No one ever intends to go into debt with the IRS. But unfortunately, it happens to millions of Americans. There are many reasons why someone would go into debt with the IRS. Most often, it happens because people are simply not aware of tax filing mistakes they make. Regardless of the cause of your IRS debt, there are ways to handle this stressful financial situation somewhat painlessly. If you need help with IRS debt, allow this post to provide that assistance. Below, you will learn the 5 best strategies to deal with IRS debt as painlessly as possible.
Repayment Installment Agreement
When you need help with IRS debt, you can sign an IRS installment agreement to better deal with the financial burden. A repayment installment agreement allows you to make monthly payments on your IRS debts. This IRS monthly payment plan allows you to break IRS debt of up to $50,000 down into smaller monthly payments. These payment plan terms can last up to 72 months, or six years. That way, you do not have to bear the burden of paying a large lump sum to pay off IRS debts. You can apply for an IRS installment agreement online using the IRS website. This is one of the easiest ways to deal with IRS debt quickly and easily without hurting your personal financial health.
Offer In Compromise
You can also find IRS debt assistance in the form of what is called an offer in compromise. An IRS offer in compromise allows you to reduce your total IRS debt to a more manageable sum. You can think of this like a buyout agreement for your debt. Entering into an IRS OIC agreement lets you settle your tax liabilities for less than your total amount owed to the IRS. However, there are strict requirements in order to qualify for the program. The IRS accepts offers in compromise to repay debts when forced debt collection tactics do not work. They may also take into consideration your ability to pay, based on your income, expenses and asset equity. If you are really in a bind, an offer in compromise with the IRS is the best way to get help with IRS debt relief.
Currently Not Collectible
The IRS also offers a lending hand to those in need with the opportunity for a not currently collectible agreement. The IRS Currently Not Collectible status allows you to agree that you owe the IRS money, without being compelled to repay those IRS debts right away. This is the perfect IRS debt relief for when you know you owe them money, but you cannot afford to pay those debts off due to your current financial situation. It places your account in CNC status, so that the IRS does not attempt to collect debts from you during that time. If you are experiencing financial hardship and need help with IRS debt relief programs, first try checking out this option.
File For Bankruptcy
Filing for bankruptcy is another way to deal with IRS debt. Of course, it is not the best option for your overall financial health considering what does bankruptcy do. But, it is one of the most direct ways to discharge income tax debts. If you need help dealing with IRS debt from income tax issues, filing for bankruptcy will make those income tax debts eligible for discharge. This is possible with both Chapter 7 and Chapter 13 bankruptcy. But with Chapter 13, you may be responsible for repaying some debts using a debt repayment plan. Consider all other options to get help with IRS debt before you file for bankruptcy. Once you have run out of options, only then should you consider filing for bankruptcy to avoid paying back IRS debts.
Apply To Release Wage Garnishments
When you are in debt with the IRS, you can apply to get your wage garnishments released. IRS debt sufferers often get levied with wage garnishments to pay off those debts. The wage garnishment process allows the IRS to deduct money from your wages, salary or federal payments until those tax debts are paid off. If your wages are being garnished, you can apply to get those wage garnishments released or modified. This will only be possible if you are experiencing financial hardship that puts you below the poverty line. This would be a relief considering all the employee monitoring going on. If wage garnishment is hurting your personal financial health and you need help with IRS debt repayment, try bargaining for a release of that wage garnishment. This is a great way to pay off your IRS debt on your own time, without having your quality of life suffer.
Everyone gets into trouble sometimes. But, getting into trouble with the IRS is the worst kind of trouble. Still, millions of Americans have IRS debt that they struggle to repay. If you are having a hard time paying back IRS debt, allow this post to help. This post offers you the best ways to get help with IRS debt, without having to pay for IRS debt relief programs that wind up being scams. Consider these IRS debt repayment strategies to determine the best course of action for yourself. In no time at all, you will be free from your tax debts and will be able to avoid tax problems in the future.