Do you feel like you’re in over your head when it comes to resolving your IRS debt? So many of us get behind on our taxes and never catch up. Going up against the IRS by yourself can be an intimidating and daunting task and there is no shame in looking for help with IRS debt. Few people use the resources that are readily available to assist them with their IRS debt. If left unchecked, your debt can cost you your wages, home, and assets. If you are struggling to find IRS debt relief, here are 10 helpful ways you can resolve your IRS debt and get back to financial stability.
The IRS is more patient than you might think, and an installment agreement means they get a payment (that you can handle) each month. The IRS carries the weight of the federal government—meaning they know they have the power to collect indefinitely so they aren’t in a hurry. Another reason is that the longer you take to pay back the IRS the more penalties they can add to your already existing debt. An installment agreement can be a great way to pay back the IRS at a rate that you can afford.
There are strict qualification requirements, but there are ways to get your total debt with the IRS reduced. Typically the IRS will only accept a compromise if they can’t collect more by traditional means of forced collection. If you need to settle IRS debt, an offer in compromise is a great way to do it.
Owe a significant amount in back taxes?
We can help you determine if you qualify for an Offer in Compromise.
If you can prove to the IRS that you can’t pay your tax debt without dipping below the basic standards of living, you might qualify for this special program. This won’t resolve your debt but rather defer it for a year or two while you get back to a financial position that would allow you to pay back the IRS.
File for Bankruptcy
Under Chapter 13 and 7 of the tax code, income tax debts may be eligible for discharge. Chapter 7 will allow a full discharge of the sum of your allowable debts—while chapter 13 will allow for a payment plan to repay some of your debt while the rest is fully discharged. Contact a tax specialist for help with your IRS debt before filing for bankruptcy.
If your husband or wife fails to pay their taxes and you have a joint income account, you may be able to relieve yourself of any debt from the IRS. As long as you fit within the IRS guidelines, you may qualify for Innocent spouse relief. This can be a viable way to settle IRS debt.
Depending on the kind of debt you have with the IRS, you may be able to have all of your penalties removed. This is something you can ask for during a settlement or offer in compromise. Typically the IRS isn’t going to wipe away your penalties without something in return, but done correctly, this can be a great way to reduce IRS debt.
When you’re in debt with the IRS they can start taking a portion of your wages to get back what they’re owed. Usually, a levy against your wages won’t happen until after your accounts have been frozen and the assets within them confiscated. The IRS can take a portion of your paycheck directly from your employer each pay period. If this is happening to you, it might be time to negotiate IRS debt relief. If you can prove to the IRS that you don’t have the funds to meet the basic standards of living because of the levy, you may be able to have the garnishment lifted.
When you owe back taxes to the IRS one of the first things they will do issue a notice to levy your bank accounts. 30 days after the final notice, the IRS will freeze your bank accounts. 22 days after the freeze, the IRS will take the funds that were frozen. These funds are nearly impossible to get back once they are taken. If you can, get your bank levy released before the bank hands over your funds—seek out a professional for help with IRS debt as soon as you receive your first notice from the IRS.
Receive a notice from the IRS? Not sure what to do next?
We can help.
From the start of the initial assessment, the IRS has a 10-year window to collect all of the back taxes that you owe. If you ever wondered how to get out of IRS debt, this is a viable option. Waiting out the IRS isn’t going to be your best option in most cases. However, with the help of an experienced tax attorney or specialist, you may be able to plan out a way to wait out the IRS.
Lump Sum Payment
Paying back your taxes in one lump sum can be a great way to get rid of any penalties and potentially reduce the amount you have to pay IRS. Paying back the IRS in one lump sum is going to save the IRS a lot of time and money on your case. It might be difficult to pay back what you owe all at once, asking a professional about help with your IRS debt can tell you if this is going to be the best options for solving your debt.
If you need help with IRS debt or you need someone to negotiate on your behalf, Community Tax has a team expert professionals who can help you resolve your IRS Tax problems quickly and efficiently. Don’t wait until the final notice from the IRS to seek out professional help for tax debt.