Finding out you owe a large sum of money to the IRS in the form of back taxes can be heartbreaking to say the least. The IRS has no issues implementing wage garnishments, property liens and even property seizures to get the money they are owed. The good news is that you are not alone and there are realistic options available to you. Below are some explained options and how to get assistance.
There are many federal programs designed to help tax payers who are in over their head with tax debt. If you owe a substantial amount of back taxes and are in dire straits, you may be eligible for some type of settlement. The Offer in Compromise program is a popular method where the IRS determines your ability to pay by examining your entire financial situation. Your tax debt might be reduced if it is determined that you qualify.
IRS Tax Settlements
The IRS has federal approval to settle tax debts if they deem it appropriate and necessary. The process is complex and is not broadly advertised by the IRS. There are many forms and documents to complete and process so it is advisable to get some assistance if you choose this method.
It will be difficult if you decide to pursue this on your own. Remember, the first priority of the IRS is to obtain the full debt and settle for nothing less. They will not make it easy for you if you do not fully understand the process and your rights under the process.
Get some assistance since there are many methods that can be used to determine your tax responsibility such as Income Averaging Relief, Injured Spouse Relief Program and Federal Tax Amnesty. Each scenario has its good and bad points and one or the other may put you in the same or possibly worse position than when you started. If you feel you are in over your head and will not be able to deal with the IRS on your own, seek assistance. Experts like the Hillhurst Tax Group will ensure that your tax dealings get taken care of.
There are numerous programs and organizations that specialize in lowering tax debts. Professionals know the process, how the IRS works and can get the best deal. What you should not do is wait to take action. This will only increase the likelihood that your debt will get larger and will end up making the process more complicated.
In conclusion, it is very important to note that IRS reinstates its aggressive collection efforts once a taxpayer’s IRS debt has crossed the $25,000 mark. The IRS does not even allow such taxpayers to pay those amounts in 5 years. As a result of this aggressive attitude, many taxpayers are left with only a minimal amount of money to use them for daily essential expenses.