Here is an interesting article that claims you can use the like-kind exchange rules to push the tax into the next tax year, without having to truly reinvest the funds. It means you can't touch them, and there are a lot of i's to dot and t's to cross to make sure you toe the line, but it could be worth a shot if you are dealing with a large gain and want to defer the taxes one year.
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We've all seen the commercials, and with the hard economic times I'm hearing from more and more people wondering if these deals are legitimate. Well here is an insightful article that brings some reality to the situation, even if it isn't what most people want to hear. If you want to settle for less than your are owed, consider this advice they give:
The two fundamental rules IRS operates by for offers in compromise are:
The two fundamental rules IRS operates by for offers in compromise are:
a) If you have enough assets to pay the taxes, your offer will not get approved.
b) If you earn enough money to pay your tax debt over 5-10 years, your offer will be rejected.
Let's be honest, the IRS has the power to collect, so why would they settle for less if they didn't have to? For most people the best bet is an installment agreement. You end up paying the whole amount, but over time. The IRS stops harassing you because you are back in compliance. This doesn't mean everyone will qualify for an OIC, but the truth is that few do.
Another word of advice, don't ignore the tax notices. The sooner you reply the more the IRS is willing to talk and be reasonable.
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