Resolving Your IRS Debt
So you’ve received a letter in the mail from the Internal Revenue Service stating that you owe the government money. This IRS debt may throw you for a loop, but it’s important to understand that this happens to many people every year. Most importantly, there are ways to resolve your IRS debt. Time is of the essence, so reach out to Tax Matters as soon as possible so we can start working toward dealing with your debt.
How Did This Happen?
If you find yourself facing debt from the IRS, you may feel uncertain about how this must’ve happened. In many cases, you owe the money as a result of a divorce or another life-changing event. You put your head in the sand and the next thing you know, you owe for multiple years. You ask yourself, “How did this happen?” and “How will I ever pay the IRS what is owed?” The answer is, you probably won’t. But there are options.
- Installment Agreement
- A long-term payment plan in which the amount owed is paid in 120 days or more.
- Partial Pay Installment
- Similar to installment agreements except that only part of the taxes owed is paid over time through monthly payments.
- Debt Not Collectible
- This program can be implemented if you currently have no financial ability to pay off your tax debt. Until there is an improvement in your financial situation, all collection activities by the IRS will cease.
- Offer in Compromise (OIC)
- If you’re unable to pay your full tax liability, you may be able to settle your debt for less than what you owe with an Offer in Compromise. You must be eligible in order for an OIC to be approved. Your ability to pay, income, expenses, and asset equity will be considered when the IRS is deciding on approving an OIC.
You may be a candidate for an installment agreement, or if you can’t pay your balance during an 84 month period, you may qualify for a partial pay installment agreement. If neither of these work, the IRS can elect to classify your case and your debt as currently not collectible. Finally, you may be a candidate for an offer in compromise. Whatever your case may be, Tax Matters can assist you in developing the right strategy that works for you. Call us today. WE CAN HELP!
Tax Matters Is Ready to Help Taxpayers in El Paso
Facing the IRS can be difficult. Let our team guide you through this situation. Tax Matters has been serving the Sun City for years, and we understand the issues El Pasoans face when tax season rolls around. Contact us today to learn more about what we can do to help.