Most people have strong feelings about the Internal Revenue Service. Most of those feelings are negative. Many fear it, and the power it has to disrupt lives. Others resent it for taking hard earned money out of their pockets. Then there are those who actually owe it money and live every day with the dread of what might happen. You may think you will never be able to get out of debt once you have passed the deadlines and haven't paid the taxes you owe. There is affordable tax relief available however, for people in all kinds of situations.
There are any number of reasons why you don't want to get in trouble with the IRS in the first place. The Internal Revenue Service can, and will, garnish your wages if you are employed. It can even garnish Social Security. It can seize assets. If you have a checking or savings account, the IRS can instruct your bank to immediately remove all available funds in your account, up to the amount they say you owe, and send the money to them after a three week period.
These things don't have to happen however, even though the IRS will do them as a last resort. They would rather work with you, but you must do your part by communicating and cooperating with them. One of the most common ways to pay back taxes is by setting up an installment plan approved by the IRS. You will make payments every month until you are free and clear of the debt.
If you can get enough cash to pay them a lump sum or offer to pay the total over a short span of time, you might be able to reduce the amount you have to pay. In addition to paying less than you owe, you will have the added advantage of saving money that would otherwise go to penalties and interest.
You may be able to prove you are currently unable to pay anything to the Internal Revenue Service, in which case you will become what is known as "not currently collectible". If this happens you may be able to buy some time and retain assets until you can work something else out.
Depending on the amount you owe, you might considering putting the debt on a credit card. There are some companies that bill themselves as credit card debt settlement businesses. You should think carefully before you agree to use one of them and make sure you get everything in writing if you decide to go ahead with this plan.
Under certain circumstances you can be relieved of your IRS debt by filing bankruptcy. You shouldn't file though unless you know you qualify under the bankruptcy code. When you're the spouse of someone who owes back taxes, you may come under the IRS's innocent spouse guidelines and not be held responsible.
It is better to pay the taxes you owe every year, fill out the forms, and file on time. When you can't do that, there are options available.
There are any number of reasons why you don't want to get in trouble with the IRS in the first place. The Internal Revenue Service can, and will, garnish your wages if you are employed. It can even garnish Social Security. It can seize assets. If you have a checking or savings account, the IRS can instruct your bank to immediately remove all available funds in your account, up to the amount they say you owe, and send the money to them after a three week period.
These things don't have to happen however, even though the IRS will do them as a last resort. They would rather work with you, but you must do your part by communicating and cooperating with them. One of the most common ways to pay back taxes is by setting up an installment plan approved by the IRS. You will make payments every month until you are free and clear of the debt.
If you can get enough cash to pay them a lump sum or offer to pay the total over a short span of time, you might be able to reduce the amount you have to pay. In addition to paying less than you owe, you will have the added advantage of saving money that would otherwise go to penalties and interest.
You may be able to prove you are currently unable to pay anything to the Internal Revenue Service, in which case you will become what is known as "not currently collectible". If this happens you may be able to buy some time and retain assets until you can work something else out.
Depending on the amount you owe, you might considering putting the debt on a credit card. There are some companies that bill themselves as credit card debt settlement businesses. You should think carefully before you agree to use one of them and make sure you get everything in writing if you decide to go ahead with this plan.
Under certain circumstances you can be relieved of your IRS debt by filing bankruptcy. You shouldn't file though unless you know you qualify under the bankruptcy code. When you're the spouse of someone who owes back taxes, you may come under the IRS's innocent spouse guidelines and not be held responsible.
It is better to pay the taxes you owe every year, fill out the forms, and file on time. When you can't do that, there are options available.
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