Tax debt can be a complicated matter, and the same is true for coming up with a solution. That’s why there is a long list of companies that offer tax debt resolution services.
When it comes to tax debt resolution, there is no “one-size-fits-all” solution. In fact, there are many different methods, and it will depend on your specific situation. Still, it’s not something you want to put off, and it’s not something you want to ignore. Doing so can cost you a lot more in the long run, and it can result in serious consequences.
Offer in Compromise
In some cases, you might be able to make an agreement with the IRS where you can settle the debt for less than what you owe. However, not everyone will be able to qualify, as the IRS has strict guidelines in determining a person’s eligibility for this program. And they don’t make it easy.
You might be able to get the IRS to waive certain penalties that have been accrued over a period of time. This is a common method for resolving tax debt; in fact, about one-third of IRS penalties are never paid.
With an installment agreement, you can agree to pay the IRS in monthly payments over a specific period of time, and you might be able to negotiate with the IRS to pay only a portion of the amount that they are trying to collect. After all, the IRS has a specific period of time to collect any funds before it starts to fall off. In other words, you will no longer be responsible for paying for that amount after the time has expired.
Innocent Spouse Relief
As you might have expected, this applies only to married couples who file a joint return. As a rule, each spouse is responsible for any taxes, penalties, and interest owed. However, the IRS understands that there may be some circumstances when one spouse is not at fault. This type of strategy works to eliminate any related tax burdens from that individual.
IRS Tax Bankruptcy
If you can qualify for a Chapter 7 Bankruptcy, you might be able to use this option. But it should only be used as a last resort, as it will damage your credit. You also might be forced to liquidate some of your assets. You should also bear in mind that you may still be responsible for some taxes, especially if you are filing for a Chapter 13 Bankruptcy.
Using Tax Debt Resolution Services
With all the rules and regulations, it can be hard to find your way. That’s why you need to hire a professional to help you resolve any tax-related issues. Not only will they be familiar with Tax Law, but they can also advise you on which method will work best for you.
Tax Law Tampa has a team of experts who can offer solid tax debt resolution services, and they have the skill to solve any tax-related problem. So, if you want to find out how they can help you, get in touch with them today!