Finally Settle Your Debt with the IRS: 5 Must-Have Tips from a Tax Pro
Tax debt can extremely stressful and touch all aspects of your life. It is very difficult to shake free of the worry when you have the constant concern that you do not know how you will pay, or whether you may finally get that dreaded note from the IRS.
So as the annual tax deadline approaches this year, you may be thinking that it is finally time to settle your tax debt with the IRS, once and for all.
If you are ready to break free from your tax debt, here are some of your most viable strategies — straight from our tax professionals!
1. Personal Payment Options
If you have not done so already, you may want to look into whether there are any personal payment options available that will allow you to pay off your tax debt.
Often times, putting a portion of the debt on a credit card or taking out a home equity line of credit or personal loan may, in fact, accrue less interest than the interest and penalties that are charged by the IRS.
2. Installment Agreement
Another option is to request an installment agreement from the IRS, which allows you to pay your tax debt over time instead of in one lump sum.
The IRS is very likely to grant you an installment agreement if you owe less than $50,000 and you are up to date filing your returns.
You can make the request online or with the help of your tax professional. Just keep in mind that you will still be responsible for penalties and interest due.
3. Offer in Compromise
An offer in compromise actually settles your tax debt for a lower amount than what you actually owe.
You must prove to the IRS that you are unable to pay the full amount and provide significant documentation to justify the request.
The paperwork for an offer in compromise request is complex and time consuming, so it may be wise to team up with a tax professional to make sure that your application is strong and has the best chance of being considered.
4. Filing Bankruptcy
There are some (fairly limited) circumstances in which the IRS may discharge your tax debts if you have filed Chapter 7 or Chapter 13 bankruptcy.
This is not guaranteed, however, and you should consider enlisting help from a bankruptcy attorney and/or a tax professional to help you navigate through this difficult process.
5. Get Support
Deciding how best to manage a significant tax debt is complicated and serious. You may decide that you need help reviewing old returns and deciding whether you might qualify for an installment agreement or offer in compromise.
A reputable tax professional can review all of your documentation and help determine the best course of action for you and make recommendations for getting rid of your tax debt once and for all.
If you are looking for an experienced team of tax professionals who can help free you of your tax debt, give Success Tax Relief a call at 1-877-958-6638.