HELP FOR THOSE WITH TAX DEBT
Almost anyone who has been
self employed or missed a tax deadline knows the stress and hardship
that can be caused by owing money to the IRS. This situation occurs
for millions of Americans each year, and the IRS can be intimidating
and threatening in demanding payment. Federal law gives the IRS
great leeway when it comes to collecting tax debt owed to the
government, and the agency will stop at nothing to collect.
First, you get the letter in the mail letting you know there will be
dire consequences if you don’t pay your tax debt in full. Other
tools in their arsenal include, wage garnishment, property levies
and even the ability to make withdrawals from your personal bank
Knowing the IRS’ game is the first step to
overcoming the threats and pressures they apply. A tax debt
professional understands the rules and are unaffected by the IRS’
ploys, lowering your overall stress.
If you know you owe back
taxes it is better to contact the IRS first -- as a gesture of good
will -- to let them know you will begin working towards erasing it.
Next, it is a good idea to get in touch with a tax professional
who will go over the pros and cons of all the options available to
you. Among them, setting up an interest free payment plan that will
allow you to pay back your tax debt at a comfortable pace, and
negotiating an offer in compromise. The latter is definitely the
better way to go.
When you negotiate an offer in compromise,
your debt is cut substantially on the basis that you will be able to
pay off the smaller amount and guarantee you pay your taxes for the
next five years. If you decide to go this route, it really needs to
be negotiated carefully by a tax professional.