Tax Debt Help Information
Author: Steve
Let’s face it, tax debt is unpleasant, daunting, annoying, and it will never just go away…
So it is best to buck up and just deal with it. Here are some strategies and solutions that will help you deal with tax debt quickly and easily.
1. Extension of time to pay: If you realize that you won’t make your tax payments before the April 15 deadline, you can file for an extension of time to pay. Depending on certain factors, the extension can be anything from 30 to 120 days. You must request the extension before April 15th to qualify. Try and pay as much as possible as soon as possible, because you will be charged interest every month.
2. Temporary delay: The IRS could grant you a temporary delay in the event that you are experiencing financial or personal hardship as a result of severe illness or loss of financial records due to natural disaster etc. The IRS could choose to waiver the penalties, but the interest will most likely still apply. Contact them as soon as possible for help in these instances.
3. Tax debt installment agreement: If your debt is too large to pay within 120 days, you can request an installment agreement from the IRS. The IRS will determine the repayment plan based on a review of your income and expenses. Interest will apply, and it is essential that you make each payment on time, since the IRS could rescind the agreement at their discretion if you default on payment.
4. Offer-in-compromise: A possible solution, but not guaranteed, is an offer-in-compromise. In fact, only a fraction of OIC applications are granted. You must be able to shoe the IRS that this is the most you are able to pay.
If you owe the IRS money, the best solution is to do your best to try and settle the debt, even if it means using your savings or taking out a personal loan. By paying the balance in full when it is due, the actual amount you pay will be much lower than if you request one of the payment options, which will include penalties and interest. Even better is to budget for your income tax at the beginning of each tax year, putting some money aside each month, so that you don’t end up with tax debt problems.
For more information and resources on dealing with tax debt visit http://taxdebtinfo.blogspot.com/
Article Source: http://www.articlealley.com/article_881084_19.html
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