Tax debt relief – What are your options
It is seldom that people like to fall behind on their taxes and pile up there tax debt knowingly, but there are times when your financial condition does not permit you to remain current on your taxes. If you allow it to linger on for quite some time, you are bound to be in a financial mess sooner or later. Currently, if you are an individual who is facing such a situation and would like to come out of it, you can try out anyone of the IRS tax debt relief options that can offload the tax debt burden from your shoulders. Let us delve deeper into the tax debt help options that can be of help to you.
Regardless of the tax solution you opt for, you can manage your income tax debt either on your own or with the help of an experienced tax professional. These are the possible ways of tax debt settlement that are hassle free.
Tax debt relief options – Take your pick
Generally speaking, there are 5 options that are available to a tax payer who has fallen behind on taxes. These are as follows-
Offer in Compromise – This comprises an arrangement plan with the IRS or Internal Revenue Services, and you wherein, you will be required to pay much less as compared to what you are supposed to pay. You make the payment as a lump sum. You will follow an installment plan for a short time span.
Partial Payment Installment plan – You will have to pay every month for half of the tax amount.
Installment Agreement- In this tax solution, you will have to shell out every month part of the entire IRS tax debt you owe.
Currently –not- collectible – Let’s say you are facing problem at the moment and it will not be possible for you to make any payments towards taxes of IRS, all you do is communicate your inability to pay the taxes to the IRS for a stipulated time period.
Bankruptcy – Decision is provided for IRS related debts, under Chapter 7 Bankruptcy law, entire or part of the IRS debt may or may not be discharged.