Three Tax Relief Options To Fix Back Tax Problems
- June 16, 2019
- Posted by: asal
- Category: Tax Relief
Each year, millions of dollars go unpaid in back taxes. Why do s0 many taxpayers have trouble paying back taxes? There are many reasons why someone may be struggling to pay back taxes. However, taxpayers should know there are options to get out of tax debt. The IRS provides several tax resolution options for taxpayers seeking relief from their tax burden. Do you owe the IRS more than $10,000 in back taxes? Platinum Tax Defenders can help you lessen or abolish your tax debt. If you’re someone who owes the IRS thousands of dollars, you probably want to know how to pay it off. The good news is, you don’t have to face your tax debt situation alone. There are tax resolution experts at Platinum Tax Defenders waiting to help you. We have over a decade of experience working with the IRS. Call Platinum Tax Defenders today for a free consultation. Don’t let your tax debt increase – act now.
Don’t wait to pay back taxes
One of the best pieces of advice we can give you regarding paying back taxes is – don’t wait. The longer you wait to pay back taxes, the more tax debt you will have. Every day, the IRS adds interest and penalties to your existing tax debt. What does this mean? As time goes on, your tax debt will only increase. The IRS can penalize you up to 5 percent of unpaid taxes. If you don’t pay back taxes, the IRS can charge you as much as 25 percent of your outstanding tax balance. To avoid fees and interest from not paying back taxes, start paying what you can as soon as possible.
Learn about tax relief options
If you owe the IRS more than $10,000, there are tax relief options for you. The IRs offers multiple tax resolution options to help you pay back taxes. Platinum Tax Defenders’ expert team has more than ten years of experience assisting clients to get out of tax debt. Below is a list of some of three of the tax resolution options available to U.S. taxpayers. If you’re interested in seeing if any of the options might be right for you, call Platinum Tax Defenders today. As a note, this is not an exhaustive list. More tax relief options are available. Call Platinum Tax Defenders today to see how we can help.
With an Installment Agreement, you have the opportunity to pay back taxes in affordable monthly installments. A tax relief expert at Platinum Tax Defenders can help you apply for an Installment Agreement. When attempting to negotiate a monthly payment with the IRS, it’s essential you ask for a reasonable monthly payment amount. If you don’t negotiate effectively, the monthly payment could be high. Before you negotiate an Installment Agreement with the IRS, consult a tax relief professional. Also, make sure you review your bills to determine how much you can afford to pay the IRS each month. Some things to note before applying for an Installment Agreement are:
- The IRS will only approve an Installment Agreement if your tax returns are current
- Once you enter an Installment Agreement, you must pay back taxes on time
Partial Payment Installment Agreement
In this tax relief option, taxpayers have some ability to pay back taxes but can’t pay in full. The IRS can allow you to make payments until the collection period expires. If you’re in a situation where finances are tight, you might want to consider applying for an Offer in Compromise.
Platinum Tax Defenders can help you settle back taxes for less than what you owe. If you’re confident you’ll never have the means to pay back taxes, you can apply for an Offer in Compromise. In an Offer in Compromise, a taxpayer requires you to make a lump sum or short-term payment plan to pay back taxes. While you still have to pay back taxes, you can end up paying much less than you owe. It will take some negotiating with the IRS to get approval for an OIC. For that reason, it’s best to work with a tax resolution expert when attempting to negotiate an OIC. If you qualify for an Offer in Compromise, you can save thousands on taxes, penalties, and interest. However, not everyone will be eligible for an Offer in Compromise. Therefore, you should work with a tax resolution expert when applying for an Offer in Compromise. Platinum Tax Defenders recently got a client’s tax debt down from over $140,000 to $100 with an OIC deal.
Currently Not Collectible
If paying back taxes would create a financial hardship for you, you could be eligible for Currently Not Collectible status. Currently not Collectible is a program in which the IRS voluntarily agrees not to collect your back taxes. However, the IRS will typically not collect on taxes for only a year. If your financial situation improves, you will have to start paying back taxes. While CNC isn’t a permanent fix, it’s a temporary solution that allows time to figure out a tax relief strategy. To determine if you qualify, the IRS will look into your financial situation. In this case, a tax resolution professional can help you determine if this tax resolution option is for you. If you are in Currently Not Collectible status, the IRS must stop any levies, liens, or seizes they have out. Platinum Tax Defenders have years of experience qualifying taxpayers for Currently Not Collectible status.
Get Help From A Tax Relief Professional
Hiring a tax relief specialist can get you a better deal when attempting to pay off back taxes. A tax attorney can help you determine which repayment method is right for you. The tax resolution specialist can also negotiate with the IRS on your behalf and submit the necessary paperwork. Owing back tax debt can leave you in bad financial shape. The IRS only wants to get what money you owe them in back taxes. Often, they are willing to help you settle back taxes, but you have to know how to try. That’s where a tax relief services company can come in handy. When you hire a tax resolution professional, there are other methods you can use to avoid expensive back tax debt. Call Platinum Tax Defenders for a free consultation today.