If you want to settle tax debts, the IRS offers several options that will help you based on your financial circumstance:
Recompensate
Pay your tax debt in full. This is the easiest way to resolve your tax debts.After which, your debts will be gone.
Payment Extension
Request for a payment extension from the IRS. It could be 45 days to buy you time to assemble the amount that you need to pay. The longest that you can request is 90 days, that is two 45-day extensions.
Offer in Compromise
In this option, you get to make an offer to the IRS to pay an amount lower than the original owed money and get even. However, the IRS is strict on this arrangement. They will only accept an offer in compromise if they feel that your offer is greater than or equal to the amount they would ever collect from you.
Penalty Abatement
This is a common method for settling taxes for less than what is owed. This way, the IRS forgives certain penalties that have been charged on their debt.
Partial Payment Installment Agreement
With this arrangement, you end up paying less than the total amount you owe as the Statue of Collection reaches expiration on each period of your tax debt and a portion of your tax debt falls off.
Innocent Spouse Relief
This is only applicable to taxpayers that have filed jointly for the year they seek relief. This was created by the IRS because of the fact that there are times that it would not be fair to hold a spouse liable for the tax liability that was made during the joint filing.
IRS Tax Bankruptcy
If you filed for bankruptcy, the debts are excluded from your income. This may not be the best option since your credit will be damaged and you may have to liquidate assets.
As you can see, there are many options available to you today to help show you how to settle tax debts. Get started today – the longer you wait, the worse you’ll be off.