Ways You can Settle Your IRS Tax Debts for Less Than What You Owe
When the IRS threatens you with tax levies and wage garnishments after not paying your tax it can be overwhelming. Hence, it is important to make sure that you settle your tax debts for less than you owe. If you do not know how to settle your tax debts for less than you owe then this is your lucky day. This is because this article will help you to know the tips you can follow for you to settle your IRS tax debts for less than you owe.
First off, it is vital to ensure that you avoid burying your head in the sand. You should ensure that you do not pile your letters from the IRS or even throw them away since that is not the solution. It is important that you talk to the IRS and make a plan of how you are going to pay your debt. It is vital to make sure that you keenly follow the plan.
Another thing you can do for you to settle the IRS debt for less than you owe is making partial payments. You can pay what you can afford ones you agree with the IRS that you can pay in partial payments. One thing you can do is to start by paying the IRS half of what you owe. It is vital to make sure that you pay the tax debt according to your agreement with the IRS. When you do this it will ensure that your agreement with the IRS will remain valid.
Apart from partial payments it is vital to make sure that you pay the installment agreement. One thing you can do is to try negotiating with the IRS to allow you to pay the debt in installments. You need to know that the IRS will add interests and penalties on the debt. The reason why this is so if you are paying the tax debt slowly.
Another thing you can do is to call a tax professional. You will get advice on what you need to do if you are in debt in case you have any unpaid tax debt. The tax professional will also help you to know exactly the steps to take for you to ensure that you can pay all your debt to reduce further problems.
You can also file for bankruptcy. Doing this will help you to avoid any debts since the IRS cannot collect the debt from a person who is labeled bankrupted.
To sum up, reading this article will help you to know how to pay the IRS tax debt for less than what you owe.