Reading a Collection Information Statement
If you are having trouble paying all of the taxes that you owe, then you may be considering what your options are. If you want to ensure that you don't get into trouble with the IRS, then you'll need to make a decision regarding how you're going to resolve your debt. One option that you have open to you is an Offer in Compromise that will allow you to pay an amount that may be less than what you actually owe. If you want to use this as a solution, then you need to make an application.
When you are making an application for an Offer in Compromise, you are going to have to fill out a form that will capture your financial situation. This form is called a Collection Information Statement and the IRS is going to use it as a means of determining how much you can really pay. In order for you to have the best shot of submitting a successful application, you're going to need to know how to read this form and understand it. If you make a mistake on it, then your application could be denied.
Understanding the Form
When you are filling out your Collection Information Statement, it's a good idea to look over the form first to get a good understanding of what each section will need you to input. The first section that you encounter is going to ask for personal information about yourself. This is where you are going to list your name, address, social security number and other personal details. You'll also have the opportunity to list any dependents you have and their personal details as well. Finally, here is where you will tell the IRS whether or not you rent or own your home.
There's also going to be a section where you can include information about any businesses that you own. If this applies to you, then you're going to need to list things like the name, address, and employer identification number of each business that you own here. If you don't own a business, then you may need to go forward to the next section that is going to require you to list information about your employer. You'll need to list all of the important information about your employer including your job title and how long you have worked there.
You're also going to need to provide information about all of your assets. When you complete this form, you will have to list specific information about your bank accounts, your credit cards, your insurance plans, and other things that can be considered as an asset. If you have things like stocks, bonds, or even mutual funds, then you're going to need to provide this information as well. The IRS needs all of this information in order to form a complete financial picture so that they can make the most accurate and fair decision.
Including the Right Documentation
Reading a collection information statement is something that you need to take your time with. You will want to make sure that you fill out each section with great detail and that you make sure to attach all of the right paperwork. For each section, you may be required to provide some attachments as evidence. For example, you may have to give copies of your bank statements or proof of your employment. Read over the entire form carefully and see which attachments are necessary. The more complete information you can provide, the better your chances are.
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