Tax Debts Relief
There are 5 ways to settle your dues with the IRS. This includes Offer in Compromise, Installment Agreement, Partial Payment and Installment, Currently Not Collectible, and Bankruptcy. Not all these solutions can answer your problem and the decision will still come from the agency after it has examined your financial situation. The process is stringent and you may find it hard to qualify at all.
People have various reasons for not being able to pay their taxes. In the recent years, most taxpayers reason out that the economic slump has wrecked havoc into their lives. You may need to provide proofs so that you can convince the IRS to allow you a debt relief option.
You have to know each of the 5 ways so that you can choose the most suitable option that will work for you. For now, you can concentrate on the Offer in Compromise and Installment Agreement. To most taxpayers, the ideal solution is the Offer in Compromise because you will only be required to pay a portion of your tax debt. BUT, you are required to pay all your taxes in the next 5 years.
Getting the first solution can be really hard because you will undergo strict procedures just to qualify. It would help if you hire an experienced tax specialist to help you with the negotiations. Another option is the Installment Agreement. This is a simple solution for those who owe large debts to IRS.
The tax debts will be divided into a certain period through a payment plan. If you can't qualify for an Offer in Compromise, this may be an ideal solution. Again, seek professional help when applying for any tax debt relief option so that you can get a favorable response from an agency.