Tips on How to Pay Off the IRS Tax Debt
Many burn their midnight lamps thinking about the tax they owe to the IRS and how to get rid of them as soon as possible. Some may not be able to pay off this tax in full and will have to search for ways to solve the issue to come out of the stress. The IRS doesn't work as it likes. They have set rules and procedure to be followed. So there is no necessity to panic if one gets a notice from IRS to pay off the debt as they would have to follow set rules even before they even think to seize a property or do something else that may affect. Here are a few tips that can be followed to get the IRS tax debt paid off as soon as possible.
€ The first thing one should do is to collect all the old filed tax returns and check if everything has been filed. IRS cannot give a solution if any of the old tax returns are not filed, as it is considered as a non-negotiable item.
€ If any of the tax debt has to be paid as the department says, then if possible pay off in one lump sum, which may sort out the issue immediately.
€ If the tax cannot be paid off immediately, then an agreement between you and the tax department can be come upon called €Installment Agreement€ (IA), through which the remaining tax can be paid in equal installments monthly.
€ If the tax amount is huge, do not try to run away from it. Better consult a tax consultant who may provide ways to sort the issue easily and amicably.
€ Your tax consultant may ask for the older returns to scrutinize about the problem. If some amount was overlooked, then your tax consultant may help you amend the returns, so that the amount is lowered.
€ There are various programs offered by IRS to settle down your taxes like.
Installment Agreement: Where one comes in agreement with the IRS department to clear off the debt in equal installments.
Partial Payment Installment Agreement: This is a new plan where the debt can be paid off long-term in installments.
Compromise: Where a compromise can be arrived at with the department and the debt can be paid only partially either in full or in installments.
Not Collectible Currently: A program where IRS accepts not to collect the tax for some time (about a year or so). So in the mean while one can arrange for the money and pay it off.
Bankruptcy: A bankruptcy may be filed under strict rules of the department. But there are number of clauses that should be considered before filing a bankruptcy.
The IRS sends notices to the taxpayers for various reasons. The letter should be read, re-read and read several times to understand the reasons and hidden clauses of IRS tax debt, and it can be done through tax consultants without any hitch, who explain what needs to be done with a solution.
€ The first thing one should do is to collect all the old filed tax returns and check if everything has been filed. IRS cannot give a solution if any of the old tax returns are not filed, as it is considered as a non-negotiable item.
€ If any of the tax debt has to be paid as the department says, then if possible pay off in one lump sum, which may sort out the issue immediately.
€ If the tax cannot be paid off immediately, then an agreement between you and the tax department can be come upon called €Installment Agreement€ (IA), through which the remaining tax can be paid in equal installments monthly.
€ If the tax amount is huge, do not try to run away from it. Better consult a tax consultant who may provide ways to sort the issue easily and amicably.
€ Your tax consultant may ask for the older returns to scrutinize about the problem. If some amount was overlooked, then your tax consultant may help you amend the returns, so that the amount is lowered.
€ There are various programs offered by IRS to settle down your taxes like.
Installment Agreement: Where one comes in agreement with the IRS department to clear off the debt in equal installments.
Partial Payment Installment Agreement: This is a new plan where the debt can be paid off long-term in installments.
Compromise: Where a compromise can be arrived at with the department and the debt can be paid only partially either in full or in installments.
Not Collectible Currently: A program where IRS accepts not to collect the tax for some time (about a year or so). So in the mean while one can arrange for the money and pay it off.
Bankruptcy: A bankruptcy may be filed under strict rules of the department. But there are number of clauses that should be considered before filing a bankruptcy.
The IRS sends notices to the taxpayers for various reasons. The letter should be read, re-read and read several times to understand the reasons and hidden clauses of IRS tax debt, and it can be done through tax consultants without any hitch, who explain what needs to be done with a solution.
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