Effectively Managing Your Tax Debts
Owing the IRS can be stressful.
Further, dealing with the IRS is not at the top of anyone's list, but if you owe the IRS money and are avoiding them you could be setting yourself up for more trouble down the line.
While dodging the IRS may provide you with some temporary relief from the stress of your unpaid taxes, you may find yourself subject to more serious consequences.
Like any other type of creditor, the IRS maintains the right to pursue collection efforts against you.
However, the IRS is granted more flexibility and rights when it comes to how they can pursue debt collection.
For one, the IRS is much faster to implement wage garnishment orders against your paycheck or bank accounts when collecting on unpaid tax debts.
They may even be able to place a tax lien against your property until your debts have been satisfied.
Neither of these situations is one you want to find yourself a part of, which is why there is a few simple strategies to help you manage your tax debts before more serious consequences are ordered.
Open Communication The first place to start any debt resolution plan is contacting the creditor, or in this case the IRS.
How can they help you if they don't know you are having trouble? Further, the IRS looks more favorably on someone who is willing to contact them for help, rather than duck their calls.
After all, if you are truly innocent in your financial hardship then you have nothing to hide.
It is important that you get in touch with the IRS right away to begin the debt resolution process.
When contacting the IRS request to speak with an account manager or supervisor, as they tend to have more lead way when negotiations are in order.
Always be polite and never threaten or use abusive language with an IRS agent.
If you want them to be compassionate and understanding of your situation, you must treat them with respect.
Debt Negotiation You might be surprised to know that the IRS is actually quite understanding when it comes to tax debts.
They understand that it can be difficult for many people to repay their debts, especially in a lump sum.
Did you know that the IRS offers two programs to help taxpayers repay their debts, easily and affordably? The IRS is more willing to negotiate than you might think, but it requires some effort on your part.
You may be able to secure an installment plan, in which you can repay your tax debts in monthly payments over a few years.
This helps eliminate the overall financial burden while still working to repay the debts.
For those who are experiencing a more significant financial hardship and can't afford to repay their total debt liabilities, the IRS may be willing to accept an Offer In Compromise.
In an Offer In Compromise, the IRS agrees to settle the debt and accept less than is owed, but the offer must be equal to the reasonable amount that you can afford to repay.
Further, dealing with the IRS is not at the top of anyone's list, but if you owe the IRS money and are avoiding them you could be setting yourself up for more trouble down the line.
While dodging the IRS may provide you with some temporary relief from the stress of your unpaid taxes, you may find yourself subject to more serious consequences.
Like any other type of creditor, the IRS maintains the right to pursue collection efforts against you.
However, the IRS is granted more flexibility and rights when it comes to how they can pursue debt collection.
For one, the IRS is much faster to implement wage garnishment orders against your paycheck or bank accounts when collecting on unpaid tax debts.
They may even be able to place a tax lien against your property until your debts have been satisfied.
Neither of these situations is one you want to find yourself a part of, which is why there is a few simple strategies to help you manage your tax debts before more serious consequences are ordered.
Open Communication The first place to start any debt resolution plan is contacting the creditor, or in this case the IRS.
How can they help you if they don't know you are having trouble? Further, the IRS looks more favorably on someone who is willing to contact them for help, rather than duck their calls.
After all, if you are truly innocent in your financial hardship then you have nothing to hide.
It is important that you get in touch with the IRS right away to begin the debt resolution process.
When contacting the IRS request to speak with an account manager or supervisor, as they tend to have more lead way when negotiations are in order.
Always be polite and never threaten or use abusive language with an IRS agent.
If you want them to be compassionate and understanding of your situation, you must treat them with respect.
Debt Negotiation You might be surprised to know that the IRS is actually quite understanding when it comes to tax debts.
They understand that it can be difficult for many people to repay their debts, especially in a lump sum.
Did you know that the IRS offers two programs to help taxpayers repay their debts, easily and affordably? The IRS is more willing to negotiate than you might think, but it requires some effort on your part.
You may be able to secure an installment plan, in which you can repay your tax debts in monthly payments over a few years.
This helps eliminate the overall financial burden while still working to repay the debts.
For those who are experiencing a more significant financial hardship and can't afford to repay their total debt liabilities, the IRS may be willing to accept an Offer In Compromise.
In an Offer In Compromise, the IRS agrees to settle the debt and accept less than is owed, but the offer must be equal to the reasonable amount that you can afford to repay.
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