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  • Tax debt can be an enormous burden, depending on the amount of money you owe to the IRS. Seeking debt relief can help individuals and families deal with financial issues. There are ways to alleviate this burden, but there are strict guidelines on how to go about handling the problem.

    Do Not Avoid the IRS

    One of the most crucial aspects to finding debt relief with the IRS is to face the problem and not avoid it. The IRS has the ability to garnish wages, seize property and file charges against anyone who does not pay his taxes. The IRS will ascertain the value of your estate, bank accounts, cars and other items you own to collect a tax debt. Along with items you currently own, it can also garnish future income, seize inheritances and use financial judgments in your favor to obtain taxes owed.

    Installments

    It is possible to get set up on a monthly payment plan to pay off taxes. There are a couple of disadvantages to doing this: The first is there is a one-time set up fee to be able to partake in the installment program. Second, interest and penalties will accrue continuously through the length of the payment term. As with most payment plans, the greater amount you can pay each month, the faster the debt is paid and fewer penalties will be tacked on.

    Offer in Compromise

    The IRS may accept an offer in compromise (OIC) if you can prove you do not have the income or assets necessary to pay what you owe. There is a $150 filing fee to do this, and you must submit an offer amount with your application. The IRS will evaluate everything you possess, and if you cannot pay the full amount, and OIC may be extended. The amount will depend on your assets as well as what the IRS reasonably expects to collect. This will be done with either an installment agreement or through a lump-sum settlement.

    Use an Agent

    A tax-relief professional may be used if you owe at least $10,000. Be sure this person is either a tax attorney or a certified public accountant with a license to work in your state. Do not file before hiring one, and be sure you have documents for tax returns from previous years. A licensed professional can act as an intermediary between you and the IRS and help you seek tax debt relief.

    Source:

    Tax Help: Tax Debt Relief

    Reduce IRS Tax Debt: Reduce Your Tax Debt

    More Information:

    IRS

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