It is never a good idea to have huge tax debt balances with IRS. Your tax liabilities, including interest and penalties keep increasing until you pay off all your federal taxes. Everyone cannot pay the entire tax debts in single payment. Hence, IRS has introduced tax debt relief settlements or options to pay back your debts in installments. You need to submit relevant documents to qualify for any of these options.
What are tax debt settlement options?
Everyone cannot pay the entire tax debts in single payment. Hence, IRS has introduced tax debt relief schemes or options to pay back your debts in installments. You need to submit relevant documents listed in the form to qualify for any of these options. You can hire an experienced tax professional for your tax debt settlement help in US to ensure proper filing of your relief claims.
1. Installment Payment Agreement –
It allows you to make payments over a period ranging from 120 days to 6 years using IRS online portal or Form 9465.
2. Offer in Compromise –
It allows you to pay tax debts less than you actually owe using Form 656 booklet.
3. Innocent Spouse Relief –
You can opt for this plan if you can prove that errors or fraud were conducted without your knowledge.
4. Currently Non Collectible –
The IRS stops all collection efforts and penalties based on your inability to pay.
How does tax debt relief work?
Generally, IRS will investigate to check, on receipt of your relief request, whether your inability to pay your tax debts is really a fact. If you prove your financial hardships, then IRS will either decide to waive off the tax debts or pay in installments. In case your claim request gets rejected, you can file an appeal again after 30 days.
Once your application is approved, you can remit payment by debit card, credit card, money order, check, online E-pay tools or by phone through the IRS’s Electronic Federal Tax Payment System (EFTPS).