Is owing back taxes putting financial and emotional stress on you? The good news is that you don’t have to just suffer through this stress. The IRS offers options for taxpayers who owe back taxes but cannot pay what they owe in one lump sum.
One of the most popular options for taxpayers who owe back taxes is an installment agreement. When you establish an installment agreement with the IRS, you agree to pay off what you owe in smaller monthly payments. Before you can qualify for this type of arrangement, you must make sure that you have filed all required tax returns. If you have not yet done so, the IRS will not even consider granting you an installment agreement. You must also be current with any estimated tax payments prior to the IRS considering you for an installment agreement.
Offers in Compromise
Another option you can pursue with the IRS is an offer in compromise. This allows you to settle your tax debt for less than what you actually owe to the IRS. Again, you must be certain that you have filed all required tax returns before applying. In addition, your application for an offer in compromise will not be considered if you are in an open bankruptcy proceeding.
If you’re not sure which option is the best choice for you or you want to maximize your chances of securing a favorable tax settlement, consult a qualified tax resolution specialist. When you turn to the pros at Taxation Solutions, Inc., you’ll be able to get the tax advice you need to make an informed decision. Get in touch with us today to learn more about our tax help services!