The Internal Revenue Service (IRS) will work with you to establish a plan to pay your back taxes. The IRS has two tax debt relief options depending on your situation. If you cannot pay all your debt in a lump sum, you may be able to set up an Installment Agreement with the government.
The IRS calls the program Fresh Start, and you will make monthly payments for five to six years. By setting up an Installment Agreement with the IRS, you will avoid having interest, penalties, and seizure of your assets.
This option might be available to you if you owe less than $50,000 in tax debt.
You might get IRS debt forgiveness if the agency does not think you are able to pay what you own in one or multiple payments through the Fresh Start Program.
The IRS may have an Offer in Compromise(OIC) that allows you to pay less than you owe. This settlement is only available if you have exhausted all other options and have limited circumstances.
If you wait to contact the IRS about the taxes you owe, you will accumulate more debt. The agency issues a penalty for each month you are late.
You can also turn to your local government for assistance with tax debt. Many states have programs to help you pay back taxes. Some cities and towns have tax debt relief assistance for the elderly, disabled, and veterans.
If you have credit card debt, you will need to deal with your creditors or have a third-party contact them on your behalf.
By Admin –
