IRS Tax Debt Relief
For any person debts are stresfull, but tax debts are twice stressful to deal with. There are some helpful tips on setting up payment plans, requesting affordable installment agreements, reducing your tax debts through an Offer in Compromise, or discharging your tax debts through bankruptcy.
Read More about IRS Debts
- IRS Debt Forgiveness
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- IRS Lien Release
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- IRS Penalty Abatement
But what if these methods don’t work and you owe back taxes and penalties? what can you do? Is IRS can forgive tax debt? First of all try not to panic, deciding the problem step by step in a calm manner. Commonly it will always yield a better result. Situations with the IRS can range from simply being late filing your taxes one year to substantial penalties and even legal ramifications.
In most cases, the financial situation of the taxpayer will determine the payment arrangement. A compromised settlement can be arranged with a monthly or quarterly payment plan or possibly a tax debt settlement for a fraction of what is owed.
One of the most common tax penalties is the failure to file penalty, which is 5% of the tax not paid, not to exceed 25% of the tax amount owed. If you are more than 60 days late, you will owe 100% of the tax amount or $100, whichever is less and may owe more than this. If you have not filed your taxes, simply get it done and pay the penalty. The problems will only worsen with time.
Failure to pay penalties also may apply to many taxpayers. Again, these penalties are not unreasonable, and you should just accept the penalty and make timely payment arrangements. Penalties range from ½ to 1% of the tax owed, but does not apply if you have filed for and been granted an extension. You cannot be charged a penalty of more than 25 % of the taxes owed, and you may be exempt from the penalty if you have good cause for not having paid on time.
As a rule, the Internal Revenue Service offers installment payment plans in order to settle your back taxes and pay any relevant penalties. So, in order to avoid problems, try to take advantage of automated payment options for such a plan. But don’t get alone in such situation; you’d better social support from the side of proffecional advisable companies. They will do all bests in order to eliminate debt problem from your life forever!
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