This guide outlines strategies to obtain IRS debt help to assist you in dealing with tax problems when they arise.
While everyone would love to be able to pay all of their tax owed every year, sometimes life doesn’t allow it. Whether you had more business expenses, or something else entirely, it is possible to land yourself in debt trouble with the IRS.
Owing money to the IRS can be very stressful, and the costs only continue to mount as things like interest and penalties are added. This means you will likely end up being responsible for much more than if you would have paid your taxes on time.
IRS debt help strategies
Thankfully, owing tax debt doesn’t need to be something you handle alone. There are many different ways you can resolve your debt with the IRS, and this guide is going to take a closer look at a few of them.
Work With an Expert
The first thing to generally do if you find yourself in trouble when it comes to tax debt is to work with an expert. They will help see if you are eligible for the IRS tax forgiveness program and work with you to discover your best options for moving forward. It can be a huge weight off of your shoulders to have someone else to bounce ideas off and go to for suggestions about how your situation can be improved.
They can help you choose the right option for your unique situation, and help you save as much money as possible. These experts can assist you with paperwork, and help you better understand your financial situation as a whole.
Or course, be sure to choose the right expert to work with, and know how they charge for their services. You normally want to choose someone with experience dealing with tax mistakes and issues such as the ones you are facing yourself, and ensure they have a good track record of helping people achieve positive results. The wrong decision can be costly, so be sure to consult reviews and ask friends and family who they recommend.
Make an Offer in Compromise
If you prefer to do things on your own, or simply want to know your options for resolving your tax debt, the first one is to make an offer in compromise. This is a solution that can let you settle your debt for less than the total, similar to a debt settlement for traditional debt. It helps you minimize what you have to pay, while still getting the IRS off of your back.
For example, if you owe $10,000, you can make an offer to pay off $5,000 and have the other half forgiven. Of course, you need to be able to show the IRS that it would be incredibly difficult or impossible for you to pay the full amount, as simply asking them to pay less when you are able to pay the full amount isn’t likely to be successful.
Also keep in mind that while plenty of offers in compromise are accepted, there are no rules stating that the IRS needs to accept your offer, so make sure that it is a fair one that makes sense not only for you but also them. This might mean paying a little more than you wanted, but even if you settle for only a tiny bit less than the total, it still represents some savings on your end.
Installment Agreement
Another option you have for resolving your debt with the IRS is an installment agreement. An installment agreement is simply when you work with the IRS to pay back your tax bill over an agreed-upon amount of time. This can be a short-term plan of a couple of months or a longer-term plan of up to 72 months if you need it.
This makes getting out of tax debt easier, as you can pay it off over time instead of doing it all at once. You will normally choose what you pay every month, but it is important to remember that interest and penalties will still accrue, so you want to get the balance to zero as quickly as possible.
As long as you continue to make your payments, you should remain in solid standing with the IRS and they shouldn’t begin to do things like seize assets or garnish wages. However, if you don’t stick to the plan, the IRS will do whatever is necessary to recoup their money.
In conclusion, we hope that this article has been able to help you learn how to resolve your debt with the IRS. Whether you decide to go with an expert, make an offer in compromise or set up an installment agreement, these methods can help you get your debt issues figured out quickly and effectively.
