How To Get Rid Of Tax Debt

How To Get Rid Of Tax Debt – Solve your IRS tax problems! These 5 best tax credit programs will eliminate your tax debt so you can navigate the IRS without any hassle.

It can be scary to owe money to the IRS. The IRS is a very large and powerful collection agency on behalf of our government. However, there are tax laws and tax relief programs that can help you fight the IRS! What tax software will you use?

How To Get Rid Of Tax Debt

The first program I want to discuss is called the IRS Offer in Compromise program. The way it works is that if you offer the IRS a certain amount of money, they will forgive the rest of the amount. For example, let’s say you owe the IRS $100,000. If the calculations work correctly based on your income, equity and assets, you can just pay them, say $100. You will offer them $100. If the IRS accepts this offer, it means everything else is forgiven. The proposed agreement works like this. This is one of the best programs because it covers everything; Income tax, penalty interest. You have truly made a fresh start.

Keyword:irs Tax Debt

The second program I want to discuss is known as Financial Hardship, or as the IRS calls it Currently Unenforceable, or Status 53. If for some reason you are not eligible for the offered settlement, Currently Unenforceable is a great program.

When you get Status 53 or are currently ineligible, this is a $0 per month payment plan for the IRS. As long as you remain in collections status, the IRS will not hold it against you, even if the money is owed. Along with noncollectible status, also known as CNC, there is one more thing you should know about the IRS. This is an open secret.

The IRS only has 10 years to collect the amount you owe. This is called the collection statute expiration date or “CSED.” After 10 years, the tax office’s time limit has expired and they can no longer collect from you. If you join the CNC program, it does not extend the 10-year rule. So that’s good!

The third program I want to talk about today is known as a Hardship Payment Plan, also known as a Partial Payment Agreement. Let’s say you owe the IRS $100,000, but you don’t qualify for CNC and are not eligible for an Offer in Compromise. However, depending on your finances, you could pay, say, $75 per month to the IRS. So even if you owe $100,000, the IRS will accept a payment plan of $75 per month.

You Could Be Missing Out On Tax Debt Reductions! • Taxrise.com

Now, remember that 10 years is an open secret that the higher up only has 10 years to pay off the balance, and the same applies for this distressed payment plan. It doesn’t move the date, so that’s great news. If you join a payment plan, you can only pay what you can afford. Again, this is known as a hardship payment plan, also known as an installment plan.

A fourth way to handle this is if you have gone through a divorce and you discovered that your ex-spouse did some disgusting things that were completely against the marriage, broke community property laws, and cost you money during the divorce. It turns out you suddenly owe taxes. Now, depending on the state you live in, the IRS applies state law. However, if the circumstances and reasons are too unfair for you, you can apply for innocent spousal support.

Under the terms of innocent spouse relief, the IRS will look at how income was earned, how taxes were accrued, and what your normal living situation is with your former spouse. So if they find out that it was not your fault, that you acted in good faith, they will waive all charges and fines and the only person they are responsible for is your ex-husband. This is also a great program if nothing else works.

The fifth way you can go ahead and resolve your tax issue is to say that you never filed an income tax return and have the IRS do so on your behalf. The IRS calls this an SFR, a substitute return. This means that they made no cuts, adopted no exceptions. They basically said, “Here’s your income. Here’s your taxes. Here’s the interest and penalties. Now you owe us.”

What Is A Tax Return And How Long Must You Keep Them?

You can go ahead and edit your tax return. You’ll want to obtain a copy of your wage and income records from the IRS, review your deductions, and refile your tax return. If this reduces the balance, it is a great way to move forward and eliminate debt.

I have discussed with you five different ways to proceed and resolve all your tax issues with the IRS. One thing to keep in mind is that you have to act. What happens when you have old debts owed to the IRS is that the IRS can come after you. They can pay bank charges. They could get a salary. They can file federal tax returns. The IRS will completely back out as soon as you settle all of your tax outstanding. So it is very important that you act.

Prefer to seek professional help? we can help! Schedule a FREE Tax Break Strategy Meeting! Click below to get started! I don’t know many people who aren’t afraid of the IRS! After all, they are quite a powerful agency that can make your life miserable. As a former client once said when we were able to eliminate $450,000 in tax debt in Chapter 13 bankruptcy – “I just got my life back!”

The most important thing is to act immediately as soon as an IRS agent contacts you about your tax debt. If you have an IRS tax debt that is more than three years old, you can discharge it through bankruptcy. Anything that cannot be discharged can be paid off through Chapter 13 bankruptcy without any additional penalties or interest.

Tax Debt Relief

There are many “tax break” companies that promise to dramatically reduce or eliminate your tax debt. All of their programs have one thing in common that doesn’t work in your favor – they are still dependent on the IRS to decide how to handle your IRS debt. You are still at the mercy of the IRS regarding the outcome of your case.

The IRS has released a list of the top 20 IRS tax scammers. The list includes what you often hear in commercials – reduce your tax debt! Most of these companies operate “offer-in-compromise” factories where their employees fill out offer-in-compromise applications for the IRS to review. The truth is that most offers in compromise are not accepted by the IRS. In fact, only a small percentage of them are accepted. But tax credit factories make money by filing applications for you (which you can do yourself). What is the end result? You’re paying someone to fill out a form that you could fill out yourself, and the IRS still has the final say on you and your tax situation. There is a better way to get out of tax debt.

Bankruptcy puts the power of bankruptcy law in your favor when it comes to debts owed to the IRS. Most people are unaware that there are provisions in bankruptcy law that can eliminate back taxes when satisfied.

If you meet all of the following conditions, you can completely discharge your debt to the IRS by filing bankruptcy:

Tax Debt • Iapda Certification

When taxes are not paid in bankruptcy, you can still be discharged from the tax debt by filing Chapter 13 bankruptcy and repaying the debt within 5 years without incurring additional interest or penalties.

“Chapter 20” bankruptcy is the term given when Chapter 7 bankruptcy is filed first and then Chapter 13 bankruptcy is filed to resolve financial situations that require a payment plan. Examples include outstanding IRS debts, late mortgage payments, or late car payments. Chapter 20 bankruptcy allows you to impose a payment plan on creditors who may not be willing to work with you on repayment terms. Chapter 20 bankruptcy is not a common option, but sometimes it is the best way to work out a repayment plan that fits your budget and meets your financial goals.

We all know that tax laws are complex. Getting the most out of bankruptcy requires experience and a thorough understanding of how bankruptcy law intersects with other areas of law, such as tax law, bankruptcy law, and debt collection.

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