TAX DEBT RELIEF OPTIONS

Falling behind on your taxes and having to cope with the IRS’s penalties may be a difficult situation that affects every aspect of your life. Fortunately, you have several choices for reducing or eliminating your tax due with the IRS. Overwhelming tax debt isn’t an unsolvable problem, whether you tackle it yourself or employ an experienced professional to assist you.

It is important to know that there is no “secret” to getting out of back taxes. However, there are solutions to fit most people’s needs. The five options for dealing with tax debt include:

An installment agreement. If you can afford to continue paying your taxes and simply need to reorganize your debt and payment plan, this allows you to create a monthly payment plan with the IRS. This is the best option for those who have simply fallen behind or can’t afford to pay as currently expected.
Partial payment installment agreement. This option reduces the dollar amount that you owe to the IRS. However, in exchange for tax debt reduction, you must agree to a long-term repayment plan. Though your tax debt will be reduced, you can still feel the pinch for years to come.
Offer in compromise. By making a lump sum payment upfront or agreement to a short-term payment plan, you can reduce your tax debt. Be sure to consult with your tax attorney on this option.
Not currently collectible. If your financial situation doesn’t give you the resources to pay, the IRS can voluntarily agree to stop collection efforts for a year or until you’re financially stable again.
Bankruptcy. Filing for Chapter 13 to resolve tax debts may be one option, but not all tax debts are eligible to be discharged.

Tax debts, like most of the bankruptcy process, can be challenging. It’s always a good idea to seek legal advice from an experienced Sacramento bankruptcy attorney before making a decision about your debt.