Tax Debt Negotiation
Choosing tax debt negotiation as a means of dealing with unpaid taxes may be a reasonable option for citizens who are struggling to make financial amends with Uncle Sam. Taking on the IRS without assistance may just be the ultimate David vs. Goliath battle. The IRS has many ways to attempt to retrieve any funds that are owed to them and the IRS will not hesitate to follow through on aggressive collections practices. The IRS can put liens against a delinquent taxpayer's property, or they can garnish wages. Finding a way to deal with back taxes can be intimidating for anyone. There are attorneys and specialists who promise to help clients deal take on the mighty IRS. By negotiating a workable payment plan, or even reducing the amount of taxes that are owed, these agencies can provide a valuable service. No one will be able to get away with not paying their taxes. But having a professional on the job that can work with the IRS before a client looses property or sees their credit rating decimated can make all the difference. Pursuing tax debt negotiation can be a positive step for a variety of reasons. Like most creditors, the Internal Revenue Service would rather collect a portion of the money owned as opposed to none at all. Negotiators count on that when going to work for their clients. Successful negotiations will result in a payment plan that is achievable and perhaps a reduction in the overall indebtedness.
Whenever a taxpayer files their taxes, but finds that paying what is owed will be difficult if not impossible, a big problem can start to snowball. The Internal Revenue service will contact the individual to inform them of the amount of money that is owed. That bill may come as a surprise. The amount owed will frequently be larger than expected because certain extras have been added. These extras may include interest payments or various penalties. At this point, a taxpayer can try to raise the funds to pay off the debt including penalties and interest. If the taxpayer ignores this notice, not only will they be putting themselves in serious legal trouble, but they will also see the amount of money that they owe rapidly increase due to extra interest charges and penalties. Hiring an attorney or tax debt negotiation specialist at this point may be a good idea. These professionals may be able to get the IRS to agree to an offer in compromise. This is an agreement that is reached by on behalf of the taxpayer outside of a court of law. Bargaining is done on the basis of certain circumstances. Considerable doubt may have arisen over whether or not the taxpayer actually owes the amount that has been assessed. When this is the case, the Internal Revenue service has the leeway to correct or reduce the liability. Doubts may also exist as to whether or not the taxpayer can afford to pay off the liability due to economic hardship. This can be cause for a reduction of liability as well.
Some taxpayers may have already reached an agreement with the IRS to make installment payments on back taxes. This does not mean that tax debt negotiation cannot take place. Once an offer in compromise has been accepted, the taxpayer will have an allocated period of time to make good on the agreed upon payments and retire the indebtedness. This period of time can generally be anywhere from ninety days to two years. Getting an offer in compromise approved by the IRS can take up to a year. If a taxpayer was making installment payments before a tax debt negotiation has begun, those payments can be suspended while a taxpayer waits to hear whether or not the IRS will approve the offer in compromise. Any other attempts at collection will be suspended during this time as well. Some clients may have neglected to even file their taxes for a number of years. An attorney or specialist in this area can work with a client and with the Internal Revenue Service to bring this issue up to date and get the taxpayer a reasonable payment plan on any back taxes that may be owed. The fees that are charged by professional negotiators will vary, but many will offer a free initial consultation. Potential clients should always make sure that they understand all fees up front before they sign any kind of agreement with a negotiating agency.
Neglecting to pay taxes is a criminal offense. In fact, failure to file a return is a felony and the IRS has every right to impose criminal charges. Substantial fees and even prison time can result from a failure to pay taxes. For this reason, the help of a legal professional is very important in tax debt negotiation. Since these matters can carry some very serious legal consequences, a potential client will want to make sure that they are working with a reputable agency. Before signing any contracts, a client should check out the organization in question with the local Better Business Bureau.
