How Can I Settle Back Taxes?

Do you feel like you’re having a hard time figuring out how to settle back taxes with the IRS? Many U.S. taxpayers get behind on their taxes and never catch up. Dealing with the IRS on your own can also be an intimidating task. You should not feel ashamed for seeking help to settle back taxes with the IRS. Few taxpayers understand that there are tax resolution resources available to help them. If you don’t pay your debt with the IRS, it can cost you your income, home, and assets. If you’re struggling to settle back taxes with the IRS, here are ways you can resolve your tax debt. A reputable tax relief firm such as Platinum Tax Defenders can help you negotiate a tax settlement with the IRS.

Settle Back Taxes With An Installment Agreement

The IRS happens to be more patient than many realize. With an Installment Agreement, the IRS receives a payment each month. You work out a deal with the IRS to pay a monthly amount that you can afford. The longer you take to settle back taxes with the IRS, the more penalties they will add to your existing debt. An Installment Agreement is a great way to settle back taxes with the IRS at a rate you can afford.

Use An Offer In Compromise To Settle Back Taxes

It’s not easy to receive approval for an Offer in Compromise settlement. However, an Offer in Compromise is an affordable way to settle back taxes if you struggle financially. Typically, the IRS will only accept an OIC if they can’t collect more money from you through traditional means. If you need to settle back taxes and can’t afford to pay, an Offer in Compromise can be a great solution. The experts at Platinum Tax Defenders have years of experience helping clients with Offer in Compromise negotiations. The Platinum team recently got a client’s tax debt down from over $140,000 to just $100 with an OIC deal.

Apply for Currently Not Collectible Status

Currently not Collectible status is for those who can’t afford to settle back taxes at all. For these individuals, paying back taxes would place them in a dire financial state. Currently not Collectible status will not resolve your back-tax debt. Receiving Currently not Collectible status will not clear you from tax debts. However, a CNC status will defer your debt payments for a year or two. Once you’re back to a good financial position, you can resume settling back taxes with the IRS. 

File for Bankruptcy

You may be eligible to file for bankruptcy as a way to settle back taxes. Chapter 13 and 7 of the tax code states that income tax debts may be available for discharge. In the tax code, Chapter 7 allows for a full release of the sum of your allowable debts. Additionally, Chapter 13 provides for a payment plan to repay some of your debt while the IRS full discharges the rest. Before filing for bankruptcy, contact a tax relief specialist for help.

Innocent Spouse Relief

You may be eligible to relieve yourself of debt from the IRS if your spouse or ex-spouse doesn’t pay taxes. As long as you meet the IRS criteria, you can qualify for Innocent Spouse Relief. This tax relief option can be a viable way to settle back taxes with the IRS.

Penalty Abatement

You may be eligible for removal of all or some of your penalties. However, the likelihood of you receiving penalty abatement depends on the kind of debt you have with the IRS. You can request a penalty abatement during a settlement or Offer in Compromise negotiation. The IRS will typically not wipe away your penalties without receiving something in return. If you apply for a penalty abatement correctly, it can be an effective way to settle back taxes.

Wage Garnishment Release

When you don’t settle back taxes, the IRS can take collection actions out on you. A wage garnishment is when the IRS receives a portion of your paycheck each month to pay back taxes. If you are in the middle of a wage garnishment, it’s time to negotiate IRS debt relief. You can get a wage garnishment release if you can prove you don’t have funds to pay basic living needs. The law requires the IRS to leave taxpayers with enough money to pay for necessary living expenses.

Bank Account Levy Release

When you owe the IRS, one of the first things you’ll receive is a notice to levy your bank accounts. The IRS can freeze your bank accounts 22 days after sending you the final warning. It’s nearly impossible to retrieve these funds once the IRS takes them. You should try and get a bank levy release before the bank hands over your funds. A tax relief professional can help with IRS debt. Contact a tax professional as soon as you receive your first notice from the IRS.

Statute Of Limitations Expiration

The IRS only has ten years to collect on your back taxes. Waiting out the IRS statute of limitations may be a viable option to get out of IRS debt. With a tax attorney’s help, you can plan out a way to wait out the IRS statute of limitations. 

Make A Lump Sum Payment

A great way to get rid of penalties is to pay back your taxes in one lump sum. Paying back the IRS in one lump sum can save the IRS time and money on your case. However, not everyone can pay back taxes all at once. Ask a tax professional about your IRS debt to see if paying in one lump sum is your best option.

Call Platinum Tax Defenders for Help Settling Back Taxes

If you need help with IRS debt, it’s beneficial to have someone negotiate on your behalf. Platinum Tax Defenders has a team of expert professionals who can help you resolve your IRS tax problems. Don’t wait to receive the final notice from the IRS. Call Platinum Tax Defenders today for a free consultation.