Settling IRS Tax Debts for Less Than What You Owe

Settling IRS Tax Debts for Less Than What You Owe

Dealing with the IRS can be frustrating and intimidating. Although you can always handle it on your own, the better option is to hire a tax professional to help you out in maximizing your chances of getting a tax settlement while minimizing your contact with any IRS agents. Remember that the IRS can garnish your income, seize your assets and keep possession of all your properties.

But you can avoid that by choosing one of these ways to settle your IRS tax debts.

Penalty Abatement

In this option, you will have to make a monthly payment to the IRS. It is especially useful if you have been a victim of a fraudulent investment scheme that resulted in you losing most of your money or investment. The process can be highly technical, but it can reduce your taxes paid.

Long Term Installment Agreement

It is a new debt management program of IRS. This option allows you to have a long-term payment plan at a reduced dollar amount. It works the same way as a monthly credit card payment. In this scheme, you can pay off your unpaid taxes in installment. It is a better alternative to paying the IRS all at once. You will need a reputable, well-qualified tax debt attorney to help you negotiate in getting the lowest monthly payment.

Currently Non Collectible(CNC)

In this program, the IRS will not collect your tax debt for a year or so after declaring you as “currently not collectible.” But it is only possible if the IRS received evidence that you cannot pay. It is a useful tool to stop IRS levy, or seizure off assets. Then again, you will need a tax professional to help you provide the IRS with valid proof that you are unable to pay your tax debt. If it’s not handled properly you find yourself with more severe collection rather than none at all.

Innocent Spouse Relief

If you inherit the tax problems of your spouse, you can escape from it. As long as you can prove to the IRS that your circumstances have met the IRS guidelines to receive an innocent spouse tax relief, you  may be a fit for Spouse relief it’s your spouse’s or ex-spouses fault.

There are other ways to settle your IRS tax debts for less than you owe. Each has its own pros and cons. And not all methods are appropriate for your case. If you don’t know the best method that can be used to lower your tax debts, you should consider working with a tax attorney or tax professional. The Tax Advocates at can help.  Give them a call for a free consultation: PH 800-950-2237

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