IRS Tax Relief Programs: Best Ways to Start Paying Off Your Debt
The Internal Revenue Service (IRS) estimates that well over 8 million Americans owe back taxes to the IRS. Are you one of them? If so, it’s wise to consider how you are going to pay off your debt, as the IRS is not likely to forget that you owe them money. The best approach is to apply to a current IRS tax relief program that can help you start paying down the debt so that you are not the subject of a further investigation that could lead to a levy on your property or even a charge of tax evasion.
Here are some ideas about how to face your tax issues head on and get out from under debt once and for all:
Requesting an IRS installment agreement essentially allows you to pay off your back taxes over a period of time, instead of all at once. An installment agreement works very much like a credit card. You make a monthly payment that includes interest and penalties, and over the course of several years, you pay off your debt. The IRS is fairly willing to approve installment agreement requests.
You can now apply for an installment agreement online if your debt is less than $50,000 and if are up to date on filing your returns. Keep in mind that there is a small fee for applying for this program and you will still be responsible for paying interest and penalties. Also, make sure that you make your installment agreement payments on time to avoid further problems penalty fees.
Offer in Compromise
If you have a financial hardship and cannot afford to pay your debt to the IRS, you can request what is called an Offer in Compromise. The IRS will consider your income, assets, and debts when they determine if you qualify. So, you will need to be prepared to show detailed financial information in order to be considered. The IRS recommends that you explore other options for payment before an Offer in Compromise. You can find more information about the application process here.
Request More Time
If you cannot pay your taxes right away and need a short-term solution until you have the money, you can request more time to pay your taxes. If you just need a small amount of time to pay your taxes, then you can make the request directly to the IRS. It is possible to be granted an additional 60 to 120 days to pay the tax debt in full. If that happens, you generally will pay less in penalties and interest.
Which IRS Program Is Right For You?
The IRS offers workable solutions to help taxpayers get back on track and pay their overdue taxes. If you need help determining which solution is best for your situation, call the team at Success Tax Relief today at 877-825-1179. Our tax relief specialists can review your tax information carefully and make a recommendation for a path that will help you pay off your tax debt once and for all. Contact us online today!