The tremendous economic decline the country is now experiencing has caused intense difficulties for many persons in the U.S. For folks in pursuit of IRS debt relief because of an out of control tax bill, the effort is even more trying. The positive side of all of this is that the IRS has stated that they are going to be much less strict in dealing with back tax liabilities.
There are various options for individuals in pursuit of IRS debt relief. The technique that would be the most effective depends on one’s finances. Below are 3 standard procedures that numerous persons have had positive results with:
Offer in Compromise – Most people have heard of settling with the IRS for less than what you owe. Not every person meets the requirements as the IRS has stringent guidelines they have to follow. For you to get your offer approved, you will have to convince the IRS that collecting the entire amount from you over the next five years would be impossible. If they feel that they can’t, then you may likely meet the requirements. The IRS procedures are confusing, so it is advisable to obtain help from a tax resolution specialist.
IRS Installment Agreement- The IRS will usually give a person a payment plan without too much trouble. There are various versions of these monthly payment agreements. You will be assessed interest and penalties on the unpaid amount and the total amount will have to be completely paid, but the IRS will not make any other collection attempts while you are on the plan.
Partial Payment Installment Agreement-Like an Offer in Compromise, this type of payment arrangement will allow you to pay a smaller amount than what is owed and with the correct conditions, may be more advantages than an Offer in Compromise. You will need to have a tax pro evaluate if this would be the most desirable plan of action for you.
If you do not know what you are doing, dealing with the IRS can be difficult. Although the country is in financial crises, the IRS will still attempt to get as much out of you as they are able. Hiring a tax professional can make the whole process much easier. If you owe past due taxes that you cannot pay, you should really seek expert guidance and take care of the problem If there was ever a time to try, this is it.