Do you Find dealing with the IRS frustrating, Intimidating and Time-consuming. You’re not alone.
While taxpayers may always represent themselves in front of the IRS, many turn to professional tax help (specialized IRS tax attorneys, CPAs, and Certified Tax Resolution Specialists) in order to maximize their chances of winning a tax settlement while minimizing their contact with the IRS agents. Owing the Internal Revenue Service (IRS) money is intimidating to most people. The IRS has the power to garnish your wages, seize your assets and place a lien on your property in order to obtain the money that you owe them. However, these actions can be prevented by communicating promptly with the IRS about your situation. The IRS is usually willing to work with taxpayers, and there are several options available so that you may resolve your debt issues.
As a creditor, the Internal Revenue Service carries the weight of the federal government behind it. In addition to having extensive methods to collect on outstanding tax debt, the IRS also can be extremely patient. As long as the IRS knows it is going to get paid someday, it can wait until you are in a better financial position to pay. Of course, the longer you take to pay your tax debt, the more you will owe.
10 Ways to Settle Your IRS Tax Debt
1. Installment Agreement
A fairly new debt management program where you have a long term payment plan to pay off the IRS at a reduced dollar amount.Much like a monthly credit card payment, IRS payment plans allow you to pay off your unpaid back taxes in installments instead of all at once. A well-qualified tax attorneyor Certified Tax Resolution Specialist will negotiate the lowest possible monthly payment for your needs.
3. Offer in Compromise
4. Not currently collectible
5. Lower Your Debt With Credit Card Debt Settlement
There are two methods of credir card debt consolidation: through a credit card debt settlement company or on your own. Credit card debt settlement companies should be avoided. They collect your payments for months before making a settlement offer – if they make an offer at all. Meanwhile, you continue receiving collection calls and negative payment marks on your credit report. You’ll get better and faster results settling debts on your own.Final credit card debt settlement agreements should be in writing. Either draft an agreement of your own or have your credit card company send you an agreement. Make sure you and someone from your credit card company have both signed the agreement before you send payment.
6. File Bankruptcy
Income tax debts may be eligible for discharge under Chapter 7 or Chapter 13 of the Bankruptcy Code. Filing for bankruptcy is one of five ways to Tax Debt Relief, but you should consider bankruptcy only if you meet the requirements for discharging your taxes. Chapter 7 provides for full discharge of allowable debts. Chapter 13 provides a payment plan to repay some debts, with the remainder of debts discharged.
There’s no “secret sauce” in paying off tax debts. These are the only five ways of getting out from under the IRS’ aggressive debt collection tactics. If a tax pro promises you that you can save “pennies on the dollar” through an offer in compromise, that person is probably more interested in selling you something you don’t need instead of focusing on your unique financial situation and determining what the best course of action is for you.
7. Release Wage Garnishments
8. Stop the IRS from Levying Your Bank Account
9. Innocent Spouse Relief
If you happen to inherit your spouse’s IRS tax problems, you have an escape route. If you can prove that your circumstances fit within the IRS guidelines for innocent spouse tax relief, you may not be subject to the taxes caused by your spouse or ex-spouse.
10. Pay Attention to the Expiration of the Statue of Limitations