Can anyone help with a strategy to repay a large tax debt to the IRS? My sister owes close to $200,000 for prior years. The IRS will structure a repayment plan, but their interest rate is 24.99%. This could easily be a lifetime repayment plan.Any advice?
The IRS interest rate changes quarterly. Presently it is 4%. Everything else over the actual tax is penalties. There is a lot of missing information here. What kind of tax is this and to what years does it relate? How old is your sister? Why didn't she pay when assessed? What is her approximate income and from what kind of sources? How many people is she supporting in her household? Is this a joint liability with a spouse or an ex-spouse? Signed former IRS employee.
Who is representing her? With $200,000 in liability she really needs professional advice and not from a part time tax preparer. An enrolled agent would be a good start. Depending on her assets and how she got into this situation, she maybe able to try for an OIC (offer in compromise). If the obligations are old enough they maybe dischargable in bankruptcy. Debra
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