Four ways to stop the IRS from levying taxes and garnishing wages
If you have back taxes, you are not alone at all as close to 20 million Americans have the issue of lingering tax debt in theif lives. It is stressful and if not taken care of, their could be some hardcore financial ramifications due to the actions that the IRS could act on.
The Internal Revenue Service is very notorious for their ways to get their money. There is no way to stopping them and ultimately back taxes will be recouped one way or another.
But there is something that seems seldomly known due to every American’s fear of the Internal Revenue Service that could help them. The tax man wants to help you in tough times more than you think. There are several different avenues in negotiation and settlement of your back taxes that the IRS are willing to explore with you. Four of them are listed below:
I. Claim Hardship
You could claim that you are going through a personal hardship and there are several different courses of action that could be negotiated. You could have your taxes dismissed if you are considered “uncollectable” or have your owed taxes deferred, which means a delay in the IRS pursuing collection for tax debts.
II. Arrange for a payment installment plan
the Internal Revenue Service is also willing to work out a payment plan to fulfill any tax debts that are owed to them. You have to be willing to communicate with them or have a power of attorney through a tax settlement firm discuss and negotiate the options. The payment plans are decided with the factors of your dependents, what is owed and your ability to pay.
III. File for an “Offer in Compromise”
Although only 10-15% of all OIC letters are considered and approved by the IRS, an Offer In Compromise is where you declare that you are having hardships and are unable to pay for any tax debts or all of the tax debt. Usually if you are approved by the IRS for an OIC, a major percentage or even all of your owed taxes and penalties are wiped.
If you are filing jointly with a spouse and you happen to suffer from interests or penalties from tax errors that were made by your spouse, you can claim for innocent spouse. If the IRS approves, they can declare you “free of tax liability” for taxes, penalties and interests that might of incurred from your spouses error.
IV. Just simply pay what taxes are owed in full
This might be the easiest, but for most a very difficult way of getting their taxes situated. Once you have your taxes paid in full, piece of mind and sleepless nights are done for!
Either you handle this by yourself or have experienced firms help you, it is important that you take care of your owed taxes As Soon As Possible. The sooner the better and the less penalties and interests that would be accrued.
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