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How Much Tax Debt Should You Have Before Getting Help?

How Much Tax Debt Should You Have Before Getting Help?

By on Oct 8, 2015 in Debt Relief, IRS, Offer in compromise, Tax Resolution | 0 comments

4 Ways to Incite an IRS Audit on Your BusinessHow much tax debt should you have before getting help? The chances are if someone is asking that question, then they might want to consider seeking the assistance of a tax relief consultant right away! Ideally, it’s best to have no tax debt at all. However, some issues cannot be helped. Whether you are operating a business or life’s challenges have caused you to somehow get behind on your taxes, there are some solutions for anyone who has found himself or herself in debt to the Internal Revenue Service (IRS).

Short-Term Extension

There are two ways to immediately know if you owe the IRS or not: 1) Don’t file your annual taxes and 2) After filing, your tax preparer will inform you whether you are getting a refund or you owe the IRS.

If for some reason, you end up owing the IRS and discover that you are unable to pay the full amount, it might be helpful to request a short-term extension. This is different from requesting an extension to file your taxes—it’s important to understand that these are two different things. Be sure to inquire about the 120-day extension to pay your taxes. That is, if you know that you are able to pay the debt within four months. Otherwise, you might want to explore other options.

Offer in Compromise

An Offer in Compromise (OIC) is an option that is rarely granted by the IRS, but nonetheless, it is an option! An OIC is an agreement between the taxpayer and the IRS for the taxpayer to pay an amount that is less than what they owe. So it is certainly worth applying for to find out if you qualify! However, there are some stipulations that are ultimately up to the IRS to determine.

1. The amount of taxes owed can be reduced if the IRS believes that paying the full amount would result in undue hardship for the household.
2. If there is legitimate doubt that you actually owe the amount that the IRS says you owe.
3. If the IRS believes that the debt is uncollectible.

Everyone would like to believe that they qualify for these three points. Yet again, it is up to the IRS to scrutinize and decipher if a taxpayer legitimately meets the criteria. After all, they also give taxpayers the option of making monthly payments.

Set Up Monthly Installments

The IRS has been known to accept bi-weekly payments as low as $25. So the chances of someone being accepted under the OIC payment plan is slim.

Arranging monthly installments with the IRS is not difficult. It is just best to be organized before contacting them. There is also the option of just seeking the assistance of a tax relief service to consider!

Call Success Tax Relief to Get Out of Debt!

Our company has been working with taxpayers for more than 30 years. We specialize in communicating directly with the IRS on our client’s behalf. If you owe the IRS, we can assist you. Get the process started by contacting us online or calling 1-877-825-1179.

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