Ways Your Family Can Minimize Debt to the IRSby Rayanne M. Writer
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Handling IRS operations is strenuous and time-consuming. This is especially true if you or your family members are evaluating an IRS payment plan. There are over 26 million taxpayers in the United States who adamantly disagree with the size of the debt they owe to the IRS. Some of them have no objections to the figure. However, they do not have enough money to settle the said amount in full.
Life can seem bleak if you have a huge tax bill that you or your family can’t afford to settle. The US has been experiencing one of the longest-running upsurges of the economy. This has been going on for the past ten years. Despite the growth, millions of Americans still have a hard time settling their tax burden. Here are some proposals that your family can use to lessen the tax bill.
Consider hiring tax resolution experts
An IRS tax resolution service serves corporations, individual and family taxpayers, small and medium enterprises, among others. Consultant groups or individual tax attorneys can enrich their clients with a deep and precise understanding of the entire tax process to better resolve their tax implications. This can also prepare them psychologically for any eventualities that may arise.
You should seriously consider hiring an IRS tax lawyer or a consultant group to handle tax negotiation with the IRS for you. Payment methods vary and hiring a consultancy group or an attorney can help smoothen the process and get favorable terms.
However, you should thoroughly investigate to whom you give the said task. There are excellent experts who can help you out of a tax predicament. The group can help you gain a tax resolution at the lowest figure that the law can accommodate.
An expert can also help negotiate a less daunting payment schedule. A firm will help you and your family have a schedule that you can comfortably afford without the unnecessary straining of your economic life. Consequently, you and your family will be saved from anxiety and stress. It's proper and safe to allow the group's tax defense lawyers or your tax attorney to communicate and deal with the state or federal tax agencies.
Don’t run away from the problem
Even if you or your family cannot overcome the burden, you should consider reminding them to regularly file their returns in time. If that is still not possible, request an extension of time. The penalty for failing to file returns on time is 5% of the tax balance every month. This can potentially reach a maximum of 25%. If you fail to meet your tax obligations by either paying or filing your returns, your debt and that of your family will accumulate and become unmanageable.
Face your situation realistically
It’s very rare for the IRS to forgive debts owed. However, there are available options like Form 656. This is a request for “offer in compromise” to resolve tax liability at a considerably reduced sum. However, these kinds of deals are only available for individuals experiencing crippling financial challenges. If a person in your family, including you, have recently experienced some serious health-care expenses or your job has been taken away and your future income prospects are very limited, you may stand a chance. However, that rarely happens.
How much do you owe? Does it fall below $10,000? You can handle that.
If you or your family’s tax balance is below $10,000, chances are that you can overcome the burden on your own. There’s no need to employ outside help, which will have it cost you more. Form 9465 is a request to the IRS for a plan to settle your balance in installments and can be accessed online. The IRS is usually happy to honor such an arrangement if your balance falls below $10,000. The plan demands you and your family to settle the remaining debt, penalties, and interest within 36 months.
A huge tax balance can be a troublesome burden both financially and emotionally. To appropriately handle it, you must accept your situation and agree to face it head on. Create a proper budget and one that you can easily accomplish to pay off. If not, consider hiring some help from tax resolution experts to help you figure out a strategy to clear your IRS debt since they have better information regarding IRS tax debt regulations.
Created on Mar 22nd 2021 18:58. Viewed 334 times.