Ways To Settle Your Tax Debt

The IRS which stands for internal revenue service has full authority to look after your wages, take control of your assets and forbid you to hold your property to get the money that you have to pay them. If you wish to avoid these issues, you need to properly communicate with the IRS about this entire situation. 

However, the longer time that you take in paying the IRS your tax debt, the more amount you will have to pay them in the end. In this article, we will be mentioning a few ways to settle down your tax debt to the IRS. 

• Make an installment agreement

You can devise up a monthly plan for payment with the IRS. And If you think that some fraud has been done with you, you can take the help of the US laws and although this will be quite a complicated process, but eventually your taxes can be reduced and refunded back with interest as well. 

• Agreement to pay in installments instead of together

The IRS gives you permission to pay in installments rather than paying the whole loan once and for all. If you hire a certified tax specialist or a qualified tax attorney, he will help you to pay the lowest amount monthly so that you do not have to face problems. 

• Offer in compromise

This is program which will help you to settle down your tax debt for an amount which will be much lesser than that you possibly owe. This plan will work wonders for those who cannot afford it to pay back their loans immediately. The offer in compromise provides you the option to pay back a very small amount just as the complete and the final payment. 

• Not available currently

This is a program in which the IRS does not collect any kind of payment till a year or so. Not available currently means that the tax payer cannot pay his taxes or debts at all. The IRS will then notify that the tax payer is not able to pay at the moment. You have to notify your problems and issues and let them know the reasons behind not paying the taxes or debts. 

• Lower down the debt with the credit card debt settlements

One another way to settle tax debt is to contact your credit card company and ask them to report a settlement by declaring it paid in full so that there is no damage to your credit. You can draft the agreement or ask the credit card provider to send you a written draft. You should also make sure that both you as well as the credit card provider company have signed an agreement before you will finally do your payments. 

• File bankruptcy:

Income tax debts can come under the heading of file bankruptcy. You can take the help of a tax pro and he will use the offer in compromise and save some pennies from your dollars. 

• Prevent the IRS from levying all your bank account

IRS has the full authority to issue bank levy and take all your cash from your accounts and all your taxes. When IRS issues the bank levy the bank has no choice but to give the IRS your entire account. The whole process can be dealt very smartly by dealing properly with the IRS and solving the issue with them so that they do not proceed to the bank. 

• Focus on the expiry date of statue of the limitations

In total, the IRS has Ten years from assessment date to gather all your tax debts as well as penalties. You can take the help from a tax attorney who will lay out a good strategy that will help you to deal with the IRS very smartly. 

Some final thoughts

So, these were some of the most important ways in which you can settle down your tax debts which you owe to the IRS. You have to keep in mind that the IRS has full control and in order to avoid any issues with them, it is best if you deal properly with them and get your problem solved.