3 Ways to Settle a Large Tax Debt
In 2016, the Internal Revenue Service (IRS) estimated that more than $450 billion went unpaid in taxes. That is a staggering number that translates to millions of Americans holding onto an unpaid tax debt. There are many reasons why an individual (or a business) might not pay their taxes on time—some of the most common reasons include being too busy, having an unexpected and/or disruptive life event (death in family, sudden illness, move, etc.) or simply not having the money. Regardless of the reason for the tax debt, it’s important to focus on the best way to settle your debt before the IRS moves forward with additional penalties, wage garnishments and/or putting a lien on your property.
Here are 3 common options for working with the IRS to resolve your unpaid tax debt once and for all:
- Offer in Compromise: In some cases, when you cannot pay your tax debt, the IRS can settle your debt for less than the amount you owe. There is an extensive application process to request an Offer in Compromise and you should be prepared to provide details about your financial situation. There is a $150 application fee to file for an offer in compromise.
- Installment Agreement: An installment agreement allows you to pay your tax debt off in installments, rather than in one lump sum. This can be more manageable for individuals and businesses that do not have the full amount at the time that taxes are filed. You are still responsible for paying the total amount (and any interest and penalties) but the IRS may let you make monthly payments to resolve the debt.
- Temporary Delay: If the IRS determines that you are unable to pay your tax debt, they might be willing to delay your bill. During this delay, the IRS will monitor your ability to pay and may even file a notice for a tax lien to protect their interests.
What If You Cannot Pay Your Tax Debt?
Each of these tools can help you settle a large tax debt. However, deciding which to pursue based on your unique set of circumstances and completing all of the necessary paperwork can be overwhelming. The team at Success Tax Relief can help you determine the best course of action for your situation and can help you submit accurate and complete paperwork so that the IRS will consider your request. In addition, our team can take over all communication with the IRS if you have received any written notices or letters indicating that they are aware that you owe back taxes.
Tax Debt Relief
If you have a large tax debt, it is very tempting to ignore it for the moment, and hope that you will find a way to resolve it in the near future. But, every single day that you wait will complicate your issue further. It is always best to get out ahead of the situation. Failing to file your tax return and failing to pay your debt will always eventually be noticed by the IRS. While it may take them some time to reach out to you, the clock is ticking and you are accruing both interest and penalties. Let our team help you take control of your tax situation once and for all. We understand the stress involved and will work to minimize the impact on you. Call Success Tax Relief today at 877-825-1179 for more information or contact us online.