Owing money leaves you in a bad position, regardless of what the money is for. However, owing money for back taxes is one of the worst debts you can have. Unfortunately, the IRS is relentless and doesn't eliminate tax debts that people owe. So if you owe money to the IRS, you need to find a way to pay the money. Are you looking for a way to clear up this debt? Here are some steps and ideas to consider to help you settle the debt.
Try to create a payment arrangement with the IRS
You might want to begin by contacting the IRS to see if they're willing to work out a payment plan. However, contacting the IRS is an intimidating experience. Most people don't want to talk to the IRS, and many don't know what to say when they call. If you decide to call, you can ask the IRS if they'll give you a repayment plan you can afford. If they agree to this, you can use this repayment plan to settle the debt. The downside of this option is that it requires repaying the full amount. On the other hand, you might find other options that won't require paying all the money.
Hire a tax lawyer
Next, you should consider hiring a tax lawyer. A tax lawyer specializes in helping people settle back taxes with the IRS. A tax lawyer can help you create a repayment plan with the IRS if you don't want to do it alone. But a tax lawyer can also help you ask for an offer-in-compromise (OIC). An OIC is an arrangement that lets you settle the debt for a lower amount than you owe. The IRS accepts offers for OICS, but they don't always approve them. You'll improve your chances of the IRS accepting your offer if you hire an attorney for help.
File for bankruptcy
One other option you could consider is filing for bankruptcy. While bankruptcy doesn't automatically eliminate your IRS back taxes, it can help. First, it might help you reduce the amount you owe the IRS for your taxes. Secondly, it gives you time to repay the money and helps to stop wage garnishments, if you have any.
Talk to an attorney
These are some of the steps you can take to settle the debt you owe. Are you ready to get help? Contact a tax lawyer in your area to learn more.Share