Incite Tax & Accounting

How to Manage Tax Debt When You Can't Afford to Pay | Incite Tax

The video explains how businesses overwhelmed by tax debt can use the IRS’s 2026 Fresh Start framework to negotiate a settlement far below the balance owed. It highlights that IRS interest now runs at 7% compounded daily, making minimum‑payment plans a losing proposition, and stresses the importance of the ten‑year collection statute, the Reasonable Collection Potential (RCP) calculation, and the fire‑sale value (QSV) of assets in determining what the IRS will actually collect. The presenter cites examples – a $100,000 bill growing daily, allowable expenses for a family of four now exceeding $2,100 per month, and how a Current Not Collectible (CNC) status can halt levies while the clock ticks toward expiration. For owners, understanding these rules means they can pause enforcement, lower their payable amount, and file a successful Offer in Compromise before the statute runs out, preserving cash flow and potentially saving their business.