Many people owe the IRS money without a clue on what to do. There are quite a few options with hiring a tax debt relief company as one of them. One might think there is no big deal in trying to manage the IRS. There are times, however, that you might be better off with professional help.
If you owe back taxes that are $10,000 and above, you are better off with a tax debt relief company. This is a terrific idea as they can come between you and the IRS. They will negotiate with the IRS on your behalf, and might get the bank levy off.
The IRS has intense power, more than other revenue collection agencies. They can file a tax lien on your property and can garnish your wage. It doesn't have to get this ugly before you call the Calvary for help. This article will make you understand why hiring a tax debt relief company is a smart move.
Your Tax Bill was Due a Long Time Ago.
Whatever you owe the IRS, $10,000, $15,000 is not fun. Yes, it hurts having to send Uncle Sam such a considerable sum of money. Now here comes the issue – how do you take care of this bill. The good news is that you do not have to dance to the music alone. If you consult a tax debt relief company, they will make available some options for you if you are finding it difficult to pay your bills.
Ignoring the IRS as well is not a good option. There will be fees and penalties, ranging from 5% from 25% of the actual tax.
You Can’t Wait to get Tax Debt Forgiveness
It sounds odd and cruel that Uncle Sam will slam you with extra fees for tax levies you cannot pay. However, there are tricks with which you should be able to maneuver your way out of paying tax debts that are too much for you. Unknown to many, the IRS can forgive some or all the money you owe.
This is called an "Offer in Compromise" (OIC). It happens when you ask the IRS to reduce the entire amount you owe. However, the issue is that there is only a 40% chance of getting your OIC accepted by Uncle Sam. In 2017, of the 62,000 applications received, only 25,000 were approved.
This is one of the reasons you need to get in touch with a debt relief company. This is because they know the best things to include in an OIC submission to improve the success rate. With their skill, the company will negotiate for you to avoid any mistake that might reduce your chances.
You Need a Payment Plan You Can Afford
If many people have spare cash to settle Uncle Sam, it would have been nice. This, however, is not always the case. In this situation, you can set up a simple payment solution that works for you with the IRS.
Also known as an Installment Agreement, you need Form 9465 to activate this. The silver lining with this is that you can get up to 72 months to clear your back taxes. Using this rate, you will only pay $251 per month to clear off a balance of $18,000.
The issue, however, is that payment plans are never the same. Also, you might pay extra when you factor in the application fees alongside other costs.
However, if you enlist the help of a tax debt relief company, you will get a workable payment plan.
There is a Tax Lien Notice
Many people have probably heard of a tax lien or tax levies without an idea of what it entails. A tax lien gives the government the authority to claim your property or assets like real estate.
After the government takes away your property, the tax levy follows. Also, Uncle Sam can garnish your wages, freeze your bank account, or seize your assets.
However, it might not get this ugly if you can work with Uncle Sam to take care of the amount you are owed. Be sure to work with a reputable tax debt relief company to avoid entering another financial crisis.
You Want to Avoid Uncle Sam at all Cost
Some people could simply be too busy to attend to tax issues. There are many people in this category. The good news is there are companies ready to take the hard work off your shoulder. Even if you have the time, not dealing with the IRS directly comes with some advantages, especially when you consider how complicated tax laws are.
You can get into trouble with DIY tax debt relief if you don’t know what you are doing. As a result, you need a professional if you want to avoid the IRS.
Tax debt relief companies will negotiate for you and help you understand things easily.
