Settling and IRS Tax liability may not seem easy or possible. However, the reality is IRS Tax Settlement is possible through numerous options.
You can apply for IRS Tax Debt Settlement Services through a Company like Paragon Tax Solutions.
Paragon Tax Solutions has assembled a team of experts whose aim is to assist taxpayers like you. We wish to help the taxpayers in our nation so that they can financially grow and become economically stable as well.
This blog will guide you about different ways through which you can settle your IRS Tax Debt.
You can not completely escape taxes. However, you can settle your IRS Tax Debt by paying it later or in small quantities.
That’s where Instalment options come into place.
IRS Tax Debt Settlement Program offering Instalment options allows you to pay taxes in instalments on a monthly basis.
To be eligible for the Instalment options, you will need to satisfy a variety of eligibility criterias such as filing past returns, not owning more than fifty thousand dollars.
To get the exact idea of whether you are eligible, it’s best that you consult our tax specialists at 484-633-9635 or firstname.lastname@example.org
Release Wage Garnishments
The IRS may attempt to have your wages garnished if you owe money and have not come to a payment arrangement. Also, it has the authority to detain federal benefits (such as Social Security and tax refunds) until your tax debt is settled or the statutory deadline for filing a claim has passed.
If you receive a garnishment and find that you are unable to make ends meet with it, get in touch with the IRS to request a modification. The IRS may agree to lessen the amount of garnishment.
Offer in Compromise
An offer in compromise, also known as a settlement that permits you to pay a smaller portion of the back taxes you owe, may occasionally be taken into consideration by the IRS.
In this IRS Tax Debt Settlement Program, you must persuade the IRS that you are unable to make the required payments and make a short-term payment arrangement or a lump sum payment in exchange for a reduction in your debt.
The IRS will look at your credit history, including any credit cards and home equity lines of credit, as well as your net worth when deciding whether to approve your application.
The amount you can afford to pay each month will then be determined by comparing your income to your monthly costs.
Important Note: If you have an active bankruptcy case, you cannot ask for a compromise. You will have two years to pay off your tax burden if you are permitted to enter into a settlement arrangement.
Innocent Spouse Programs
Even though you and your spouse are legally separated, if you file a joint tax return, you could be personally liable for any underpayment.
Nonetheless, the IRS does provide limited relief for married or divorced couples where one spouse or ex-spouse conceals a tax debt from the other.
The partner who was deceived may apply for relief from tax liability through IRS Tax Debt Settlement Services if one partner can show that the other neglected to disclose income, reported income incorrectly, or accepted deductions or credits that were not allowed.
You must be able to demonstrate that your spouse misled you by either failing to disclose income or by taking deductions or credits that were not allowed in order to be eligible for innocent spouse relief.
Currently Not Collectible
The IRS may put your case on hold and declare it to be now not collectable if you can provide justifications for why you just aren’t able to pay your tax right now.
The IRS will notify you when payment is due; the classification of “not collectible” is transitory.
The benefit of this kind of IRS Tax Debt Settlement Program is that the distinction stops tax liens, wage garnishments, and claims against your property.
Qualifying for an IRS Instalment Payment Plan and Using Credit Cards to Pay Your Tax Debt
If your tax debt is $50,000 or less, you may be eligible for an IRS instalment payment plan. Using credit cards with cash-back rewards to pay down your tax debt to this amount could be a wise decision.
However, before using this option, it is important to create a budget to ensure you can make payments and seek advice from a debt management or credit counsellor.
Although accumulating credit card debt is typically discouraged for IRS Tax Settlement, using this approach may be effective in avoiding IRS penalties.
In conclusion, settling IRS tax liability may seem daunting, but there are various options available to taxpayers. Paragon Tax Solutions provides expert assistance to taxpayers, guiding them through the process and helping them achieve financial stability.
The options available include instalment plans, wage garnishment releases, offer in compromise, innocent spouse programs, and currently not collectible status.
Eligibility for each option may vary, and it is advisable to consult with tax specialists before making a decision.
Taxpayers can also use credit cards to pay off their tax debt, but they should ensure that they can make payments and seek advice from debt management or credit counsellors.
With the right approach, settling IRS tax debt is possible, and taxpayers can move towards financial freedom.