IRS tax debts are emotionally draining, especially if you owe the IRS tens of thousands. If you have a large tax debt of several years, you can also be depleted of your savings and personal property when the IRS imposes a bank levy on your personal bank account. Do not wait for your tax problem to reach this point.
Many taxpayers are unaware of the different options available to delinquent taxpayers to free themselves from the burden of IRS back taxes. Three of the most-common IRS tax relief programs are:
- Offer in Compromise – This option allows the taxpayer to apply for a reduction of the amount owed. It can entail penalty abatements, 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.
Filing for bankruptcy should be your last option. Bankruptcy comes with a negative effect on your credit. With a bad credit report it will be difficult to obtain loans from banks and other lending institutions for seven years after you have filed for bankruptcy. To qualify for this action, your IRS tax debt must be over thirty-six months old.
If you need the benefit of an IRS tax relief program, get the assistance of a company offering IRS tax relief service in New Jersey. Although the IRS offers these programs to give delinquent taxpayers a fresh start, the agency has stringent requirements for qualifying for a tax debt relief program.
Instant Tax Solutions is an experienced company offering tax relief service in New Jersey. Their professional tax team can help you successfully negotiate with the IRS and qualify for the tax relief program that is right for you. You can become free of your IRS tax debt problems.
Last Updated November 29, 2016
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