Get Right Help for Tax Debt Resolution

Last updated on January 3, 2022

If you are worried about your growing tax debt, getting help from tax lawyers to understand your case can ease some of your worry. Many professional tax debt relief firms offer free consultation to taxpayers. It is best to first do your research and then contact a legitimate, experienced firm. Explain your tax debt situation to them and ask them how they can resolve your case. That will give you an insight into the specifics of your tax debt case and help you in deciding how to best get your debt resolved.

How Tax Relief Firms Help Resolve Tax Debt

Apart from the threat of lien and levy from the IRS, most taxpayers also want to avoid their credit ratings going bad because of unpaid taxes. If the amount you owe to the IRS in taxes is less than $10,000, you do not need to hire outside help for tax debt resolution. The process of paying back taxes owed is straightforward if the taxpayer can pay off the entire debt in a single payment. It is in cases that require reduction of tax debt, reduction or removal of penalty or postponement in paying of tax debt that taxpayers need help from tax debt relief companies housing tax lawyers.

Your tax debt help will review your past tax returns, determine the amount of penalty the IRS will charge on tax debt, amend your returns if needed, and work out which payment plan of the IRS will give you the best results.

Much of which resolution your tax debt help will choose for you depend on your present financial condition, and the duration and gravity of non-compliance. Tax attorneys, enrolled agents and Certified Public Accountants help prepare your tax debt case and negotiate it with the IRS to get a reduced tax debt amount that you can pay comfortably over a period of time or in lump sum, depending on your wish.

Help for Paying Tax Debt

There are six ways that can help you pay tax debt if you cannot pay the amount in a single payment. These are:

1. Installment Agreement: A long-term payment plan where you pay the IRS taxes owed in fixed monthly installments to fulfill the tax debt. You qualify for it when you have the financial capability of paying full tax debt amount.
2. Partial Payment Installment Agreement: A long-term payment plan where you pay reduced tax debt amount in fixed monthly installments because of your financial inability to pay the entire tax debt amount.
3. Offer in Compromise: A payment plan where you pay reduced tax debt amount due to your inability to pay the entire debt amount. Taxes owed can be paid in lump sum or in short payments.
4. Currently Not Collectible: Where the IRS agrees not to collect your tax debt for a certain period of time due to your inability to pay any amount of tax debt.
5. Innocent Spouse: Where you file taxes jointly with your spouse and claim innocence to non-payment of taxes, which the IRS accepts and releases you from the responsibility to pay taxes owed. The entire liability of paying the tax debt falls on the other spouse.
6. Filing Bankruptcy: If you fulfill certain conditions under Chapter 7 or 13 of the bankruptcy petition, your tax debt can be forgiven.

Apart from these six payment plans, there are no other ways through which a tax debt help can get you back into compliance with the IRS. Make sure that your help for tax debt resolution has qualified tax lawyers that can achieve for you the most beneficial resolution.