Tax Debt Settlement

Tax debt is a heavy burden. If you have unsettled tax debt with the IRS, you may face legal consequences including jail time; but, there is hope. With the IRS fresh start program, you will be able to settle your tax debt and free yourself of this burden.

How is debt settled with the IRS?

• Tax debt settlement is done with the IRS by paying back the taxes you owe. If you have not paid taxes, then you can opt for a tax settlement with the IRS. However, there is a condition for this settlement: you should have filed for the previous tax returns and remain completely up-to-date with the present tax obligations. You should speak with the IRS officer to settle your debts and remove all your tax burdens. As a result, you will be able to pay in lump sum payment to the IRS to clear pending payments.
• Paying in a lump sum is the most appropriate way to clear tax-related debts, and you will be able to start fresh. But many taxpayers cannot afford to pay the debts in full, and therefore, may opt for an Offer in Compromise with IRS. When you submit an offer, IRS authorities may revise the debts that you owe. Again, you can also opt for the Installation Agreement, which will allow you to pay in installments. If the IRS finds that you cannot pay your debts, a case may be filed against you under the ‘Currently Not Collectable status.’ As long as you are unable to pay your debt, the Statute of Limitations (10 years) will continue to exist until the term expires. In the case that your financial condition improves, the IRS will collect the pending taxes at that time.

What Do You Need to Do Now?

If you are ready to relieve yourself of your tax debts, consider the IRS fresh start tax program. It is critical that you pay back any owed federal taxes on time so that you avoid paying high interest rates. In extreme cases, the IRS may resort to the forced collection. In addition, there are several programs that the IRS has started to help you relieve your debts and save money. For more detailed information, visit the IRS website at https://www.irs.gov/

Summary

If you owe a tax debt to the IRS, you may face severe consequences. Nonetheless, there are ways to help relieve you of your tax debt. With programs such as the IRS fresh start program, you will be able to settle your tax debt and avoid any consequences and distress.

Also read:- https://www.globalgatecpa.com/top-7-reasons-how-irs-debt-settlement-can-save-money-wash-down-water/