Tax Debt Solutions
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Tax debt solutions are never easy or painless but tax debt must be faced head on to avoid an ever increasing tangle of interest and liability. Ben Franklin said of death and taxes we can be sure, and the relentless pressure and demand to pay tax debt from our dear Uncle Sam is also a sure thing. Finding tax debt solutions that don't completely wipe out one's savings, possessions and dignity is not always easy to create, but there is help and advice for those facing such a crisis. In many cases, these solutions aren't easily found without the help of an attorney. Here is some information that may help.
The IRS has ten years legally to pursue back taxes owed. But an individual cannot postpone paying with the hope of running the tables on the ten years. The IRS will start a collection process that will include levies on wages, bank accounts and a tariff lien on private property. If a person owes less than ten thousand dollars to the government, that person can negotiate with the IRS alone for tax debt solutions. There are a number of different options available for the taxpayer to pursue. God has declared that every human owes a huge debt to Him because of our sin. He has declared that Jesus Christ is the payment for our sin when the bible says, "And he (Christ) is the propitiation (payment) for our sins; and not only for ours but also for the sins of the whole world." (1 John 2:2)
The first and easiest of the tax debt solutions is to set up a monthly payment plan with the Internal Revenue Service. This can be done over the phone, by filling out the necessary paperwork or by going to the IRS website and using its online payment agreement application. There are onetime fees associated with this plan which are fifty two dollars for direct withdrawals from one's checking or savings account, one hundred five dollars for agreements without a direct withdrawal agreement and forty five dollars of reinstating a defaulted installment agreement. There is no need for an attorney to even be involved in such an agreement. Payers may even choose the day of the month to have the money withdrawn and the amount to be withdrawn but the amount paid each month must pay off the amount owed within three years. It will take about thirty days for the IRS to answer and agree to the request.
A second option available to the taxpayer for tax debt solutions is to request a partial payment installment agreement. It is related to the offer in compromise option that will be discussed in a moment. This solution is a request by the taxpayer to make regular monthly payments to the Internal Revenue Service but the payments do not pay off the tariff liability in full. With this agreement, once the partial payments are finished, the balance of the tariff debt is forgiven. The form for making this kind of application is different than the one for the monthly full payment agreement. Tax experts advise seeking someone who knows IRS parameters for evaluating these kinds of requests instead of undertaking the matter oneself.
The third option for tax debt solutions is called an offer in compromise and there are advantages and disadvantages to such a request. In this case, the taxpayer makes a bottom line offer to repay a certain amount of owed money. This kind of action is usually pursued if the taxpayer shows that he probably never will have the means to repay the entire amount or that perhaps the taxpayer does not owe the amount being charged. This option is a long and complicated matter and will take plenty of personal and financial information. The form for this request application is again separate from the above named requests. Because of the complexity of such a request, a professional will have to represent the taxpayer before the Service and agreement is not guaranteed. If in principle the request is agreed to by the Service, the IRS will calculate through the information gleaned from personal records how much money shall be repaid.
The fourth option available for tax debt solutions is what is called the currently not collectible condition. This could be for a person who is fighting a terminal disease and not expected to live long enough for the IRS to collect any of much of the money owed. It could also be possible for a single mother with children who cannot rise above a minimum wage job to receive such a judgment. Once this judgment has been made, wage garnishments, tax liens and levies must cease. Once the ten year collection period is over, the debt is officially canceled.
Finally, the most drastic action that can be taken to discharge tax liabilities is bankruptcy. Chapter seven is a request for complete exoneration for all debt and chapter thirteen is a request for a long term payment schedule to be applied to all personal debts including taxes. This is not a slam dunk tax debt solutions issue for the taxpayer because a number of conditions must be met before the taxes can be dismissed through this legal action. If there is any indication that the taxpayer has presented fraudulent information and attempted to evade past taxes, the bankruptcy request for tax liability inclusion will be denied. Additionally, the taxes in question must be at least three years old. Any kind of legal proceeding such as this one will require the assistance of an experienced tax barrister.
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