Tax related issues and debts have become very common these days. There are millions of people finding it hard to tackle their unfiled tax returns, audit penalties or back taxes. The lack of proper help seems to have amplified the problems of the people of this country. Well, if you’re one of those people, the IRS debt help options can be of great help to you. Have a look at the IRS debt relief options and get a tax professional to help you out in this matter.
Choosing a tax professional
Make sure the tax professional is an experienced one. He/she can be an Enrolled Agent, a Certified Public Accountant or a licensed tax attorney. It is very difficult to find a way out of the tax maze unless you’re being assisted by someone with experience enough to resolve tax debts. You’re always free to visit the IRS and let them know about your issues, but you’re not going to be benefitted much without someone acting as a representative. The presence of a professional ensures protection from the strict collection techniques employed by the IRS. Aside from that, you’re going to get the best solutions to your tax issues.
Tax debt options
The following five options can help you resolve your debt if you find making IRS tax debt repayments somewhat beyond your limits of affordability.
• Offer in Compromise – This is basically an agreement with the IRS that settles the debt for less than the original amount owed. The settlement is reached by making a lump sum payment or through a brief installment plan.
• Installment agreement – This agreement focuses on a monthly payment plan. In other words, you’ll have to pay the full IRS debt amount in monthly installments.
• Partial payment installment agreement – This agreement also focuses on a monthly payment plan, but only for a portion of the total IRS tax debt.
• Currently not collectible – This is actually an agreement from the IRS’s side. It emphasizes not making tax debt collections for a certain period of time.
• Bankruptcy – This is to ensure a discharge of all or just a specific portion of your IRS debts under Chapter 7 bankruptcy. Under Chapter 13 bankruptcy, it focuses on whether or not any payments should be made according to the ruling of the bankruptcy court.
Never forget to explore your options if you’re facing IRS tax debt. It is never without understanding the details of your problem that you’ll be able to get rid of your IRS tax debt. You’ll need to keep good track of the interests and penalties that the IRS is responsible for. Stay updated on all types of IRS collection efforts. This will ensure optimum protection from IRS liens, wage garnishments and levies. Take a prompt action as soon as you receive anything that hints towards a tax problem that you are likely to have in future.
Author Bio: Jack Hudson is a financial writer and he enjoys writing articles on global financial situation, tax notation, credit counseling, stock market, debt consolidation, debt settlement and mortgages along with other finance related topics. He is also associated with some online financial communities. You can follow us on https://www.facebook.com/debtconsolidationcare