In the U.S., it is imperative for every person to file taxes regularly each year. The problem, but, arises when these taxes are not paid on time. If this continues for a number of years, then the person will have to pay in thousands at a time.
The Internal Revenue Service, also known as the IRS, is responsible for looking into these aspects and collecting the debts payable to the government. When the IRS knocks on a person’s door, it is hard to ignore. There is no respite from paying the tax debts. But, what is possible is to get certain tax debt reliefs help from certain people and sources.
In order to help them make the right choice, they need help from an experienced person. Hence, it is imperative to choose the right tax professional who can guide you through the entire process. Opt for the consultant who comes with excellent reviews and has experience in handling such cases before.
There are only five options available from which you can make a choice. The five options are installment agreement, partial payment installment agreement, offer in compromise, filing for bankruptcy and tax not currently collectible. Let us know quickly what each of these options has in store for you.
If you have tax debt of less than $10000 and you can pay it off within three years, then, you can opt for the installment agreement option. In this method you make monthly payments to the IRS by which you can clear off all your past dues. Requesting for this option is also relatively simple. Your tax consultant has to call the IRS on their toll free number. Once they receive the call they will register your details and send across documents which you will have to fill and send them back. If you want to make the process simpler, you can opt for registering online using the form available on their website.
The second option that you can consider is partial payment installment agreement. In this option also you agree to pay the money in the form of monthly installments, but, it differs from the first option because here you can get relief from paying the entire amount. If you adhere to all the terms mentioned in the agreement and pay the specified monthly installments you can the remainder of the tax amount waived off.
The third option that you can consider is the offer in compromise. When you request for OIC, you need to submit your request to the IRS asking them to give you a waiver on a certain amount due. Once you submit it, the choice is left to the IRS to accept this request. They take their choice based on your ability to pay off the entire amount and also if they are in doubt about the pending tax debts payable by you.
The last two options are not recommended until you are really hard struck for money and cannot afford to repay the tax debts at all. Now that there are multiple options available, discuss in detail with the tax professional and opt for the one that suits you the best.