How to Negotiate Tax Debt Relief
Federal tax debts come up for a variety of reasons, such as individual return paperwork errors, back support, unpaid payroll taxes, and so on. The key factor in settling tax debt is acting fast. A debtor must immediately respond to the notice of debt to avoid additional penalties, garnishment, levies, and judgments. Federal tax debt is a serious matter, so always be sure to respond quickly. Let's look at tax debt relief advice.
Call the IRS Immediately
The quickest way to settle a new tax debt is to call the number on the notice and speak with an IRS representative about it. The debtor may be able to initiate an installment agreement with the IRS. They can also suggest a certain amount for payments each month, and then the IRS can agree or disagree with it.
The installment payment can begin the same day if the debtor has a debit card on file. The debtor can choose to have the IRS take automatic deductions each month from the same debit card. The agreement will prevent the IRS from taking further action such as levying the person's property or initiating a wage garnishment.
Should I Just Declare Bankruptcy?
Declaring bankruptcy due to IRS debt might seem like an easy solution for tax debt, but it doesn't eliminate the problem. To start with, filing for bankruptcy costs money. There are filing fees and legal costs; if you're unable to pay, you'll have to borrow the money, which will likely be difficult given the financial situation that led to bankruptcy.
Being in the middle of declaring bankruptcy can also limit your options for negotiating with the IRS. Certain payment plans are not available once you begin bankruptcy proceedings. It is better for the IRS and potentially a tax debt specialist first before beginning bankruptcy proceedings.
Contacting a Specialist for IRS Relief of Debt
A person can get help with tax debt from a team of specialists who can provide extensive services. Such teams are diverse and can do more than request an installment agreement. They can investigate the matter and then try to get the balance cut down to a more favorable size. Tax relief specialists and tax attorneys help people negotiate their federal debt and make the payments sizable and comfortable. An interested party can contact a reputable provider and schedule a consultation to get the process started. The specialist will look at that person's profile and assess the situation.
Choosing a reputable provider is the most important part of the entire process. A reliable provider will have credentials and statistics to show that their methods are effective. Customer testimonials will back that information by providing you with personalized recaps of their experiences. A consultation with the provider will give you information to make a decision.
How to Evaluate Tax Relief Specialists
The tax debt relief industry has had issues with scam companies taking advantage of vulnerable people. Do not pay any money or share personal information with a service until you are sure it is legitimate. Always speak to consultants in person at their offices; if a consultant is unwilling to meet you at his office or in person, that is a huge red flag. Check ratings at the Better Business Bureau, and choose companies that have good online reviews or are personally referred by a trusted friend. If a company is promising something that sounds too good to be true, it probably is.
The Benefits of Contacting Tax Relief Specialists
Several benefits come with contacting a specialist handling it as the debtor. The first benefit is stress relief. Tax specialists know how to take over and then get in there and solve the problem. Tax debt is a major problem, and the specialists are more familiar with the process of negotiating it. They will do the work of assessing the debtor's bills and speaking with the organization to downsize the balance if possible, or at least arrange to pay the amount on a more reasonable schedule.
While most IRS negotiations can be done by the debtors themselves, this often requires in-person meetings, phone calls during business hours, and paperwork written in legal jargon. A tax relief specialist can take care of these hassles without the debtor having to take off work or get transportation to IRS offices.
The other benefit of using someone to resolve tax issues is their experience. The debtor's relief team will have years of experience when it comes to the fine lines of tax debt. They'll know the best approach for the situation, and which avenues are available for tax debt relief.
IRS relief of debt is right around the corner. Debtors can learn how to settle IRS debt by contacting a provider for assistance. The key to getting help with tax debt success is immediate action.