Many self-employed individuals fall behind on their income tax payments and feel like they will never catch up. If you want to avoid liens, levies, wage garnishments and the like, learn today how to settle your tax debt with the IRS once and for all.
How to Settle
If you want to prevent the Internal Revenue Service from taking your hard-earned money straight out of your pocket, you have to settle. Here are 10 ways to accomplish this.
- Installment agreement
- Offer in compromise
- Not currently collectible
- File for bankruptcy
- Innocent spouse relief
- Penalty abatement
- Release wage garnishments
- Bank account levy release
- Expired statute of limitations
- Lump sum payment
The IRS does not want to sell your debt to a collection agency for pennies on the dollar. Communicate and set up a payment plan you can afford to keep them from garnishing your wages. If you cannot afford to pay your balance in full due to years of interest and penalties, refer to a tax specialist who can advise you if you qualify for an offer in compromise. It is an agreement between the IRS and the taxpayer agreeing to settle for an amount less than the full amount owed. You may offer to pay back this debt with a lump sum cash offer in five or fewer installments or a periodic payment offer in six or more monthly installments within two years of the offer being accepted.
You can defer your debt temporarily if you can prove to the IRS paying it back will put you below the basic standards of living. If you owe income tax debt, a tax specialist may recommend you file for Chapter 7 bankruptcy and discharge all tax debt or Chapter 13 bankruptcy and create a payment plan for a portion of your income tax debt.
If you have a joint account with someone who fails to pay his or her taxes, you can absolve yourself of liability to repaying any IRS debt. You may also negotiate with the IRS to have penalties removed which will not wipe out your debt but will reduce your total liability.
A tax specialist can help you reverse a wage garnishment by proving it takes away funds necessary to meet basic living standards or unfreeze your bank accounts early before your funds are released to the IRS.
Finally, talk to a tax attorney if the IRS is trying to collect a debt over 10 years old or you would like to make a single lump-sum payment in exchange for eliminating penalties and possibly reducing interest owed. This saves the IRS lots of time and money and a specialist gives you the best chance of successfully negotiating.
Call us today at (800)583-1931 or get start online by contacting us for a team of friendly tax experts including CPAs, Enrolled Agents, attorneys and consultants who can’t wait to help you settle your IRS debt.