When you owe the IRS it can be a very frightening experience. Just hearing the words IRS and Taxes can stress people out. No one wants to owe back taxes, no one plans on having this kind of debt, but it is a reality for many Americans. Most are frozen and do nothing out of fear and intimidation. That no longer needs to be the case! You do have options. The IRS wants to help taxpayers get caught up and be done with this kind of debt.
A few of the options available to those that owe back taxes are:
1. Installment Agreements: You and the IRS decide on a monthly payment. The amount is based upon your income; therefore it will be affordable and not destroy your budget. This will allow you to pay over time instead of having to come up with the lump sum amount.
2. Offer in Compromise: You can prove that you are unable to pay the current balance owed to the IRS today and in the near future. This requires detailed financial records and statements. Once proven a new lower amount can be agreed upon. This could save you thousands upon thousands of dollars!
3. Discharge of Back Taxes in Bankruptcy: You are now allowed to have your back tax debt discharged in your chapter 7 or chapter 13 bankruptcy cases. This new option has very specific requirements and criteria that must be met in order to qualify. However, if you do qualify your entire back tax debt could be eliminated in full!
These are just a few of the options that are currently available to assist you with your back tax debt. Depending upon your specific, unique situation, there may be many others! It is important to contact a reputable tax professional to assist you in determining which options suit your situation. The tax professional can also act as your representative when dealing with the IRS. Just make sure to do your homework and make sure whomever you decide to hire is reputable and knowledgeable about the new tax laws.
Owing the IRS is overwhelming but you should never procrastinate on taking steps to resolve this debt. Remember that the IRS adds penalties and interest to your balance daily! Your debt could triple in a very short time if you do nothing! Contact a tax professional today and avoid severe penalties later!