When you owe money to the government, it can be worrisome. Drowning in credit card or student loan debt is intimidating, but owing the government money can potentially disrupt your way of life. For this reason, many people choose to ignore the problem or search for a debt relief program that sounds too good to be true. If you find yourself wondering, “Do I Qualify for Tax Debt Relief?” the reality is this: The primary goal of the IRS is to collect their money on taxes owed. Realistically, you have three options:
Installment Plan
Life happens. And the IRS understands that. If you are unable to pay the full balance of your debt, communicate that with them. Installment plans are a viable option for individuals who owe up to $50,000 in back taxes. You will still have to pay late fees and penalties, but you are also avoiding heavier penalties such as wage garnishment or tax levies against your property.
Temporarily Delay the Collection Process
If it is apparent that you cannot pay any amount toward your debt, the IRS may temporarily suspend the collection process for a certain amount of time until you are able to get back on your feet. If your financial situation doesn’t improve, you may qualify for an offer in compromise.
Offer In Compromise
An offer in compromise (OIC) is when the IRS agrees to settle your debt for less than the amount you owe. This is usually only an option when it is evident that you will never be able to pay back the total amount of what you owe or paying back the amount would put you in a position of financial hardship. Before considering you for this program the IRS will go through your financial background thoroughly. If there is even a slight possibility you can pay back the full amount owed, you will not qualify.
Never assume that the IRS will forgive your debt. It is recommended to always exhaust all of your payment options before considering an OIC. Even if you do qualify, it can be an invasive and tedious process. If you’re feeling overwhelmed and at a loss of where to start with paying back taxes owed, please contact Civic Tax Relief or call us 800-790-1507. We will get you back on track today!