How To Handle A Debt With The IRS
How To Handle A Debt With The IRS
How To Handle A Debt With The IRS
Most taxpayers receive a refund. But some have a balance due to the IRS or other taxing authority and the amount can vary from a manageable amount to something a bit scary. That raises the question, "What can I do about my tax debt?"
The IRS and other taxing authorities are often very aggressive collectors and they generally have legal powers not available to your other creditors. When an individual or a company owes tax debt, the government, wants payment. Even if there's no money or less than a desired amount available, they will still try to get payment from you. Despite being massive and seemingly all-powerful institutions, however, these organizations usually have to try to work with people.
Different Ways to Pay
Know the facts and investigate your options. Let's say you wish to pay all your taxes but handing over the full amount in one payment is either impossible or would make things really tight for you. There are ways to pay. It will cost you as there are almost always penalties for late payment but the costs can usually be managed.
Here are some options for repaying or otherwise dealing with your tax debt:
An offer in compromise
Installment Agreements
Hardship Deferrals
Bankruptcy Discharges
Legal Limitations
An offer in compromise is where you tell the IRS you can't pay the bill in full but you can pay X dollars. They'll investigate and may negotiate. If you can agree, you'll pay the new liability.
You could pay off your debt in installments just like you make payments on any other type of contract. There'll be a charge for this option but it can clear your debt and not all in one payment.
If you have hit the rocks financially you can raise the issue of hardship. Creditors know they can't get blood out of a stone and detailed documentation of your circumstances is required, but this is an option.
Bankruptcy is not a good option for some taxpayers, but in some circumstances, it is the best or only way out. If you file for bankruptcy and it is (discharged) completed, there are several downsides but your debt to the IRS will not be one of them.
In general, once a tax assessment is made, the IRS has a legal limitation of 10 years in which to collect their money. Sometimes cases get mislaid or forgotten. If time has gone by and your tax debt is not paid, under most conditions, once 10 years has elapsed, so does your obligation to pay.
In some cases the statute may differ, depending on what method for handling the debt you are evaluating.
This article seeks to give you a general idea of what is involved with a tax debt to the IRS or other taxing authorities. For more detailed expert advice, a visit to a tax lawyer is highly recommended.
*This article does not constitute legal advice and does not establish an attorney-client relationship.
http://www.articlesbase.com/law-articles/how-to-handle-a-debt-with-the-irs-3818795.html
Paying Off Appreciation Card Debt - You Could Finally Eliminate 50% of What You Owe Reducing Thanks Card Debt - Free Relief That Can Help Reduce 50% of Your Thankfulness Card Debt Shopping and Product Reviews Make Your Purchases Better How Debt Settlement Can Get You Out Of Debt Quickly Effective Methods Of Coping With Debt Doubt Full or Bad Debt (English to Urdu translation) Allstate Announces Quarterly Dividend And $1 Billion Share Repurchase Program Do Not Pay A Debt That Isn't Yours, Check Out Irs Equitable Relief Or Innocent Spouse Relief How to Create a Debt Settlement Plan on Your Own Smart Purchase instruction for HP 371790-001 AC Adapter Merit Card Debt Statute of Limitation - What You Must Really Recognize Ways Numerous People Could Purchase Football Shoes Pay money to purchase different variety of tropical plants