Liberty Financial Solutions, LLC: We worry about the IRS so you don't have to...
How to resolve your IRS debt...
How To Resolve Your IRS Debt:
Dealing with IRS debt can feel overwhelming, but there are strategies to help you manage or even reduce what you owe. Here are three effective ways to tackle your IRS debt without having to pay the full amount:
1. Offer in Compromise (OIC)
An Offer in Compromise is an agreement between you and the IRS that settles your tax debt for less than the full amount you owe. This option is designed for taxpayers who can’t pay their full tax liability or who would face a financial hardship if required to do so. To qualify, you must prove that paying the full amount would be an undue burden or that there is doubt as to the collectibility of the debt. The IRS considers various factors, including your income, expenses, and asset equity. The application process can be intricate, so it’s often helpful to work with a tax professional to ensure you meet all the requirements and present your case effectively. Keep in mind that the IRS is the final arbiter and only about 1/3 of offers in compromise are actually accepted.
2. Installment Agreements
If you can’t afford to pay your debt in full but can manage to make regular monthly payments, an Installment Agreement might be a viable solution. This arrangement allows you to pay off your debt over time, and in some cases, the IRS may even reduce penalties or interest rates. Depending on your financial situation, you might qualify for a streamlined installment agreement with a simplified application process. For larger debts, you might need to provide more detailed financial information to establish your payment plan. This option doesn’t reduce the amount you owe but makes it more manageable by spreading payments over a longer period. (A partial pay installment agreement does reduce the amount you owe however.)
3. Currently Not Collectible Status
If you’re experiencing significant financial hardship and can’t afford to make any payments toward your tax debt, you might qualify for Currently Not Collectible (CNC) status. While this doesn’t eliminate your debt, it temporarily suspends collection activities, including wage garnishments and bank levies. To qualify, you’ll need to demonstrate to the IRS that you have no disposable income or assets that could be used to pay your debt. The IRS will periodically review your financial situation to determine if your status should be updated. This option provides relief while you work to improve your financial situation, but it’s essential to stay in communication with the IRS and keep them informed of any changes in your financial status.
Conclusion
If you do find yourself dealing with crippling IRS tax debt, reach out to your premier tax resolution experts at Liberty Tax Defenders and we can help you resolve your IRS issues. We will help you determine if you may qualify for an offer in compromise, an installment agreement, or another arrangement to resolve your tax debt for cents on the dollar.
Don't forget to reach out to us today for a FREE consultation!
To your success!
P.S. Make sure you get your FREE copy of our SPECIAL REPORT: "The 7 Secrets The IRS Does NOT Want You To Know!" (simply click on the link in the previous sentence, scroll down to the second section of our home page, and download your copy today!)
Or, email us at: info@libertytaxdefenders.com for your FREE copy.
Comments