There are a variety of options and alternatives to choose from when it comes to settling IRS tax debts. Lucky for all those members of the work force, the IRS is concerned enough and makes sure to have a number of methods available to meet each person’s individual financial conditions. Meaning to say, the kind of financial situation you are in determines the kind of IRS tax debt settlement that will best work for you.
Below is a list of the best practices done in settling IRS tax debts. Take note however that these methods can only work if you are with good financial standing and have the means of paying the government your taxes. Otherwise, these methods may not work well for you.
- Pay in full. This one maybe a little heavy on your pocket, but it is actually the easiest and most convenient way to pay your tax debt. After the big money down, you will not have to worry about paying the remaining amount of taxes in the next several months.
While not too many people resort to this, it is actually considered as an option because it leaves you with no more worries or concerns afterwards. Out of their dire and desperate need, some people actually go out of their way to sell their house and some possessions, borrow money from a bank or relative and the like just so they can pay their tax debt in full.
- Tender for an extension. Of course, if you were just a layman, it would be hard to put together a huge amount of money within a short period of time. That is why some people actually ask for a payment extension to give them ample time to raise the money that they need to pay for their IRS tax debt. More often than not the IRS permits and will give a 45-day maximum extension, going beyond the deadline would entail some penalties and perhaps a higher IRS tax debt to pay due to interest.
- Have a payment agreement with the IRS. If you think that it would be a much better option for you to pay the IRS through installment, then you can come to them and discuss terms and conditions in which you will be able to pay them. This can be on a quarterly, monthly, annual and what not basis depending on what is manageable for you. Remember to make sure that you go through the legal process of applying for the installment agreement to ensure the legally of all terms and conditions.
- “Haggle” or compromise. Yes, this actually is possible with the IRS given that your reasons are validated with proof and you stand on the right ground. This is done through the OIC (Offer in Compromise) form wherein the taxpayer pleads to pay less than the amount he owes provided that he shows proof that the IRS has overcharged him.
- So what are you waiting for? Start settling your IRS debt for this will save you from a lot of hassle in the long run.