Discover What Tax Debt Solutions Are Available
It is a good idea to make sure that you pay your taxes on time. If you do not then you will find yourself in debt to the IRS. Sometimes people end up in a situation where they are unable to pay back what they owe. If you find yourself in this situation then there are some tax debt solutions that could be of help to you. What help is available to you depends on the size of your debt and your current financial situation.
One of these solutions is called Offer In Compromise. If this was accepted by the IRS then you would pay a set amount of money which is much less than your balance. You would pay this set amount then sign a contract guaranteeing that you will pay your taxes for five years. You will need a tax specialist to help you negotiate this contract.
Unfortunately less than 1% of these are actually accepted. The IRS will only ever accept this as a method of clearing your debt if they have reason to believe that you will never be able to pay your debt in full. For this reason an Offer In Compromise is usually seen as a last resort when all other options have been exhausted.
Another thing a tax specialist can help you with is Tax Penalty Abatement. Sometimes charges or penalties will be applied to your debt if it has gone unpaid for a certain amount of time. As this is done by a computer and the charges are added automatically there is the possibility that they could be added by mistake or at an inaccurate amount. If you believe penalties have been placed on your account in error then you can fight to have therm dismissed.
If your IRS debt has been overdue for a very long time then they may take action to reclaim what they are owed. This could include applying a liens or wage garnishment. If these are applied to you then you may find yourself struggling to make ends meet. If this situation applies to you then a tax specialist will help you apply for a Wage Garnishment Release. Depending on your situation it may be possible to halt all collections by the IRS.
Another option available to you is an IRS Payment Plan. These can be negotiated on your behalf by a tax specialist. This is a good option for those who are not in the position to be able to make an offer in compromise. There are three options available here. You can apply for an IRS Tax Loan where you take out the loan specifically to pay your back taxes.
If you just need some more time to pay then you can apply for a Short Term Payment Extension. You can receive an extension of a minimum of 10 days and a maximum of 120 days. However you will still need to pay interest and late fees. There is also the option to pay back your debt pay installments over a maximum of 60 months.
If you find yourself behind on your taxes then you should not despair. There are many solutions that are there to help you change your situation. You need to do your research so that you know which solutions are applicable to you. A tax specialist can do this for you and also help you to achieve a solution.
Want to find out how to save money and become debt free with tax debt solutions ? We’ve got the inside scoop instantly in our complete Eliminate IRS Tax Debt with Tax Debt Solutions guide.
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