Current Strategies to Use When Seeking Tax Debt Relief
There are times when an individual could find themselves burdened with a huge amount of back taxes. Understandably, this is a considerable amount of stress to face. Back taxes may be incurred due to miscalculations or failure to file a return from previous years. If the IRS has sent you letters with huge amounts of money requested in a short period of time, you may feel overwhelmed. You might think that you have limited options to pursue for tax debt relief, but this doesn’t have to be the case.
As tax regulations are continually changing, so too are the ways in which individuals can either reduce or make more manageable their back tax debt. Many find solace in the knowledge that there are options to get out of the headache-inducing mess they’d found themselves in. Read on for some options you could have when it comes to IRS debt relief. Such relief may allow you to find a solution that will work with your budget and get the IRS off your back.
Many don’t know that the IRS themselves offers payment arrangements and that your tax bill does not have to be paid in full, all at once. Of course, each arrangement is decided on individual merits and circumstances. Some of these types of debt relief arrangements are referred to as “installment agreements” and are very similar to receiving any other monthly bill. Taking advantage of this option allows you to negotiate a payment plan (not the amount of the bill) with the IRS that actually matches your budget.
Sometimes, significant tax miscalculations may have occurred. In the instance of a spouse being the guilty party, there is a process to provide the “innocent” or “injured” spouse some form of tax debt relief. If you find yourself in this situation, you shouldn’t hesitate in contacting a qualified tax debt relief professional.
The option called an “Offer in Compromise” is another way an individual can seek tax debt relief. This is the process whereby one can negotiate an overall reduction in the total amount that needs to be paid. This reduced payment is also subject to a payment plan that is an agreement to pay the reduced balance in a set period of time. This generally requires one to prove that they are unable to pay the total amount of their tax liability to the IRS. Ultimately, this agreement provides tax debt relief in the form of a reduced amount that is tailored specifically to fall within a taxpayer’s budget. This can really serve to reduce stress levels as it is a viable and manageable solution.