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Video instructions and help with filling out and completing Can Form 843 Withholding

Instructions and Help about Can Form 843 Withholding

Dean Michael the tax doctor here CEO and founder of tax help md today I want to talk to you about the equation used to figure out which programs you qualify for hardship programs offered by the IRS and the equation used is to determine your ndi or your net disposable income in order to determine your net disposable income the IRS takes your total household income and they subtract what they call absolute necessary living expenses now that's food clothing miscellaneous housing transportation and medical anything else they don't care about so they don't care if you have children in private schools you're paying student loans or you have old medical bills none of that matters all that matters is what you need to live breathe eat and work so for this calculation on the board taxpayer has 3,500 dollars in income IRS uses a national standard for food clothing and miscellaneous now that's determined by which county you live in and how many people you have in the household for this particular equation it's just one person in the household so you can subtract five hundred and eighty five dollars for food clothing and miscellaneous without having to prove every cheeseburger he ate and every bar soap that you use next that we need to take into consideration is your mortgage for your rent if you're not a homeowner if it's mortgage it's going to take into consideration taxes and insurance of course there's 1500 and mortgage on this one next is your utilities which is your electric gas water cable internet phone not going to go through all the numbers because they're obviously illustrate to here on the board you have your car payment the auto insurance for the car fuel to get back and forth to work medical insurance co pays prescription life insurance whether its whole life or term and then of course court-ordered payments like child support alimony judgments anything like that for this particular case it's got three hundred dollars in child support for this taxpayer after subtracting all of the absolute necessary living expenses he has a net disposable income of ten dollars now doesn't matter if you owe 5,000 10,000 100,000 doesn't matter all you're going to end up paying is ten dollars a month and you're going to pay that until the collection statute expires on your day otherwise known as a see set collection statute expiration date the IRS has ten years to collect their debt is from the date of your original assessment so for example if this particular taxpayer only had five years from which the IRS can collect now it'd be another 60 months 60 months times ten dollars would be 600 that would be all he would pay then the debt would expire so again it's a lot better than probably some of the settlement programs out there where you may or may not get qualified this is strictly based on math so if we can prove on paper when we present your case that all you have left over is ten dollars $25 $35 whatever it is that's the amount you're going to pay until the collection statute expires on your debt so if you've been one of those taxpayers that's been approached by maybe some of the companies on TV that are promising to settle your pennies on dollar don't be fooled by it don't be fooled by the company's promising you the moon and you end up with a piece of cheese if you want the truth about your situation give me a call for a free consultation we'll sit down we'll do the math we'll figure out exactly what you qualify for for your specific situation again my name is Dean Michael I'm the tax doctor you can call me at 888 632 4506 to figure out what's really available to you i'll give you the truth thank you for listening.

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