5 Ways To Settle Your IRS Tax Debt In 2019-2020

Paying taxes is everyone’s obligation, whether you want to or not. As much as it is our way of contributing to the nation, no one likes the idea. That is why you always find people trying to avoid it as much as they can. But then, the long arm of the law always catches up with the defaulters. If you are reading this, then there is a considerable chance you owe the IRS some money. The good news is that by the end of this piece, you will have an excellent idea of how to settle your IRS tax debt. Some of these ingenious ways include:

 

Agree to Pay in Installments

The first thing you should think of is to agree with the IRS so that they can allow you to pay in installments. The whole process is simple since you don’t have to visit their offices to make an application. All you need is access to the internet, where you can download the form. It becomes much easier if you owe the IRS $50,000 and below in both individual tax, interests, and other penalties that you are facing. You also have to make sure that you file your returns before you proceed to download the form. It is one of the main requirements.

In case you owe the IRS more than $50,000 in tax debt with interest and penalties, you also have to fill another form. You can then submit the two types and wait for their response. The online application is way more easy and fast. Remember, in case you are yet to file your returns. You can do it via mail. You also need a form for that.

 

Offer in compromise

As much as the IRS is harsh and very strict, they can also be great to work with at times. That is why they have the offer in comprise. This is one of the best deals if you qualify as a candidate. It is one of the best ways to pay your IRS tax debt, and the good news is that you get to pay less than what you owe them. The offer in compromise allows you to ask the IRS to compromise in your favor so that you pay significantly less than what one owes them. It seems hard, but it can happen.

For you to qualify, the IRS has to make sure that there is no doubt as to whether that is the correct amount you owe them. They also have to establish that all your assets and income are way little than what you owe. Lastly, you can qualify if the IRS ascertains that you can pay the money, but once you do so, you can plunge in a financial hardship that is going to affect your life drastically. But be sure that you cannot qualify if you are in an ongoing bankrupt proceeding.

 

Stop the IRS from taxing you

To get this type of action, you have to involve IRS tax settlement companies. This is because the only way you can get a not currently collectible status is if you prove you are not in a position to pay the tax. With this status, you can stop any action IRS is planning to take against you. This includes seizure of your property or end of the agreement that you are currently undergoing. By doing this, the IRS can agree to give you a specified period without collecting your taxes so that you get your affairs in order. You, however, have to show the IRS how that is going to affect your repayments positively.

File for bankruptcy

You can also go ahead and file for bankruptcy if you feel like the IRS is breathing too hard down your neck. This is a way to stop the aggressive IRS tax collection tactics. If you file for bankruptcy and you happen to qualify, there is a chance that you will pay cents on the dollar and get the other cash taken off your debt. That is if you come up with a pay plan. But for special situations, you can find yourself paying nothing at all by having every debt forgiven. It is among the few ways that allow you to get off the IRS wrath by actually not paying everything you owe.

 

Bargain for wage garnishments.

One of the best ways of dealing with the IRS is by negotiating for wage garnishment. This is because they can start levying your salary, federal payments, and even wages until the completion of your debt. By doing so, you may end up facing financial constraints that can affect you long-term. You should thus go and negotiate with the IRS so that they may modify their terms. This is to ensure they don’t collect all your cash and leave you with enough money to survive the levying process.

From the information above, it is evident that dealing with the IRS can be quite tricky. The only way you can handle them is by knowing some ideas on how you can settle the loan without facing problems. So far, the above are some of the best ways to handle the IRS tax debt without having to worry about the stresses that accompany it. With a perfect plan, you can end up paying much less than you owe the IRS.

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