Reducing Tax Debt
Tax debt is stressful and can be a financial burden that you’re unable to repay. The IRS has a number of ways to extract money from you. One of the most devastating weapons in the IRS arsenal is wage garnishment, which can reduce your take-home pay by as much as 25%. Would you be able to pay your bills? This is why it’s so important to speak with a tax debt professional to determine your options for resolving your tax issue. Below, you will learn several important items about mitigating tax debt: specifically, when the IRS agrees to reduce tax debt and what you can do if it isn’t reduced.
How Do I Get My IRS Debt Forgiven?
Not everyone is aware of this, but IRS tax debt can in fact be dramatically reduced or even completely forgiven. The most typical method of reduction is an Offer in Compromise, which is an agreement between you and the IRS regarding how much of the debt you’re able to pay off. It’s not in the IRS’s best interest to try collecting money that they’ll never actually see, so an Offer in Compromise is a way for you to pay what you can while not being financially ruined.
What If I Can’t Get My Debt Reduced?
There are several paths available to you if the IRS refuses to lower your debt. One is to file an appeal, explaining why you believe the judgement was made in error. It’s extremely valuable to secure a specialized representation when making this argument this to the IRS, as this person will be able to make the present your case in a manner which the IRS is receptive. As well, you may be able to set up a payment plan with the IRS. While this doesn’t make the debt go away, it does reduce the shock and help you pay back the debt over an extended period of time.
Finally, you may qualify for “Currently Not Collectible” (CNC) status, which means the IRS has determined that you do not have the financial wherewithal to pay your tax debt. Although CNC does not eliminate your tax debt (at least not immediately), it will prevent the IRS from initiating collection actions (wage garnishment, bank levy, property seizure, etc.) and allow you NOT to have to make any payments.
Want To Reduce Tax Debt By As Much As 90%?
Benefit Tax Group is here to help you. We are a group of industry professionals who understand the personal damage that can result from tax debt collection and we pride ourselves on making sure our customers have the best tax debt representation available.
If you would like a free consultation and learn more about your options, please call us now at (800) 381-8816. You can also fill out our contact form.