Friday, 17 March 2017

Finding An Affordable Tax Relief Method You Can Live With

By Virginia Adams


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.

There are things you can do however to prevent some of this from happening. The most important thing you should do is to stay cooperative and communicate with them. It will not help your case if you ignore written notifications and hope the problem will go away. It will not. One of the most common methods of paying back taxes is by coming to an installment plan agreement with them. You will make monthly payments, much as you would with a credit card, until the debt is paid.

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.

Under certain circumstances you can be relieved of your IRS debt by filing bankruptcy. You shouldn't file though unless you know you qualify under the bankruptcy code. When you're the spouse of someone who owes back taxes, you may come under the IRS's innocent spouse guidelines and not be held responsible.

Filing your taxes on time and paying anything you owe is the best way to stay out of trouble with the IRS. If you need help, you should contact them immediately.




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