3 Effective Tax Debt Solutions That Are Available To You Today
Tax debt options are not as numerous as the difficulties that can arrive from owing the IRS, which is why taking swift action is a must when trying to avoid severe penalties. In this article I am going to give you some insight into 3 of the most effective solutions for dealing with tax debt. After this, you should have a clear sense of how best to deal with your tax problem.
Here are the top 3 solutions for dealing with tax debt:
1) Offer In Compromise
This option is the holy grail of tax debt solutions simply because once in place, you virtually get out of your debt with the IRS. This option is effective if you can prove that you are in dire financial straits and can’t afford to pay off what is owed. There are vigorous checks made, and so this should only be pursued if you have clear proof that things are very difficult with you. To make the best of this option too, you’ll need to hire a tax specialist who will do all the complicated analysis and form filling on your behalf.
2) IRS Payment Plan
This option is available to people who can’t afford to settle their debt in a lump sum, but can afford to make small monthly payments. Payments do not necessarily have to be monthly; the frequency can be agreed between you and the IRS. The important thing is to present a credible case. Again this option will be subject to vigorous checks by the IRS so it’s best to hire a tax specialist to make a compelling case on your behalf.
3) The Lump Sum Payment
This option is the least appealing because it requires that you come up with the total owed all at once. And given the financial difficulties that most of us face these days, few can manage that. Still, it’s a way to completely settle your debts with the IRS and I’ve mentioned it here for completeness.
All 3 options outlined above represents real and credible tax debt solutions. The first 2 are perhaps your best bet for fixing things, and provided you can find a decent tax specialist (easy if you use the internet), getting your account sorted with the IRS is very much a possibility. All you have to do is take action.