Benjamin Franklin was right when he said, "In this world nothing can be said to be certain, except death and taxes." You can also be certain that the Internal Revenue Service takes its responsibility of collecting taxes very seriously, and there are significant repercussions for taxpayers who do not meet their tax obligations. Unpaid taxes can result with a taxpayer losing their personal property or even being jailed.
Deciding from among the various tax debt relief options can be both complicated and confusing. For help in assessing your tax debt situation and determining which relief option is the best fit, it's a good idea to consult with an experienced tax debt relief professional. Here is a list of the debt relief options that can be used to resolve an adverse situation.
The IRS offer in compromise program is one of the lesser-known tax debt relief options. Its purpose is to allow the IRS and a delinquent taxpayer to reach an equitable agreement that serves as payment for outstanding taxes, interest, and penalties; the final amount that is due will be less than the full amount that is actually owed. The IRS will only accept an offer in compromise in a few very specific circumstances.
» read more about Offer in Compromise »A formal IRS payment plan is one of the best tax debt relief options; this alternative is straightforward enough that most taxpayers can set it up themselves. IRS payment plan options include an IRS tax loan, a short-term payment extension, and an installment agreement. An IRS installment agreement can be set up as a guaranteed installment agreement if the taxpayer owes $10,000 or less and has been in good standing with the IRS over the past five years.
» read more about IRS Payment Plan »Tax penalty abatement is a method by which a taxpayer can receive forgiveness for part or all of the money that they owe the IRS. This is one of the tax debt relief options that applies only to specific situations, such as the death of a member of the taxpayer's immediate family, the destruction of a building in which the taxpayer's records are stored, or a delay by the IRS in printing or mailing tax documents.
» read more about Penalty Abatement »If a taxpayer fails to pay their IRS obligations, the IRS may decide to file a tax lien against the taxpayer's assets to attempt to recover the money owed. To remove a tax lien, the taxpayer must pay the taxes, interest, and penalties that are due. In rare cases, the IRS may withdraw a tax lien; an example of this situation is if the filing of the tax lien did not follow proper procedure.
» read more about Tax Lien Release »A tax debt collection method of last resort, wage garnishment is granted by a court order and instructs an employer to withhold money form a taxpayer's paycheck in order to pay outstanding IRS debt. Wage garnishment release is one of the tax debt relief options that can vary from state to state; there are states that specifically prohibit the garnishment of wages.
» read more about Wage Garnishment Release »Business tax debt is specific to taxpayers who own their own business; people in this situation have additional tax filing obligations, including Medicare, Social Security, federal income, state income, and federal unemployment taxes. For help in resolving business tax debt situations, it is a wise move to contact a specialist who is proficient in the area of business, rather than personal, tax debt.
» read more about Business Tax Debt Relief »