Most people lose hope when they are stuck with huge debts. The problem becomes worse if taxpayers owe IRS because the agency will not stop, unless you've settled your dues. There are several options on tax debt relief for you, but you have to be extra careful when choosing the best option because the agency might use it against you.
You can first inquire about the Partial Payment Installment Agreement. This is similar to the Installment Agreement but the difference is that the amount you owe is reduced. A payment plan will be devised by the agency but every 2 years, you will be evaluated by the agency to determine if your monthly payments can be increased.
The good thing about that option is that you will pay your tax dues at a much smaller amount that you can afford each month. Another option is the Currently Not Collectible. If you are really in a terrible crisis, and it would be impossible to pay your tax debts, you can negotiate for this option. You will need to fill out the Form 433 or the collection information statement.
If you can qualify, the agency will stop its collection attempts and even the wage garnishments. However, this doesn't mean that you will no longer pay your tax debts. It will remain in the records of the IRS and the amount you owe will be collected within ten years.
The last option that a taxpayer will try to avoid at all cost is bankruptcy. You see, once an individual file for bankruptcy, it can affect his credit score for long time. If you file for bankruptcy, it will be much harder to secure financing in the future such as mortgage or loan. You can check Chapters 7 and 13 wherein you will understand more about the discharge of your tax debts.
These three options might work at you, but you have to avoid the last one. Your financial problems will only become worse if you file for bankruptcy. There are still other tax debt relief options that you can work out with the IRS. Talk to a reputable tax specialist so that you will know what to do.
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I have done a bit of research for you. Tax Settlement Experts can help you get the relief you deserve. Find out if you qualify for a tax debt settlement today.
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Published 21-02-2010
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