1. Review All Documents
If you owe the IRS money, first find out why. Review all documentation from the IRS including your tax returns, business paperwork and letters from the IRS. First, search for filing errors on your end. Be certain you marked your income and deductions correctly. additionally, count for mathematical miscalculations, calculation errors, misspellings and status errors. One incorrect “ checkmark ” or calculation can cause major issues .
If you received a telling from the IRS and you don ’ triiodothyronine understand what it means, consult with a tax relief specialist. many people disregard tax notifications, which leads to even more problems with the IRS. Tax paperwork can be identical confuse, so if you do not understand an IRS notice or letter, find person who can explain it to you or help you directly as your tax representative. If you truly owe what the IRS states you owe, the problem will not disappear on its own. It ’ sulfur important to address the problem in a timely manner to avoid add penalties and interest .
2. Address Penalties and Interest
When you owe tax debt, you not merely owe the declared come. The IRS will charge penalties and concern on the amount owed. This makes the sum owed importantly larger and more unmanageable to repay. You can, however, minimize penalties and pastime under certain exceptions. You can seek a full or fond abatement of the penalties, which would result in an overall lower balance ascribable. If the IRS denies your request to remove penalties, you can submit a formal solicitation to remove them from your score. The key to handling penalties and interest is to address them promptly before they accumulate evening more.
3. Apply for an Installment Plan
An installment agreement is between the IRS and the taxpayer to pay down the existing debt in smaller, more manageable payments over time. adenine long as the payments are made in full, it keeps the IRS from issuing levies and filing liens. Before an installation agreement can be established, the taxpayer must be in complaisance with certain tax obligations. This includes file, federal tax deposits, and withholdings. One significant note with installment agreements is that interest and penalties still accrue throughout the life of the agreement .
While this may sound like a great option, not everyone is eligible for an installation agreement. You must meet necessary criteria to qualify. If you do meet the necessity criteria, it is critical that you understand the terms of the payment plan. You must besides understand how to keep the agreement from defaulting. If you ’ re considering an installment plan to pay off your debt, besides consider working with a tax relief specialist. The Landmark Tax Group team consists of former IRS Agents and Collectors. We know how the IRS works and how to determine if an episode plan is correct for you .
4. Consider an Offer-in-Compromise
Another way to pay off IRS debt is through an offer-in-compromise, which is normally referred to as a tax settlement. This is an agreement between the IRS and a taxpayer that settles the debt for less than the sum owed. Similar to an installation plan, you must meet specific criteria in rate to qualify. In general, for an offer-in-compromise to be accepted, the IRS has to determine that it can collect more from a taxpayer through the village than it can over the life of the remaining solicitation codified.
If you think you are eligible for an offer-in-compromise, it is highly commend that you work with a tax easing specialist. When our clients are potentially eligible, we sit down with them and do an analysis and display of their fiscal situation. This is key in determining whether or not an offer-in-compromise is right and if it will even be accepted. The IRS has strict guidelines and alone accepts offer requests under certain conditions. If our clients do qualify for this special debt repayment option, we assist with the reservation analysis, readiness, and submission to get the best tax colonization possible.
5. Pay in Full
ultimately, if you are able to pay your tax circular in wide, you will save the most sum of money. If you can not pay the full come, you have the option to pay ampere much as you can to avoid the penalties and interest previously mentioned .
The IRS makes it very slowly for taxpayers to pay. The IRS Direct Pay instrument is a safe, easy and dislodge way to pay your taxes directly from your check or savings account. This action can be completed on-line through the IRS web site.
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If you are ineffective to pay your taxes immediately, but what you can pay is within 120 days or less, you may qualify a short-run extension. You can apply for an extension on-line or by contacting the IRS by phone. typically, there is no set-up fee for this type of extension .
If you have IRS-related debt, it ’ mho essential to address it immediately. Review all documentation and choose the best solution to pay off the debt. not all taxpayers qualify for the programs provided by the IRS, but at Landmark Tax Group, our experience personnel of enroll Agents and early IRS Agents will navigate you through the collection procedure and assess your fiscal position to find the best and most favorable course of action .
We ’ ve save clients thousands of dollars with the IRS through tax settlements, installation agreements, levy releases and punishment removals. Get help oneself with your IRS tax debt by contacting us for your no-obligation reference today .