April 21, 2011
How They Can Help You? – IRS Tax Lawyers
It is possible to receive a structured settlement loan in almost all regions of the United States. People enter into structured settlements to receive compensation from individuals or companies after sustaining personal injuries. The compensation is paid over a set period of time and in small installments. These installments, which are mostly given as part of a life insurance agreement, can be used as collateral for loans. There is a simple procedure of applying for loans while relying on annuity payments.
Individuals and business houses with single or less sources of income are ones for whom book keeping is a not so difficult task. But for individuals and businessmen who have multiple sources of income often find it difficult to keep accurate records and comply with statutory requirements.
You can start the loan application process once you have ensured that there are no snags or legal restrictions.
Application A bank or financial institution will accept your application for structured settlement loan after thoroughly scrutinizing and evaluating the documents. Processing can take up to 90 days and up to 120 days in some exceptional cases. Selling your annuity on the other hand will not take much time as you will be able to receive the money within 45 days.
Now audit is a serious situation wherein expert auditors of the IRS depart would go through accounting books and business procedures adopted by you. They usually would go through past records of many previous years to establish or identify any errors or misrepresentation in your accounts.
Comparison with settlement sales It is a good idea to compare the sale of settlement agreements with the disbursal of a structured settlement loan. If you are to sell an annuity then you will pay more fees with possible deduction of taxes. This will effectively cease the settlement agreement with no chances of you receiving payments in the future. If you are taking a loan on a structured settlement then your original plan will remain intact but you will have to pay back the loan with these payments.
This is the time when hiring a professional tax attorney will come to your rescue by ensuring a fair audit hearing and also help fight you any legal cases in court of law.
Can An Investor Sell The Policy Later? Yes he can. The structured settlement policy has value as long as the running time is running. The price setting principle is the same all the time, but if the investor will see, that he will need the money, he just sell the policy.
Harris Smith is a writer on personal finance education. Her article tackles the pros and cons of home equity line of credit See your Debt Consolidation savings online in minutes and learn about your debt relief options
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