Tax relief is easier to achieve than most people think. When you are deeply indebted to the IRS it can be hard to know where to begin to seek tax debt relief. Fortunately, there is a great deal of options and assistance out there for someone willing to seek it.
What To Do First
You are first going to need to calculate exactly how much debt you have built up to pay off. The IRS usually keeps people frequently updated and will have no problem giving you a clear answer as to how much you owe. Then you will need to take a hard long look at you financial situation and how much you have to spend to get tax debt relief. If you promise to pay too much, and are unable to meet those payments, odds are you will not be given another chance.
What If I Don’t Know
If you are unsure, owe a great deal of tax debt, or have let is become severely delinquent, you will want to consult an attorney who specializes in tax debt relief. This is all these attorneys do is deal with the IRS and they generally have connections with in the agency that they work with on a regular basis. This coupled with their ability in the area of tax relief can save you a great deal of money.
You can also find help directly through the agencies that help people get out of all kinds of debt. They have specialized people on hand that can help you find the right option for you to get tax relief. Generally their services are going to be free. Not only will they give you resources but they will also help you deal with the IRS by establishing with them the exact amount you can afford to pay and when. They usually get plans that spread the debt over three years.
Beware of Scams
You just need to be sure you are working with legitimate company and that they are not a scam. There are many Web sites and other business that are not really there to help, they just care about lining their pockets. The best place to start looking is through the Better Business Bureau. Legitimate tax debt relief agency will have obtained the BBB stamp. Also, there may be some fees so just because they charge them may not necessarily mean the are a scam. It really depends on how much tax debt they have to deal with.
Make An Offer
Another alternative to tax debt relief is to seek an OIC or what the IRS calls an Offer in Compromise. The OIC agreement will be between the IRS and you and will need to be set up my a knowledgeable lawyer who specializes in tax debt because it can be quite complicated. The debt relief agreement has been around since the beginning of the 90s and is part of the tax code 7122. Since it has come on to the tax relief scene it has risen to be the most popular option for individuals seeking tax debt relief.
If you fall into the 50 percent of tax debt relief seekers who do not qualify for an OIC agreement, you still have other option to obtain tax relief. The IRS has options to pay them back in installments as well as differed payment plans. This will either allow you to pay over the course of up to three years or put off the debt until you get back on your feet. To get installments you have to prove can afford the payments establish. For deferment you need to show the IRS that you only need tax debt relief temporarily because maybe you lost your job have a new one lined up or you could have been injured and just need some time until you get a settlement. This biggest thing to remember is to not put it off or run from your tax debt. The longer you do this the harder it will be to get debt relief.
No Running Allowed
Last, never ever try to out run the IRS because you can not hide from them or escape your tax debt by hiding from it. Whether you believe it or not, the IRS wants to work with you because they want to get the money. They would rather you deal with your debt right away, then put it off and let it build. It is much easier for them to help you get some tax debt relief, then to come after you. You need to be prepared to put all you resources towards your tax debt to get it paid off as soon as possible.