Tax debt: Ways in which you can pay off IRS debt

If you think that you are having problems with tax debt, there are various ways in which you can pay off your tax dues. If you are having financial problems in general, you can include your tax debt in your debt consolidation. You can consolidate debt in order to pay off all of your unsecured debts. However, there are some other tax debt pay off options too.

Tax debt pay off options

The Internal Revenue System or the IRS offers you various payment options that can help you to pay off your IRS taxes easily enough. The different pay off options are:

  1. The installment agreement – In installment agreement you are allowed to make monthly payments.

Some of the different installment agreement types are –

  • Partial payment – If you don’t even have the ability to make minimum payments too, partial payment is the most suitable tax debt relief option. Under this payment option you can make the payments as per your affordability. However, the IRS will re-evaluate your financial situation every 2 years.
  • Guaranteed – If you owe less than 10,000 USD to IRS, guaranteed installment agreement is one your viable tax debt solutions. If you want to qualify for installment agreement, it is essential for you to acknowledge that you will file your taxes and pay it off within the right time for the coming years. However, you may not be eligible for this type of payment if you had made payments through this payment plan.
  • Streamlined – In streamlined payment option, there is no requirement for you to fill out 433-F Form which IRS needs to analyze your finances. However, if you want to make tax payments through this agreement, the amount which you owe should not exceed 25,000 USD. In addition, you may also require to agree to 60 month pay off period with the IRS.
  1. Offer in Compromise – In OIC, the IRS does not require you to pay the full amount which you owe. The offer in compromise is more like the debt settlement pay off option. However, the IRS needs you to agree to some terms and conditions before making payments through OIC, else the IRS can even revoke your OIC.
  2. Currently not collectible plan – Under the currently not collectible plan you are not required by the IRS to pay your due taxes for the time being. If you do not have enough cash in your hands, this might be your best tax debt pay off option.

However, if you want you can also take the help of a debt help attorney who can provide you in handling and paying off your tax debts.

Settling Tax Debt

Filing for tax returns and finding money for those ridiculous taxes are enough stress that can add another wrinkle in one’s aging memorabilia. However, these things are simply unavoidable and mandatory. Despite how one tries to live ideally and be a model citizen, there are times where one fall short from his/her responsibilities to pay taxes. Some simply ignore the payments due to financial concerns while others neglect such duties to focus on important circumstances. Whatever reasons they may have, settling tax debt requires certain processes.

Firstly, it best for the debtor to check on his/her previous tax returns just to double check on unseen deductions. Amending your tax return can mean lower tax payment. Second, read on the different IRS debt settlement program and choose on a program that suits your financial status. Third,decide whether to hire a profession or you can manage to settle IRS tax debt on your own.

When do you hire a professional or when is it okay to settle IRS debt on your own? Hiring or not is purely your prerogative. Nevertheless, it is recommended to hire a professional when you are dealing with a tax debt of $10,000 or more. You must make sure that the professional you hire is a certified public accountant, enrolled agent or a tax attorney. These professions are credited by the Internal Revenue Service as eligible to handle such problems.

You would also consider that fees charged by these tax experts. Some would have an hourly rates while others might have fixed rate for services rendered. See to it that the task done by these experts requires specialized skills and knowledge, offer to do the task on paper works and errands.

Lastly, remember when there is an opportunity to make money, most of the time, con artists and scammers will seized this chance to snatch your hard earned money. According to reports, fake tax companies guarantee results without prior knowledge of you tax debt situation, require amount of cash as deposit, pass you to different representatives, and does not a physical address. Always be on the look out for these signs.