During tax debt negotiation, the IRS will look at a variety of factors. Such hardships as periods of unemployment, divorces, or medical issues may work in favor of a taxpayer who needs some kind of tax debt negotiation. Any consumer who has found themselves up against a wall financially will know the value of a true helping hand. There are many descriptions in the Bible of the kind of help that God offers to believers. "I cried unto the Lord with my voice, and he heard me out of his holy hill. Selah." (Psalm 3:4)
Debt Settlement and The IRSDebt settlement and the IRS debt that is owed by millions of people can be eliminated or deferred by a variety of methods aimed at realistically paying off IRS obligations in a minimal amount of time. Most times organizations that specialize in settlement and the IRS representatives can come to some sort of agreement to settle tax debt for a fraction of what is owed. Once these obligations have been given a reduced settlement amount, the taxpayer can usually arrange realistic monthly or quarterly payment plans. Initial consultations between organizations that offer settlement services are typically free of charge.
Most taxpayers do not attempt to contact organizations offering debt settlement and the IRS debt that is owed is usually a total amount that includes late payment penalties or other tax fees. The taxpayer may even find that their paychecks are smaller due to IRS payroll garnishments that are a legal way to retrieve some of the obligations that are owed. The organizations that provide these services guarantee a taxpayer's satisfaction. They attempt to end tax levies and liens, and remove all excessive tax penalties.
Fast help is usually required by the time a taxpayer seeks help or services that are offered free of charge for dealing with debt settlement and the IRS. Although it seems like a crisis to the individual in the situation, help can be found quickly and most debt issues can be solved within a few phone calls. Enlisting the help of an expert is wise. They are already familiar with the tax laws and also with all remedies for getting out of debt made available to taxpayers through IRS funded programs. The goal is to retain a large amount of the taxpayer's income while simultaneously paying off debt. "When thou vowest a vow unto God, defer not to pay it; for he hath no pleasure in fools: pay that which thou hast vowed." (Ecclesiastes 5:4)
If there are any lump sum income checks that come in, to keep them from being garnished, having a plan made ahead of time will enable the taxpayer to keep their lump sum in its entirety. If the IRS has set up a payment plan with a taxpayer, they will not garnish wages, tax returns, or any other income as long as the taxpayer makes the payments as they agreed. Relief is as simple as a phone call and possibly one meeting. The sooner the organizations that specialize in debt settlement and the IRS outstanding debts are contacted the better. It is never too early or too late to pay the IRS.
Self debt negotiation is a legitimate but sometimes difficult way to reduce credit card balances and overall debt liability. Although the term may sound silly, the process is anything but. Consumers can make self debt negotiations with their creditors and ask others to hold them accountable for their actions. When applying this form of liability reduction, debtors speak with each of their creditors individually and attempt to create a workable payment plan. Ideally, the creditors will agree to a new plan and the debtors will reduce their overall monthly payment, which allows for some breathing room each month. Some experts recommend that people involve close friends or family members in on the process for the purpose of accountability.
When deciding to pursue this course of action, it is critical that the consumer remain positive and optimistic. It may take a long time and the discipline required to maintain a self debt negotiation plan may seem impossible. Remember that God does not want his children slaves to debt and He will give the necessary strength as it is needed. "I can do all things through Christ which strengtheneth me." (Philippians 4:13). It is important to keep focused on the big picture, which is debt-free living, and not be distracted by more immediate wants that could put one further into debt. Pray and seek God regarding what should be done. The Lord wants to help you carry your burdens and to have you make the best decisions possible in life. That includes in financial matters.
There are many companies who offer services to people with excessive liabilities. They can work with consumers regarding self debt negotiations. Sometimes just sitting down with a trained financial counselor and talking about the current financial situation helps. They might ask clients to walk them through the financial history and the current balances accumulated in the first place. Counselors will most likely offer a few alternatives to best reduce the balances and offer ways to meet self debt negotiation goals. It would be in ones best interest to hear what the trained counselors have to say about the process. Another reason for consumers to consider speaking with an expert is to explore the risks to their credit score if they pursue this avenue.
If individuals prefer not to engage the help from companies who specialize in self debt negotiations, they certainly should seek reputable advice from someone trustworthy. This is very important because people are sometimes blinded by their own problems. An objective opinion can be incredibly helpful. Self debt negotiation should give priority to paying back creditors in a timely manner. Experts warn against taking advantage of these kind of reduction agreements. Although creditors may seem willing to work with individuals who are late on their payments, remember that they are in business to make money and to get the money owed to them. They will levy hefty fines and fees to those who break the original agreements.