If you are reading this, than chances are that you know you have a tax debt problem. Maybe the IRS has been sending you letters, threatening to garnish your wages or place a lien against your property. You also probably know that trying to wait out the IRS won’t help, but instead will only cause them to use more aggressive collection tactics. The only solution you have is to act quickly and intelligently.
For those unaware – here are some of the reasons to act on your tax debt now:
- If you don’t contact the IRS to resolve your debt, then they can forcibly take money from you in the form of wage garnishments, property liens and seizure.
- The IRS now works with private debt collection companies, who take over unpaid accounts and can aggressively pursue collection tactics against you.
- Tax debt affects a host of other areas in your life, such as your credit score, your ability to have a passport and retain your security clearance if you work for the government.
The good news is that the IRS knows mistakes happen – maybe you’ve misfiled your taxes or forgotten to file for a few years. To rectify these problems, the IRS has an array of payment options and debt forgiveness opportunities for those who qualify. Here are some options to think about pursuing:
1. Installment Agreement – this option is for those who cannot pay off their entire debt amount in one lump sum. An installment agreement allows you to make payments on your debt, for an agreed amount of time and money, so long as it does not exceed 5 years.
2. Offer In Compromise – this options is for those whose repayment of their tax debt would result in extreme financial hardship. In other words you must have a very limited income and little to no assets to qualify for an offer in compromise. Learn more here.
3. Separation of Liability Relief – this option is for those whose spouse or ex-spouse was financially irresponsible and cause tax debt to which both spouses are legally liable for. This option allows the innocent spouse to separate their tax liability from the other spouse (usually reducing or removing their tax debt amount).
To Learn more about your tax-relief options, please download our free legal guide: Resolve Your Tax Debt. Please also consider booking a free consultation with one of our tax attorneys. They have successfully fought the IRS and saved their clients thousands (if not hundreds of thousands) of dollars in tax debt. Schedule now to discuss your tax debt options with our Colorado Springs, Castle Rock and Denver based tax attorneys.