Best Tax Debt Relief Options
There are lot of individuals and businesses that are in tax debt. With tax debt, they will be facing a situation that can result in financial distress. While this might seem overwhelming, there are plenty of solutions available for those who are in tax debt. Both individuals and businesses are able to take advantage of many tax debt relief programs. Taxpayers who are in debt can use tax debt services which will provide them with the tax debt help that they need.
Installment Agreement
One of the first options that you can take advantage of when looking for tax debt relief is an installment agreement. This is an arrangement where you agree to pay the IRS a certain amount of money each month until the tax debt is paid off. You will need to fill out some forms and then submit them to the IRS. It is important to provide the IRS with all relevant information about your financial situation. Upon approval, you will be able to make affordable monthly payments for span of three to five years and eliminate your tax debt. This is usually the first solution to getting tax debt help.
The installment agreement is beneficial because it allows you to pay off your tax debt over time. Instead of having to pay a lump sum, you will have the opportunity to make small payments on the debt during a span of up to five years. This makes paying tax debts much more affordable and manageable for most taxpayers in tax debt.
Offer in Compromise
Another way to get tax debt relief is to submit an offer in compromise. This is a proposal in which you offer to pay the IRS a portion of your tax debt and have the rest of it forgiven. This works by informing the IRS about your debt and then agreeing to pay them about one fifth of the total tax debt so that you won’t be liable for any more debts. In order to get an offer in compromise, you will usually have to first use the installment agreement.
There are some benefits to the offer in compromise. One of the main benefits is that it allows you to pay an amount of taxes that is lower than what you originally owed. You are able to get a significant reduction in the amount of taxes owed with this option. An offer in compromise also benefits you by eliminating wage garnishments and levies of your assets. The offer in compromise will save you a lot of money and allow you to get out of tax debt more quickly compared to the installment agreement.
Other Tax Debt Relief Options
If you are in tax debt and need immediate relief, you will benefit by consulting with a tax attorney. They will be able to help you in a number of other ways. Tax attorneys can help you with tax debt relief by providing IRS audit defense, providing wage garnishment resolution, remove levies and also make a claim for tax debt that is not collectible. All of these options will allow you to maintain your income, pay off your tax debt, minimize interest payments and also avoid getting valuable assets such as your retirement accounts, bank accounts, cars, and house levied.
