IRS Tax Relief Settlement: Taxpayers are allowed to settle their debts for a percentage of the amount owed, depending upon their age, assets and personal budget. The key is to know the system and use the help of experts, like the ones offered by CreditNowUSA.
Offer In Compromise: Allows taxpayers a one–time only chance to clear their tax debt for a fraction of the actual amount due. The IRS will look at your case and, according to guidelines, agree to settle for a specific amount. A tax professional is worth more than their fee because the IRS will take advantage of individuals unaware of the process or their rights. CreditNowUSA connects you with these kinds of professionals.
The 3 main categories used to justify reducing an overdue account:
- The tax assessment is correct, but due to certain circumstances (eg financial hardship) the taxpayer cannot pay.
- If there is any doubt whether the full amount of tax will ever be paid.
- If there is any doubt whether the tax is actually due.
The IRS looks at all of the payment options open to the taxpayer in relation to the state of their personal finances and makes a decision. Their decision is mostly based on whether or not the taxpayer will ever be able to pay back the full amount. They then determine an amount that they think the taxpayer will be able to pay and make the offer.
Payment Plan: The IRS will give taxpayers time to pay their tax debt when they are convinced that they can’t settle their liability in one payment. If you are unable to pay your tax liability then your account can be flagged “Not currently collectible.” This means that the IRS will not pursue collection until you are able to accept a payment plan or an Offer In Compromise is made.
Penalty Abatement: If you can’t pay your outstanding tax debt due to extenuating circumstances, then it’s possible to challenge the interest and penalties that have been added to your account. This will help to reduce the size of your tax liability.
Examples of extenuating circumstances
- Hardship beyond taxpayer’s control – Fire, flood, natural disaster, etc.
- Reasonable cause – Death, serious illness, ignorance of the law, etc.
- Statutory Exceptions – Tax code changes from minor to major.
- IRS errors/mistakes.
Applications for penalty abatement have to be extremely specific and comply with all of the IRS rules and regulations. CreditNowUSA connects you with professionals whose expertise is in IRS tax laws and who can ensure that you are represented to the fullest extent.
How tax debt can happen
Every year thousands of Americans fall further and further into debt. For many, this debt comes from state or federal taxes. Oftentimes this debt is due to circumstances beyond the taxpayer’s control. It is easy to get into a position where you owe the IRS an amount of money that you simply cannot repay. For example, your tax returns might have been incorrect for a number of years, meaning that you’ve paid less tax than is due. If that happens over a number of years, the outstanding amount can be quite substantial, especially with penalties and interest added on.
Credit Now USA is here to help
If you owe thousands in tax debt it may seem as though there is nothing you can do. The good news is that Credit Now USA will connect you with experts who know IRS debt relief options that can help. These professionals will show you your options and help you decide what is best for your situation.
Determine how much debt you have
The first step to getting out of debt is determining the amount of debt you owe. This information is sent to you from the IRS. You will also need to determine your actual financial situation, by calculating your current and future income and expenses. This can be difficult to calculate, and seeking the help of a tax professional, like the ones provided through Credit Now USA, is advisable. The IRS needs this information to determine the proper tax debt settlement amount and payment plan.
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Tax Debt Relief and Your Options
With the state of the economy, it’s not surprising that one form of debt that can become a very big problem very quickly is tax debt. As such, if you are in this position, then you are looking for any form of tax debt relief that you can find. If you’ve always paid your taxes on time, then you may wonder exactly how someone can get into debt this way. Many times, that like this is due to circumstances beyond the person’s control. In some cases, it’s because of a natural disaster and they’ve lost everything including their own. In others, they suddenly had a business fail or have lost their job and as such have no income.
Of course, the IRS does allow for settlement and tax debt relief by allowing people to pay a portion of their debt rather than the full amount. Naturally this of course depends on your age what they own and their budget. However, all this sounds good, the actual process can be quite intimidating. This is where a tax debt relief company can really help.
You might be thinking that no matter what the problem or your circumstance, the IRS won’t allow you this tax debt relief. However, there are a few reasons to reduce the amount owing on. The first as is been discussed is when the tax assessment is right but the debtor can’t pay. Again this can be due to any number of emergencies but most often is due to suddenly being unemployed, having a business fail, having a divorce settlement go the wrong way for a natural disaster. In other cases it could be that there is question as to if the full amount will ever be paid and in still other cases there may be questions as to whether or not the amount is the correct amount.
Something to consider regarding tax debt relief is that the IRS is not perfect. They do make mistakes when it comes to assessments and tax returns. However, if the assessment is correct, you can still create a payment plan so that you don’t have to try and come up with one lump sum all at once.
Another form of tax debt relief is what is known as penalty abatement which essentially means that you can challenge any penalties and interest that is been added to your account to make the overall payment lower.
As you see, there are several different options when it comes to tax debt relief but the key thing you need to remember is to work with a company that will not only show your options but takes the time to consider what is best for your particular circumstance.