Are constant mail and collection efforts from the IRS bogging you down? Have you run out of possible options to pay your IRS tax debt and its running into tens of thousands? Trust me; it’s not the end of the world and you are not alone. ‘How to resolve my IRS tax debt problem?’ is a constant question hovering over many people’s minds.
How to Get Immediate Relief for Your IRS Tax Debt Problem
It may surprise you, but getting relief from your IRS tax debt problem isn’t as impossible as it seems. There are several ways to tackle this issue. Hiring an experienced enrolled agent, CPA or attorney is half battle won. It will save you the trouble of responding to aggression from the IRS or meeting the IRS agents or officers face to face.
A genuine tax relief firm will provide you with the following immediate benefits:
Curbing Enforcement Once you owe tax debt to the state and or IRS will resort to the easiest means of collection on an urgent basis. They resort to garnishment/levy of your paycheck, seizure/levy of your bank account and or property through tax liens. Once you hire services of a professional, they will protect you against any such possible measures. It is in your best interest to hand over this issue and save yourself from further draining out financially and emotionally.
Prompt Action It’s a must to act quickly in the event of an IRS summons. Postponement would only mean adding up to the existing tax debt in the form of penalties and interest. An experienced enrolled agent or a tax attorney exactly understands the gravity of your IRS tax debt problem and negotiates with the IRS at the first opportunity so that you get maximum relief.
What Are the Possible Ways to Resolve My IRS Tax Debt Problem?
An able professional tax associate will first undertake the following steps:
* Understand your financial position closely with the aid of all your financial and tax documents.
* Devise the most appropriate strategy to combat your IRS tax debt problem optimally.
* Liaise with the IRS on your behalf to shield you against any enforcement and negotiate to the best of their ability and appropriate to your case.
An ideal way to resolve your IRS tax debt problem would consist of one of the following approaches:
1) Offer In Compromise
Also referred to as the ‘OIC’ program at the IRS, this is a lengthy and tedious but a proven way to resolve your IRS tax debt problems. The process entails numerous formalities in the form of detailed questionnaires, written procedures and several rounds of negotiations. Under OIC, a taxpayer agrees to pay a certain amount to the IRS over a period of few months to 2 years, in lieu of which the IRS writes-off the balance of the taxpayer’s liabilities. However, there are criteria you must meet in order to qualify for the OIC program. If you do, you could possibly end up reducing 50% to 90% of your tax debt burden eventually.
2) Installment Agreement
IA or the Installment Agreement is a payoff program under which the taxpayer needs to pay a certain monthly amount to the IRS over a period of maximum 5-6 years. There are various kinds of IAs:
* SIA or Streamlined IA If the assessed payable amount is less than $25,000.00 and the taxpayer is capable of paying it off within 60 months, this monthly payment program can be made applicable. Fresh start program offers taxpayers with tax debt of up to $50,000 a similar option if the taxpayer qualifies.
* Conditional Expense IA This program applies when the taxpayer needs to continue paying for other expenses monthly viz. credit card bills, home or personal loans, and can still clear their tax debt within 5 years. The taxpayer will need to prove these additional expenses with the aid of financial statements.
* Stair-Step / Tiered IA Consider a case where a taxpayer is about to clear off a continuing loan or mortgage within a few months to one year. A stair-step IA can be made applicable under which the taxpayer needs to pay a certain amount for a year and then a larger amount subsequently in order to clear off the tax debt within 5 years.
* Traditional IA The subject pays up to their capacity as calculated in their financial documentation.
* Partial Pay IA Under this IA, the taxpayer needs to pay a partial negotiated amount to the IRS in the form of installments.
CNC means ‘Currently-Non-Collectible’. Rightly as the phrase suggests, this is a temporary measure to keep IRS from resorting to enforce collections. A taxpayer whose monthly expenditure exceeds their monthly income is deemed as the one suffering with financial hardships and can be issued this status with the IRS.
4) Penalty Abatement
Often the penalties imposed by the IRS due to failure in timely filing of taxes, exceed your actual tax debt amount. However, IRS grants one opportunity to prove your justification for the delay or failure rationally. An efficient professional enrolled agent or CPA makes apt use of this opportunity to file a legal, detailed petition to waive some or all of the penalties due to reasonable cause by proving your innocence and diligence in paying the actual tax amount.
Deciding the right course of action on How to resolve your IRS tax debt problem can be more challenging than it seems. Additionally, dealing with the IRS and facing the IRS auditor or officer can be quite intimidating. Mike Habib, an IRS licensed Enrolled Agent, is an eminent figure in the field of IRS tax issue resolution and has returned peace of mind to many families and smiles on hundreds of faces over the past years. When you call him at 877-788-2937, you not only lighten the weight off your shoulders but hang up with the assurance of leading a stress-free, respectable life ahead. Visit www.myirstaxrelief.com for a comprehensive idea about his work and service.