Tax Debt Relief Article
As always, Americans are experiencing mixed emotions in response to this year’s recently concluded tax season. Many are awaiting hefty tax refunds with sweet anticipation. Others are sitting on pins and needles with fingers crossed that self-prepared returns were correct and won’t return to haunt their dreams and finances years from now. Still others entertain no dreams or delusions at all about over their outstanding US Treasury debt.
Consumers in this last category conduct their affairs with daily trepidation over swiftly accumulating penalties and interest. Visions of 100 percent wage garnishments and long-term tax liens against homes and businesses loom largely in their lives. Fortunately, options abound for these overtaxed taxpayers. Following are a few effective tax debt relief strategies:
- If your calculations are correct and you have not overlooked any available shelters or deductions, determine the exact amount of your tax debt. If it is over $10,000 USD, professional tax debt relief assistance is probably necessary to accurately assess all your options.
- Payment arrangement
The IRS must allow an installment plan for tax debt under $10,000 if: 1) all returns have been submitted; 2) the debt will be satisfied within three years; and, 3) there have been no late payments or prior payment arrangement within the last 5 years. This is the most common tax debt relief strategy that taxpayers choose.
- Negotiated settlement
This approach entails installment payments that ultimately total less than your full tax obligation. Once you have paid the previously agreed-upon partial sum, your outstanding balance is forgiven. A good tax debt relief service may be able to negotiate your debt even further for a full lump-sum payment.
- Non-collectible declaration
Once you are formally declared as “not currently collectible,” the IRS is required to cease all collection attempts. You will continue to receive annual statements that detail your outstanding tax debt, however.
- Bankruptcy
Filing for personal bankruptcy is a guaranteed tax debt relief strategy, as it discharges all tax delinquencies. Consider it only as a last resort, however.
Before formally finalizing any tax debt relief plan, consult a qualified advisor. Competent tax debt relief services stay abreast of pertinent IRS provisions that change frequently. They also know how to navigate through the nebulous governmental bureaucracy.
Before retaining any tax debt relief expert, thoroughly investigate their professional reputation and credentials. This ensures that your tax burden will indeed be eliminated – not further exacerbated.