Options For Resolving Tax Debts

Falling behind on your taxes and having to cope with the IRS’s penalties may be a difficult situation that affects every aspect of your life. Fortunately, you have a number of choices for reducing or eliminating your tax due with the IRS. Overwhelming tax debt isn’t an unsolvable problem, whether you tackle it yourself or employ a tax attorney to assist you.

Managing Tax Debts

There is no easy answer for getting out of back taxes, but consulting with an expert to establish an appropriate solution for your specific case can make a significant difference. The following are the five options for dealing with tax debt:

• Installment Plan- This permits you to set up a monthly payment plan with the IRS if you can afford to keep paying your taxes and merely need to restructure your debt and payment plan. This is the ideal alternative for people who have simply fallen behind on their payments or cannot afford to make them as soon as they are due.
• Partial installments- This option lowers the amount of money you owe the IRS. You must, however, agree to a long-term repayment plan in exchange for a reduction in your tax liability. Despite the fact that your tax obligation will be decreased, you will continue to feel the sting for many years to come.
  Offer in compromise- This is a lump sum payment made upfront or under specific agreement to a short-term payment plan. This options allows you to reduce your total tax debt amounts owed.
• Not currently collectible- This is an option if you cannot afford to pay any amount of debt. The IRS may agree to voluntarily agree to stop collection efforts for a year or until you’re financially stable again.
• Bankruptcy- This option will resolve your debts similar to an installment plan in that you will have any qualified tax debts repaid in a series of payments under a Chapter 13 plan. However, not all tax debts are eligible for bankruptcy.

If you are unable to pay your tax debts or are concerned about your overall debts, consult a Dallas bankruptcy lawyer.