The IRS will analyze your full financial situation to determine your ability to pay. The IRS will calculate your monthly payment based on your allowable income and expenses. And you must be able to pay your entire tax balance before the tax collection law is due. The Fresh Start program allows taxpayers to settle their tax debt for less than they owe, giving them a new opportunity to pay their future taxes.
Freelance beer fanatic. Incurable coffee junkie. Freelance tv scholar. Extreme twitter advocate. Hardcore internet fanatic. Wannabe twitter lover.
Section 6502 of the Internal Revenue Code states that the duration of the collection period after the evaluation of a tax liability is 10 years. The expiration of the collection law ends the government's right to request the collection of liability.
First, you should know that it is possible to negotiate a reduction in penalties and interest, but it is at the discretion of the IRS agent you work with. Second, it takes time, sometimes a year or two, to negotiate a reduction in interest or penalties with the IRS.