Resolving Tax Debt

Resolving Tax Debt

Sep 26

Do you owe the IRS more that you can afford to pay right now? Are you concerned about wage garnishment or seizing of assets? Tax debt resolution is a topic that can be stressful and intimidating for the individual that needs the relief now. Basically, this is a program where you can settle your tax debts for less than what you owe. It requires that you make a lump sum or short-term payment to pay off IRS debt at a reduced amount.

While it is possible to represent yourself with the IRS, you can also get professional tax help with a tax attorney who specializes in tax relief. Most individuals seek the assistance from an attorney since the IRS could potentially garnish wages, place a lien on property, or seize assets. However, by communicating timely with the IRS, most of these actions can be prevented, as the IRS is typically willing to work with taxpayers. Yet, the longer you take to pay off your tax debt, the more you can owe to the IRS.

Numerous options are available to settle IRS tax debt. You can set up a monthly payment agreement, or installment agreement, with the IRS. A second option is where you can set up a partial payment installment where you pay off your debt monthly at a reduced dollar amount. Your tax debt attorney can negotiate the lowest possible monthly payment for your individual needs. A third option is where you can settle your tax debts for less than what you owe, with a lump sum or short-term payment plan. This option can save you thousands of dollars in taxes, penalties, and interest.

Additionally, if the IRS can receive evidence that the taxpayer cannot pay on his or her taxes right now, the IRS can set up the consumer with a program where the IRS would not collect on the tax debt for a year or longer. This action can be most helpful because you can file for a collection appeal to stop an IRS levy, lien, seizure or the denial or termination of an installment agreement. This can give the taxpayer the opportunity to explain his or her situation and prevent a possible IRS levy or seizure.

If you do owe the IRS, the debt can cause your wages or federal payments to be levied until the debt has been fully paid off or the time has expired for legally collecting the tax. Additionally, the IRS can issue a bank levy to take cash in savings and checking accounts. So, it is important to communicate with the IRS regarding your debt. The IRS has ten years from the date of assessment (typically close to the filing date) to collect all taxes, penalties, and interest from you. Your tax debt relief attorney is informed on these matters and can assist you in focusing on your individual financial situation with the IRS. A specialist in tax relief can assist in determining the best possible resolution to your tax debt.