Finding ways to resolve tax debt can be highly stressful, and it can also lead to serious legal issues if you are unable to handle the situation in a timely manner. However, there are several techniques that you can take advantage of to help you clear your tax debt and remove the pressure that is associated with owing the IRS money. In fact, if you put at least one of these options in motion right now, you should be able to avoid the risk of having your wages garnished and receiving countless threatening letters from the IRS.
1. Work with a Professional
It can be extremely beneficial to consult with a company that specializes in assisting people with the process of dealing with their tax debt. In fact, anyone who owes more than $10,000 should definitely seek assistance from a qualified company instead of attempting to handle everything on their own. Additionally, these companies can provide instant stress relief for people who owe the IRS any amount. Working with a consultant will make it much easier to ensure that you utilize every program that you are eligible for to obtain tax relief from the IRS, and it can prevent wage garnishment.
2. Set up an Installment Plan
Although the IRS is very intimidating for most people, the reality is that they simply want each taxpayer to meet their financial obligation every year. Due to this, if you end up owing more money than you can pay by April 15, you should contact the IRS and ask them to put you on an installment plan to resolve tax debt. This is especially beneficial for people who only owe a few thousand dollars or less because it will enable you to get caught up while still having enough money to pay your other monthly bills.
3. Offer in Compromise Program
In some cases, taxpayers owe too much money to reasonably pay it off during an installment plan. If you are dealing with this situation, you might be able to settle your debt for a lower amount than what you owe by making a short-term payment plan or a lump sum payment for a reduced amount that the IRS deems acceptable.
4. Installment Agreement for a Partial Payment
Some people will qualify for an IRS debt management program that lets you reduce the amount that you owe while still enrolling in a long-term payment plan. This program is best for individuals who owe more than they can afford and do not have the option of negotiating a lump sum payment. Keep in mind that the reduction you receive through this program is likely to be less than what you will be offered if you can meet the offer in compromise terms.
5. Not Currently Collectible Program
The IRS is sometimes willing to voluntarily agree to temporarily hold off on collecting your debt. Most people who are approved for the not currently collectible program will be required to resolve their tax debt approximately one year later.
In some cases, an individual's tax debt is so unmanageable that they seek to have it discharged through Chapter 7 or Chapter 13 bankruptcy. However, filing for bankruptcy should always be a last resort because it will hinder your ability to do a wide variety of things for the next several years such as purchase a home or even get approved for an apartment. Instead, if you cannot figure out a way to manage your debt, it makes more sense to turn to a company that offers proven tax solutions and support throughout the entire process so that you can get the IRS off your back.
Lisa Coleman shares several successful ways a person can get help to resolve tax debt issues. She understands first hand how stress and financial debt can impact a person's overall well-being, and found using professionals to obtain tax relief from the IRS to be very beneficial.
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