Paying Off Tax Debt: There Are Options Available
Question: I’m really behind on my taxes, and now I’m getting letters from the IRS. I’m having trouble sleeping. I don’t know how I can pay this tax debt. I also have a mortgage and my daughter starts college next year. How can you help?
Answer: I know that feeling. I know what you’re thinking and why you’re worried. The reason for that is because I’ve had so many clients in the same position you are in right now.
But take comfort in this: You have options. You’re not going to be penniless and homeless.
The absolute first thing you need to do is consult a qualified tax professional. In my experience, people in debt to the IRS often believe they are in greater debt than they actually are. A qualified tax professional will analyze your previous returns with a fine-toothed comb and determine exactly how much you owe to the IRS.
Once you have that figure, it’s time to negotiate a solution with the IRS. Based on the brief description of your situation, it sounds like your best bet would be the Offer in Compromise. This is a program designed for consumers who owe a substantial amount to the IRS but who, for whatever reason, are unable to pay that debt. If you can prove to the IRS that you can’t pay the debt, even over time, then you and your qualified tax professional can negotiate a settlement amount that will settle your debt once and for all. Oftentimes, this settlement amounts to a significant discount.
But that isn’t your only option. If you do not qualify for the Offer in Compromise, you may qualify for the Installment Agreement, also known as an IRS Payment Plan. This program allows taxpayers to pay off their tax debt over time by making small monthly payments. For some taxpayers, this is enough to relieve the repayment stress.
I handle tax problems like yours every day. I’m an IRS problem solver. For a free, no-risk tax relief consultation, please call my office at 818-774-1813.
More Tax Help, IRS News and Tax Relief Tips:
- If You Owe the IRS Back Taxes, There Are Tax Relief Options Available
- Ask the Tax Resolution Expert – Do I Qualify for the IRS Offer in Compromise Plan or Participating in the IRS Installment Agreement Payment Plan?
- Ask the Tax Resolution Expert: The IRS Offer in Compromise or Installment Agreement Programs May Be Your Tax Debt Solution
- Need to Resolve Tax Debt? IRS Offer in Compromise or IRS Installment Agreement Plans Are Two Viable Options
- Tax Expert Educates About Offer in Compromise and IRS Installment Agreement Plans
Tags: Installment Agreement, IRS payment plan, Offer in Compromise, tax debt, tax professional, tax resolution services
