When you owe back taxes and have a slim chance of ever paying off the full bill, an offer in compromise can help. This is one of the few avenues that allow you to pay your tax bill for less than the total amount.
In our last post, we talked about receiving a notice from the Internal Revenue Service, and what you should do to properly address such a situation. Today, we'd like to expand on that discussion by talking about receiving a tax bill from the IRS.
What comes through the mail anymore? Catalogs, offers for new credit cards and other junk seem to form the majority. You may only look forward to collecting the mail during the Christmas season for the cards and family/friend yearly updates.
What happens when you are misclassified as an independent contractor? On a tax basis, payroll taxes are not withheld from your pay. This means you must make quarterly estimated taxes and pay self-employment tax on what you earn. You probably do not receive overtime pay or access to benefits such as health insurance or a retirement account.
Getting a portion of a loan forgiven requires determination and a lot of time on hold with various customer service representatives. In other cases, a collection firm may just write off the debt after years of collection efforts. Any relief of loan forgiveness might be offset when a 1099-C arrives in the mail.