Did you know that there are approximately 20 million taxpayers that are either in some stage of the collection process with the IRS or are believed to be non-filers (who also owe the IRS)? Although this is a huge number, this number is expected to continue to increase in the current economic environment related to COVID-19.
Unfortunately, if you don't solve your tax problems timely, you can expect levies, liens, and a general negative impact on your daily life. In most cases, these problems can be eliminated or minimized by taking proper action. Today we’ll cover 7 ways to eliminate your tax debt and get your life back on track.
7 Options to Resolve Your Tax Debt
There are several different methods of settling collection issues. First you must address the problem and get into compliance by filing all delinquent tax returns. Once you are ready, some of the most common solutions include:
- Fully pay the debt. That's the simplest solution but will require an immediate full payment of the tax debt.
- Set up an Installment Payment Plan that permits you to pay your debt over time. There are many variations of payment plans including a Partial Pay Installment Plan (PPIA) which puts you in a plan where you are not required to fully pay your debt.
- Negotiating an Offer In Compromise where you will make an offer to the IRS for less than the full amount of the debt.
- Be placed in Currently Uncollectible Status if you qualify as not required to make payments at this time.
- If you were married but should not have been held responsible for the debt, you may qualify as an Innocent Spouse.
- Qualified tax debt can be discharged thru Bankruptcy.
- Wait out the 10 Year Statute of Limitations that the IRS has to collect tax debt.
Not everyone qualifies for each of solutions. The IRS has specific rules to qualify for each of these solutions, but by understanding the rules, or working with a Tax Professional that specializes in this area, you can find the best solution to your specific problem.
Do you Need Help?
In order to settle your debt, you need to understand the rules and the opportunities available to you. If you need professional help, feel free to contact me at (972) 821-1991 or at email@example.com. To learn more about us, visit our website at https://jablonskyandassociates.com/.