Monday, September 8, 2008

OIC 101: In The Governments Best Interest

Have you ever tried to get ahead of your car payments or mortgage? You thought I've got to get this balance down. Maybe if I take and make some double payments on some of my bills I can get them knocked out. SURPRISE! The IRS is just like the mortgage companies and car loan places in as much as they like interest and penalties.

In 2006 the new TIPRA law was introduced . This is basically the introduction (as you know from prior blog posts) of the 20% plus $150 filing requirements. Taxpayers are not required to but may designate the application of the TIPRA payments. The designation must be made in writing when the offer is submitted or when they make their first payment on the offer. If not submitted in writing the IRS will apply the 20% "In The Governments Best Interest" A professional tax resolution firm can, and should be used to set this up. This will insure your best interest is protected instead of you just paying more interest.

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