Those who have dealt with IRS before already know how challenging it is to resolve tax debts. For those who are facing IRS tax notices for the first time,it is important to know that this can have far-reaching consequences on your life. Fortunately,a variety of options are available to help you reduce the impact if the tax debt. Here are some of the ways of dealing with the IRS and Tax Debt that can be a huge challenge to an average person:
File for Bankruptcy
Are you are unable to settle your IRS debt and don’t know what to do? You have an option for filing for bankruptcy under Chapter 13 and 7 in order to discharge your tax debts. Under Chapter 7 bankruptcy,you the law allows you to discharge all your allowable debts while Chapter 13 provides for a payment plan that will ensure you pay part of your debts. You can contact a tax expert for advice before pursuing this option.
Innocent Spouse Relief
If your spouse is unable to pay his or her taxes but run a joint income account,you have an option of seeking relief of IRS debt. However,you will need to ensure that you qualify for this option as set out by the IRS guidelines.
The IRS can also discharge all of the penalties owed to the IRS. You can ask for this after being allowed an offer in compromise. It is worth noting,though,that the IRS won’t just give you an amnesty without paying something back. Nevertheless,when approached correctly,penalty abatement can be a great way of settling your IRS tax debt.
Seek a Relief from Wage Garnishments
When you owe backtaxes,you may expect the IRS to start deducting a portion of your wages to pay what you owe. However,this will only happen once your accounts have been frozen. If this ever happened,it is time for you to negotiate with the IRS for a debt relief. You will prove to the IRS that you do not have the resources to meet the basic standards of living under the circumstances. Hiring a[dcl=6975] to represent you can be a great way to negotiate with the IRS to lift the garnishment.