IRS Tax Help at Your Fingertips
You can’t ever make the mistake of thinking that IRS tax problems will simply go away. Similarly, you can’t underestimate the importance of professional tax assistance when you need it most. Before getting started on your quest for tax resolution, there are some important definitions to understand.
What is an IRS Tax Settlement?
A settlement agreement with the IRS, otherwise designated as an Offer in Compromise, allows you to resolve your tax liability for a reduced amount. Such a proposition can be difficult to execute and, assuming you are eligible, can take anywhere from six months to a year to be approved. There are a number of conditions you must meet in order to explore an Offer in Compromise, and you may wish to consult with a licensed tax professional before making the request.
Currently Not Collectible
There is a chance that you can afford nothing when it comes time to address a tax debt. If this is the case, IRS Currently Not Collectible (IRS CNC) may be your solution. Currently Not Collectible allows you to avoid collection action from the IRS and prevents you from having to pay anything against your tax liability. This is typically a temporary measure, as your financial situation will be periodically reevaluated by the IRS. Until your finances are back on the upswing, though, this option can be to your advantage.
Alternate IRS Tax Programs
Your best IRS program may not be immediately clear. When you examine your monthly finances, consider how much the IRS claims that you owe and the time that’s lapsed since the beginning of your debt; you may then begin to form an idea on how best to proceed. IRS tax programs are designed to resolve your liability in a formal, legal way without presenting you with an unfair financial hardship.
An installment agreement is an example of a tax debt program structured to satisfy both you and the IRS. This repayment plan allows you to cover your delinquent balance in monthly installments (penalties and interest still apply), and can give you several years to resolve your issue. This is ideal if you have the ability to pay, but not all at once.
The Importance of a Tax Professional
Since you may be unsure of what tax debt program is right for you, it may be in your interest to seek professional guidance. You can schedule a no-cost consultation with a tax resolution company to ensure that you are on the correct path to fully resolving your IRS concern. This will also empower you to have the best tax solution possible.
Keep in mind that time is of the essence. No matter what tax issue you’re facing, you want to resolve it quickly. Doing so will help ensure that you don’t face aggressive IRS collection action, such as a tax lien or wage levy. Requesting a formal resolution will prevent any unwanted interference with your finances, while getting your tax status with the IRS back to normal.