Taxes are a necessary evil. If you don’t pay them, the IRS will come after you with a vengeance. However, there is always hope at the end of the tunnel if you’ve been struggling with your tax debt. The government has programs to help struggling taxpayers like you! In this article, we’ll discuss six ways that you can get out of debt and start living life without constantly worrying about how much money you owe from the IRS.
Apply for an Installment Agreement.
- What is an Installment Agreement by the IRS?
An installment agreement allows you to settle your tax debts in monthly payments. This may be an excellent option for people who have trouble paying their taxes because of financial hardship. However, not everyone qualifies for this type of debt relief. To be eligible for an installment agreement:
- You must owe less than $50,000 in unpaid taxes and penalties to the IRS or state revenue department.
- You must have filed all returns due within three years from the date your last return was filed or two years after your final payment was made (whichever is later).
- You cannot be currently under examination by the IRS or state agency.
IRS Offer in Compromise.
One of the most common tax debt relief programs is an offer in compromise, a payment plan that allows you to settle your tax debt at a lower amount than what’s owed. The IRS will review your financial situation before deciding whether to accept or reject the offer. However, even if they take it, you’ll still be responsible for interest and penalties on your outstanding balance until it’s paid off in full.
You may be qualified for an Offer in Compromise if:
- You can’t pay off all of your taxes owed
- Your income is limited by a medical problem or disability
- You don’t have enough assets to cover your debt
Currently Uncollectible Status or Hardship Designation.
The IRS can provide a currently uncollectible status for your tax debt if you have an inability to pay the total amount owed. To apply for this status, you must:
- File Form 982 with the IRS. This form is available on the IRS website and in tax preparation software. The paper should be completed by an attorney or accountant representing your case. If you don’t have access to such means, you may submit them without hiring assistance from the IRS. However, they will likely reject your application due to a lack of professional guidance that helps determine appropriate deductions and exemptions when computing total income earned during the year.
- Include proof of income sources such as bank statements or pay stubs so that all projected expenses are accounted for during your filing period (usually one year).
The hardship designation program allows taxpayers who are financially unable but want to pay their taxes as soon as possible some relief from penalty fees associated with making payments late or missing them altogether. At the same time, allowing them more time to do so before being assessed penalties like interest charges and collection fees explicitly related to these issues mentioned above instead.
File a Collection Appeal.
If you disagree with the total amount of your tax debt or think that the IRS made a mistake, it’s essential to file a Collection Appeal. This is often referred to as an informal collection appeal, giving you the chance to explain why the amount owed should be reduced.
You can also file an informal collection appeal if there’s some other reason for disputing your tax debt — for example if you believe that the IRS has been wrongfully withholding money from future refunds or wages.
Informal collection appeals are free, so they’re worth considering even if they aren’t guaranteed to work out in your favor. Filing one typically involves mailing paperwork explaining why what’s owed should be lowered (or not owed). Once this is done and approved by an employee at IRS headquarters, any disputed amounts will be removed from your balance.
Get Resolved on IRS Wage Garnishment Before it is Too Late!
If you have tax debt and the IRS knows about it, they will likely begin wage garnishment. This is a process where the IRS collects your debt by taking some of your money from your payroll check before you even see it. A wage garnishment can happen in one of two ways:
- You get an IRS notice notifying you that your account needs to be paid off and informing them when they will start withdrawing money from your paychecks.
- They already have an existing court order permitting them to do this (which has been filed with the court system).
Wage garnishments are not always bad news; in fact, there are many cases where having one lifted is actually beneficial! However, many people find themselves struggling under their burden because they don’t know how to get out from underneath it.
Don’t Rush Your Case! Take Your Time, Be Prepared, and Stay Organized.
- Don’t Rush Your Case! Take Your Time, Be Prepared, and Stay Organized.
It’s essential to move through the process slowly and carefully. If you rush it, you’ll make mistakes that could cost you money later on. Plus, rushing can lead to an inaccurate filing that results in more taxes owed than necessary—not what you want! So, take your time by being prepared with any information that the IRS may request from you (such as proof of income for that current year).
- Be Prepared to Answer Questions in a Clear and Concise Manner
It’s easy for things to be confusing when dealing with tax debt relief questions over the phone or email—especially when multiple people are involved in each conversation. Make sure everyone knows who they are talking to so there aren’t any misunderstandings later on down the road; this will save everyone some time (and frustration) while getting things done faster than average.
It’s More than Helpful to Ask Assistance from Tax Debt Agencies.
If you are considering hiring a tax debt resolution firm to help you with your tax debt, it’s important to know the benefits of this option.
A tax debt relief agency is likely your best option if:
– You feel overwhelmed by the size of your tax debt
– You’ve been unable to make any headway on your own in paying off your debt
– You’ve had difficulty navigating the process of filing or getting an extension of your tax payments
These tax relief agencies specialize in helping people like you get back on track with their taxes and avoid the consequences of not paying what they owe. They will work with the IRS to negotiate an agreement that allows you to repay your debt over time, depending on your income and other factors.
If you have been struggling to pay your taxes, this article is for you. We hope that we have given you some valuable tips on how to make it easier on yourself and get out from under this heavy burden. There are many options available today, whether you decide to go with a debt relief service or try something else like an Offer in Compromise program. The important thing is that you take action now before it’s too late!