If there is one issue that is more sensitive than inability to pay ones credit card or other debt is the debt owed for taxes. Even thought this debt issue has negative connotations for many it must be dealt with any other issue.
As with any debt postponing in has increased cost. Aside from interest, taxes are subject to penalties, which are similar to fees charged for paying late on credit cards, but it can be more costly. Therefore, one needs to put aside whatever feelings they have about paying debt and care of the issues opportunely.
There are different methods to seek tax debt relief. There are laws established to help taxpayers that due to economic hardships and other situations cannot pay their tax debt. The methods that available include partial payment and installment, installment agreement, offers in compromise, currently not collectible and bankruptcy.
The method that you can use to obtain tax debt relief will be determined by the IRS after evaluation your particular financial situation. The rules are strict and you must fit into their definition of eligibility, however, this is not as difficult as most perceive.
The reasons for not being to pay one taxes are varied. The loss of one's job, an economic setback, illness, disability and many others than can give rise to this dilemma. With the slowdown more and more individuals have been impacted negatively and their income has dropped substantially or been lowered considerably. In this situation pay certain debt and taxes it not seen as a priority and as a result put of.
In order to be eligible and persuade the IRS to use one of the above tax debt relief methods you must show proof of your current condition, which may sound complicated but in actuality is not. The Installment method is agreeing to pay your debt over a specific period of time until its entirely paid of, the partial payment and installment is you make installment payment for a specific period of time but the only part of the debt is paid, but it considered payment in full.
The Offer in Compromise is an agreement to pay a potion of the debt and is considered payment in full. The other two methods currently not collectible and bankruptcy, were the IRS deems you cannot pay your debt of and agrees to forgive it.
Depending on the complexity of your tax issue it is always a good idea to get expert tax advice from those that know the tax laws and have represented similar cases previously. Nonetheless, procrastination is not a good option and the tax debt will not go away by itself and it will only increase as a result of interest and penalties.
By: Irma Montes
I have been in the finance industry for many years and enjoy writing article to help individual find Tax Debt Relief. If you would like to read more of my article, please visit us at IRS Debt Settlement: http://irsdebtsettlementhelp.com/
Tuesday, November 30, 2010
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