If you are worried that the IRS is going to put a tax lien on your home, wages and other possessions, then you need to arm yourself with the facts about what you are able to do to prevent this. Sometimes, you can convince the IRS to work with you if they ever want to see their money. But in order to do this, you need to understand what is required of you and how to prove your case.
The IRS prefers that people pay their tax debt in one quick lump sum. In fact, they will be more than happy to take your credit card as payment. In some cases, this may be the smartest way to pay your debt because every month your debt lingers, you have interest and late penalties mounting on your already large tax bill. If you have a credit card with a lower interest rate, it may be the cheapest way for you to pay your bill.
Another way to settle your bill is to work out installment arrangements with the IRS. By doing this, you will be admitting that you owe all of the debt and will agree to pay it monthly. Now the downside to this method is that the tax bill will continue to incur interest and late fee charges which are charged on a monthly basis. One thing to note is that the IRS is not known for the low interest rates!
Still, another method of reducing your taxes is to qualify for an OIC which stands for Offer in Compromise. These are hard to get and you will more than likely need to help of a tax professional in order to qualify for one. Basically, this amounts to having your taxes greatly reduced because you will not be able to pay the tax. The IRS figures some money is better than none. To qualify you must meet one or more of the stringent requirements. For example, you must prove that even by selling all of your assets, you will not have nearly enough money to pay the bill. Or another way to qualify is by having some sort of catastrophic expense such as medical costs. Be aware, that the IRS does not give this designation lightly so you will have to have all of the documentation necessary to prove your case.
The only way to face the IRS and your tax debt is by taking action. You must arm yourself with knowledge, documentation and the help of an expert certainly won't hurt. With the right case, you can work with the IRS and settle your tax bill.
Article Directory: http://www.articletrunk.com
I have done a bit of research for you. Tax Settlement Experts can help you get the relief you deserve. Find out if you qualify for a tax debt settlement today.
Click here to fill out a short form to save your finances and get out of debt as early as this week!
Please Rate this Article
Not yet Rated