Lots of people owe money to the Internal Revenue Service (IRS). If you’re in the same boat, you may find that owing money to Uncle Sam creates quite a bit of stress and psychological turmoil.
After all, the government has a lot of rules about taxation and they don’t take kindly to those who don’t pay their outstanding tax bills. In fact, they have ways to get money, such as garnishment, when tax bills aren’t paid. However, there are more options than finding the money and paying off the full amount owed. This is why we’re going to talk about IRS debt relief today.
We want to help out by showing you the best strategies for dealing with IRS bills. Once you know more about IRS debt relief, you’ll be ready to put together a plan of action which helps you to access a brighter financial future.
You May Be Able to Bargain
You may consider the IRS to have many things in common with other types of lenders. In other words, the IRS wants to get money from those who owe and its representatives may be willing to cut deals in order to allow for some IRS debt relief, while also getting paid at least some of what is owed.
For this reason, we want to let you know that you may create an Offer in Compromise which allows you to access a payment plan that works for you. Some people get legal assistance with creating Offers in Compromise and you may want to also. It’s one possible way to avoid liens and levies of assets, which may severely impact your current finances and lifestyle.
However, you don’t need a lawyer in order to create this type of offer. It is possible to do it yourself. Just do some homework and research before you start, by visiting official IRS resources online and then finding out how the Offer of Compromise works and who qualifies for this helpful IRS debt relief service.
With this type of offer, you and the IRS will come to an agreement which allows you to pay a lower amount than the total which is owed. It’s possible to make payments in lump sums or to pay via installments. Lots of people have gotten out from under tax debt with this strategy. When the offer is accepted by the IRS, you’ll have the opportunity to pay less and/or to pay according to a timeline which is more convenient for you.
You’ll need to meet certain criteria in order to qualify. For example, the government’s tax mavens may need to determine that you likely won’t be able to pay off the full balance due to your financial circumstances. Also, if there is question as to whether or not the tax debt is legitimate in whole or part, the IRS may be more open to compromise.
The Offer in Compromise is really the best way to move forward. While there are no guarantees that an Offer in Compromise will be accepted, there is a chance that it will be. If it is, you’ll find that payments are more manageable and that your overall balance owed goes down.
Ask a Financial Consultant for Help
Another strategy is to reach out for help from a debt relief specialist. This type of financial expert should have the chops to help you devise a plan for contacting the IRS and trying to arrange for a payment plan. He or she may also help you to avoid the types of financial problems which led to an unpaid tax debt in the first place.
One example is a consolidation loan, which places all unpaid debts to creditors under one convenient loan, which you pay monthly. Usually, these loans carry lower rates of interest.