Irs Debt Relief
IRS debt relief is essentially an umbrella phrase for many programs which assist you in paying your tax owed to the IRS, including IRS debt consolidation services and other third-party tax settlement programs. IRS debt consolidation services are offered by professional tax resolution firms who handle such cases every day. Tax debt settlement programs are also offered by individual tax attorneys, although these are not as common. If you do not settle your taxes by the April deadline, you are liable for prosecution. The IRS can issue liens, levy your wages, and even take away your civil service, if you are not settled. It may be helpful to have an IRS representative explain the different options available to you on how to settle your IRS debts. The process varies greatly from case to case, and there are several ways to resolve irs problems. In some cases, you can settle your IRS debt by paying it in full. In other cases, you may be able to settle your tax obligations through a form of partial payment, known as an Offer in Compromise (OIC), or through installment agreements. Finally, in some tax cases, you may be able to settle your obligations through a full court hearing, known as a federal bankruptcy petition.
Ways to go about irs debt relief
Bankruptcy is a complex process, so it would be inappropriate to discuss this matter in general terms. However, if you have enough financial resources, you may be able to avoid bankruptcy and retain your assets by working with a qualified bankruptcy lawyer. If you are unable to do so on your own, you should contact a tax debt forgiveness professional immediately, in order to obtain the necessary legal guidance and assistance. You may be eligible for bankruptcy prevention, which is a benefit of filing for bankruptcy in some cases. Before taking this step, however, you should discuss your options with a qualified bankruptcy lawyer. Many taxpayers face problems with their U.S. tax obligations because they failed to understand the implications of tax laws. Often, these individuals do not fully comprehend the difference between income tax liability and taxable income and fail to make the proper provisions in their budgeting and financial management plans to ensure that they don’t fall into a financial hole during tax season. On the other hand, some taxpayers seek tax debt relief because they realize that they must pay their taxes but simply cannot afford to do so. In either case, there are numerous options available to taxpayers seeking help with their tax obligations. Among these options are:
Tax Debt Relief through Chapter 7. In a tax debt relief program, a taxpayer may agree to repay a portion of his or her liability in return for a discharge of certain tax liabilities. If the liability is within a specified amount, the IRS will generally require the taxpayer to pay the full amount of the liability within a specific time frame, usually after the end of the calendar year in which the liability was accrued. A taxpayer may also request a discharge if the liability is within a specified amount and the taxpayer has not repaid the amount in full within a designated period of time. Tax Debt Relief through Chapter 13. In a tax debt relief program, a taxpayer may also agree to settle part of his or her liability in return for a discharge of certain tax liabilities. If the liability is within a specified amount, the IRS will generally require the taxpayer to pay the full amount of the liability within a specified time frame, usually after the end of the year in which the liability was accrued. In the case of a tax debt relief company, a creditor may also be permitted to recover part of the deficiency. However, if the settlement is arranged through an individual, the IRS may only require that the settlement is settled for an amount that covers the deficit.
Tax Debt Relief through Payment Plan. If you do not want to go through the formalities of an Offer in Compromise (OIC) or have other problems associated with an Offer in Compromise, you may use IRS tax relief companies help to come up with a payment plan. These companies will negotiate with the IRS on your behalf and work out a plan for you to repay your dues within a specified time frame. The IRS will issue a notice informing you that you have not made any voluntary payments and that a balance of your unpaid taxes will be owing to it. The IRS will then give you a deadline to make payment arrangements. Installment Agreements. If you cannot afford to pay your taxes on time, you can try to come up with an Installment Agreement (IA). Installment Agreements is like monthly installments that you pay to the IRS instead of waiting until the full amount is due. You must be aware that in such agreements, the IRS is allowed to impose late fees and penalties. Before entering into an Installment Agreement, make sure that you understand all the terms and conditions set by the IRS. It is wise to consult a professional IRS debt relief company if you are not confident about negotiating an Installment Agreement.