Outstanding IRS tax debts can drain you emotionally. Even worse, these debts can drain you financially, especially if the liabilities cover several years. Everyone with an outstanding IRS tax debt wants to find the best tax resolution for their tax debt problems. By contacting Instant Tax Solutions in Iowa you may be able to obtain a tax relief program that is fair and affordable. Your peace of mind can be restored.
The IRS has several tax relief programs available. The five most common programs are:
- Offer in Compromise – This option allows the taxpayer to apply for a reduction of the amount owed. It can entail penalty abatement’s, interest write-offs and partial reduction in the amount of taxes due. It usually requires the taxpayer to pay the adjusted amount due in full at the time of agreement, or to make installment payments over a short period of time. In addition, it is difficult to qualify for this program, especially without the expertise of a tax specialist.
- IRS Installment Agreement – Your tax professional can negotiate an affordable monthly payment program for you. You agree to pay the full amount due in installments that fit your current budget until the debt is paid in full. It is imperative you do not default on this agreement or the process starts all over again with increased penalties and interest and less opportunity for tax relief.
- Partial Payment Installment Agreement–You must be ready to provide complete and accurate financial information for review by the IRS. You will also be required to report any equity in assets that can be liquidated or sold to reduce or fully pay the amount of the outstanding liability. Also, you must undergo a financial review every two years. If your financial condition has improved, the payments could be increased or the agreement could be cancelled.
- Currently Not Collectible – If you are unemployed, on a fixed income, suffered severe health issues or experienced extreme financial loss, you may qualify for this tax relief option. Once you are able to qualify, the IRS agrees to refrain from imposing wage garnishments and bank levies for a period of six months to a year.
- Bankruptcy–Make certain this is your last option left. It has a direct effect on your credit for at least seven years. To qualify for this action, your tax debt must be over thirty-six months old. Things to consider before filing bankruptcy:
- You must file all required tax returns for tax periods ending within four years of your bankruptcy filing.
- During your bankruptcy case you should pay all current taxes as they come due.
- During your bankruptcy you must continue to file, or get an extension of time to file, all required returns.
- Failure to file returns and/or pay current taxes during your bankruptcy may result in your case being dismissed.
Reading the brief definitions of the options open to you might give you the impression that the process is an easy one. You may think any option will do to resolve your tax debt problems. It is not as simple as you may think it is. Due to inexperience with tax laws and IRS negotiations, you may be intimidated into accepting a tax relief plan that is not to your advantage. You could easily end up paying more than you need to pay.
Call an IRS tax relief service in Iowa for a consultation. If you want the best chance to quickly resolve your tax debt problems, hire the services of an Instant Tax Solutions team of professional. Iowa tax professionals know your rights as a taxpayer. Your tax expert is on your side and can assist you in obtaining the best option available. Remember, the IRS is a collection agency, not a debt reduction company. It is the job of the IRS to collect payment in full. It is the job of an experienced tax relief professional to negotiate with the IRS on your behalf.
Last Updated January 7, 2017
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