10 Ways to Settle Your IRS Tax Debt
Do you Find dealing with the IRS frustrating, Intimidating and Time-consuming? You’re not alone.
While taxpayers may always represent themselves in front of the IRS, many turn to professional tax help (specialized IRS Tax attorneys, CPAs, and Certified Tax Resolution Specialists) in order to maximize their chances of winning a tax settlement while minimizing their contact with the IRS agents. Owing to the Internal Revenue Service (IRS) money is intimidating to most people. The IRS has the power to garnish your wages, seize your assets and place a lien on your property in order to obtain the money that you owe them. However, these actions can be prevented by communicating promptly with the IRS about your situation. The IRS is usually willing to work with taxpayers, and there are several options available so that you may resolve your debt issues.
1. Installment Agreement:
2. Partial payment installment agreement:
4. Not currently collectible:
A program where the IRS voluntarily agrees not to collect on the tax debt for a year or so. Currently Not Collectible means that a taxpayer has no ability to pay his or her tax debts. The IRS can declare a taxpayer “currently not collectible,” after the IRS receives evidence that a taxpayer has no ability to pay. This is a useful tool because you can file for a collection appeal to stop an IRS levy, lien, seizure or the denial or termination of an installment agreement. The collection appeal gives you the opportunity to explain how you think the situation could be solved without the IRS levy or seizure.
5. Lower Your Debt With Credit Card Debt Settlement:
There are two methods of credit card debt consolidation: through a credit card debt settlement company or on your own. Credit card debt settlement companies should be avoided. They collect your payments for months before making a settlement offer – if they make an offer at all. Meanwhile, you continue receiving collection calls and negative payment marks on your credit report. You’ll get better and faster results settling debts on your own. Final credit card debt settlement agreements should be in writing. Either draft an agreement of your own or have your credit card company send you an agreement. Make sure you and someone from your credit card company have both signed the agreement before you send payment.
6. File bankruptcy:
Income tax debts may be eligible for discharge under Chapter 7 or Chapter 13 of the Bankruptcy Code. Filing for bankruptcy is one of five ways to Tax Debt Relief, but you should consider bankruptcy only if you meet the requirements for discharging your taxes. Chapter 7 provides for a full discharge of allowable debts. Chapter 13 provides a payment plan to repay some debts, with the remainder of debts discharged
7. Release Wage Garnishments.
When you owe Uncle Sam money, the IRS can levy your wages, salary, or federal payments until the levy is released, your tax debt has been fully paid off, or the time expires for legally collecting the tax. There’s room here to bargain for a release or modification to the garnishment if you don’t have enough money to survive with the levy.
8. Stop the IRS from Levying Your Bank Account.
9. Innocent Spouse Relief.
10. Pay Attention to the Expiration of the Statute of Limitations.
This is a useful tool because you can file for a collection appeal to stop an IRS levy, lien, seizure or the denial or termination of an installment agreement. The collection appeal gives you the opportunity to explain how you think the situation could be solved without the IRS levy or seizure.