Most people have strong feelings about the Internal Revenue Service. Most of those feelings are negative. Many fear it, and the power it has to disrupt lives. Others resent it for taking hard earned money out of their pockets. Then there are those who actually owe it money and live every day with the dread of what might happen. You may think you will never be able to get out of debt once you have passed the deadlines and haven't paid the taxes you owe. There is affordable tax relief available however, for people in all kinds of situations.
People fear the IRS for good reason. If you don't pay your taxes on time, you may end up paying penalties, interest and fines. IRA agents are more likely to audit you in the future. They have the power to garnish wages, which can endanger your livelihood. They have the ability to take your home and any other assets you possess. If they contact your bank, any money in your checking and savings accounts can be frozen and turned over to them within twenty-one days.
These things don't have to happen however, even though the IRS will do them as a last resort. They would rather work with you, but you must do your part by communicating and cooperating with them. One of the most common ways to pay back taxes is by setting up an installment plan approved by the IRS. You will make payments every month until you are free and clear of the debt.
You may be able to negotiate a compromise with the IRS and pay back less than you owe by making a lump sum payment or paying the reduced amount over a short term. This compromise has the added benefit of saving you a lot of money in interest and penalties.
It is actually possible to become a person who is not currently collectible. You will probably need a good tax attorney or public accountant to help you go through this, but if you are successful, they will not seize assets during a specified grace period.
There are such things as credit card debt settlement companies that market to individuals in trouble with the IRS. This may or may not be a good idea. If you decide to use their services, be sure you get all the agreements in writing.
Bankruptcy is always an option, and under some circumstances, filing for it can get you out of debt with the IRS. If this is the only reason you are filing, you need to be sure you qualify before formalizing the action.
It is better to pay the taxes you owe every year, fill out the forms, and file on time. When you can't do that, there are options available.
People fear the IRS for good reason. If you don't pay your taxes on time, you may end up paying penalties, interest and fines. IRA agents are more likely to audit you in the future. They have the power to garnish wages, which can endanger your livelihood. They have the ability to take your home and any other assets you possess. If they contact your bank, any money in your checking and savings accounts can be frozen and turned over to them within twenty-one days.
These things don't have to happen however, even though the IRS will do them as a last resort. They would rather work with you, but you must do your part by communicating and cooperating with them. One of the most common ways to pay back taxes is by setting up an installment plan approved by the IRS. You will make payments every month until you are free and clear of the debt.
You may be able to negotiate a compromise with the IRS and pay back less than you owe by making a lump sum payment or paying the reduced amount over a short term. This compromise has the added benefit of saving you a lot of money in interest and penalties.
It is actually possible to become a person who is not currently collectible. You will probably need a good tax attorney or public accountant to help you go through this, but if you are successful, they will not seize assets during a specified grace period.
There are such things as credit card debt settlement companies that market to individuals in trouble with the IRS. This may or may not be a good idea. If you decide to use their services, be sure you get all the agreements in writing.
Bankruptcy is always an option, and under some circumstances, filing for it can get you out of debt with the IRS. If this is the only reason you are filing, you need to be sure you qualify before formalizing the action.
It is better to pay the taxes you owe every year, fill out the forms, and file on time. When you can't do that, there are options available.
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