How To Settle Pending Tax Debts With The IRS?
Are you running behind on your taxes? Certainly, it is not good news for you. Every year, many people fail to pay their taxes for various reasons. Some of them are serious tax defaulters. Others don’t understand tax laws properly and make mistakes.
No matter the reason behind your tax debt, the IRS governing body will give you notice if you have a tax debt. In this post, we will discuss your available options if you want to settle your tax debts with the IRS.
IRS is the governing body responsible for tax collection and checking fraud. They have the ultimate power to take action against a tax defaulter. If you are one of those who find it difficult to understand all those complex tax laws, you should consult with an experienced tax professional (including a tax lawyer in Fresno).
Only a knowledgeable person can guide you in these matters. Now, without further delay, let’s look into the available options for tax settlement with the IRS.
Options You Can Have From The IRS.
Two major things can happen to you. Let’s discuss them in detail.
- Instalment Options To Pay Your Debt
Do you know the IRS can allow you to pay your debt amount in simple instalments? Isn’t that great? You need to contact the IRS federal body and share your problems and reasons for not paying proper taxes. If you convince them that your reasons are genuine, they can give you the option of instalment payments.
Dealing with the IRS is not an easy job. It would help if you had someone experienced on your side to deal with these matters. Look for tax professionals (like a tax attorney for IRS audit) to help you crack the best deal with the IRS. Remember, although the IRS can give you the instalment options, they will also impose interest on your tax debt. The more time you take to repay, the more you have to pay.
- Wage Garnishment
If the IRS is unhappy with your reasoning, they can impose wage garnishment on you. Do you know what a wage garnishment is? If the IRS body thinks you have purposefully didn’t pay proper taxes, they can garnish all of your wages. It includes your tax refund, income and even your social security. In this situation, please consult with an experienced tax professional and then only proceed forward.
Take Professional Help
We have been discussing how to settle your tax debts with the IRS. Dealing with the IRS for an ordinary person is not a cakewalk. To handle these situations, you must have ample knowledge of tax laws.
Having deep knowledge about these laws and protocols is farfetched for any random person. What you need in situations like these is expert tax personnel. Tax professionals have the required knowledge and experience in dealing with IRS officials.
Last Option: Bankruptcy
The last option to quash your debts is to declare yourself bankrupt. Though proving yourself bankrupt is a lengthy process, many have done so to avoid debts. There is proper law on when IRS consider a person or an organization bankrupt. Remember, if you declare yourself bankrupt, it will affect your future dealings with any financial institution. Consult with your tax expert before choosing any one of these options.
I hope this post will help you find a suitable solution. To learn more in detail, please consult with an experienced tax consultant.