the Internal Revenue Service WASHINGTON — The Internal Revenue Service today announced another expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially distressed taxpayers [...]
The post IRS Announces More Flexible Offer-in-Compromise Terms first appeared on TaxMama.
Today TaxMama® hears from someone in the TaxQuips Forum who was overwhelmed. Let summarize. “After a grueling audit, and a lot of personal tragedies, the IRS agent went back and reviewed the medical mileage. Despite having detailed evidence to prove the mileage, the reason it was medical mileage, and the reason the treatment needed to [...]
The post Overcome Closed or Signed-Off Audits first appeared on TaxMama.
Today TaxMama hears from Sandra in the Tax Quips Forum with a quick question. “My soon-to-be spouse has a mountain of back tax debt. Can this affect me in any way or my property? I live in Missouri. He also has terrible credit.” Dear Sandra, You bet it can! Keep your finances totally [...]
The post Fiance’s Financial Fiasco first appeared on TaxMama.
Courtesy of IRS. [TaxMama note: Owing money can be really frightening. However, they generally do NOT put in you in jail. And IRS is trying hard to help you find ways to pay, without spending $3,000 or more for a professional tax debt negotiator. So, please, use the help offered.https://biuinternational.com/wp-content/languages/new/how-to-write-argument-essay.html ] While the majority of Americans [...]
The post Ten Tips for Taxpayers Who Owe Money to the IRS first appeared on TaxMama.
Today TaxMama hears from Wyetta in the TaxQuips Forum with this problem. “I tried to make a payment arrangement with the IRS for 2010 taxes owed.buy remdesivir online blackmenheal.org/wp-content/languages/new/us/remdesivir.html no prescription The IRS told me that I have to file for 2006, before they could offer a payment arrangement. Please instruct me on how to [...]
The post Did Not File 2006 first appeared on TaxMama.
Today TaxMama hears from Judy in the TaxQuips Forum who needs help. “I am struggling to maintain my household, have four years of back taxes to file and settle and my home was just foreclosed on. I was contacted by someone claiming that they can help negotiate a reduction in tax liability and stop any [...]
The post Trustworthy Tax Negotiator first appeared on TaxMama.
WASHINGTON — In its latest effort to help struggling taxpayers, the Internal Revenue Service today announced a series of new steps to help people get a fresh start with their tax liabilities. The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. Specifically, the IRS is [...]
The post IRS Announces New Effort to Help Struggling Taxpayers Get a Fresh Start first appeared on TaxMama.