Understanding the IRS Substitute for Return
Click to ask Mike Ask Mike The Internal Revenue Service (IRS) Substitute for Return (SFR) is a term many taxpayers
LETTER 278C
IRS Letter 278C is a notice that the IRS sends to taxpayers who owe back taxes and have not been able to pay them in full. The letter invites the taxpayer to make an offer in compromise (OIC) to settle their tax debt for less than the full amount owed.
Reasons why it happened:There are a number of reasons why you might have received an IRS Letter 278C. Some of the most common reasons include:
- You have a tax debt that is more than you can afford to pay in full.
- You have been unable to pay your taxes on time for several years.
- You have been hit with a large tax bill due to unexpected circumstances, such as a job loss or medical emergency.
- You are in a hardship situation, such as being unemployed or disabled.
- If you receive an IRS Letter 278C, it is important to respond promptly. You have 30 days from the date of the letter to submit an offer in compromise. If you do not respond within 30 days, the IRS may move to collect your tax debt in other ways, such as garnishing your wages or seizing your assets.
How to make an offer in compromise:
To make an offer in compromise, you must complete Form 656, Offer in Compromise. On this form, you will need to provide the IRS with information about your financial situation and your offer to settle your tax debt.
Important Tip: Not sure where to begin? Try our Tax Relief Finder tool. It helps you find IRS programs and gives recommendations for the best solution. Learn about our - Tax Relief Program Finder
Important Tip: Understanding the Tax-Relief process is an essential resource for individuals dealing with tax debt. It offers a road map guide, simplifying the steps needed to resolve tax-related issues- Tax-Relief Process
Ask Mike
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Click to ask Mike Ask Mike The Internal Revenue Service (IRS) Substitute for Return (SFR) is a term many taxpayers
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Click to ask Mike Ask Mike The Internal Revenue Service (IRS) Substitute for Return (SFR) is a term many taxpayers
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Disclaimer: This is educational content, not legal, accounting, or tax advice.Â
