It’s not the end of the world if you find yourself owing a lot of money to the IRS. They actually do understand that you might have difficulty keeping up with the back-taxes as well as the future taxes on top of it all. Thankfully, you might very well be able to get some federal tax debt relief.
However, it has to be under circumstances. They have to take a look at your current financial situation first. They cannot collect any more money than you can reasonably pay. If any action taken by them that result in you undergoing an even worse financial crisis than the one you’re already in, they can’t proceed forward.
Of course, in order to get the tax relief, it helps to apply for IRS programs. You’re obviously going to need to know precisely where you currently stand and how much you actually owe. Don’t just give an estimate off the top of your head.
And don’t think that you can deal with the situation and negotiate with the IRS all alone. You’re going to need some professional assistance for federal tax debt relief. If you stop payments to the federal government without first officially working out a deal, things are not going to go well for you. There are legitimate consequences to this, unlike when you just stop paying on a bank loan or credit card.
Federal Tax Debt Relief With a Compromise
How will you be able to make a compromise? You might be in a position to do so if you have at least some of the resources to pay at least a portion of the tax debt. There is something called an Offer in Compromise or OIC that will resolve the remaining amount. Now, this isn’t easy to qualify for, because, once again, THEY are the ones who get to ultimately decide whether or not you are truly eligible.
Having professional tax debt relief companies help you and speak up for you will definitely increase your chances of success. If it can be proven that you truly cannot pay back all the money you owe and that your present financial situation is very difficult, and the future isn’t looking so bright, you be approved for a compromise. The reduced amount will be payable either in fixed monthly payments or in a lump sum.
There might be other “IRS Debt Forgiveness” solutions for you. Not only are there federal tax debt relief solutions, but debt relief assistance in general, with organizations such as CuraDebt. It’s a US Chamber of Commerce member, National Association of Tax Professionals member, and available in all 50 states. Get a Free CuraDebt savings estimate to learn more.