Many find themselves in the dark dilemma of how to get rid of tax debt when they tend to get behind on tax money and start owing to the IRS. Dealing with IRS can be frustrating, time-consuming and intimidating. An IRS tax debt on you can give the IRS officials the power to seize your assets, get your wages garnished and even place a lien on your property. All of these threats make it imperative for you to get rid of tax debt.
Best Tips on How to Get Rid Of Tax Debt
The best way to get rid of the tax debt is for you is to hire a tax attorney. There are various ways in which you may be unaware of that can assist you in negotiating and reaching a settlement with the IRS. However, a tax lawyer is well versed with it and can present you with attainable solutions to help you get out of debt. Below, are some helpful tips and solutions to get rid of tax debt.
#1 Get Rid Of Tax Debt with Installment Agreements
The IRS can be quite liberal and co-operative if you know the proper protocol. The IRS gets its power from the federal government which means that they have the right to collect tax from you indefinitely. If your IRS tax debt is $50,000 or less and you do not have sufficient funds to clear the debt, you can take the help of a tax lawyer and get yourself qualified for an installment agreement. This facility is also available online. Here, you pay your taxes in installments that you can comfortably afford. This plan is immensely popular as it is a hassle-free and low-cost method. Its set-up fee is lower than most other ways, and you can effortlessly get rid of your tax debt. Moreover, it frees you from all woes and stress of reminders, emails, checks to be written, missed payments, etc. You also get rid of the IRS trying to take control of your salary, property, etc.
#2 Get Rid Of Tax Debt with Offer in the Compromise Agreement
Sometimes your tax debt is so high that you feel it wouldn’t be possible ever to pay it if you pay the entire amount; you will lose your financial stability. In such a situation, an experienced tax lawyer can help you get a tax debt relief under the offer in the compromise agreement. Under this agreement plan, you can negotiate with the IRS officials and settle your tax debt by paying off a lesser amount than you owed. It is not open to all, and there are several qualifying factors involved. There is an online Compromise Pre-Qualifier tool on IRS.gov which helps you know if your chances of qualifying for this program.
Tip #3 Get Rid Of Tax Debt by Declaring Not Currently Collectible
You might be amidst a financially hard time. If you pay your taxes at this time, your lifestyle might dip below the basic standards of living. If you manage to showcase this fact to the IRS; they defer your debt to a year or two. It gives you time to get financially sound and then repay your tax liabilities.
Tips #4 Get Rid Of Tax Debt by File Bankruptcy under Chapter 7 Or 13
Filing for bankruptcy is another way to get rid of your IRS tax liabilities. This method can be implemented if you’re not finding a solution on how to get rid of tax debt. If you file under chapter 7; you get tax debt relief of your entire amount, i.e., you need not pay a single penny. Under chapter 13, you pay a partial amount, and the rest is discharges for you. Before you file for bankruptcy, it is vital that you consult with a tax attorney specialist.
Tips #5 Get Rid Of Tax Debt with Penalty Abatement
Depending on various factors like your financial condition, kind of debt, etc. you can get a tax lawyer to negotiate with the IRS on your behalf and get your penalties wiped off by offering something else legitimate in return. If done right, this goes a long way in helping you get out of IRS debt.
Tips #6 Get Rid Of Tax Debt Innocent Spouse Relief
Sometimes, a couple has a joint account, and one of the spouses fails to pay their tax. In case you are meeting the IRS guidelines, you can qualify for a tax debt relief under this program.
Tips #7 Get Rid Of Tax Debt by Utilizing the Wage Garnishments Program
Under the wage garnishments program, the IRS takes a portion of your wage directly every month to recover their debts. Wage garnishment usually happens after your accounts were frozen and your assets confiscated by them. In such a situation, you can negotiate with the IRS for tax debt relief. An experienced tax lawyer can get the garnishment lifted for you with ease.
Tips #8 Get Rid Of Tax Debt With an Expired Statute Of Limitations
From the day of your tax assessment, the IRS has a 10-year window during which they have the power to collect all back taxes from you using all legal means and power provided to them. Waiting out this period can be quite harsh and challenging, but an experienced tax attorney might pull it off for you.
Unsure How To Resolve Your Tax Problems? Call Us
You now know how vital a tax attorney can be in helping and advising you on how to get out of IRS debt. Seek our professional help today before the matter gets out of control. CALL US TODAY for a free consultation.