Getting Help with State and Federal Tax Debt
Do you have tax debt that you are unable to pay?
You may have options for getting help with your state and federal tax debt without ruining your credit and overall financial outlook. The Internal Revenue Service (IRS) has put some new programs in place to help taxpayers manage their debt effectively and avoid tax liens. The Fresh Start Initiative was first introduced several years ago with the goal of helping struggling taxpayers. Here are some of the key components of the program and how it might help you:
- Installment Agreements: The IRS has made installment agreements available to more taxpayers who owe back taxes to the IRS. So, instead of having to pay your debt off in one (large) lump sum, this program allows you to pay that debt off in lower monthly payments, over the course of several years. You can request an installment agreement for up to $50,000 without having to provide the IRS with a detailed financial statement, and you will now have longer to pay the debt off when you are approved for one of these streamlined installment agreement (72 months instead of 60 months). While you are still responsible for penalties and interest, an installment agreement is exactly what many taxpayers need to get out from under the burden of tax debt.
- Offer in Compromise: If you are under financial hardship and are unable to pay the full amount that you owe the IRS, you can also apply for what is known as an Offer in Compromise. This program settles your debt with the IRS for less than you actually owe, based on what you can actually afford to pay. The Fresh Start Program still requires a significant amount of financial information in order to grant an OIC, but this has become a bit easier as the threshold has become more flexible overall.
- Unemployed Penalty Relief: If you are without a job, you may be able to have some of your penalties waived that have been added to your actual tax debt. To assist those most in need, the IRS now provides a six-month grace period on failure-to-pay penalties that can be made available to certain wage earners and self-employed individuals.
What Should I Do If I Have Tax Debt?
If you have state or federal tax debt and need help navigating the waters with your state agency or the IRS, you may want to consider partnering with a tax firm that has experience helping taxpayers take care of their debt. Success Tax Relief understands the burden of tax debt on an individual or a business and can help you figure out your best path forward. Our team can help you apply for an installment agreement, an offer in compromise or find out if you qualify for another tax relief program offered by your state or the IRS. We help taxpayers just like you get out from under tax debt once and for all. If you would like to learn more, call our team for a free consultation today at 877-825-1179 or contact us online today!