I've posted several articles on specific solutions to an IRS tax debt. But I know that you don't always have time to search through my list of articles to find the right one. So I'm providing a list of solutions to IRS debt issues with a short description of each option. I hope you find this useful.
The IRS wants my money! What can I do? When you're in debt to the IRS, it seems like there's no hope for help. The debt seems impossible to ever pay off, and you can feel the breath of the IRS's hounds. I'm breaking the silence of an IRS-Hitman by telling you about information that can give you peace of mind.
What kind of miracles are there? There are several programs that the IRS and private companies offer to give you help with your tax problems, but they all have requirements that need to be met.
The Installment Agreement: This is a monthly payment plan that you setup with the IRS to pay off your debt.If you owe more than $10,000, the IRS will try to pressure you into an unaffordable payment plan. It is in your best interest to hire a tax debt professional to make sure you get a payment plan that works for your situation and your budget.
The Offer in Compromise: When you hear a late-night TV commercial talk about settling your tax debt for pennies on the dollar, this is what they're talking about. This program sounds almost too good to be true. It is real, but it is also the most difficult to get. Only 2% of applicants for an Offer even get approved, and the rest can expect aggressive levy actions.
Currently Non Collectible: If you're completely broke, or you're on a fixed income that covers only the most basic living expenses, you can qualify for this. Since you have no money or assets the IRS can go after, they temporarily suspend collection activities. The IRS does check up on you every year, and if your financial situation changes, they will renew their collection efforts.
Innocent Spouse: Normally if you marry someone, you also marry their tax debt. However, there are exceptions to this situation, and you can get out of a debt created by your ex-spouse. The tax debt has to be your ex's; you can't have filed jointly. You have to have not known about the debt. The debt can also be erased if there was abuse. If any of the criteria are met, your tax debt can be completely erased.
Penalty Abatement: When you get in debt to the IRS, interest and penalties start adding on to your debt immediately. In fact, your debt will increase by about 25% each year. If you've suffered a catastrophic event in your life, you may qualify to have the penalties removed from your debt.
A light at the end of the Tunnel. Being in debt to the IRS makes you feel overwhelmed and alone, but now you know there's a possibility for hope.
Now you have the smoking gun... Use it!
Labels: Back Taxes