Tax reliefs offered by IRS to resolve debt
Handling tax debt is another most problematic issue. Most of the people face this problem. If you too are having problems paying off your tax debts and if you canít include these in your debt settlements, you can try out the tax relief options offered by the IRS (Internal Revenue Service). Rather than going in for debts settlement and hurting your credit, you can talk to the IRS about your problem.
Tax relief options offered by IRS:
IRS or the Internal Revenue System advises that you should try to pay off the debts as much as you can, so that you incur fewer penalties. However, some of the debt relief options offered by the IRS are:
1. The installment agreement Under installment agreement you are allowed to make monthly payments on the back taxes; that is in installments so that you are able to pay off all of your tax obligations. Various types of installment agreements are
o Partial payment
2. The offer in Compromise Offer in compromise or OIC is one of the IRS debt relief options according to which you don't need to pay the full tax debt amount to the IRS. This option is more like that of your debt settlements. However, if the IRS allows you to make payments as per OIC, you will have to follow some terms and guidelines for a couple of years as you make the payments to the Internal Revenue Service. If you fail to abide by the guidelines, IRS will revoke the Offer in Compromise.
3. Currently not collectible plan Under the Currently not collectible plan you are not required to pay your back taxes for the time being. This is a good debt relief option, if you have very low cash flow. However, you will have to pay off the debts later.
By opting for the tax debt relief options you will be able to avoid incurring penalties and thus you won't have to pay more on the interests. You will also be able to avoid wage garnishments and prevent your assets from getting seized by the IRS.