6 different ways to solve outstanding tax debts

Getting an opinion from the IRS that you have to pay taxes can be daunting. Usually, however, the IRS is willing to work with taxpayers who want to solve the tax debt. The New Start program offers payment options to people who previously did not qualify.

The program offers repayment options, including installment plans, compromise offers and adjournments. You can take advantage of these choices if you have filed all your tax returns or if you have a valid extension on the current year 's tax return.

If you owe returns, file the missing returns before applying for a repayment plan for the unpaid tax debt. Solving a tax issue can be difficult when you are not familiar with tax laws. Keep in mind that filing for bankruptcy will not erase most of the tax debts. If you feel overwhelmed, consider contacting a professional tax advisor who can help you achieve the best possible outcome for your situation.

Installment Installment Plan

Taxpayers owing less than $ 50,000 to the IRS can put in place a phased installment plan. You can make a monthly payment offer for the IRS to consider. You will have to bid equal to your total debt divided by 72. You have the option to offer the minimum monthly payment and add additional payments when you can. Offering a phased installment plan is often the first step in a successful tax resolution.

Compromise Offer

Sometimes it is possible to offer the IRS less money than you need to. If you can prove that you really can not pay all your taxes, the IRS could accept a compromise offer. You will need to file additional financial forms for the IRS to review your situation. When the IRS accepts the offer of compromise, the offer is accepted.

Dispute of Misery

Temporary adjournments are also available if you suffer from difficulties such as a fire or illness. The IRS does not forgive your tax debt; However, the collection activity stops until your status changes and you can make payments. You can contact the IRS directly or hire a professional tax consultant to help you apply for a deferral.

Tax Lawyer

If you have tried unsuccessfully to conclude a payment agreement with the IRS, contact a tax attorney. The Tax Advocate Service (TAS) is part of the IRS. A staff member can help you understand your rights and achieve a successful tax resolution. CAS can also help you resolve incorrect tax returns and obtain extensions to current returns.

Court of Tax

If you strongly disagree with the IRS claim that you owe taxes and can back up your deductions with the documentation, you can take the IRS to the tax court. The court usually settles cases involving less than $ 50,000 quickly.

It is important to settle your tax debt as soon as possible. Consider these options and work with the IRS to reach a payment agreement. If your tax returns are complicated or if you face criminal charges, seek the help of a tax attorney to help you get a favorable result from the IRS.