Thursday, March 16, 2017

Finding An Affordable Tax Relief Plan Is Possible

By Virginia Adams


Most of Americans pay their taxes every year on time. These individuals may resent having to give the government money to spend as it sees fit, but they do it anyway. They know this is preferable to getting into a situation in which the Internal Revenue Service is sending notifications and threatening to take action unless the required debt is paid. You may think you have no good options when it comes to getting out of this kind of problem, but there is affordable tax relief available if you know where to look for it.

People fear the IRS for good reason. If you don't pay your taxes on time, you may end up paying penalties, interest and fines. IRA agents are more likely to audit you in the future. They have the power to garnish wages, which can endanger your livelihood. They have the ability to take your home and any other assets you possess. If they contact your bank, any money in your checking and savings accounts can be frozen and turned over to them within twenty-one days.

There are things you can do however to prevent some of this from happening. The most important thing you should do is to stay cooperative and communicate with them. It will not help your case if you ignore written notifications and hope the problem will go away. It will not. One of the most common methods of paying back taxes is by coming to an installment plan agreement with them. You will make monthly payments, much as you would with a credit card, until the debt is paid.

You may be able to negotiate a compromise with the IRS and pay back less than you owe by making a lump sum payment or paying the reduced amount over a short term. This compromise has the added benefit of saving you a lot of money in interest and penalties.

You may be able to prove you are currently unable to pay anything to the Internal Revenue Service, in which case you will become what is known as "not currently collectible". If this happens you may be able to buy some time and retain assets until you can work something else out.

Putting debt on a credit card may or may not be a good idea. It will probably depend on how much you owe and what your credit card interest rate is. There are settlement companies that claim to work with individuals. If you decide to use one of them, be sure to get all agreements in writing.

Under certain circumstances you can be relieved of your IRS debt by filing bankruptcy. You shouldn't file though unless you know you qualify under the bankruptcy code. When you're the spouse of someone who owes back taxes, you may come under the IRS's innocent spouse guidelines and not be held responsible.

The easiest way to avoid IRS problems is to file your returns, electronically if possible, and pay anything you owe. When you can't do that, let them know as soon as possible.




About the Author:



No comments:

Post a Comment