How to Avoid and Resolve IRS Debt

Last updated on July 25, 2022

Many times circumstances may lead to a taxpayer getting into debt with the IRS. Having a lack of information regarding IRS policies is a common reason for the delay or non-payment of taxes. To avoid getting into tax debt, taxpayers should make every effort to pay their taxes before the filing deadline and pay the full amount of taxes they owe.

Tips on Avoiding IRS Debt

Taxes paid after the filing deadline attracts penalties from the IRS. The IRS also charges interest on the amount of taxes that remain to be paid after the filing deadline. Therefore, taxpayers must pay the entire amount of taxes owed before the filing deadline to avoid any added penalties and interest.

The interest the IRS charges on back taxes is much higher than the interest banks charge on credit. So taxpayers may consider getting a loan to pay their taxes. However, it is advisable to consult a tax specialist in such cases.

Miscalculations by taxpayers or the IRS can also lead to an IRS debt. If there is inconsistency in the calculations and the IRS finds that a taxpayer owes more, it sends a notice informing the taxpayer about the miscalculation and how to pay the balance.

Resolving IRS Debt

Taxpayers who have a tax debt and cannot pay the entire amount are advised to contact a tax resolution service for tax preparation, and IRS representation and negotiation to resolve their back taxes. All professional tax resolution services should have tax lawyers and analysts that assist taxpayers in choosing the most comfortable and beneficial method of resolving an IRS debt.

The IRS has various tax debt payment plans. Each resolution plan has strict qualifying factors. The primary consideration of the IRS is the financial strength of a taxpayer applying for a plan. Based on that and other factors, the IRS will either approve or deny a taxpayer’s application.

Using Help for IRS Debt Resolution

Taxpayers can save their money, time and effort by using the help of a professional tax resolution service. The expertise and experience of tax lawyers ensure timely, smooth and successful resolution. To achieve a beneficial resolution, tax lawyers need to negotiate the particulars of a case with the IRS. Their knowledge and experience in handling tax debt issues makes them indispensable in achieving the most favorable resolution.

As most legitimate tax resolution services provide free consultation before the hiring of their service, taxpayers may use it to know more about the company and the services it offers. It is essential for taxpayers to have trust in the service they choose to work with. Our ratings and reviews of the most competent tax resolution services can assist taxpayers in their research.