Owing back taxes or a tax debt to the IRS can be stressful. The situation may have been caused by several things:
- Being self-employed and not having taxes withheld
- Not having enough taxes taken out initially
- Not having the money to pay taxes when they were due
- Simply not filing a tax return
Whatever caused the tax debt, there are multiple ways you can solve this problem. Many people don’t know this, but the IRS tends to be willing to help you make arrangements that will work for you. After all, their goal is to collect the taxes, not to create problems for people. And it doesn’t hurt to work with an experienced attorney in finding solutions.
Here are some ways you can get tax debt relief:
1. Set up a payment plan — the IRS may be willing to set up a plan for you to pay off the debt in monthly installments. This will also help you see a light at the end of the debt tunnel and a more positive, tax debt-free financial future.
2. Make a deal — believe it or not, the IRS may be willing to strike a deal or compromise with you to help you get out of debt. They may be willing to accept less now in order for your debt to disappear. Tax attorneys are experienced in negotiating deals and can help you see if this is a possibility for your situation.
3. File Bankruptcy — the IRS lets taxpayers know there are multiple forms of bankruptcy available. Each one carries with it advantages and disadvantages. Although this may seem like an easy out, it may not be a good solution for you. Paying off your debt in installments may be a better way to go.
If you can reduce your back taxes or eliminate your tax debt, your tax worries will also be reduced. A tax attorney can go through all of the options available to you and help you find the best solution.