13 Jun 5 Easy Ways To Iron Out Your IRS Tax Debts For Less Than What You Owe
If you don’t find dealing with the IRS time-consuming, scary and frustrating, you are probably the only one. Owing money to the IRS is never a pleasant thing as the Internal Revenue Service is allowed to place a lien on your property, seize your assets and garnish your wages to get back the money you owe them. However, not all is lost as the IRS gives its clients a few options to deal with the situation they are in; if they decide to communicate their financial problem early on.
Here we list five ways you can iron out your IRS tax debts today:
An installment agreement is a monthly payment plan secured with the IRS, giving you the option to use monthly installments as a way of paying off your debt. Also, in case you’ve fallen victim to the “Ponzi” Scheme and lost most of your money, you could be an excellent candidate to use the United States Tax Code (law). It should help you recoup approximately 40% of your losses. Another option is a partial payment installment agreement, helping you pay off your IRS debt at a reduced dollar amount. The payments are long-term and should be negotiated for the lowest possible monthly charge you can payoff based on your budget.
Offer in Compromise
Offer in Compromise is your opportunity to pay a small amount as full payment by settling your tax debts for less than what you owe. The Offer in Compromise program helps you can save thousands of dollars in taxes, interest, and penalties.
Not currently collectible
Not currently collectible is a program where the IRS decides not to collect tax debt for an agreed amount of time (usually, for a year or so). For a patron to be declared “currently not collectible,” the IRS needs to receive proof that you are financially unable to off your debt. If you are claimed as this type of taxpayer, you are saving yourself from IRS lien, levy, seizure for a period.
File for bankruptcy
If you decide to file for bankruptcy, your solutions are Chapter 7 or Chapter 13 of the Bankruptcy Code. The difference between these two chapters is that the first provides for the full discharge of your debts, while the second provides a payment plan to help you repay a chunk of your debts. Although filing for bankruptcy seems like the most natural way out, the truth is – unless you meet the requirements for discharging your taxes, this may not be your solution. Golden Tax Relief experts explain everything in detail here.
Mind the Expiration of the Statute of Limitations
For everyone who is struggling with their tax debt, it is useful to know that the IRS doesn’t have the right to collect your taxes, interest or penalties ten years from the date of assessment. What does this mean for you? If you’ve got a tax resolution specialist, an experienced tax attorney or a tax CPA, you can resolve your IRS problems by adequately strategizing.
If you need to find the best answer for your tax problems, contact us at Golden Tax Relief for advice, smart planning and a solution to your problem.