OS Law Blog
Tax Law / Tax Forms / Child Tax Credit / Tax Help / Tax Rebate Check / State Tax Forms / Homebuyer Tax Credit / Tax Tips

It can be a difficult process to tackle the Internal Revenue Services, when you owe insurmountable amount of debt to them. But there are some convenient ways to settle your tax debt burden. You can opt for tax debt relief program to settle your debt easily and regain financial independence. Here are some convenient ways to settle your IRS tax debts:

Offer- in- compromise: You can propose offer in compromise to the IRS if you are unable to make your tax payment on time. But make sure that the amount you offer is affordable for you to pay off. You will qualify for the program after the IRS evaluates your financial situation then it will approve your offer. You can avoid the penalty and interest charges while giving you a scope of eradicating your debt.

Installment agreement: If you are unable to pay your taxes after 4 months of extension then you can opt for installment agreement. The taxpayer’s financial situation is reviewed by the IRS and then formulates a repayment plan. You can pay off tax debt easily because of the installment agreement. But under this debt relief option you are required to pay off the interest. The repayment plan can be stretched legally that makes it affordable for the debtor to pay off the tax debt. But make sure that you do not miss your payment otherwise the IRS might lapse the agreement.

Elimination of the penalty charges: When you are unable to pay your tax on time then the penalty charges accrues on the principal amount. But often these penalty charges are found to be erroneous. If you locate that incorrect penalty charges are levied on your tax debt then you can request the IRS to remove the charges from the owed amount. It is advisable to approach a tax expert if you want to contest the IRS to eliminate the erroneous penalty charges.

These are some of the convenient options to settle the IRS tax debts. You need to choose the appropriate debt relief program in accordance with your financial state and regain your financial independence.

Leave a Reply