subject: Which Tax Debt Solutions Can I Apply For [print this page] There are many reasons why you may get behind with your taxes. Many people who find themselves in this situation are not able to pay the debt off in one go. If you are in this situation there are some tax debt solutions available that you can apply for which can help you to pay it off. What you are eligible for depends entirely on the amount that you owe, what your current financial situation is like and if you have any penalties applied to your debt.
One way to get rid of your debt to the IRS is to make an Offer In Compromise. This means that you offer to pay a lower amount than what you owe. If accepted you pay this amount and guarantee to pay all your taxes for five years. You will need to sign a formal contract stating all of this which can be negotiated for you by a tax specialist.
Unfortunately less than 1% of these are actually accepted. The IRS will only ever accept this as a method of clearing your debt if they have reason to believe that you will never be able to pay your debt in full. For this reason an Offer In Compromise is usually seen as a last resort when all other options have been exhausted.
Another thing a tax specialist can help you with is Tax Penalty Abatement. Sometimes charges or penalties will be applied to your debt if it has gone unpaid for a certain amount of time. As this is done by a computer and the charges are added automatically there is the possibility that they could be added by mistake or at an inaccurate amount. If you believe penalties have been placed on your account in error then you can fight to have therm dismissed.
If your IRS debt has been overdue for a very long time then they may take action to reclaim what they are owed. This could include applying a liens or wage garnishment. If these are applied to you then you may find yourself struggling to make ends meet. If this situation applies to you then a tax specialist will help you apply for a Wage Garnishment Release. Depending on your situation it may be possible to halt all collections by the IRS.
An option which may be appealing to you is the IRS Payment Plan. A tax specialist could help to negotiate this for you. This is a good option if you are not able to make a lump sum payment. There are three types of payment plan. One is an IRS Tax Loan. You can apply for a loan which goes straight to pay off your debt. You then make monthly payments back to the bank.
If you just need some more time to pay then you can apply for a Short Term Payment Extension. You can receive an extension of a minimum of 10 days and a maximum of 120 days. However you will still need to pay interest and late fees. There is also the option to pay back your debt pay installments over a maximum of 60 months.
If you find yourself behind on your taxes then you should not despair. There are many solutions that are there to help you change your situation. You need to do your research so that you know which solutions are applicable to you. A tax specialist can do this for you and also help you to achieve a solution.
by: Gregg Kell..
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