Installment Agreements Can Help You Settle Your IRS Tax Debts
Just like credit card debt, mortgage debt and auto loan debt, tax debts are also stressful to deal with. Have you not been able to pay your taxes on time? Are you being overburdened with IRS tax debts? If answered yes, you must take some solid steps to get debt relief and lead a life free of all kinds of financial obligations. Instead of ignoring the problem and refraining from seeking professional help, you must get in touch with a tax debt relief company that might help you deal with your monthly tax obligations. There are many Americans who are under the stress of meeting their tax dues. The concerns of this article will help you get educated about the multiple ways in which you can settle your tax debts.
Guaranteed Installment Agreements
The IRS will agree to an installment plan if you owe $10,000 or less and you meet the following requirements:
- You haven't made a single late payment since the last five years.
- Your current monthly installments will help you pay off the entire balance in 36 months.
- You did not have any installment agreement in the last 5 years.
- You promise to file your tax on time and also pay on time in the future years. The primary benefit of the guaranteed installment agreements is that the Internal Revenue Service will never file a federal tax lien and therefore, you can easily protect your credit score. Tax liens are usually reported to the credit bureau and may have a negative impact on your score.
Streamlined Installment Agreements
Going for the streamlined installment agreement is an easier process because you need not fill out the Form 433-F that the IRS usually requires, to comprehend your present financial scenario. However, if you want to qualify for the streamlined installment agreement, you must owe an amount that is more than $25,000 and also promise to pay back the total outstanding balance within a period of 60 months. The IRS will never accept an amount that will be less than the outstanding balance divided by 50. Manage your personal finances to qualify for this option.
Partial Payment Installment Agreement
If your present financial condition doesn't permit you to make the minimum monthly payments as required by the guarantee and the streamline installment agreements, you can go for partial payment installment agreements. In this payment structure, you can make monthly payments according to your affordability and you will get a relatively longer repayment period. However, the IRS may re-evaluate the terms of the agreement in order to determine whether or not you can make further payments.
An Offer-In-Compromise
Just like debt settlement helps credit card debtors to seek debt relief by making payments that are much less than what they actually owed to their creditors, similarly, an offer-in-compromise will help the tax debtor get away from the actual amount owed. You can negotiate with the IRS and settle an amount that is much less that the actual principal balance. However, the IRS needs to agree that if they would take collection steps against you, you would not be able to give any more amount than this.
As soon as you determine that you owe a huge amount to the IRS, you must immediately take the required steps to get rid of them. Get in touch with a tax professional who can help you seek debt relief from the tax debt burden and help you secure a safe financial future. A tax professional will most likely help you in getting the best settlement deal and get it accepted sooner.
Contributed By: DebtCC Community
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