Having Trouble Paying Your Tax Debts to the IRS?

It can happen by accident. You may not have withheld enough tax from your paycheck and end up with an enormous tax bill in April. Perhaps you came into some money, spent it, and didn’t realize that a large chunk was tax owed to the IRS.

It can be extremely stressful if your debt accumulates for an extended period of time. In this situation, you might feel stuck or frozen, unsure of what should be done or how to proceed. However, doing nothing is the most detrimental thing you can do. Penalties and interest only add up, sinking you deeper and deeper into debt.

The IRS is serious about their money! If you owe them money, they will pursue all legal means to collect it. Your assets can be seized, your bank account frozen, your paycheck garnished, and even your passport restricted. They can place liens and levies on your property. Hopefully, it hasn’t happened to you yet, but if you don’t act fast, it will.


Failure to Pay Taxes

If you cannot pay the IRS, you may have several options depending on your circumstances. To start paying your current taxes is crucial. Before you can access most of these remedies, you must file your income tax returns and pay your current taxes.

Here are some of the options the IRS provides to taxpayers who owe money. Whether these are applicable to you depends on your circumstances.

  • Installment plan

In this case, you are negotiating a payment arrangement with the IRS. A variety of agreements are available, including regular, partial-pay, and streamlined ones. The choice you make is highly dependent on the amount you owe and your current financial situation.

  • Offer in compromise

In an offer in compromise, the IRS agrees to accept less than the full total owed. Although the IRS does not have to accept an Offer, presenting it in accordance with IRS guidelines increases the chances that it will be granted.

Not all tax professionals know the ins and outs of preparing an Offer that has a high chance of getting accepted. A proven expert with a track record of success will be able to help you with your Offer.

  • “Currently Not Collectible” Status

Deferring your debt is possible with this status. In other words, the IRS is still owed money for the debt you owe them. You will stop having your bank accounts levied or other collection attempts by getting this status. The problem usually arises when your income is not sufficient to cover your living expenses. In the event that your income rises, the IRS will re-evaluate your situation.

  • Bankruptcy

Bankruptcy can be extremely helpful in stopping IRS collection efforts, discharging old income taxes, and forcing an otherwise unwilling IRS to accept repayment plans. There is also the possibility of the discharge of tax penalties through bankruptcy. The most effective route is to seek the advice of several professionals in this complex area – an accountant, a tax resolution professional, and an attorney who has experience with bankruptcy issues.

Getting Help

Our professionals at Total Tax Resolution can assist you in the following ways:

  • Respond professionally to any IRS correspondence you receive
  • Allow us to contact the IRS on your behalf so you don’t have to
  • Represent you before the IRS
  • Get your late tax returns filed
  • Understand the IRS Collections process and your rights
  • Lower your debt by negotiating interest, penalties, and taxes
  • Establish a payment plan with the IRS if you owe it money
  • Assist you with issues that come up, including innocent spouse situations or tax positions
  • Get levies and liens removed from your assets.

Solutions for Resolving Your IRS Debt

If you are interested in learning more about your specific tax situation, contact us at no obligation so we can advise you on your options. You can be assured that your tax issue will be handled in the strictest of confidence and with the greatest privacy. 

Call (866) 459-8026 or click below to schedule your FREE consultation.

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