QUESTION: I owe the IRS a substantial amount of money, but I do not have any money left over at the end of the month after I pay my bills to be able to afford to pay anything on my taxes. I could refinance my house since the rates are a lot lower now and [...]
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Impact of Owing More Taxes on Installment Agreement
QUESTION: I filed an extension of time to file my 2007 income taxes but I did not pay anything by April 15, 2007. I expect that I will owe more money when I do file the return. I am currently on a payment plan with the IRS for prior year tax liabilities. What will happen [...]
The Impact of Medical Bills on Your Offer in Compromise
Question: I have a lot of medical bills that I have to pay each month because of a surgery I had several years ago. Will those medical bills help my offer in compromise? Answer: Yes. Medical bills are one expense that the IRS will allow 100% of what you can prove you actually pay. I [...]
Using Your Deed to Pay an Offer in Compromise
Question: Can I use the deed to a house we own free and clear to make an offer in compromise to the IRS for back taxes? Answer: The short answer is no. Basically, in determining whether you qualify for an offer in compromise, the IRS will examine you entire financial “self.” You can kind of [...]
