Here are some IRS tax settlements tips you can use to deal with tax debt you can’t pay:
Borrow from a bank, family, or friends and pay the tax bill in full.
Negotiate a monthly payment plan with the IRS. Your payments will include interst and penalty charges.
Ask the IRS to accept less than the full amount due by filling IRS Form 656, Offer in Compromise. This program may be considered only after other payment options have been exhausted.
File for chapter 13 bankruptcy to set up a payment plan for your debts, including your taxes.
Certain tax debts are dischargeable on Chapter 7 bankruptcy, find out if you can wipe out yours.
If you are out of work or your income is very low ask the IRS to designate your tax debt temporarily uncollectible. Interest and penalties will continue to accumulate, but this will buy you time to get back on your feet before you have to deal with IRS.
If your taxes are delayed because you've experienced hardships, then you may qualify for IRS Tax Settlements programs which allow you to settle your tax debts.
Have received IRS notices for late taxes, interest and penalties? Or even worse a Notice of Federal Tax Lien or a Notice of Levy?
You can settle your tax debt for less than what you owe using the IRS offer in Compromise program. This program may be considered only after other payment options have been exhausted.
Liens: A lien is a record on file that you owe outstanding taxes. This record is filed with your local government and is also reported in your credit history, hampering any future efforts to secure loans.
Levies: A levy is the seizing of property or wages. Wage garnishment is negotiated by the IRS and your employer.
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