By Sean A. Kelly
IRS tax debt settlement is one of the debt relief options most sought for. The more number of head cuts and no hike in payments have increased the IRS tax debt. A close friend of mine, named Ken, had issues with the IRS on his tax debt. Ken had not been able to pay the IRS the money he owed them. Ken then met the professionals at tax resolution firms and was offered programs to help IRS tax debt settlement. The IRS debt settlement offers programs to repay the money owed by compromise or by partial payments. Ken signed for the partial installment agreement program and cleared the tax debt. Some help from the IRS tax relief attorney can solve the tax issues faster. These professionals may have experience and may be aware of the tax codes and laws. The professional can help IRS tax debt reduce faster. The IRS tax debt may usually be a difficult matter to ignore as the consequences of not paying the debt may be severe.
When the IRS tax debt is heavy, you may seek advice and offers from tax relief agencies to help in tax. There are several programs offered by the tax relief agencies to solve tax debt issues. Analyzing the situation and depending on the severity of the tax debt, a counselor of the agency can suggest to you different solutions to consider. The IRS debt relief programs have helped many solve their debt issues. A thorough study of all the available options and programs offered by the tax relief agency may help choose the best one solving your tax issues. The IRS tax debt relief programs include offer in compromise, installment agreement in partial or full payment, currently not collectible and bankruptcy.
The Offer in Compromise program may help individuals with heavy financial hardship. The tax payer may have to prove the inability to pay back the tax debt owed. The proof may include the assessing of monthly income and expenses, and the assets of the person. If the assessment proves that the person may not be in a position to settle the debt, he will be qualified for the program. If the assessment tells that the tax payer can still pay back the tax debt, in spite of the financial hardship, an installment agreement can be sought. The tax payer can try to qualify for an installment agreement. The installment agreement may usually offer the person 5 years to pay back the debt. Sometimes, if the person owns assets, he or she may not qualify for an offer in compromise program. The person may then apply for currently not collectible program (CNC). The currently not collectible program may help if the person has owned assets but low cash flow. If the monthly income is too less to pay back the debt, this program may help. Bankruptcy may be the last option any agency may suggest to its clients. Heavy debts that can’t be cleared by any pf the offered relief programs may be discharged under bankruptcy. But, filing for bankruptcy may have serious effects on the person’s credit reports.
Many tax relief agencies and tax resolution professionals also provide advice and give suggestions to help with back taxes. Many people, who have not filed their income tax papers, have been able to clear the tax debts with the help of these professionals. The complexity and severity in actions taken by the IRS on collecting tax debts have always been higher. Generally, it is considered wise to seek help from tax resolution professionals to clear the tax debt faster.
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