Are you deep in tax debts? Did you know there are various solutions and options to settle tax debt? The Internal Revenue Service ensures that there are efficient and practical strategies to settle back taxes for each type of financial circumstance that a person may be dealing with. Your distinct financial condition will establish what type of debt settlement alternative will suit your requirements. This article will help you get through the tough times and lead you back to financial liberty.
What to Do
- Compensate your tax debt fully. This is the easiest strategy to straighten out your tax condition with the IRS. However, if you don’t have money at hand and don’t have the means to pay in full, consider selling some of your valuable possessions that you don’t use anymore, borrow from your relatives or friends, or refinance your home.
- Request a payment extension from the IRS. If you have to use additional time to collect the money to reimburse your tax debts in full, you can ask for a 45 day extension. Note that a 45-day extension is the longest time given to fulfill your obligation, though you can always ask for automatic extension of another 45 days when the previous is up and you’ve got another IRS notice informing you about more penalties and interest.
- Apply for an installment agreement or contract with the IRS. With this option, you will be authorized to disburse your tax debt over a particular period of time in more convenient payment schedules. To be able to setup an installment contract, you will be required to honestly and completely fill out IRS Form 9465, which you can accomplish online together with the online payment agreement application (OPA).
The options to settle IRS tax debt are:
- Offer in Compromise
- Penalty Abatement
- Innocent Spouse Relief
- IRS Tax Bankruptcy
If you look forward in settling your IRS and/or state taxes, you can seek assistance from a tax relief company that will examine your financial situation and determine which tax settlement strategy will work best for your specific tax circumstance. There are several different forms of settlement and it is vital to procure a professional opinion prior to choosing a settlement option.