Don’t be quick to think you’re doomed if you can’t pay your taxes at the present because the IRS offers numerous alternatives. Depending on your circumstances, you may postpone payments or reduce the amount you owe.
While this forgiveness program assists taxpayers in financial need, getting to the solutions is not always easy. If you have any worries about your taxes, you should speak with a professional right away.
They can assess your position, advise you on the best course of action, and assist you with your application. Before consulting them, you should also know what financial strategies you should bring up.
Take a closer look at the many debt relief solutions accessible today.
Installment Agreement Is the Simplest Option
Making an installment agreement with the IRS is the simplest approach to avoid fines. You can spread out your payments over several months or years if you can’t pay everything you owe right now.
If you pay off your loan within six years, you won’t have any issues with the IRS. This alternative is convenient and available to practically everyone.
Anyone who owes less than $50,000 can apply for an installment arrangement online and receive an immediate response, but those who owe the IRS more money must call an IRS employee.
They may be required to give additional documents regarding their income and assets, and a decision will not be made for several months. If you owe a lot, it’s best to hire a tax counselor to help you negotiate with the IRS.
Offer in Compromise Allows You to Pay in Parts
People with a considerable decline in income may find it impossible to repay their tax debt, even if it is spread out over six years. In this circumstance, an Offer in Compromise might be the best option.
This entails only paying a portion of your tax debt to the IRS. Although this may appear to be an excellent option to get out of debt, take note that most people who file for an OIC are not approved.
Because only around 40 percent of proposals in compromise are accepted, you’ll want to be sure you’re eligible and have appropriate proof. You should always double-check your paperwork with a tax professional before forwarding it to the IRS. With their help, you can improve your chances of getting a reduced tax bill.
Innocent Spouse Relief Let’s You Off the Hook
Innocent spouse relief is a sort of tax debt relief accessible to individuals whose spouse is responsible for the problem. If your spouse committed a mistake on your joint tax return and you were unaware of it when you filed, you may be qualified for ISR. Your spouse will be accountable for the entire amount, and you will not face any IRS action.
You’ll need to show that you weren’t the one who caused the situation and that you had no reason to know about it. It can be difficult to persuade the IRS that holding you responsible would be unjust, so gather as much evidence as possible.
Currently Not Collectible Status Enables You to Postpone Tax Payments
People are increasingly finding it difficult to cover their basic living expenses. Suppose you’re barely scraping by or don’t have a regular source of income. In that case, the government may award you “currently not receivable” status, allowing you to postpone your tax payments until your financial position improves.
CNC does not imply that you are tax-free. If your salary rises in the next ten years, you will have to continue payments.
While all taxpayers have access to these tax debt relief options, they aren’t always easy to find. You should talk with a tax consultant as soon as possible to ensure you don’t lose out or overpay.
After setting up an appointment, they’ll be pleased to assess your case and assist you in determining the best course of action.