As a leader of tax problem help services, we know that If you owe money to the IRS, there are several ways you can get rid of it in a systematic manner without falling into any financial traps. Getting tax debt help and paying off these debts in a convenient way can be quite simple and beneficial for you. There are five ways you can manage your tax debt in a proper manner, ensuring that you are not in the wrong books of the IRS. You can decide which method suits you best and get rid of the money you owe to the IRS conveniently.
Tax Debt Help – Ways to Settle Your Debt
The IRS allows you five different ways in which you can settle your tax debts, communicating your issues with them effectively. Depending on your current and prospective financial situation, you can make a decision regarding which way to go:
Offer in Compromise – Under this program, offered by the IRS as a tax debt help, you can collaborate with them to decide upon a lump sum amount of money that is usually smaller than the actual amount of your debt. On paying this agreed-upon amount in a single full payment, you can get rid of your tax debts while getting financial benefits. If you have a large amount of money available currently that is less than the amount you owe to the IRS, file for the Offer in Compromise to settle the debt right away.
Installment Agreement – Under this program, you can divide and pay your tax debt in monthly installments. You can collaborate with an IRS representative and decide upon a payment plan that is suitable for your budget. Under this program, you are required to pay off the entire amount that you owe the IRS without getting any concessions but having an advantage of time. If you think you can make monthly savings enough to get a payment plan, this is a tax debt help idea for you.
Partial Payment Installment – Similar to installment agreements, this program also allows you to make your tax payments in monthly installments. However, there is one more advantage that this program can offer to you. Under this program, the total amount you pay to the IRS in terms of debt settlement is less than the amount you actually owe. This way, you can save money as well as use time to your advantage. However, a drawback of this tax debt help option is that it is usually stretched out over a long-term period, which might not be suitable for some people.
Not Currently Collectible – If you opt for this program, you can convince the IRS to hold off your debt obligations for a certain time period, usually a year. The IRS, under this program, voluntarily agrees to give you time before they ask you to pay off your debts. If you are not in a stable financial position right now but expect better prospects in the future, this might be the right tax debt help option for you.
Bankruptcy – The last way you can get rid of all your tax debts is to file a bankruptcy claim. Once you have filed for bankruptcy, you are no longer eligible to be asked to make debt repayments. If you have a bleak financial scenario stretched ahead of you for the time being where paying off your debt seems unlikely, this might be a considerable tax debt help option you can consider.
If you need more information about our accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting firm has its main offices in Kissimmee, FL. We serve the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.