IRS Debt
If you owe money to the IRS, the most important thing to realize is IRS debt is not something to be taken lightly. Incurring debt with the IRS is not the same thing as having credit card debt or other kinds of debt. The IRS is the most aggressive collector in the world and they have all the resources necessary to collect with extreme efficiency. With that being said, it is also important to understand that they will work with individuals willing to face their debt head on, and that you do have options when it comes to resolving your debt with the IRS.
Setting up a Payment Plan with the IRS
The first, most straight forward way of going about dealing with this issue is to negotiate a payment plan with the IRS. Of course, it’s a scary proposition, which is why there are professionals who have devoted their careers to this practice. Once you sit down with your representative, they go to the IRS and negotiate based on your income and current financial situation exactly how much you can afford to pay. If your debt is less than 10,000, and your payment plan will pay the debt off in three years or less, the payment plan is accepted automatically; if not, a tax repayment plan is negotiated with the IRS that you can afford.
Settling Your IRS Debt
The second option is to attempt to settle your debt with the IRS by offering a lump sum equaling a portion of what you owe. The benefits are obvious. If the IRS agrees to your offer, the case is closed, you have paid much less than you would have paid with an installment plan, and the debt is sealed forever. The IRS allows these settlements because there is always the possibility that you will stop paying them back, the more they can collect up front, the more money they are guaranteed to receive.
If you have IRS debt, you don’t have to face it alone. Let us point you in the right direction so that you can make the correct decisions going forward so that you can start living your life again. It’s a horrible thing to live in financial fear. Don’t allow yourself to do it for another second. Let us help you today.
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