If you are worried about 2021, then the following tips may help you find relief.
Don’t Ignore It
One thing folks tend to do when they owe the IRS money is to ignore the problem. Do not do this because it won’t work. The money you owe still exists, and burying your head in the ground won’t make the problem go away. If you cannot pay your debt, then make sure you contact the IRS.
File an extension to give yourself some time. If you can’t pay, then go ahead and set up a payment plan. Make sure it is something that’ll work with your budget. You may not love having to set up a payment plan, especially because you will have to pay interest, but it’s better to face this issue head-on.
Talk to the Experts
It’s important to realize when you need a little help. If your tax troubles are a little complex, then you’ll need to contact a specialist so that he or she can help you get tax debt relief.
The good thing is there are a number of these folks online. The only thing you have to do is to find the right specialists.
In the beginning, finding the right person is going to be challenging because there are many options, but if you narrow down your choices, this will get easier.
Start by focusing on specialists who’ve been in the tax industry for years. You’ll also want to read reviews until you find one that works for you and your budget.
This one is a little hard to obtain, but you can get forgiveness. What you have to do is fill out Form 656. This form tells the IRS you are trying to offer a compromise to them. There are several reasons why someone would want to seek a compromise with the IRS.
It could be that the person just lost a job and is unable to get another one. Maybe there was a death in the family, and it took a big bite out of your finances.
In essence, you are telling the government to reduce the amount you owe because you are simply unable to pay such an amount. The chances of this request being accepted are pretty low, so don’t get your hopes up too high, but that doesn’t mean you shouldn’t try.
Go to the Law
Okay, a tax specialist can only get you so far. Sometimes, if your problems are complex enough, you might need to hire a tax attorney. This person is usually hired only if you owe more than $10,000 since it can be a little costly to hire a good lawyer.
A lawyer who focuses on tax law should be able to help you negotiate with the IRS so that you can reach a better deal. The right lawyer will not only help you get this deal, but they are also there to protect you from things like tax liens or any hardship the IRS can throw at you. The IRS can be a very powerful enemy to have, so making sure you have someone watching your back is just smart.
other valuable tips:
Currently Not Collectible
There is a program called "Currently Not Collectible" that is available to taxpayers. What you are going to have to do is offer the IRS proof that you cannot pay the IRS any money. If you are successful at proving this fact, then the IRS won’t collect what you owe for about a year, giving you enough time to deal with whatever financial situation you are dealing with.
Now, the IRS is going to investigate to make sure you prove checks out, so make sure you are precise as you can be when you try to submit this request. This is a good way to deal with your debt if you simply can’t pay at the moment. You’ll also be able to stop things like an IRS levy or seizures among more actions against you.
Hopefully, some of this information helps you figure out what to do with your debt. It may be a good idea to talk to a financial advisor to move your cash around to pay off this debt as soon as possible.
Image Credit: tax debt relief by envato.com
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