There are different ways to pay off your tax debts and hiding from the IRS is definitely not one of them. Once you get notifications and phone calls from the IRS agents, it's time to take things seriously because the agency will not stop until you've settled your tax debts. If you're in the same situation, you should know the 5 tax debt relief strategies that you can use.
Firstly, you can arrange for an installment agreement. As the word suggests, you will pay your tax debts by installment. This is applicable if the amount you owe is $10,000 or higher. The payment plan is usually divided into several months wherein the monthly payment is set at a lower amount that the taxpayer can afford to pay.
Another strategy is installment agreement but with partial payment. You will need to make a partial payment and your balance will be paid by installment. The payment plan is usually for the long term and this is ideal for those with huge debts.
Many people would prefer an offer in compromise but since the process of applying for one is stringent, it's quite hard to have this strategy working for you. The amount you owe will be reduced based on your financial need and the balance will be paid monthly, or you can also opt for lump-sum payment. It would be best to consult a tax professional for this strategy.
If you are in deep financial need, you can file for Not Currently Collectible. The IRS will stop all calls and notifications for one year but after that, your financial standing will be evaluated and the appropriate payment plan will be determined.
Bankruptcy is the last option. You can discharge your debts by filing Chapter 7 or Chapter 13 petition. This may not be ideal but if all other strategies fail, you have no other choice.
With these five tax debt relief strategies, you can now solve your tax debts. Contact the IRS immediately, together with a tax professional. In due time, you will be able to settle your debts, and once you do, you need to be more careful in spending your income.
By: Khmer Lee P. Lugod
***Update***
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.
GO here to fill out a short form to save your finances and get out of debt as early as this week! :http://federaltaxhelp.net/
Monday, February 28, 2011
Wednesday, February 16, 2011
Federal Debt Relief Laws - How Government Tax Breaks Can Help You Get Rid of Credit Card Debt
The New Tax Benefits
The financial institutions asked the government to change accounting rules so that writing down credit card losses is advantageous to the banks. When President Obama signed made these changes to the tax codes to help banks and financial institutions, he was not aware that he was creating a scenario to help consumers to rid themselves of credit card debt.
The new tax codes offer banks and lenders to write off bad debt and get substantial tax relief for doing so. This was enacted to allow the banks to write off these debts without suffering major loses. The financial institutions, in an effort to write off their bad debt while these tax breaks are available and also to help them to collect huge outstanding defaulted credit card debt, the credit card companies have started to negotiate credit card debt through a process called Debt Settlement.
What the Tax Breaks do for Consumer Debt
Consumers can negotiate debt reduction as much as 50-60%. Consumer Debt Settlement is now the accepted process for consumers to negotiate with their creditors. The new laws enacted in 2010, offer better protections to the consumer, so that they can retain the services of a profession Debt Settlement Company.
As the economy continues to cause worries and credit card debt and defaults continue to rise, the financial institutions are trying harder and harder to collect as much money as they can and to take advantage of all government programs available. With a constant eye on bankruptcy filings, the banks want to negotiate settlements as they lose everything in a bankruptcy and suffer more expenses.
This in mind, the banks are flexible and open to any solutions that is plausible. The best results for a Debt Settlement is to have a complete plan and breakdown. Also the more money you can pay immediately helps things along.
Act fast before things change
While these tax benefits and other government programs are available, such as the stimulus act and the new 2010 Credit Card Laws and TARP it is best to find a professional Debt Settlement Company and take advantage of these benefits.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.
By: Sankalan Baidya
Free Debt Help : http://www.freedebtreductionhelp.com/
The financial institutions asked the government to change accounting rules so that writing down credit card losses is advantageous to the banks. When President Obama signed made these changes to the tax codes to help banks and financial institutions, he was not aware that he was creating a scenario to help consumers to rid themselves of credit card debt.
The new tax codes offer banks and lenders to write off bad debt and get substantial tax relief for doing so. This was enacted to allow the banks to write off these debts without suffering major loses. The financial institutions, in an effort to write off their bad debt while these tax breaks are available and also to help them to collect huge outstanding defaulted credit card debt, the credit card companies have started to negotiate credit card debt through a process called Debt Settlement.
What the Tax Breaks do for Consumer Debt
Consumers can negotiate debt reduction as much as 50-60%. Consumer Debt Settlement is now the accepted process for consumers to negotiate with their creditors. The new laws enacted in 2010, offer better protections to the consumer, so that they can retain the services of a profession Debt Settlement Company.
As the economy continues to cause worries and credit card debt and defaults continue to rise, the financial institutions are trying harder and harder to collect as much money as they can and to take advantage of all government programs available. With a constant eye on bankruptcy filings, the banks want to negotiate settlements as they lose everything in a bankruptcy and suffer more expenses.
This in mind, the banks are flexible and open to any solutions that is plausible. The best results for a Debt Settlement is to have a complete plan and breakdown. Also the more money you can pay immediately helps things along.
Act fast before things change
While these tax benefits and other government programs are available, such as the stimulus act and the new 2010 Credit Card Laws and TARP it is best to find a professional Debt Settlement Company and take advantage of these benefits.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.
By: Sankalan Baidya
Free Debt Help : http://www.freedebtreductionhelp.com/
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